A Shenzhen-listed technology firm that has captured market attention with a four-day rally has issued a formal statement addressing the buzz surrounding artificial intelligence security. The move comes after its shares triggered an exchange alert due to significant price swings.
On the evening of September 15, Zhongxin Saike (SZ002912, share price 28.45 yuan, market cap 4.858 billion yuan) released a notice regarding unusual stock trading activity. The company confirmed that its closing price deviation over the two consecutive trading days of September 14 and 15 exceeded 20%, meeting the criteria for abnormal trading fluctuations as defined by exchange rules. In its filing, the firm stated that its operations remain stable and provided clarification on the widely discussed "AI security concept." It is worth noting that the stock had secured four consecutive limit-up sessions from September 10 to September 15, fueled by a surge in interest within the AI security sector.
AI Security Revenue Represents Less Than 2% of Total Sales
According to the announcement, the price deviation triggered a review by the board of directors. The company verified that its recent operating conditions are normal, with no major changes to its internal or external business environment. Furthermore, neither the company, its controlling shareholder, nor its actual controller has any undisclosed major matters or significant projects in the planning stage that should be reported. Addressing the market's focus on its AI security labeling, the company explained that its AI application products are centered around the AI WorkForce platform. These offerings provide government and enterprise clients with services such as AI application scenario development, intelligent agent deployment, and AI security governance. However, the company emphasized that this product category operates in an emerging market and is still in its early commercialization phase, with revenue from these products representing no more than 2% of total operating income in the first half of the year.
The filing also disclosed that during the period of abnormal stock fluctuations, neither the controlling shareholder nor the actual controller bought or sold company shares. However, a concerted action party of the controlling shareholder, Shenzhen Capital Group, did reduce its holdings. Entities including Guangdong Hongtu, Nanjing Hongtu, Kunshan Hongtu, and Zhengzhou Bairui had previously disclosed a share reduction plan, which has now been completed. The total reduction amounted to 3.1393 million shares, representing 1.8385% of the company's total share capital, and the transactions were carried out strictly within the previously announced scope. The company also flagged a valuation concern, noting that as of September 15, its latest trailing twelve-month price-to-earnings ratio stood at 597.99 times, significantly outpacing the industry average of 57.73 times for the software and information technology services sector. In light of this deviation from average industry valuation levels, the company urged investors to make rational decisions and exercise caution.
Revenue Growth in First Half Fails to Translate into Profit
Zhongxin Saike is a technology firm specializing in network visualization and security, building its business around five core product lines: broadband networks, mobile networks, network content security, data operations, and data and cybersecurity. The company is advancing its AI application strategy with the AI WorkForce platform as its core foundation. According to its semi-annual report released on August 25, the company generated operating revenue of 235 million yuan in the first half of the year, marking a 3.96% year-on-year increase. However, net profit attributable to shareholders was a loss of 129 million yuan, reflecting a significant 92.38% decline year-on-year. Deducting non-recurring gains and losses, the net loss stood at 132 million yuan, down 86.92% compared to the previous year. The company attributed the decline in net profit to two key factors: certain large-scale projects integrated a significant portion of third-party hardware and software, which carry substantially lower gross margins than proprietary products, and the appreciation of the yuan against the U.S. dollar resulted in foreign exchange losses.
In terms of share price performance, despite the recent surge that triggered the exchange alert, the stock has displayed a generally downward trend so far this year. Market data indicates that the company's share price has fallen approximately 4% on a year-to-date basis.
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