On October 19, 603388.SH announced the announcement of abnormal fluctuations in stock trading. The company's shares closed with a cumulative deviation of more than 20% for three consecutive trading days on October 17, October 18, and October 19, 2023, which belongs to the abnormal volatility of stock trading stipulated in the trading rules of the Shanghai Stock Exchange. At present, the production and operation activities of the company are normal, there is no major adjustment in the market environment and industry policy, there is no significant fluctuation in production costs and sales, and the internal production and operation order is normal.

In the first half of 2023, the net profit of the company belonging to the shareholders of the parent company was 14.2195 million yuan, down 45.88% from the same period last year, mainly due to the decline in the profit level of the order due to the influence of the macroeconomic environment, industry environment and other factors. And because some customers failed to pay the project payments on time, the rate of repayment of accounts receivable slowed down and the loss of credit impairment increased, resulting in a greater decline in profits.