Chutian Dragon hit the daily limit-up again on August 26, notching a fourth straight limit-up session. In the first half, the company generated revenue of 319 million yuan, down 30.21 percent year on year. Net loss attributable to the parent company was 62.12 million yuan, compared with a loss of 39.77 million yuan in the same period last year. Net loss attributable to the parent after deducting non-recurring items was 65.69 million yuan. On a quarterly basis, the company lost about 12 million yuan in the first quarter and about 50 million yuan in the second quarter, with losses widening sequentially. By product line, embedded security products brought in revenue of 264 million yuan, accounting for 82.72 percent of total revenue and falling 28.45 percent year on year. Smart hardware revenue was 21.09 million yuan, down 53.20 percent, while software and services revenue was 9.12 million yuan, down 72.47 percent. The company said the earnings decline was mainly due to intensifying market competition that pushed down prices and volumes for some products, while global semiconductor raw material costs rose, so costs fell less than revenue. Despite the weak results, the share price has kept hitting limit-up. As of the August 25 close, the stock stood at 15.48 yuan per share, giving a total market value of 7.14 billion yuan. On the news front, the central bank announced that the number of digital yuan operating institutions had been expanded to 30, stirring activity in the sector, but the company cautioned that revenue from related businesses still accounted for less than 5 percent of its total.
Chutian Dragon Co LtdFirst-half net loss widened to 62.12 million yuan, revenue fell 30.21%, and losses increased sequentially.
