Cecep Techand Ecology&Environment Co.,Ltd. (SZ300197, closing price 2.04 yuan, market cap 6.049 billion yuan) released its semi-annual report for 2026 on August 25. The company achieved operating revenue of 336 million yuan in the first half, down 34.74% year-on-year, while net profit attributable to shareholders stood at -1.625 billion yuan, with losses widening compared to the same period last year. What draws particular attention is that, as of the end of the reporting period, the company's net assets attributable to shareholders of the listed company had shifted from 687 million yuan at the end of the prior year to -970 million yuan.

Behind the massive losses are the asset impairment losses of 613 million yuan and credit impairment losses of 225 million yuan recognized in the first half, together forming a burden exceeding 800 million yuan. In the secondary market, despite the pressure on fundamentals, the company's share price has climbed 15.25% so far this year, with the latest closing price at 2.04 yuan.

Impairment provisions exceeding 800 million yuan

The semi-annual report data shows that during the reporting period, the company achieved operating revenue of 336 million yuan, a year-on-year decline of 34.74%, which the company attributed mainly to increased project settlement deductions. Operating costs reached 817 million yuan, up 34.78% year-on-year, primarily due to increased settlement costs with project suppliers. Under the dual squeeze of declining revenue and rising costs, the company's profitability has come under enormous pressure.

During the reporting period, the company's net profit attributable to shareholders was -1.625 billion yuan, with non-GAAP net profit at -1.645 billion yuan. Looking at the profit structure, asset impairment losses and credit impairment losses became the main factors eroding profits — the company recognized asset impairment losses of 613 million yuan in the reporting period, mainly due to increased goodwill impairment losses, inventory write-downs, and contract asset impairment losses, while simultaneously recognizing credit impairment losses of 225 million yuan, bringing the combined total to over 800 million yuan.

In terms of financial position, as of the end of the reporting period, the company's total assets stood at 23.165 billion yuan, down 6.14% from the end of the prior year. Net assets attributable to shareholders of the listed company were -970 million yuan, compared to 687 million yuan at the end of last year, representing a decline of 241.07%, with net assets turning from positive to negative. Net cash flow from operating activities was -178.9758 million yuan, compared to 2.491 million yuan in the same period last year, turning negative year-on-year, mainly due to reduced cash received from sales of goods and rendering of services as projects under construction near completion.

Additionally, the company's financial expenses during the reporting period reached 238 million yuan, up 9.69% year-on-year. Notably, the company is simultaneously advancing a major asset restructuring during the reporting period. According to the semi-annual report disclosure, the company plans to sell other assets and liabilities except for retained assets and liabilities, with the transaction counterpart being China Energy Conservation and Environmental Protection Group or other market entities. At the same time, it intends to purchase controlling stakes in CECEP Crystal Technology Co., Ltd. and CECEP Xi'an Qiyuan Electromechanical Equipment Co., Ltd. in cash. The company stated that the scope of target assets and transaction prices for this restructuring have not been finalized, and the transaction plan still requires further deliberation and negotiation.

Over 6 billion yuan in cumulative losses over three years

Extending the timeline, the losses of Cecep Techand Ecology&Environment did not begin this year. According to Wind data, the company recorded operating revenue of 1.418 billion yuan in 2023 with a net profit attributable to shareholders of -1.483 billion yuan. In 2024, revenue fell to 1.046 billion yuan with net profit attributable to shareholders at -2.596 billion yuan. In 2025, revenue continued to decline to 900 million yuan with net profit attributable to shareholders at -2.075 billion yuan. Over just the three years from 2023 to 2025, the company's cumulative losses exceeded 6 billion yuan.

Contrasting with the continuously deteriorating fundamentals, the company's share price has shown an upward trend in the secondary market. According to Wind data, as of August 25, 2026, the latest closing price of Cecep Techand Ecology&Environment was 2.04 yuan, up 15.25% cumulatively since the beginning of 2026. Looking back at the year's trajectory, the stock closed at 1.78 yuan at the start of the year (January 5), subsequently fluctuating for an extended period. However, after the disclosure of major asset restructuring information, the share price briefly touched 3.22 yuan.