Losses Narrowed! This lighting company has decisively transformed, venturing into the semiconductor sector.

On August 27, Shikong Technology released its 2026 interim report. During the reporting period, the company recorded revenue of RMB 122 million, down 14.78% year over year; net profit attributable to shareholders was RMB –29 million, compared with RMB –66 million in the same period last year, indicating a significant narrowing of losses.

The report attributes this improvement primarily to the company’s continued strengthening of cash management and accounts‑receivable collection, with breakthroughs achieved in settling and collecting payments for certain long‑outstanding projects, leading to reversals of previously accrued credit and asset impairment losses. However, due to relatively rigid cost expenditures during the strategic transformation phase, operating results remained in the red.

Since its inception, Shikong Technology has focused on integrated lighting engineering services, specializing in professional nighttime landscape lighting solutions for outdoor public spaces and scenic areas. In recent years, amid intensifying industry competition, shrinking profit margins, and extended project payment cycles, the company has actively pursued business transformation and upgrading, gradually establishing a business model that synergizes the night‑time economy with smart city development. During the reporting period, the company vigorously advanced its strategic shift into the semiconductor storage sector, building a second growth trajectory through both acquisitions and organic expansion.

In the first half of 2026, the company secured 11 new projects in the night‑time economy segment, with newly signed contract value totaling RMB 82.368 million—roughly unchanged from the same period last year. However, affected by project implementation progress and settlement timing, recognized revenue for the first six months amounted to RMB 51.5724 million, slightly lower than the prior-year level.

In the smart city segment, the company concentrated on two core areas: smart parking operations and intelligent street‑light management. Its controlling subsidiary, Jie’anbo, deeply embedded itself in key urban settings, employing a dual‑channel operational model—offline area‑based management combined with online cloud‑based support—to deliver an integrated system covering on‑street parking, commercial parking lots, transportation hubs, and other scenarios, maintaining stable performance throughout the reporting period. During this time, the smart city business unit generated RMB 64.3169 million in revenue, with smart parking accounting for RMB 55.2143 million—a year‑over‑year increase.

Furthermore, during the reporting period, the company prioritized accounts‑receivable collection and cash‑flow management as core operational tasks, implementing multiple measures to accelerate the recovery of outstanding project payments and overdue receivables. By optimizing payment terms, issuing formal demand letters, and pursuing legal action, the company significantly boosted its collections. As a result, the balance of accounts receivable related to engineering projects declined further compared to the beginning of the period, enhancing overall capital turnover efficiency.

With its dual‑core business structure now firmly established, Shikong Technology is resolutely advancing industrial transformation and upgrading. Through a combination of mergers and acquisitions and organic growth initiatives, the company is accelerating its transition into the semiconductor industry. It plans to acquire 99.88% of the equity in Shenzhen Jiahe Jinwei Electronic Technology Co., Ltd. (referred to as “Jiahe Jinwei”) while simultaneously raising complementary funding.

At the same time, the company is stepping up its own efforts to build out its semiconductor capabilities, systematically establishing specialized entities dedicated to storage‑related operations. Beginning in December 2025, it set up Shikong Storage (Shenzhen) Semiconductor Co., Ltd., a wholly owned subsidiary, and in the first half of 2026, through this entity, it founded Shenzhen Shikong Storage Technology Co., Ltd. and Shikong Storage (Zhejiang) Semiconductor Co., Ltd. Concurrently, the company completed the acquisition of a controlling stake in Anhui Yubang Technology Co., Ltd. Yubang Technology operates a relatively complete traditional test‑and‑packaging production line and was incorporated into the company’s consolidated financial statements in June 2026, contributing only minimal revenue during the reporting period.

Upon completion of these restructuring activities, Shikong Technology’s core business portfolio could expand to encompass “night‑time economy + smart city + storage operations.”