Linewell Software Co Ltd

Linewell Software's share price hit the daily limit down in intraday trading today, halting its previous three consecutive limit-up sessions. Last night, Linewell Software issued an announcement flagging risks and explaining its agent platform-related business, stressing that while the market has recently shown high attention to AI applications, the company's government service agent and WellWork agent platform businesses are still in the early stage of market development. As of the first half of 2026, they have not yet generated revenue, future revenue remains uncertain, and the impact on company performance is relatively small. Linewell Software is an artificial intelligence technology company whose main business covers computing-power coordination, agent operating systems, general AI tools, AI entertainment, AI health, and the AI consumer ecosystem. Previously, the company stated on an investor interaction platform that it has built a complete AI industry landscape comprising a computing-power coordination foundation, the WellWork agent operating system, the Phylii general AI tool, and entertainment, health, and AI consumer ecosystems, with intensive implementation work underway across all segments. In terms of performance, Linewell Software's net profit attributable to the parent company was negative 310 million yuan, negative 447 million yuan, and negative 170 million yuan for 2024, 2025, and the first half of 2026, respectively.

Linewell Software released its 2026 interim report. Total operating revenue was 215 million yuan, down 31.61% year-on-year. Net profit attributable to the parent company was negative 170 million yuan, a decrease of 98.0947 million yuan compared with the same period last year, with the loss widening. Net cash flow from operating activities was negative 146 million yuan, down 955.51% year-on-year. The company's asset-liability ratio was 61.59%, gross margin was 33.16%, return on equity was negative 9.83%, and diluted earnings per share was negative 0.29 yuan. The number of shareholders was 62,700, and the top ten shareholders held 42.60% of the total share capital.

Linewell Software has been placed under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations. The company received a case filing notice from the CSRC on July 10. Linewell Software stated that all business operations are continuing as normal, and it will fully cooperate with the investigation while fulfilling its information disclosure obligations. In the first quarter of this year, the company reported revenue of 117 million yuan, a year-on-year decline of 31.49 percent, and a net loss attributable to the parent company of 49.816 million yuan, with the loss widening further compared to the same period last year. As of the close of trading on July 10, Linewell Software shares stood at 7.95 yuan each, up 2.98 percent, giving the company a total market value of 4.614 billion yuan.

On the evening of July 10, multiple listed companies on the Shanghai and Shenzhen stock exchanges released important announcements. Lifecome Biochemistry clarified that it has no brain-computer interface related businesses or products. Tuojing Technology plans to acquire 82.97% of Wuxi Shangji, 100% of Shanghai Taina Micro, and 100% of Wuxi Kuanxing through a combination of share issuance and cash payment, along with a配套 fundraising, and its shares will resume trading on July 13. Linewell Software has been placed under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws. Wu Yizhong, the actual controller, chairman, and general manager of Tianyuan Intelligent, has been released from detention. The controlling shareholder of Dynamic Power is set to change to Hongmian Sci-Tech Innovation, with shares resuming trading on the 13th. Rike Chemical plans to acquire 70.75% of Genyuan New Materials, adding new energy battery electrolyte material business, and its shares will resume trading on the 13th. CGN Nuclear Technology plans to raise between 850 million and 1.25 billion yuan through a private placement to its controlling shareholder. Shaanxi Blower Power plans to acquire the remaining 36.06% stake in Qinfeng Gas, with shares resuming trading on the 13th. FiberHome Telecommunication plans to raise no more than 2.913 billion yuan through a private placement and intends to acquire 60% of Fujikura FiberHome for 500 million yuan. China Merchants Energy Shipping plans to spend no more than 1.51 billion yuan to build one bulk carrier and four container ships. The wholly-owned subsidiary of LUSTER LightTech plans to sell no more than 334,800 shares of Zhipu. In terms of performance, CITIC Securities expects its first-half net profit to increase by 69.59% year-on-year, Shannon Semiconductor expects an increase of 2,117.54% to 2,434.34%, and China Vanke expects a loss of 12 billion to 15 billion yuan. A controlling subsidiary of Dongyangguang has signed a computing power service contract worth 13 billion to 15 billion yuan. Monalisa has received a commitment letter for a special repurchase loan of no more than 90 million yuan from a financial institution.