Bairong AI (6608) investor relations material

Executive summary

• H1 revenue fell 43% YoY to RMB914.32m as regulatory changes curtailed certain financial-institution clients’ lending products; results swung from profit to loss.

• AICC revenue rose 52% YoY to RMB165.77m, with new-use-case deployments expanding into logistics and securities.

Financial highlights

• Gross profit fell 59% YoY to RMB488.29m; gross margin declined 20 percentage points to 53%.

• Net loss was RMB321.64m versus net profit of RMB201.22m; operating loss was RMB307.62m versus operating profit of RMB200.89m.

• Non-IFRS net loss was RMB256.62m, excluding RMB65.02m of share-based compensation; non-IFRS EBITDA was a loss of RMB203.45m.

• Operating cash flow was an outflow of RMB380.13m; cash and cash equivalents were RMB692.69m at June 30, 2026.

• Selling expenses fell 40% and administrative expenses 12% YoY, while R&D expenses rose 31% amid increased investment in AI talent.

Outlook and guidance

• AI Decisioning is expected to gradually recover as demand consolidates among providers with strong modeling and delivery capabilities and financial institutions extend models into post-approval risk monitoring.

• New-use-case AICC expansion and deeper deployments across validated industries are priorities; revenue is linked to usage, completed calls, deployed agents or facilitated transactions.

• Lending-use-case prospects remain cautiously optimistic amid industry adjustment; revenue from certain credit-product services is expected to keep shrinking.