Baiwang (6657) H1 2025 earnings summary

Executive summary

• H1 revenue rose 23.5% YoY to RMB347.6m; gross profit increased 46.8% to RMB162.0m and gross margin expanded to 46.6% from 39.2%.

• Net profit was RMB3.6m versus a RMB445.8m loss in H1 2024; adjusted net profit was RMB4.6m versus an adjusted loss of RMB81.2m.

• Growth reflected AI and digitalization solutions, while reduced lower-margin analytics revenue and tighter operating costs reshaped the revenue mix.

Financial highlights

• Revenue rose 23.5% to RMB347.6m; cost of sales increased 8.4% to RMB185.6m, below the pace of revenue growth.

• Gross profit increased 46.8% to RMB162.0m; gross margin expanded 7.4 percentage points to 46.6%, aided by lower low-margin business mix and AI-enabled delivery efficiencies.

• Operating loss narrowed to RMB2.3m from RMB138.6m; profit before tax was RMB3.7m versus a loss of RMB445.6m.

• Net profit attributable to owners was RMB3.7m; basic and diluted EPS was RMB0.02 versus a loss per share of RMB3.18.

• Net cash used in operating activities was RMB104.9m; cash and cash equivalents fell to RMB340.1m from RMB443.9m at year-end, while cash plus wealth-management products totaled RMB579.6m.

Outlook and guidance

• Priorities include expanding invoice lifecycle management and risk monitoring, advancing digital invoice adoption, and using AI tools to support SMEs and financial institutions.

• Plans include expanding the intelligent-agent portfolio using LLM, RAG and MoE technologies, strengthening data and AI partnerships, and developing data-asset applications.

• Tax Swift Agent supports 100+ languages, 200 invoice types and 30,000 international tax regulations; expansion targets Southeast Asia, the Middle East, Africa and South America.