Chutian Dragon Co.,Ltd. (003040.SZ) has released its semi-annual report for 2026, revealing a challenging first half marked by significant financial pressure.
The company recorded operating revenue of 319 million yuan, a decline of 30.21% year-on-year. The net loss attributable to shareholders of the listed company stood at 62.12 million yuan, while the net loss excluding non-recurring gains and losses reached 65.69 million yuan. Basic earnings per share came in at -0.13 yuan.
During the reporting period, the company's core business faced dual operational pressures from both supply and demand sides, culminating in an operating loss. On the demand front, intensified market competition led to declines in both the price and volume of certain embedded security products, dragging down overall revenue. On the supply side, persistently rising global semiconductor raw material prices, coupled with escalating costs in wafer fabrication and packaging and testing, made it difficult for the company to pass on product price reductions to upstream chip suppliers. This resulted in a slower decline in operating costs compared to revenue, compressing the comprehensive gross margin.
Under the guidance of the board, all employees have been rallying around operational optimization, focusing on a multi-pronged strategy to "expand new revenue, reduce costs, enhance efficiency, and revitalize cash flow." Market breakthroughs have continued, with the company winning bids for head-office-level projects from several state-owned and joint-stock commercial banks during the first half, as well as securing third-generation social security card projects in multiple cities, further consolidating its competitive edge.
Progress in technology and R&D has also yielded results, as core self-developed technologies and products, including eSIM, have received certifications from domestic and international industry organizations and clients, strengthening its competitive moat. Internal cost-reduction and efficiency initiatives are beginning to show early signs of success, with smart manufacturing upgrades proceeding in an orderly manner.
During the reporting period, the company established a subsidiary in Singapore to continue expanding into overseas markets. With favorable industry policies supporting the digital security and digital intelligence services sector, the company remains committed to solidifying its development foundation and improving operational quality.
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