Sinosun Technology published its 2026 interim report on August 25, showing higher revenue but weaker profitability, while operating cash flow swung from positive to negative. The company achieved operating revenue of 235 million yuan, up 3.96 percent year on year, but net profit attributable to shareholders was a loss of 129 million yuan, with the loss widening 92.38 percent from a year earlier. Net profit after deducting non-recurring items was a loss of 132 million yuan, with the loss widening 86.92 percent. Net cash flow from operating activities was negative 142 million yuan, a sharp decline from positive 89 million yuan in the same period last year. The main reason for the change in performance was a higher proportion of low-margin externally purchased products, with operating costs rising 49.12 percent, far outpacing revenue growth. At the same time, the appreciation of the renminbi led to exchange losses, and finance costs turned from negative to positive at 116 million yuan. By product, revenue from broadband network products grew 19.78 percent, while revenue from mobile network products and network content security products fell 51.24 percent and 32.42 percent respectively. Revenue from externally purchased third-party equipment surged 126.38 percent, accounting for nearly 30 percent of total revenue. The company is advancing its transformation toward AI security governance and data operations, but faces risks from market competition and exchange rate fluctuations.
Shenzhen Sinovatio Technology Co Ltd Class AInterim report shows widening losses and negative operating cash flow, with costs rising faster than revenue.
