Guosheng Technology's revenue grew by 12% in the first half of the year, and its losses narrowed. Its fourth largest shareholder, "Xinduoduo," significantly reduced its holdings. | Financial Report Insights

Guosheng Technology's revenue grew by 12% in the first half of the year, and its losses narrowed. Its fourth largest shareholder, "Xinduoduo," significantly reduced its holdings. | Financial Report Insights

Guosheng Technology's revenue rebounded in the first half of the year, but profit pressure remains unresolved. Popular online investors and speculative capital have largely exited the company, and the company continues to face operational challenges amid a deep adjustment in the photovoltaic industry.

Guosheng Technology achieved operating revenue of 343 million yuan in the first half of the year, a year-on-year increase of 11.93%; net loss attributable to the parent company was 86.3456 million yuan, narrowing by approximately 10 million yuan compared to the 96.3384 million yuan loss in the same period last year. Despite the improvement in both revenue and loss indicators, the company's operating cash flow widened to -141 million yuan, indicating significant financial pressure.

Meanwhile, Liu Xin (online name "Xin Duoduo"), the fourth largest shareholder, significantly reduced his holdings by 19 million shares in the second quarter, causing his shareholding ratio to plummet from 4.31% to 1.01%, a stark contrast to his previous public bullish stance on Guosheng Technology on his personal WeChat account.

Dragged down by the deep adjustment in the photovoltaic industry, Guosheng Technology's stock price has fallen by about 46.48% year-to-date, closing at 9.42 yuan on August 27.

Revenue growth narrowed losses, but cash flow pressure intensified.

Guosheng Technology's revenue in the first half of the year was 343 million yuan, an increase of 11.93% year-on-year. The growth was mainly driven by its core subsidiary, Anhui Guosheng New Energy, whose revenue in the period was 248 million yuan, an increase of 28.8% year-on-year.

Battery modules were the main source of revenue, generating 297 million yuan; photovoltaic power plant EPC business generated 41.691 million yuan in revenue, with the photovoltaic sector contributing over 98% of total revenue.

On the loss front, the net loss attributable to the parent company narrowed to RMB 86.3456 million, and basic earnings per share improved from -RMB 0.15 to -RMB 0.13. Cost control was a key factor in the narrowing of losses—sales expenses decreased by 62.73% year-on-year, and administrative expenses decreased by 16.75% year-on-year, mainly due to a reduction in sales personnel.

Anhui Guosheng's net loss narrowed significantly from RMB 16.7832 million in the same period last year to RMB 2.9953 million, which was the core driver of the company's overall profit improvement. The gross profit margin was -6.75%, remaining in the loss-making range.

However, the cash flow situation deteriorated significantly. Net cash flow from operating activities was -141 million yuan, a significant increase compared to the net outflow of -63.6068 million yuan in the same period of the previous year, mainly due to a decrease in cash receipts during the reporting period. Cash and cash equivalents at the end of the period were only 54.4541 million yuan, a decrease of 61.74% compared to the end of the previous year; short-term borrowings increased to approximately 242 million yuan, an increase of 35.46% year-on-year.

The company's outstanding guarantees to its subsidiaries totaled RMB 359 million, accounting for a staggering 153.69% of its net assets. As of the end of the reporting period, net assets attributable to shareholders of the listed company were RMB 234 million, a decrease of 24.85% compared to the end of the previous year, and accumulated undistributed profits were RMB -855 million.

In the second quarter, Liu Xin reduced her holdings by 19 million shares to 6.6666 million shares, and her shareholding ratio dropped from 4.31% at the end of 2025 to 1.01%, falling from the third largest shareholder to the fourth largest shareholder.

Liu Xin rose to internet fame due to her "marriage proposal" incident. She subsequently made a high-profile announcement that she had become a top ten shareholder in over 10 listed companies and repeatedly mentioned her heavy investment in Guosheng Technology on her personal WeChat account, attracting a large following known as the "Xin Family Army." This recent significant reduction in her holdings is a clear departure from her public statements.

Looking at the overall shareholding structure, the largest shareholder, Guosheng Energy Co., Ltd., held 108 million shares at the end of the period, accounting for 16.41%. However, a large proportion of its shares were pledged (nearly 108 million shares were pledged) and some were frozen (16.803 million shares were frozen).

The second largest shareholder, Hui Quanfu, holds 67.0605 million shares, accounting for 10.16%. During the reporting period, shareholders such as Hong Kong Securities Clearing Company Limited and UBS AG increased their holdings to varying degrees.

Nationwide production capacity has been established, and technological reserves support differentiated competition.

Guosheng Technology has already completed its production capacity layout in Jiangsu, Anhui, Shandong, and Xinjiang. Its bases in Xuzhou, Huaibei, Huainan, and Xinjiang have all been built and put into operation, while the Shandong base has completed commissioning and achieved its first product rollout. The company has also established a photovoltaic desertification control research institute, focusing on industrial desertification control projects in Xinjiang.

In terms of technology, the company has mastered core technologies such as heterojunction busbarless (OBB) manufacturing and packaging, and has 105 authorized patents related to photovoltaic business. Many of its module products have passed domestic and international certifications and have passed ISO9001, ISO14001 and ISO45001 triple system certifications.

Regarding inventory, the company accelerated inventory reduction during the reporting period, with inventory size decreasing by 70.17% year-on-year, and inventory turnover efficiency improved.

During the reporting period, the company also deregistered several inefficient subsidiaries, divested non-core business entities, and continued to focus on the allocation of core photovoltaic resources.

Regarding equity incentives, in March 2026, the registration of 3.4 million restricted shares reserved under the 2024 incentive plan was completed, and in April, the repurchase and cancellation of 7.8372 million granted but unvested restricted shares and corresponding stock options was approved. The company will not distribute any form of profit during this period.

The industry continues its deep adjustment, with multiple risks constraining performance recovery.

In its semi-annual report, Guosheng Technology frankly stated that it faces multiple pressures.

The supply-demand mismatch in the photovoltaic industry continues, with prices of some products remaining below cost for an extended period. Domestic installations have experienced a temporary decline, coupled with a tightening overseas trade environment, and the overall competitive landscape of the industry is still being reshaped.

While N-type battery modules have become the mainstream, the rapid pace of technological iteration means that new technologies with superior conversion efficiency and lower costs may emerge, placing higher demands on companies' sustained R&D investment. It is worth noting that the company's R&D expenses decreased by 49.53% year-on-year during the reporting period.

From a financial perspective, both the company's photovoltaic and landscaping businesses are characterized by large-scale investments and long construction cycles, resulting in high inventory and accounts receivable ratios and persistently tight operating cash flow. Financial strength has become a significant bottleneck restricting business expansion. Furthermore, fluctuations in raw material prices and changes in industry policies also constitute potential risk factors.

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