On June 15 Shenhao Technology shares fell as much as 17% intraday after the
company disclosed a CNY1.167bn contract with Yuxin Yanchen that includes CNY840m
of low-margin labor operation & maintenance services, which market participants
say could depress overall gross margins and valuation. Investors also flagged
that the counterparty is recently established, raising collection and
project-execution risk; Shenhao, which has reported sustained losses, said the
contract is newly disclosed, its margin impact depends on execution, and the
staged nature of implementation is not expected to materially affect 2026
earnings. The company said it is pursuing backlog execution, business expansion,
product-mix optimization, stronger collections and efficiency gains to improve
results and urged investors to monitor upcoming periodic reports.
