HengHua Technology, a Chinese digital services provider for the power industry, reported a weak first half of 2026 as revenue fell to 155 million yuan and net profit attributable to shareholders turned into a 31.14 million yuan loss. The company said the drop mainly reflected a high comparison base, because the same period last year included concentrated revenue recognition from large system integration projects after their completion and acceptance. Pressure extended beyond headline earnings, with non-GAAP net profit attributable to shareholders at negative 35.45 million yuan and basic loss per share at 0.0519 yuan. Net cash flow from operating activities remained negative at 151 million yuan outflow, though that was narrower than the 221 million yuan outflow a year earlier. Even under that strain, HengHua Technology said it is sticking with its BIM (building information modeling) platform and industry digital application strategy, focusing on the power sector, intelligent design, a fully domestically sourced technology stack, and the use of large AI models. R&D spending reached 44.08 million yuan, equal to 28.52% of revenue, underscoring continued investment despite volatile earnings. The results highlight how project acceptance timing can drive sharp swings in revenue for power-sector digital service providers, leaving stable cash flow and profitability in the second half as a key issue to watch.