China's Zhicheng Technology Expects First-Half 2026 Net Loss of Up to 380 Million Yuan

en.Wedoany.com Reported - On July 10, China's Zhicheng Technology disclosed its semi-annual performance forecast for 2026, projecting a net loss attributable to shareholders of the parent company ranging from 260 million yuan to 380 million yuan, compared to a loss of 35.3954 million yuan in the same period last year, indicating a significant widening of losses.

The primary reason for the loss is a year-on-year decline in revenue. The company's high-purity process systems business saw an increase in individual project scale and contract size, leading to longer execution cycles. Coupled with intensified market competition, revenue and gross profit for the first half of 2026 are expected to decline compared to the same period in 2025. After deducting non-recurring gains and losses, the net loss for the first half is projected to be between 240 million yuan and 360 million yuan, compared to a net loss of 55.1982 million yuan in the same period last year. The decline in profitability from core operations is the main reason for the expanded loss.

On a quarterly basis, the first quarter already recorded a loss of approximately 79 million yuan. Based on the midpoint of the forecast, the second quarter loss is expected to range from 181 million yuan to 301 million yuan, showing a continuous deterioration quarter-over-quarter, indicating an accelerated release of performance pressure.

Zhicheng Technology's core business includes providing high-purity process systems and equipment to customers in industries such as integrated circuits, biopharmaceuticals, and photovoltaics, as well as process equipment like single-wafer and batch wet cleaning equipment. Its core competitiveness stems from an independent intellectual property system built around underlying technologies such as micro-nano pollution control, complex process control, and ultra-high purity fluid control.

Analysts point out that the high-purity process systems business is characterized by large project scales and long execution cycles, with revenue recognition heavily influenced by project progress. If ongoing orders in the second half of the year proceed smoothly, performance may gradually improve. However, given the significant year-on-year expansion of losses, attention must be paid to the company's subsequent order conversion and cost control.