Xintian Technology announced that it expects a net loss attributable to the parent of 36.8 million to 50.8 million yuan for the first half of 2026, compared with a profit of 11.3053 million yuan in the same period last year, representing a decline of 425.51% to 549.35%. The loss is mainly due to an associate company ceasing operations at the end of April 2026, leading the company to make a full provision for bad debts on its receivables from that associate, with an additional credit impairment loss of about 71.53 million yuan, impacting net profit attributable to the parent by approximately 60.43 million yuan. At the same time, the reversal of an unpaid equity transfer payment of 14.1 million yuan was recognized as a fair value gain, and a long-term equity investment impairment provision of 11.9648 million yuan was made, with the two items together affecting net profit attributable to the parent by about 1.284 million yuan. In addition, foreign exchange losses and increased bank borrowing interest pushed up financial expenses. However, growth in sales orders drove operating revenue up by about 60% year-on-year, partially offsetting the related losses.
Xdc Industries Shenzhen LtdExpects net loss swing due to credit impairment and impairment provisions, though sales orders grew.