iSoftStone Information Technology (301236) