Weak earnings and stalled asset sale offset buyback and dividend support
Profit and revenue decline, cash flow turns negative First-half net profit fell 23% to 135 million yuan and revenue dropped 10.8% to 2.515 billion yuan. Operating cash flow swung to negative 182 million yuan, a huge deterioration. This weak core business pressures the stock because it shows the company is selling less and collecting less cash.
The interim report is the clearest evidence of fundamental weakness driving the stock down.
Saifeiya stake sale hits payment snag The buyer of ST Juewei's 24.17% stake in loss-making Saifeiya missed the first payment deadline. The 84.58 million yuan exit is now uncertain, meaning the company may stay tied to a long-time money-loser and not get the cash it expected.
This is a new negative event that threatens a planned cash inflow and adds uncertainty.
More related-party deals with a loss-making associate ST Juewei raised its 2026 related-party transaction quota by 25 million yuan, all tied to Sichuan Liaoji, an associate with negative net assets and a first-half loss. This raises concerns about cash being diverted to a struggling partner while the company's own finances weaken.
It shows a new governance and capital-allocation risk that can weigh on investor confidence.
Buyback and dividend return cash to shareholders ST Juewei is buying back 100-200 million yuan of stock and paying a 0.25 yuan per share dividend. By September 30 it had already repurchased about 8.5 million shares for roughly 100 million yuan. These actions support the share price by reducing shares outstanding and returning cash.
These are the main positive forces offsetting the weak earnings and asset-sale problems.