Beijing Xunzhong Communication Technology (2597) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 27.55% YoY to RMB274.03 million as the business mix shifted away from low-margin work and SMS demand was temporarily affected by regulatory rectification; attributable net profit rose to RMB25.49 million.

• Higher-margin business mix, expense controls and stronger operating cash flow supported profitability despite lower revenue.

Financial highlights

• Revenue was RMB274.03 million, down RMB104.19 million or 27.55% YoY; gross profit was RMB59.62 million, down 28.53% YoY.

• Net profit attributable to shareholders was RMB25.49 million, up RMB0.61 million YoY, mainly due to lower credit impairment losses.

• Selling expenses declined 27.46% to RMB7.29 million; administrative expenses declined 16.50% to RMB13.39 million; R&D expense rose 34.70% to RMB18.61 million.

• Financial expenses fell 59.94% to RMB5.16 million; income tax expense was RMB4.42 million versus a RMB2.85 million credit in H1 2024.

Outlook and guidance

• H2 2025 operating income is expected to resume stable growth, with operations no longer affected by the MIIT qualification rectification after customer remediation was completed.

• Strategy includes developing RCS messaging, Contact Center SaaS and AI-enabled offerings, including LLMs, voiceprint recognition and image recognition.

• Plans include expanding CPaaS and SaaS into Southeast Asia through local telecom operators and service providers.