Chinasoft International (354) H1 2026 earnings summary

Executive summary

• Revenue grew 5.2% year-over-year to RMB8,947.97 million for the first half of 2026, driven by explosive 133.7% growth in full-stack AI products and services.

• Profit for the period increased 11.1% year-over-year to RMB349.92 million, with basic EPS up 9.7% to RMB13.87 cents.

• Adjusted profit before taxation (excluding severance compensation) rose 27.1% year-over-year to RMB547.61 million.

• The company continued its strategic transformation into a full-stack AI integrated service provider, expanding its AI, HarmonyOS, and digital ERP businesses.

Financial highlights

• Gross profit increased 3.2% year-over-year to RMB1,935.64 million, with gross margin at 21.6% (down 0.4 percentage points year-over-year).

• Administrative expenses decreased 2.7% year-over-year, reflecting efficiency gains from AI-driven management.

• Finance costs fell 26.3% year-over-year due to refinancing at lower interest rates.

• Net gearing ratio rose to 11.3% from -2.0% at year-end 2025, mainly due to cash outflows for share repurchases, dividends, and AI investments.

• No interim dividend was declared for the period.

Outlook and guidance

• Plans to deepen cooperation with large model vendors, expand intelligent computing centers, and scale Token operations domestically and overseas.

• Continued focus on replicating OpenHarmony city projects, developing software-hardware integrated HarmonyOS products, and expanding digital employee solutions.

• Strategic goal to become a globally leading AI products and services provider, leveraging technological innovation and ecosystem partnerships.