China National Software & Service Company (600536) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 1.79 billion, down 20.05% year-over-year, mainly due to business focus shift and delayed client settlements.

• Net loss attributable to shareholders was RMB -12.40 million, a significant reduction in loss compared to RMB -74.53 million in H1 2025, mainly due to lower asset impairment.

• The company continues to focus on core businesses: foundational software and government/enterprise digital solutions, with strong market positions in Linux OS and digital transformation for key sectors.

Financial highlights

• Operating income: RMB 1.79 billion, down 20.05% year-over-year.

• Net loss attributable to shareholders: RMB -12.40 million, improved from RMB -74.53 million year-over-year.

• Gross margin improved due to higher proportion of foundational software revenue.

• Operating cash flow: RMB -913.12 million, further outflow compared to RMB -886.79 million in H1 2025.

• Total assets at period end: RMB 10.36 billion, down 7% from year-end 2025.

Outlook and guidance

• The company expects revenue recognition to be more concentrated in the second half due to client settlement cycles.

• Continues to focus on digital transformation, AI integration, and expanding foundational software ecosystem.