Tongwei Shares released its 2026 interim report on August 27. Revenue achieved steady growth during the reporting period, but net profit declined significantly, and operating cash flow turned from positive to negative, showing a pattern of rising revenue without rising profit. The financial report shows the company achieved operating revenue of 598 million yuan, up 16.30% year on year; net profit attributable to the parent company was 55.1369 million yuan, down 33.75% year on year; and non-GAAP net profit was 51.2971 million yuan, down 28.94% year on year. Net operating cash flow was negative 146 million yuan, a sharp swing to net outflow from 52.6293 million yuan in the same period last year, mainly due to increased payments for goods. Financial expenses surged 883.45% year on year to 15.2427 million yuan, affected by exchange rate fluctuations, creating a significant drag on profit. The company's revenue is highly dependent on overseas markets, with overseas revenue accounting for 97.66% of the total and growing 15.68% year on year. Front-end video surveillance products, as the core pillar, achieved revenue of 431 million yuan, up 18.95% year on year, raising their share of total revenue to 71.98%. Back-end video surveillance products achieved revenue of 132 million yuan, up 12.45% year on year. The security industry's overall gross margin was 40.12%, down 4.82 percentage points from the same period last year, with front-end product gross margin down 5.51 percentage points to 39.41% and back-end product gross margin down 3.27 percentage points to 44.54%. The change in performance was mainly due to operating cost growth of 26.50%, significantly higher than revenue growth, compounded by exchange losses that caused a sharp increase in financial expenses. The company continued to increase R&D investment, with first-half R&D expenses reaching 114 million yuan, up 16.70% year on year, and advanced the implementation of AI large models and cloud platform technologies, though this has not yet fully translated into higher gross profit in the short term.
Shenzhen TVT Digital Technology Co LtdNet profit down 33.75%, operating cash flow turned negative, and financial expenses surged 883.45% due to exchange rate fluctuations.
