Longtech Smart issued an announcement, expecting net profit attributable to the parent for the first half of 2026 to be between 4.8 million yuan and 7.2 million yuan, a year-on-year decline of 87.48% to 91.65%. After deducting non-recurring gains and losses, net profit attributable to the parent is expected to show a loss of 2.4 million yuan to 4.8 million yuan, a year-on-year decline of 104.73% to 109.46%. The main reasons for the performance change include an exchange loss of approximately 39 million yuan caused by the depreciation of the US dollar against the renminbi, intensified industry competition and rising prices of upstream core raw materials, as well as high initial research and development and market development expenses for the newly controlled subsidiary Youka Intelligent Technology Suzhou Company Limited, which is in its start-up phase. In the first quarter of 2026, the company achieved revenue of 353 million yuan and net profit attributable to the parent of 1.2 million yuan.
Shenzhen Longtech Smart Control Co. Ltd.Net profit expected to drop 87-92% YoY, with core profit turning to loss.
Start-up phase of newly controlled subsidiary causes high R&D and market expenses.