The Shanghai Stock Exchange has issued an inquiry letter regarding Shanghai Bayi Space LCD Technology’s 2025 annual report, focusing on abnormal operating performance. The company reported full-year revenue of 868 million yuan, up 17.72 percent year-on-year, but deducted net profit was only 37.7 million yuan, a sharp decline of 39.29 percent, while net cash flow from operating activities was 54.5 million yuan, down 67.68 percent year-on-year. The company responded that revenue growth was mainly driven by its core display materials business, but depreciation surged after new production lines at Hebei Bayi Pharmaceutical and the Zhejiang Shangyu base were transferred to fixed assets. The organic synthetic materials segment posted a gross loss of 31.56 million yuan due to a capacity utilization rate of only 15 percent and a 42.39 percent year-on-year drop in average product prices. This was compounded by asset impairments of 32.52 million yuan, an increase in research and development expenses to 95.79 million yuan, and a swing in finance costs from negative to positive, all of which squeezed profits. The weakening of operating cash flow was due to a 122 million yuan increase in procurement spending for new project inventory and a 48.68 million yuan rise in employee compensation expenses. Sales to three of the top five customers changed by more than 30 percent. The company uses a vendor-managed inventory consignment model, and the post-period collection rate for related accounts receivable was 100 percent. Trading business recognized total revenue of 14.37 million yuan. The edge computing business generated no revenue in 2025, and as of July 20, 2026, only 4.99 million yuan in revenue was recognized on a net basis, corresponding to a total transaction value of approximately 111 million yuan, as the business remains in the investment and cultivation stage. The company stated that short-term profit pressure stems from new business deployment and production ramp-up, and that the strategy is sound over the long term.
Beijing Bayi Space LCD Technology Co LtdDeducted net profit fell nearly 40% and operating cash flow dropped 68%, triggering an exchange inquiry.