On August 24, 2026, Qitian Technology Group Co.,Ltd. (300061.SZ) released its semi-annual report for 2026, delivering a comprehensively deteriorating set of results. During the first half of the year, the company recorded operating revenue of RMB 202 million, down 10.97% year-on-year; net profit attributable to shareholders swung to a loss of RMB 21.42 million, compared with a loss of RMB 8.88 million in the same period last year, representing a year-on-year expansion of 141.23% in losses. Non-GAAP net profit attributable to shareholders registered a loss of RMB 17.98 million, down 98.26% year-on-year.
Just over a month earlier, on July 3, 2026, the company announced the termination of the private placement to Colorful Haoyue and the related change-of-control transaction that had been in planning for nearly two years. The combination of the first-half performance slump and the failed placement has placed this digital marketing firm, controlled by Yancheng state-owned capital, once again at a critical crossroads.
Double Blow of Falling Revenue and Widening Losses
On the surface, the company's first-half performance deterioration exhibits characteristics of both declining volume and shrinking margins. Revenue fell from RMB 227 million in the same period last year to RMB 202 million, a reduction of approximately RMB 25 million. The profit side proved even more severe — the attributable net loss expanded from RMB 8.88 million to RMB 21.42 million, with the absolute value of net losses growing by 141%.
Notably, in the first quarter, the company managed to achieve operating revenue of RMB 133 million, up 6.18% year-on-year, with attributable net profit of RMB 10.32 million, surging 264.52% year-on-year. However, conditions deteriorated sharply in the second quarter — quarterly revenue plunged 32.15% year-on-year to just RMB 68.80 million, and the quarterly attributable net loss reached RMB 31.74 million, down 171.03% year-on-year. The brief first-quarter profitability was entirely eroded by the deep second-quarter losses.
In the first half of 2026, the company's gross margin stood at 20.60%, plummeting 15.71 percentage points from approximately 36.31% in the prior-year period. The net margin fell to -10.56%, a year-on-year decline of 188.2%. The root cause of the sharp gross margin contraction lies in the imbalance of the business mix. The core digital lifestyle marketing segment generated RMB 195 million in first-half revenue, accounting for over 90% of total revenue, representing growth of only 7.4% year-on-year. The telemarketing business saw revenue shrink sharply due to contract terminations during the reporting period, while the data services segment also underperformed. Under the dual pressure of a rising share of low-margin businesses and contraction in high-margin operations, the overall gross margin continued to be dragged downward.
Expenses also remained under pressure. Total selling, administrative, and financial expenses reached RMB 49.56 million in the first half, representing 24.56% of revenue. Among these, financial expenses of RMB 6.74 million further eroded the already thin profit margins amid declining revenue. The combination of high expense ratios and collapsing gross margins rapidly pushed the company from marginal first-quarter profitability into deep second-quarter losses.
A more alarming signal than profit losses came from cash flow. During the first half, net cash flow from operating activities was negative RMB 185 million. Meanwhile, the company's debt-to-asset ratio had risen to 60.12%, with net assets per share reduced to just RMB 0.66. With the private placement financing channel closed and expectations of a change in control dashed, the continued cash outflow will further compress the company's operational headroom.
Failed Placement: Valuation Bubble Deflation After Colorful's Aborted Takeover
On July 3, 2026, Qitian Technology Group Co.,Ltd. convened the second meeting of its seventh board of directors, approving the termination of the 2024 private placement to specific investors and signing a termination agreement with subscriber Colorful Haoyue, while simultaneously applying to the Shenzhen Stock Exchange to withdraw the related application documents. This nearly two-year "change of ownership" plan began in July 2024 — Colorful Haoyue proposed to subscribe to no more than 120 million shares at RMB 3.33 per share, raising no more than RMB 400 million, after which Colorful Haoyue would become the controlling shareholder, with control shifting to Wan Shan, the actual controller of Colorful Graphics Cards.
At the time, the market responded enthusiastically, with the company's share price hitting consecutive limit-up boards, as investors interpreted the move as a capital feast combining the three concepts of "AI computing power + graphics cards + digital economy." However, this capital operation, which began with a locked-in issuance price of RMB 3.33, ultimately ended in termination due to factors including subscriber qualification issues and changes in the regulatory environment.
Following the failed placement, the valuation bubble built on "backdoor listing expectations" began to deflate rapidly. The share price has continued to decline from its peak, falling to the RMB 5-6 range around the release of the semi-annual report. With Colorful's takeover having failed, Yancheng state-owned capital has re-emerged as the sole controlling party, and Qitian Technology Group Co.,Ltd. must now independently confront the operational predicament of a persistently shrinking core business and consecutive annual losses.
The development history of Qitian Technology Group Co.,Ltd. is essentially a history of constantly switching tracks and relying on transformation to sustain itself through capital operations. From its 2010 listing as a resin eyeglass lens manufacturer, to its 2016 foray into bank card mail-order installment services, to its 2019 pivot to digital merchandise marketing, and finally to the 2020 entry of Yancheng state-owned capital and the subsequent renaming to Qitian Technology, the company has undergone a complete track switch approximately every three to four years. Yet each transformation has failed to establish a truly sustainable competitive moat.
For the full year 2025, the company's revenue had already contracted from over RMB 1 billion in 2021 to RMB 414 million. Entering 2026, this contraction trend continues — first-half revenue of RMB 202 million annualizes to below the full-year 2025 level. With Colorful's takeover having failed and the private placement financing channel closed, Qitian Technology Group Co.,Ltd. no longer faces the question of "whose shell to borrow," but rather the survival question of "how to sustain itself using its own shell."
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