Baiwang (6657) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 14.4% YoY to RMB297.5m; gross profit declined 20.4% to RMB128.9m, and net loss was RMB43.8m versus net profit of RMB3.6m.

• Strategy is shifting toward vertical AI, commercial credit and overseas tax compliance; FinTech remained stable, CreditTech began generating revenue, and RegTech remained the largest revenue stream.

Financial highlights

• Revenue was RMB297.5m, down 14.4% YoY; cost of sales fell 9.1% to RMB168.7m.

• Gross profit was RMB128.9m, down 20.4%; gross margin contracted to 43.3% from 46.6%.

• Operating loss widened to RMB62.0m from RMB2.3m; net loss was RMB43.8m versus net profit of RMB3.6m, partly offset by RMB17.4m of FVTPL fair-value gains.

• R&D expense rose 18.4% to RMB80.8m, including AI transformation and TaxSwift investment.

• Adjusted net loss excluding share-based payment expenses was RMB39.7m versus adjusted net profit of RMB4.6m.

Outlook and guidance

• Strategy 3.0 is planned in stages: product validation, scalable replication and platform operations; offerings include AI subscriptions, task/API calls, credit services and global compliance.

• Monetization plans include subscriptions, implementation services, API and token usage charges, ongoing monitoring and outcome-based pricing in mature scenarios.

• Priorities include AI finance and tax agents, commercial credit, reusable delivery assets, global e-invoicing and TaxSwift expansion; aims include improving revenue, gross profit and operating cash flow.

• AI spending will be paced against customer payments, project quality and cash returns; customer adoption, reliability, data permissions, compliance, costs and competition could delay meaningful revenue.