Hundsun Technologies (600570) investor relations material

Executive summary

• Revenue for H1 2026 was RMB 2.14 billion, down 11.65% year-over-year; net profit attributable to shareholders was RMB 261 million, up 0.06% year-over-year; adjusted net profit (excluding non-recurring items) rose 8.37% year-over-year to RMB 208 million.

• Operating cash flow was negative RMB 982 million, with net outflow increasing by RMB 81 million year-over-year.

• Gross margin remained high at 69.40%, with continued focus on subscription-based revenue and SaaS/data services, which grew 14.57% year-over-year.

• The company is executing a strategic shift to higher-quality, recurring revenue, optimizing business structure, and focusing on core product lines.

Financial highlights

• Operating income: RMB 2.14 billion, down 11.65% year-over-year.

• Net profit attributable to shareholders: RMB 261 million, up 0.06% year-over-year.

• Adjusted net profit (excluding non-recurring items): RMB 208 million, up 8.37% year-over-year.

• Operating cash flow: negative RMB 982 million, net outflow increased by RMB 81 million year-over-year.

• Gross margin: 69.40%, essentially flat year-over-year.

• Basic and diluted EPS: RMB 0.14.

• R&D expenses: RMB 1.00 billion, representing 46.78% of revenue.

• Dividend payout: RMB 94.6 million, 36.29% of H1 net profit.

Outlook and guidance

• The company will continue to focus on AI-driven product upgrades, recurring revenue, and core product lines.

• Strategic priorities include accelerating AI adoption, increasing sustainable revenue, and enhancing product engineering.

• Commitment to high R&D investment and stable dividend policy.