Wantong Development said its controlling subsidiary Beijing Shudu Information Technology Co., Ltd. remains in a loss-making position and that its related business is still at an early stage. According to Jin10, the company said Shudu Information Technology was included in the company’s consolidated financial statements as of September 30, 2025. Wantong Development reported that in the first quarter of 2026, Shudu Information Technology recorded revenue of 4.60 million yuan and a net loss of 80.23 million yuan, unaudited. For October to December 2025, the subsidiary recorded revenue of 45.68 million yuan and a net loss of 38.84 million yuan. The company said there remains uncertainty around the subsidiary’s product manufacturing and market promotion progress. It added that moving products from sample submission and validation to scaled shipments requires strict customer testing, system adaptation, stability verification, and bulk procurement decisions, which can take a long time. Wantong Development also cited risks including downstream customer validation progressing more slowly than expected, product compatibility and scenario adaptation failing to meet customer requirements, market acceptance coming in below expectations, and a slowdown in the pace of volume ramp-up.
