Recently, Sichuan Huati Lighting Technology Co.,Ltd. (603679.SH) released a preliminary loss announcement for the first half of 2026, projecting a net loss attributable to shareholders of between 20 million yuan and 30 million yuan, with the non-recurring net profit also in the red. The following day, the company disclosed a major litigation notice regarding overdue repurchase payments of nearly 250 million yuan for a smart greenway project. These two announcements, released in quick succession, highlight the company's double challenges of weak profitability and difficulty in collecting funds.
Tracing the company's operational trajectory, the loss is not a short-term phenomenon. Since 2021, the company's non-recurring net profit has been negative for years. Against the backdrop of a continuously deteriorating operational foundation, there is new uncertainty at the equity level. The controlling shareholder, Wang Shaorong, has engaged in multiple large-scale share reductions and block trades this year, cashing out over 200 million yuan. With the combined risks of losses, unresolved litigation, and controlling shareholder divestment, Sichuan Huati Lighting Technology Co.,Ltd. faces a difficult path to transformation, and its long-term development prospects are filled with uncertainty.
Both new and old businesses under pressure, non-recurring losses for five consecutive years and one period
Public information shows that Sichuan Huati Lighting Technology Co.,Ltd.’s business layout covers multiple areas, including smart city product R&D, manufacturing, and system integration, as well as engineering project installation, lithium ore processing and sales, lithium battery trading, and subsequent operation and maintenance services. According to the company's half-year performance forecast, the net profit attributable to shareholders for the first half of 2026 is expected to be between -20 million yuan and -30 million yuan, indicating a loss for the period. During the same period, the non-recurring net profit is expected to be between -16 million yuan and -24 million yuan, further highlighting the pressure on the core business's profitability.
Analysis shows that the company's performance downturn has been apparent for some time. After listing in 2017, the company experienced a period of steady growth up to 2019, with both revenue and net profit attributable to shareholders maintaining positive growth. However, this trend was broken in 2020, when both revenue and net profit fell, ending the upward trajectory. From 2021 to 2022, the company recorded net losses for two consecutive years. In 2023, it briefly turned a profit thanks to non-recurring gains, but it fell back into loss in 2024, a trend that continued into the first half of 2026. More notably, from 2021 to the first half of 2026, the company's non-recurring net profit has remained in negative territory. This trajectory of losses essentially indicates that the company's core business's ability to generate cash is severely impaired, and its main operating segments are unable to contribute stable profits.
Regarding the reasons for the projected loss in the first half of 2026, the company's announcement primarily attributed it to "the impact of the market environment and intensified competition, leading to a decline in the comprehensive gross profit margin and profitability of products." Looking at recent financial indicators, the company's comprehensive gross profit margin has fallen from 36.44% in 2019 to 10.52% in 2025, a decline of over 25 percentage points in six years. At the same time, the company implemented a personnel restructuring in the first half of 2026, resulting in a significant one-time expense, which also significantly dragged down current-period profits and became another important factor in the projected half-year loss.
Against the backdrop of a persistently sluggish core business, Sichuan Huati Lighting Technology Co.,Ltd. has accelerated its expansion into the new energy industry chain in recent years. Among these, the lithium ore processing and sales business is considered by the company as the most promising second growth curve to be cultivated. Based on 2025 operating data, this segment did achieve breakthrough growth, with full-year revenue reaching 116 million yuan, a year-on-year increase of 246.55%, accounting for 24.66% of the company's total revenue. It has become an important driver of the overall revenue scale expansion. However, beneath this high-growth surface, potential risk factors cannot be ignored. The company acknowledged in its half-year performance forecast that the lithium ore processing business is significantly affected by fluctuations in the lithium ore market. Due to the use of a point-price settlement model in operations, where there is a time lag between goods delivery and final pricing, the company will bear book losses from declining fair value during periods of falling lithium prices. Therefore, the profitability of this business segment is highly dependent on lithium price volatility and is difficult to stabilize.
A 249 million yuan lawsuit looms, and the controlling shareholder cashes out over 200 million yuan
If the continuous losses and declining gross profit margin represent the company's deep operational difficulties, the major litigation disclosed on July 16 reveals the company's severe financial risks. The announcement shows that the lawsuit stems from the smart greenway cooperation contract signed by the company with a consortium including Tianfu Greenway Group for the "Chengdu Ring City Ecological Zone Ecological Restoration Comprehensive Project." According to the agreement, Sichuan Huati Lighting Technology Co.,Ltd., as the funding party, was fully responsible for the entire chain of construction tasks, including infrastructure and software systems, while Tianfu Greenway Group was responsible for repurchasing the project upon completion. However, after the project was delivered as scheduled, the repurchasing party failed to pay the agreed amount on time. As of June 10, the overdue amount had accumulated to 249 million yuan, accounting for 33.88% of the company's most recent audited net assets. After repeated unsuccessful collection efforts, Sichuan Huati Lighting Technology Co.,Ltd. filed a lawsuit with the Chengdu Intermediate People's Court on July 7, demanding payment of the principal, interest, and penalties, and requiring the defendant to bear all litigation costs. The court has accepted the case, and it is now in the trial process.
Beyond this single large outstanding receivable, the company's overall collection pressure is also significant. As of the end of the first quarter of this year, the book balance of accounts receivable for Sichuan Huati Lighting Technology Co.,Ltd. was as high as 383 million yuan. On the cash flow front, the company's net cash flow from operating activities in 2025 was -89.06 million yuan, compared to -36.83 million yuan in 2024, showing a more than doubled net outflow. Although this indicator turned positive in the first quarter of 2026, rising to 24.87 million yuan, the improvement in a single quarter is not yet enough to confirm a trend reversal, and the fragility of operating cash flow remains a concern.
Under the dual pressure of operations and finance, the controlling shareholder has begun a series of intensive share reductions. Public information shows that from February 2 to April 30 this year, one of the controlling shareholders, Wang Shaorong, cumulatively reduced her shareholding by 4.5833 million shares (2.58% of the company's total share capital) through block trades and centralized bidding, with a total reduction amount of approximately 65.67 million yuan. A more significant change in equity occurred on June 11. Citing personal funding needs, Wang Shaorong signed a share transfer agreement with natural person Luo Jian, transferring 9.7727 million shares (5.50% of the company's total share capital) at a price of 15.05 yuan per share, with a total transaction consideration of approximately 147 million yuan. The transferee, Luo Jian, a natural person from Mianzhu, Sichuan, stated that the stake acquisition was based on recognition of the company's long-term value, with funds from personal assets, and committed to not reducing the holding or injecting assets into the listed company within 12 months. After this transfer, Wang Shaorong's personal shareholding is only 1.26 million shares, reducing her stake to 0.71%. The combined shareholding of Liang Xi, Liang Yuxiang, and Wang Shaorong fell from 30.02% to 24.52%, further diluting the controlling family's concentration of ownership.