Beijing Digital Telecom Co., Ltd. (“Digital Telecom”, HKEX: 6188) released its 2026 interim results showing higher sales but a deeper loss as cost inflation and weak offline demand squeezed margins.

Revenue and Volume • Group revenue for 1H26 rose 4.32% year-on-year to RMB 8.57 billion, driven by a 28.71% jump in handset sales to 2.06 million units. • Mobile devices and accessories contributed RMB 8.37 billion, up 15.73%. • Photovoltaic equipment sales collapsed 97.85% to RMB 14.32 million following policy and market shifts. • Service income from mobile carriers fell 26.28% to RMB 86.39 million, while other service income declined 49.72% to RMB 101.93 million.

Profitability • Gross profit dropped 17.35% to RMB 246.71 million; gross margin slid to 2.88% from 3.63% a year earlier. • Net loss attributable to shareholders widened 41.40% to RMB 108.37 million. • Cost of sales rose 5.14% to RMB 8.33 billion; selling, distribution and administrative expenses were trimmed by 4.9% combined. • Finance costs decreased 10.59% to RMB 85.93 million on lower borrowings.

Cash Flow and Balance Sheet • Operating cash outflow expanded to RMB 184.63 million (1H25: RMB 73.98 million outflow). • Financing inflow of RMB 171.04 million, mainly from new short-term bank loans, offset weaker operations; cash and cash equivalents closed at RMB 1.85 billion. • Total assets declined to RMB 7.10 billion, while negative equity widened to RMB 1.48 billion. • Interest-bearing debt stood at RMB 6.92 billion; gearing ratio rose to 139.94%. Current ratio remained at 0.83. • Pledged deposits totalled RMB 1.88 billion.

Capital Expenditure and Dividend • Capex was restrained at RMB 6.49 million. • The board declared no interim dividend.

Corporate Developments • Founder and chairwoman Ms Xu Jili retired on 31 August 2026; Ms Xu Liping became chairwoman and Mr Liu Liang was appointed president. • Executive director Mr Liu Donghai’s duties were suspended on 13 July 2026 due to a regulatory investigation and he retired on 31 August 2026. • SHINEWING (HK) CPA Limited replaced Ernst & Young as auditor effective 31 August 2026.

Outlook Highlights Management plans to offset industry headwinds via further resource integration, expansion of online channels, cost controls and scaling emerging businesses such as equipment rental and smart-product distribution.

No material acquisitions, disposals or contingent liabilities were reported during the period.