Continuing-losses-Two-more-we

In 2025, the landscape lighting engineering industry has still not been able to get out of the downturn. Recently, ST Mingjiahui and Spacetime Technology have successively disclosed their annual reports. Both achieved revenue growth, but both net profits still suffered losses. Fortunately, the losses have narrowed. The lighting engineering field is still in the recovery stage, industry demand is shrinking, competition is intensifying, accounts receivable are difficult to collect, gross profit margins are declining and other problems have forced the two companies to find a way out and embark on different paths to break through.

ST Mingjiahui

ST Mingjiahui discloses its 2025 annual report. The company will achieve operating income of 180 million yuan in 2025, a year-on-year increase of 53.83%; net profit attributable to the parent company is -67.5742 million yuan, a year-on-year loss reduction of 48.40%.

The annual report shows that during the reporting period, the company's main business was landscape lighting engineering business, including the design and construction of lighting projects and the research and development, production and sales of related lighting products.

The main reasons for the above operating results are:

1. The restructuring transition period has had a phased impact on business undertakings. The main business of traditional landscape lighting projects is still in the recovery stage. Although revenue has increased year-on-year, the overall scale has not yet returned to historical normal levels.

2. Affected by historical issues, some accounts receivable are still overdue. In accordance with regulations, the company accrued a total of RMB 92.374 million in credit impairment losses and asset impairment losses during the reporting period.

3. In order to break through operating bottlenecks and cultivate new growth poles, the company accelerated the adjustment of business structure and promoted the transformation of revenue sources to product sales. The revenue structure has changed significantly compared with 2024.

It is worth mentioning that ST Mingjiahui said that 2025 is a key turning point for the company to get rid of business difficulties and achieve reorganization and rebirth. In the first half of the year, due to the phased impact of the advancement of the bankruptcy reorganization process, the company's business undertaking and project settlement are still facing certain restrictions. The main business of the traditional lighting project continues to be under pressure. In the second half of the year, with the approval of the reorganization plan, the debt resolution was completed, the company's asset and liability structure was fundamentally optimized, the business order was gradually restored, and the cash flow pressure was significantly alleviated, successfully realizing the leap from "survival crisis" to "transformation and accumulation". The

asset-liability ratio dropped to 12.61%, a significant decrease from the asset-liability ratio of 87.79% as of December 31, 2024. The mismatch between assets and liabilities was substantially resolved, and the company completely got rid of the dilemma of being unable to pay its debts as they matured.

After the reorganization was completed, the controlling shareholder of the company was changed to the new YuLing Jiu Investment Management Center, the actual controller was changed to Wu Liqun, and the shareholding structure and governance structure were adjusted accordingly.

In 2025, ST Mingjiahui's product sales revenue will significantly increase from 16.88% in the previous year to 66.19%, becoming the largest source of income, while the proportion of engineering construction revenue will drop from 81.10% to 30.40%, relegating it to second place. The gross profit margin of product sales is only 0.01%, which significantly lowers the overall gross profit margin to approximately 10.29%, causing continued pressure on the main business.

ST Mingjiahui has suffered losses for six consecutive years.

According to the business plan formulated at the beginning of the year, the company will be promoted in 2025 to upgrade from a traditional lighting engineering service provider to a digital low-carbon technology group of "smart lighting + Internet of Things platform + scenario-based solutions", and build a full-chain ecosystem of "technology research and development + advanced manufacturing + operational services + capital operation". Now it has achieved the phased goals of successfully implementing the reorganization procedures, gradually improving operating conditions, and gradually clarifying the direction of transformation.

At the operational level, the company still focuses on the landscape lighting engineering business, and continues to promote the implementation of stock projects and payment collection. Promote the cleanup of historical projects through "one case, one special class" and other means, and recover funds by means of debt restructuring, litigation and coordination. In the whole year, about 128 million yuan was collected, and the balance of accounts receivable decreased to about 271 million yuan.

In terms of new business, the company focused on the layout of the "Smart Agriculture + Plant Lighting" track, completed the establishment of the smart agriculture business team and technology research and development, focused on the lighting system solutions of vertical farms and plant factories, promoted the production capacity construction and order fulfillment of plant lighting products at the Lu 'an Base, and achieved operating income of 114 million yuan during the reporting period.

Space-Time Technology

Recently, the 2025 results report released by Time and Space Technology showed that the operating revenue in 2025 was 347 million yuan, an increase of 185% year-on-year, mainly due to the growth of the company's night economic business revenue compared with the same period last year; the net profit attributable to the shareholders of the parent company was 244 million yuan, a loss of 262 million yuan in the same period last year, and the loss was narrower than the previous year.

