Xinju Network disclosed its earnings forecast, expecting a net loss attributable to the parent company of 4.2 million to 8 million yuan in the first half of 2026, compared with a profit of 7.3001 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 6.3 million to 10 million yuan, compared with a profit of 3.3765 million yuan a year earlier. The company explained that its self-owned service business saw a decline in contract value due to budget cuts by core clients. Sales of original equipment manufacturer hardware and software were affected by the shift to domestic IT innovation, failing to offset the decline in non-domestic IT segments. The short drama business experienced shrinking gross margins due to intensified competition. Meanwhile, credit impairment losses and asset impairment losses increased year-on-year.
Shanghai New Centurion Network Information Technology Co LtdSelf-owned service business contract value declined due to core client budget cuts; OEM hardware/software sales affected by shift to domestic IT innovation; short drama business gross margins shrank due to intensified competition.