Kailong High Technology Co. Ltd.

Kailong High-Tech released its 2026 interim report, showing total operating revenue of 358 million yuan and a net loss attributable to the parent of 15.47 million yuan, an increase in losses of 4.77 million yuan compared with the same period last year. Net cash flow from operating activities was negative 48.05 million yuan, a year-on-year decrease of 68.01 million yuan, down 340.67 percent. The company's asset-liability ratio rose to 65.45 percent, gross margin fell to 11.59 percent, return on equity was negative 3.62 percent, and diluted earnings per share was negative 0.13 yuan. The number of shareholders was 14,300, and the top ten shareholders held 48.97 percent of the total share capital.

Kailong High-Tech released its 2026 interim report on August 27. First-half revenue was 358 million yuan, up 13.8 percent year on year, but net profit attributable to the parent swung from a loss of 10.69 million yuan a year earlier to a loss of 15.47 million yuan. Net profit attributable to the parent after deducting non-recurring items widened from a loss of 25.48 million yuan to a loss of 33.09 million yuan. Net operating cash flow was negative 48.05 million yuan, down 340.7 percent year on year, and earnings per share were negative 0.1358 yuan. In the second quarter, revenue was 183 million yuan, up 26.7 percent year on year, while net profit attributable to the parent widened from a loss of 4.84 million yuan to a loss of 25.58 million yuan, and net profit after deducting non-recurring items widened from a loss of 10.71 million yuan to a loss of 14.24 million yuan. As of the end of the second quarter, total assets were 1.29 billion yuan, down 0.6 percent from the end of the previous year, and net assets attributable to the parent were 428 million yuan, up 3.6 percent from the end of the previous year. The company said its main business has not undergone any material adverse change and there is no significant risk to its ability to continue as a going concern. While consolidating its commercial vehicle exhaust aftertreatment business, it is actively expanding into non-road mobile machinery, the marine sector and overseas markets. Its thermal management segment has completed batch delivery of multiple orders, its inspection and testing business has obtained relevant certification qualifications, and it is laying out embodied intelligence related business.

Kailong High-Tech announced the termination of its plan to acquire a 70% stake in Shenzhen Jinwangda Electromechanical Co., Ltd. through a combination of share issuance and cash payment, along with a related fundraising effort. Because the financial data benchmark date of the target company exceeded the six-month validity period, the intermediary institutions failed to complete the supplementary audit and additional due diligence on time, preventing the company from issuing the notice to convene a shareholders' meeting within the prescribed deadline. The transaction constituted a connected transaction and was expected to qualify as a major asset restructuring. In the first quarter of 2026, Kailong High-Tech achieved revenue of 176 million yuan and a net profit attributable to the parent company of 10.11 million yuan.