Sansec Technology Co. Ltd. A

Sansec released its 2026 interim report. First-half operating revenue was 209 million yuan, up 7.4% year on year. Net loss attributable to the parent narrowed to 12.56 million yuan from a loss of 29.39 million yuan a year earlier. Net loss attributable to the parent after deducting non-recurring items was 18.58 million yuan, down from a loss of 33.36 million yuan in the same period last year. Net operating cash flow was negative 63.12 million yuan, down 32.5% year on year. In the second quarter, operating revenue was 137 million yuan, up 6.0% year on year, and net profit attributable to the parent was 10.05 million yuan, up 117.3% year on year. As of the end of the second quarter, total assets were 1.997 billion yuan, down 6.9% from the end of last year, and net assets attributable to the parent were 1.775 billion yuan, down 3.3% from the end of last year. The company said overall operations remained stable, core business competitiveness strengthened, business scale in cryptographic chips and related newly developed areas increased significantly, progress was made in post-quantum cryptography and cloud cryptography services, and research and development expenses and administrative expenses declined year on year.

Sansec disclosed its semi-annual earnings forecast, expecting to achieve operating revenue of 209 million yuan in the first half of 2026, up 7.38 percent year-on-year, with net profit attributable to owners of the parent company at negative 12.56 million yuan, narrowing the loss by 16.82 million yuan compared with the same period last year. The company said that overseas markets and cryptographic chip business have grown significantly in scale, and projects in new areas such as post-quantum cryptography are gradually being implemented, driving revenue growth. At the same time, research and development expenses and management expenses declined year-on-year, while the reduction in cost of inventory valuation appreciation carried forward and the decrease in share-based payment expenses jointly contributed to the loss reduction. Sansec is mainly engaged in cryptographic technology innovation and commercial cryptographic products. It listed on the STAR Market in December 2022. After listing, revenue grew year after year but profitability continued to decline. In 2025, it recorded its first annual loss since listing, with net profit attributable to the parent company at negative 43.65 million yuan, mainly because period expenses such as selling expenses and research and development expenses surged and eroded profits. The company's share price has fallen 32 percent this year, closing at 21 yuan today.

The STAR Market today disclosed 14 positive announcements covering share increases, buybacks, earnings growth, and R&D progress. A party acting in concert with Yandong Microelectronics' controlling shareholder, Beijing Electronics Industry Investment Company, plans to increase its stake by 150 million to 300 million yuan within 12 months. Kingsoft Office expects attributable net profit for the first half of 2026 to be between 2.316 billion and 2.719 billion yuan, up 209.98% to 263.89% year-on-year. Sansec Technology expects its half-year loss to narrow by 57.25% year-on-year. Hyperstrong expects attributable net profit for the first half to be between 620 million and 700 million yuan, an increase of 96.30% to 121.63%. In addition, shareholder CEC Capital increased its stake in Dameng Data by 0.01%. Several companies including Orinko Advanced Plastics, Feymer Technology, Chipbond Technology, Canadian Solar, Geling Shentong, Shanghai Yizhong Pharmaceutical, and Actionpower disclosed buyback progress. The controlling shareholder of Zhengyuan Geomatics extended the lock-up period for restricted shares to July 30, 2027. Sunway Pharma's Class 1 innovative drug STC009 injection received clinical trial approval.