Neusoft (600718) investor relations material

Executive summary

• Q3 revenue fell 6.03% YoY to RMB 2,633,060,612, while attributable net income improved to RMB 45,733,949 from a loss of RMB 5,477,307.

• 9M revenue declined 6.18% YoY to RMB 7,028,722,623; attributable net loss was RMB 243,130,201, compared with net income of RMB 51,026,998 a year earlier.

• Strategic transformation continued, with vertical AI application contract signings growing and AI healthcare leading the increase.

Financial highlights

• Q3 total profit was RMB 69,192,162 versus RMB 6,372,516 YoY; Q3 adjusted attributable net income was RMB 13,916,437 versus an adjusted loss of RMB 1,359,721.

• 9M operating profit was a loss of RMB 225,641,288 and attributable net loss was RMB 243,130,201; adjusted attributable net loss was RMB 252,231,008.

• 9M operating cash flow was RMB 627,624,198 versus an outflow of RMB 32,730,363 YoY; cash receipts from customers rose to RMB 8,193,492,275 from RMB 6,806,874,550.

• Total assets at Sept. 30 were RMB 19,303,113,455, up 3.48% from year-end; parent-attributable equity was RMB 8,545,019,494, down 5.24%.

Key financial ratios and metrics

• Q3 basic and diluted EPS were RMB 0.04 per share, versus a loss of RMB 0.005 and RMB 0.004 per share, respectively, in the adjusted prior-year comparisons.

• 9M basic and diluted EPS were both a loss of RMB 0.21 per share, versus RMB 0.04 per share a year earlier.

• Weighted-average return on equity was 0.51% for Q3 versus -0.05% YoY; the 9M measure was -2.76%, down 3.30 percentage points.