CETC Digital Technology released its 2026 interim report on August 25. Revenue maintained steady growth during the reporting period, but net profit attributable to the parent company fell sharply due to increased impairment losses and financial expenses, resulting in higher revenue without higher profit. Data shows the company achieved operating revenue of 5.206 billion yuan, up 7.23 percent year on year. Net profit attributable to the parent company was 68.296 million yuan, down 36.54 percent year on year. Non-GAAP net profit was 70.1704 million yuan, down 33.02 percent. Net cash outflow from operating activities was 1.093 billion yuan, and cash and cash equivalents fell 51.18 percent from the beginning of the period. Industry digitalization remained the core revenue source at 4.615 billion yuan, accounting for nearly 90 percent of total revenue. Within this segment, financial industry revenue was 2.264 billion yuan, up 17.33 percent year on year. Party, government and public service revenue was 866 million yuan, up 51.42 percent. Digital new infrastructure revenue was 472 million yuan, up 41.38 percent. Digital product revenue was 130 million yuan, down 35.11 percent. The decline in performance was mainly due to a significant increase in credit impairment losses of 35.8766 million yuan and asset impairment losses of 21.6278 million yuan. Financial expenses rose 33.65 percent year on year, and net profit at subsidiary Huacun Data fell sharply. In addition, the company was penalized by the Shanghai branch of the China Securities Regulatory Commission for information disclosure violations. The company and its then board secretary were fined 2 million yuan and 1 million yuan respectively.
CETC Digital Technology Co LtdNet profit fell 36.54% due to higher impairments and financial expenses; also fined for disclosure violations.
Subsidiary Huacun Data's net profit fell sharply, contributing to the parent's decline.
