Beijing Xunzhong Communication Technology (2597) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 19.06% YoY to RMB326.25m, led by cloud communications and RMB11.92m of newly commercialized computing-power services; attributable net profit fell 48.22% to RMB13.27m.

• Strategy centers on expanding AI-enabled communications, computing-power scheduling, government and enterprise agents, and intelligent hardware while broadening customer and geographic reach.

Financial highlights

• Revenue was RMB326.25m, up 19.06% YoY; operating costs rose 21.53% to RMB260.56m, and gross profit increased 10.17% to RMB65.69m.

• Comprehensive gross margin was 20.13%, down 1.62 percentage points YoY, reflecting early-stage computing-power resource utilization and higher communications channel costs.

• Operating profit was RMB10.53m versus RMB30.02m; net profit was RMB12.87m versus RMB25.49m, and attributable net profit was RMB13.27m versus RMB25.62m.

• Basic EPS was RMB0.11 versus RMB0.28; selling expenses fell 17.46% to RMB6.02m and R&D expenses fell 29.95% to RMB13.03m.

• Credit impairment loss was RMB15.44m versus a RMB11.88m credit impairment gain in H1 2025; other income fell to RMB0.27m from RMB3.53m.

Outlook and guidance

• Plans include developing 5G Messaging and New Calling, upgrading contact centers into voice-agent platforms, and extending urban-agent solutions into tourism, elderly care and event operations.

• Computing-power scheduling platform is launched; further platform capability and service scenarios are planned, alongside smart bands, AI headsets and smart lamps for consumer and business markets.

• Growth priorities include operator and ecosystem partnerships, recruitment in AI and industry solutions, deeper customer penetration, geographic expansion and initial CPaaS and hardware expansion into Southeast Asia.