Chinasoft International (354) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 rose 7.3% year-over-year to RMB8.51 billion, with service revenue up 7.8% and profit attributable to owners up 10.4%.

• Basic EPS increased 15.6% year-over-year to RMB12.64 cents.

• Full-scenario AI business revenue surged 130% year-over-year to RMB656 million, becoming a key growth driver.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit increased 2.4% to RMB1.87 billion, though gross margin declined to 22.0% due to price reductions from major customers.

• Adjusted profit rose 11.9% to RMB277.09 million, with adjusted profit margin at 3.3%.

• Finance costs dropped 38.6% year-over-year, while income tax expense rose 223.6% due to prior year settlements and deferred tax recognition.

• Net current assets increased to RMB7.47 billion, and the current ratio improved to 2.3.

• Cash and cash equivalents at period end were RMB1.29 billion, down from RMB3.13 billion at the start of the period.

Outlook and guidance

• The company will continue to deepen its full-scenario AI strategy, focusing on edge intelligence, high-quality datasets, and intelligent agent development.

• Plans to further increase the proportion of AI products and services to improve gross margin.

• Aims to become a leading global provider of full-scenario AI products and services.