Xintong Electronics, which surged with four trading limits in five days, issued a volatility notice warning that its share price has risen 35.27% since July, with a large short-term cumulative gain, indicating overheated market sentiment and irrational speculation, and a possible risk of rapid decline. The company also disclosed an earnings forecast, estimating net profit attributable to the parent company for the first half of 2026 at 13 million to 16 million yuan, a year-on-year decrease of 74.26% to 68.31%, mainly due to intensified industry competition pressuring bid prices, as well as rising raw material costs for storage devices, PCBs, and industrial metals pushing up costs, leading to a significant drop in gross margin. In addition, the company increased market and R&D investment, with selling and R&D expenses rising year-on-year, compounded by lower software tax rebates and increased impairment provisions, further dragging down net profit. The company stated that as of the end of June, its order backlog increased year-on-year, laying a foundation for second-half performance.
Shandong Senter Electn Co LtdIntensified industry competition pressuring bid prices, leading to significant drop in gross margin and net profit.