Jiadu Technology (600728.SH), which is under pressure in terms of net income, has recently issued multiple winning bid announcements. Today, the post-market announcement stated that the latest bid project exceeded 1.3 billion yuan. It is worth paying attention to whether the company's continuous non-GAAP net loss situation over the past two years can be reversed.

According to the bidding announcement disclosed by PCI Technology on the 14th, its wholly-owned subsidiary, Guangzhou Xinke PCI Technology Co., Ltd., as the lead party, is the first candidate for the Chongqing Rail Transit Line 15 weak electric system project with China Railway 11th Bureau Group Signal and Communication Co., Ltd. The project includes the 25 stations of the Chongqing Rail Transit Line 15, adjacent underground tunnel sections and elevated sections of the stations, 3 vehicle bases, 3 main substations, line network control center, subsequent two-line stations ISCS system access, and complete set of hardware devices and system software, application software, etc., with a bid amount of 1.365 billion yuan.

The company stated that this project is the first intelligent project order obtained by the company in Chongqing using the business model of 'core independent product solution + integration,' laying the foundation for the further promotion of various smart products in the western region. It is reported that the company currently has five major business lines: smart rail transit, smart city transportation, urban safety and emergency response, large models, and ICT.

According to financial association reporters, PCI Technology also won a bid for the Guangzhou Huadu New Industrial Digitization Service Platform project amounting to 0.311 billion yuan this month. The total value of orders announced since the second half of the year exceeds 1.6 billion yuan. Whether this will help the company improve its continuous non-GAAP net loss over the past two years (losses of 40.6963 million yuan and 33.5583 million yuan in the previous two years after non-GAAP adjustments) is worth watching. One of the investors' points of concern at the mid-year performance briefing is 'Can the company be profitable in the second half of the year?'.

From the semi-annual report, PCI Technology achieved revenue of 2.978 billion yuan in the first half of this year, an 18.40% year-on-year increase; net profit attributable to the mother was -0.192 billion yuan, turning into a loss year-on-year; non-GAAP net profit was 3.5518 million yuan, reversing from a loss to profit year-on-year.

The company stated that in the first half of the year, the non-GAAP net profit turned from a loss to profit, mainly due to the company's continued and stable business expansion, as well as high-quality delivery of outstanding orders. However, the strategic investment by PCI Technology in Cloud Dream Technology-UW (688327.SH) resulted in a significant change in profit due to a fair value loss of -0.267 billion yuan in the first half of the year.

The semi-annual report shows that the company has invested in a batch of artificial intelligence technology enterprises including Cloud Dream Technology, Ruifan Technology (603933.SH), Sibichi Technology, Unity China, and others. As of the end of June, PCI Technology held 4.63% and 17.10% stakes in Cloud Dream Technology and Ruifan Technology, respectively.

It is worth noting that on September 19th, the company announced that from September 10th to 19th, it sold 5.3985 million shares of Yuncong Technology through centralized bidding, with a transaction amount of 41.2558 million yuan (excluding transaction taxes and fees). As of the announcement date, the impact of the aforementioned traded shares on this year's annual net income amounted to -42.2984 million yuan, accounting for 10.72% of the absolute value of the consolidated net income audited in the most recent period (fiscal year 2023). The company stated that the disposal of part of the equity of its equity-invested companies was mainly to lock in investment income.

As of the close on October 16th, Yuncong Technology's stock price has cumulatively decreased by 34.28% year to date.