Neusoft (600718) investor relations material

Executive summary

• Revenue for H1 2026 was RMB 4.40 billion, down 6.26% year-over-year, with a net loss attributable to shareholders of RMB -288.86 million, compared to a profit of RMB 56.50 million in H1 2025.

• The company’s short-term profitability was impacted by increased R&D investment in AI and data value-added services, higher chip procurement costs, and adverse currency effects, especially from the Japanese yen.

• Cash flow from operating activities improved significantly to RMB 421 million, compared to an outflow of RMB -376 million in the prior year.

Financial highlights

• Operating income: RMB 4.40 billion, down 6.26% year-over-year.

• Net loss attributable to shareholders: RMB -288.86 million, down from a profit of RMB 56.50 million year-over-year.

• Basic and diluted EPS: RMB -0.25, compared to RMB 0.05 in H1 2025.

• Gross margin declined across all major business segments.

• R&D expenses increased 21.19% year-over-year to RMB 587 million.

Outlook and guidance

• The company continues to prioritize long-term growth through strategic investment in AI, data value-added services, and digital transformation, despite short-term earnings pressure.

• Management expects AI and data-driven solutions to become new growth engines, with signed AI application contracts up 18.8% year-over-year.

• No interim dividend or capital increase from reserves was proposed for H1 2026.