Xinhua Lande Scitech Co., Limited reported a sharp turnaround for the six months ended 30 June 2026, moving to a net profit of RMB 4.47 million from a RMB 0.05 million loss a year earlier.
Revenue rose 26.29% year on year to RMB 154.29 million, underpinned by solid expansions in its two core businesses: • Trading of hardware and computer software: sales advanced 23.50% to RMB 140.79 million, accounting for 91% of group revenue. • Smart-city solutions: revenue climbed 61.80% to RMB 13.22 million, reflecting stronger project delivery and a higher share of value-added services. E-commerce operation solutions, currently in pilot restart phase, contributed RMB 0.29 million.
Group gross profit increased 42.13% to RMB 17.36 million, lifting gross margin to 11.25% (H1 2025: 10.00%). The smart-city segment’s margin expanded to 56.25% (H1 2025: 40.19%) on a richer mix of software and data-service contracts, while the trading segment’s margin eased to 6.84% amid order-mix changes and higher procurement costs.
Operating expenses were broadly stable: distribution and selling costs fell 19.44% to RMB 3.98 million; general and administrative expenses were largely flat at RMB 5.60 million; R&D spending declined 29.46% to RMB 0.91 million. Finance costs increased to RMB 0.74 million following higher short-term borrowings.
Cash flow from operations recorded an outflow of RMB 26.98 million, mainly due to inventory build-up for second-half deliveries and higher prepayments. Net cash rose to RMB 30.01 million after raising RMB 33.23 million from financing activities, including new bank borrowings and a March 2026 private placement that issued 52.28 million H-shares and generated net proceeds of HKD 15.82 million.
Key balance-sheet indicators (30 June 2026 vs 31 Dec 2025): • Total assets: RMB 182.35 million, up 53.36% • Total liabilities: RMB 115.23 million, up 64.55% • Net assets: RMB 67.13 million, up 37.40% • Current ratio: 1.56 (31 Dec 2025: 1.68) • Gearing (total liabilities/total assets): 63.19% (31 Dec 2025: 58.89%) • Inventories: RMB 54.54 million, quadrupling from RMB 13.43 million on advance stocking • Trade and bills receivables: RMB 68.03 million, slightly below year-end level • Bank borrowings: RMB 69.12 million, doubling from RMB 34.51 million; all due within a year
The board did not declare an interim dividend, unchanged from the prior-year period.
Looking ahead, management plans to deepen its “product + service” model in hardware/software trading, expand recurring-revenue streams in smart-city operations, and explore AI-related applications leveraging existing customer relationships and infrastructure. Any AI initiatives will remain complementary to core activities. No material post-period events were reported.