China National Software & Service Company (600536) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached RMB 709.49 million, up 10.77% year-over-year, while net loss attributable to shareholders narrowed by 8.57% to RMB -73.72 million.

• Operating cash flow remained negative at RMB -964.39 million, a further decline from the previous year.

• Gross margin and profitability were pressured by reduced VAT rebates and increased costs.

Financial highlights

• Operating income: RMB 709.49 million, up 10.77% year-over-year.

• Net loss attributable to shareholders: RMB -73.72 million, improved by 8.57% year-over-year.

• Basic and diluted EPS: RMB -0.08, up from RMB -0.10 in Q1 2025.

• Total assets at quarter-end: RMB 10.74 billion, down 3.55% from year-end 2025.

• Operating cash flow: RMB -964.39 million, down 31.82% year-over-year.

Outlook and guidance

• Management highlighted ongoing challenges from reduced government VAT rebates and increased project procurement costs.

• Continued focus on R&D and government-related projects as core business drivers.