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China National Software & Service Company (600536) investor relations material
China National Software & Service Company Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue for H1 2026 was RMB 1.79 billion, down 20.05% year-over-year, mainly due to business focus shift and delayed client settlements.
Net loss attributable to shareholders was RMB -12.40 million, a significant reduction in loss compared to RMB -74.53 million in H1 2025, mainly due to lower asset impairment.
The company continues to focus on core businesses: foundational software and government/enterprise digital solutions, with strong market positions in Linux OS and digital transformation for key sectors.
Financial highlights
Operating income: RMB 1.79 billion, down 20.05% year-over-year.
Net loss attributable to shareholders: RMB -12.40 million, improved from RMB -74.53 million year-over-year.
Gross margin improved due to higher proportion of foundational software revenue.
Operating cash flow: RMB -913.12 million, further outflow compared to RMB -886.79 million in H1 2025.
Total assets at period end: RMB 10.36 billion, down 7% from year-end 2025.
Outlook and guidance
The company expects revenue recognition to be more concentrated in the second half due to client settlement cycles.
Continues to focus on digital transformation, AI integration, and expanding foundational software ecosystem.
- Net loss narrowed 90% on stable revenue, with strong R&D and equity financing boosting assets.600536
Q4 2025 - Revenue grew 10.77% year-over-year, but losses persisted amid rising costs and lower VAT rebates.600536
Q1 2026 - Revenue up 9.5% and net loss narrowed 69.18% year-over-year, driven by cost control and capital raising.600536
Q3 2025 - Revenue up 13%, net loss narrowed, and ¥2B raised for core business expansion.600536
Q2 2025 - Revenue dropped sharply, but net loss narrowed and margins improved on cost controls.600536
Q3 2024 - Net loss narrowed 47% on higher gross margin and cost controls despite 21.7% revenue drop.600536
Q2 2024 - Revenue dropped 22.69% with a net loss of ¥412.64 million; cash flow improved.600536
Q4 2024 - Net loss narrowed 27% on improved cost controls, with Kylin Software posting robust growth.600536
Q1 2025
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