Xintian Technology disclosed a performance forecast, expecting net profit attributable to the parent for the first half of 2026 to be between 16 million yuan and 24 million yuan, a year-on-year decline of 69.58% to 79.72%. Deducted non-recurring net profit is expected to be between 37 million yuan and 50 million yuan, a year-on-year decline of 11.19% to 34.28%. The company stated that the decline in performance was mainly due to proactively scaling back product businesses with low gross margins and high resource consumption, leading to a year-on-year decrease in operating revenue, while the gross margins of some products also declined. In addition, the impact of non-recurring gains and losses on net profit was approximately negative 23 million yuan, of which changes in the fair value of securities investments affected profit and loss by approximately negative 28 million yuan.
Suntront TechCompany expects net profit to drop 69.58%-79.72% YoY due to scaling back low-margin businesses and declining gross margins.