Losses widen, net assets go negative, but a rescuer steps in
First-half loss balloons as revenue shrinks The company now expects a first-half 2026 loss of 85-98 million yuan, far worse than last year's 9.6 million yuan loss, because working capital is short and sales and margins fell. A bigger loss means less value behind each share, which weighs on the price.
The profit warning is the first hard signal this period that the business is deteriorating sharply.
Old accounting violations draw regulator fines Shenzhen's securities regulator proposed a 1.1 million yuan fine for information disclosure violations: subsidiaries inflated 2019 and 2020 revenue and profit through fake projects. This keeps legal and reputational risk alive and reminds investors the books were once unreliable.
Regulatory penalties over past accounting fraud are a real overhang on trust and valuation.
Chairman retires; half-year loss confirmed at 110 million yuan Long-time chairman Liu Zhaohuai retired, though he still holds 32.43% of shares. The half-year report then confirmed revenue down 19.5% to 189 million yuan, a 110 million yuan loss, negative operating cash flow, and net assets turning negative — a serious financial-weakness signal.
Leadership change plus confirmed negative net assets are the core reasons the stock is under pressure.
State-linked investor to take control via 1.377 billion yuan restructuring Guoke Holdings will buy 527 million new shares at 2.61 yuan each, about 1.377 billion yuan, becoming the largest shareholder. This could fix the balance sheet and save the company from delisting, but the deal can still fail or be cancelled, so the outcome is uncertain.
The rescue deal is the single biggest potential swing factor for the stock, but it carries real execution risk.