Spacetime Technology stated that since its establishment, the company has been deeply involved in the field of lighting engineering system integration services, focusing on professional solutions for nighttime landscape lighting of outdoor public activity spaces and scenery. It has accumulated rich project experience in the field of landscape lighting and has business footprints in more than 300 cities across the country. In recent years, in the face of multiple challenges such as increasingly fierce market competition in the landscape lighting industry, continued narrowing of profit margins, and prolonged project payment recovery cycles, the company has followed the industry trends of cultural tourism integration and accelerated smart city construction, actively promoted business transformation and upgrading, and gradually built a business pattern for the coordinated development of "nighttime economy" and "smart cities."

In 2025, the company's nighttime economy business revenue will reach 227 million yuan, accounting for 65.33% of total revenue, and smart city business revenue will be 120 million yuan, accounting for 34.67%. The two together constitute all main business revenue. Among them, the night economy sector focuses on landscape lighting project contracting and cultural tourism night tour project development, and the smart city sector focuses on the digital upgrade of urban infrastructure such as smart street lights and smart parking.

In the 2025 performance forecast, Spacetime Technology explained the performance losses for that year. Spacetime Technology stated that the prosperity of the company's industry has not changed significantly, and the scale of the night economy and smart city business is basically stable. However, the company's fixed costs and necessary operating costs are relatively high. In this period, affected by factors such as changes in market demand, collection of accounts receivable, and organizational adjustments, various expenses increased. In addition, combined with the impact of factors such as asset provision and credit impairment according to accounting policies, the current period's performance is still a loss.

In addition, half a year after announcing the restructuring plan, Spacetime Technology released a restructuring draft for the acquisition of Shenzhen Jiahe Jinwei Electronic Technology Co., Ltd. on April 18. Spacetime Technology’s cross-border entry into the semiconductor storage industry has further accelerated.

Compared with the restructuring plan, the restructuring draft clarified the transaction price. The transaction price of 100% equity of Jiahe Jinwei was 1.078 billion yuan, of which 503 million yuan was paid in cash and 575 million yuan was paid in shares. At the same time, it plans to issue shares to the controlling shareholder and actual controller Gong Hai to raise supporting funds of no more than 525 million yuan. After the transaction is completed, Gonghaihai’s shareholding ratio will increase to 40.83%.

Spacetime Technology stated that businesses such as landscape lighting and cultural tourism night tours have been affected by macroeconomic fluctuations and shrinking industry demand in recent years. Competition has become increasingly fierce, profit margins have been compressed, and losses have continued since 2021. After the completion of this transaction, the company will prudently shrink its traditional business fronts to ensure business quality and profitability, while concentrating resources to accelerate its business layout in the semiconductor storage field.

It is reported that Jiahe Jinwei’s main business is the R&D, design, production and sales of DRAM and Flash memory application products. Its main products include memory modules, solid-state drives and memory chips, and has strong profitability and room for growth. At present, the actual controllers of the company are Chen Hui and Zhang Lili. Zhang Lili directly holds 22.14% of the equity of Jiahe Jinwei, and together with Chen Hui, they control 50.2% of the company’s voting rights. After the transaction is completed, Chen Hui and Zhang Lili will collectively hold 14.82% of the shares of Spacetime Technology, becoming the company's second largest shareholder.

Jiahe Jinwei is a national-level "little giant" of specialized expertise, a single champion in the manufacturing industry of Guangdong Province, and one of the top 500 manufacturing companies in Guangdong Province in 2025. It owns three major brands: Guangwei, Asgard and Shenke, and has a certain reputation in the storage product market.

In 2024 and 2025, Jiahe Jinwei's operating income will be 1.059 billion yuan and 1.539 billion yuan respectively, a year-on-year increase of 45.32% in 2025; the net profit attributable to the parent company will be 30.4968 million yuan and 70.8136 million yuan respectively, a year-on-year increase of 132.2% in 2025.

It is worth mentioning that this reorganization has set performance commitments and compensation measures. Performance commitment parties Zhang Lili, Chen Hui, Dongjue Management, and Puwo Chuangda promised that Jiahe Jinwei's net profit from 2026 to 2028 will be no less than 70 million yuan, 77 million yuan, and 87 million yuan respectively, and the total in the three years will be no less than 234 million yuan.