Beijing Zhongkehaixun Digital S&T Co.,Ltd. (300810.SZ) released its interim report for the first half of 2026 on August 27, revealing a narrowing net loss, propelled by robust demand in the special electronic information sector and the gradual execution of major national defense informatization projects. The company's performance during the period reflected a tighter loss profile, supported by its established technical expertise in sonar equipment, yet it simultaneously faced elevated inventory levels and a widening cash outflow from operations, underscoring the financial burden of securing a healthy order book.

According to the financial statements, the company generated revenue of RMB 105 million for the reporting period, marking a year-on-year increase of 9.04%. The net loss attributable to shareholders stood at RMB -45 million, representing a 30.54% reduction from the previous year's deficit. After excluding non-recurring items, the net loss also narrowed by 30.88% to RMB -45 million. Net cash used in operating activities expanded by 40.19% year-on-year to RMB -102 million, reflecting a larger outflow. Meanwhile, the closing inventory balance surged by 39.65% from the start of the period to RMB 473 million, accounting for 36.56% of total assets. While revenue growth persisted and the loss contracted meaningfully, the mounting pressure on operational cash flow and working capital, driven by payment collection cycles and inventory buildup, tempered the overall quality of earnings growth.

From a segment perspective, the signal processing platform remained the company's primary revenue driver, generating RMB 98 million in the period, a substantial 143.24% increase year-on-year, which accounted for over 93% of total revenue. However, the gross margin for this segment fell by 11.17 percentage points to 23.40%, largely attributed to a higher proportion of direct material costs and shifts in product mix. In contrast, the company's national special electronic information industry business saw revenue climb by 8.97%, with its gross margin improving slightly by 2.32 percentage points to 24.30%.

The uptick in revenue was primarily fueled by the progress and delivery of major orders, including a significant information processing subsystem project valued at RMB 163 million and a research and development initiative for information processing equipment for a specific project worth RMB 288 million. The narrowing of the net loss was mainly driven by increased gross profit contributions from higher revenue and a reduction in credit impairment losses of approximately RMB 28 million compared to the same period last year. Nonetheless, administrative expenses rose by 28.72% year-on-year, primarily due to higher employee compensation and severance payments, which partially eroded profitability.

Looking ahead, the company is poised to benefit from the strategic shift in national defense planning as the transition from the "14th Five-Year Plan" to the "15th Five-Year Plan" unfolds, alongside the release of demand in the civilian underwater market under the maritime power strategy. With its competitive edge in localized substitution for signal processing platforms and sonar systems, Beijing Zhongkehaixun Digital S&T Co.,Ltd. is well-positioned to consolidate its standing in the industry. Nevertheless, the company faces persistent risks, including high customer concentration, a substantial accounts receivable balance, and inventory management challenges. At the end of the reporting period, accounts receivable reached RMB 393 million, and combined with elevated inventory levels, this places significant strain on the company's working capital and liquidity.