Yonyou Network Technology (600588) investor relations material

Executive summary

• 9M revenue rose 3.1% YoY to RMB 5,755,551,727; attributable net loss narrowed to RMB 1,247,070,504 from RMB 1,398,154,319.

• AI-related contract signings reached RMB 1.54bn, up 108.6% YoY, while AI-related revenue was RMB 760m, up 275.4%.

• Cost control and lower employee-related payments supported improved profitability and Q3 operating cash flow.

Financial highlights

• Q3 revenue was RMB 2,028,453,060, up 1.25% YoY; Q3 total profit was a loss of RMB 332,145,179.

• 9M gross margin was 50.2%, up 3.5 percentage points YoY; 9M attributable net loss was RMB 1,247,070,504 and adjusted loss RMB 1,277,487,185.

• 9M revenue increased to RMB 5,755,551,727 from RMB 5,584,497,819; total operating costs fell to RMB 7,105,493,691 from RMB 7,168,863,797.

• 9M basic and diluted EPS were both -RMB 0.37, versus -RMB 0.42 YoY; reported attributable loss narrowed by RMB 151.08m.

• Q3 attributable net loss was RMB 318,575,213; adjusted loss was RMB 330,471,551, with YoY loss reductions of RMB 135.06m and RMB 138.59m, respectively.

Outlook and guidance

• Strategy emphasizes AI-led products, BIP upgrades, new business development, overseas expansion, and continued cost reduction and efficiency improvements.

• AI service delivery is moving toward standardized, scalable FDE services and outcome-based fees; AI BaaS products are also being offered with outcome-based pricing.

• Global expansion targets continued development across Asia-Pacific, Europe, the Americas, the Middle East, and Africa, supported by a service network spanning 40-plus countries and regions.