Anhui Wantong Technology Co Ltd

Wantong Technology released its 2026 interim report on August 26. The company achieved operating revenue of 444 million yuan, up 37.07% year on year, but net profit attributable to the parent was a loss of 65.84 million yuan, with the loss widening 75.85% year on year, showing a pattern of rising revenue without rising profit. Port and shipping business revenue was 102 million yuan, up 73.34% year on year. Intelligent security business revenue surged 473.06% to 54.89 million yuan. Expressway business revenue was 202 million yuan, up 28.74% year on year. The widening loss was mainly due to a 25.71 percentage point drop in the port and shipping segment's gross margin to 11.05%, a 5.62 percentage point decline in the overall system integration business gross margin to 7.79%, as well as equity incentive expense amortization of about 20.89 million yuan and a 181.84% year-on-year surge in financial expenses. The company's net cash flow from operating activities was negative 145 million yuan, with the net outflow widening. Looking ahead, demand for smart expressways and port digitalization upgrades is expected to be released, but intensifying industry competition, longer collection cycles, and raw material price fluctuations remain the main risks.

Wantong Technology released its 2026 interim report on August 26. First-half operating revenue was 444 million yuan, up 37.1% year on year, but net profit attributable to the parent swung from a loss of 37.44 million yuan a year earlier to a loss of 65.84 million yuan. Net profit attributable to the parent after deducting non-recurring items widened from a loss of 41.55 million yuan a year earlier to a loss of 68.31 million yuan. Net operating cash flow was negative 145 million yuan, down 4.7% year on year, and earnings per share were negative 0.1537 yuan. In the second quarter, operating revenue was 253 million yuan, up 31.6% year on year, while net profit attributable to the parent widened from a loss of 21.86 million yuan a year earlier to a loss of 37 million yuan. As of the end of the second quarter, total assets were 2.956 billion yuan, down 5.7% from the end of the previous year, and net assets attributable to the parent were 1.413 billion yuan, down 3.1% from the end of the previous year. In the interim report, the company said its four main business segments, smart transportation, smart ports and shipping, smart cities, and environmental monitoring, face significant changes. In smart transportation, national policy support for smart highways and digital upgrades of ordinary national and provincial roads is expected to bring new market opportunities, but industry competition is intensifying. In smart ports and shipping, digital and green transformation is accelerating, and policy implementation will provide more project opportunities. In environmental monitoring, market operating pressure continues to increase amid a weak macro economy and strained local finances.

Wantong Technology disclosed an earnings forecast, expecting a net loss attributable to the parent of 46.37 million to 89.42 million yuan in the first half of 2026, compared with a loss of 37.44 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 48.84 million to 91.89 million yuan, compared with a loss of 41.55 million yuan in the same period last year. Basic earnings per share are expected to be between negative 0.1082 yuan and negative 0.2087 yuan. The company stated that intense industry competition squeezed profit margins, leading to a decline in gross margin. At the same time, the amortization of equity incentive expenses of approximately 21.05 million yuan increased compared with the same period last year, and the provision for asset impairment losses also had an adverse impact on net profit.