What happened
In its September 3 interim report for 2026, the company said first-half revenue reached 66.997 million yuan, a 29.08% decrease from the same period last year. The net loss attributable to shareholders narrowed to 3.232 million yuan from a 3.742 million yuan loss a year earlier. Basic earnings per share were -0.0022 yuan, and average return on net assets was -0.4%, rising 0.06 percentage points year over year.
The company operates through two segments: smart energy, which includes owning and running photovoltaic stations, maintaining some residential PV plants, and holding clean heating projects; and public construction, focused on the Baoding East Lake project in Hebei province. During the reporting period, cash fell 12.94% from the end of the prior year, while contract assets grew 19.75%. Long-term borrowings dropped 20.58%, and contract liabilities plunged 86.46%. The company reported a current ratio of 7.06 and a quick ratio of 7.02.
Why it matters
Despite a steep revenue decline, the company reduced its loss, which may suggest improved cost control or operational efficiency. Its price-to-book ratio of about 0.14 times at the September 3 close is very low, but the negative return on net assets remains a drag for investors.
The sharp contraction in contract liabilities could mean fewer prepayments from customers, potentially signaling softer demand ahead. The large drop in long-term borrowings may reflect deleveraging, which could affect future expansion.
Key facts
Revenue for the 2026 interim period was 66.997 million yuan, down 29.08% year over year.
Net loss attributable to shareholders was 3.232 million yuan, compared with a 3.742 million yuan loss in the prior-year period.
The smart energy segment operates photovoltaic stations and clean heating projects, while the public construction segment is linked to the Baoding East Lake project.
What to watch next
Whether the revenue decline persists in the second half and whether the company can move toward profitability.
Trends in contract liabilities and long-term borrowings, which showed large reductions, may signal changes in project advances and financing strategy.
Updates on the Baoding East Lake construction project and its potential effect on future cash flow and revenue.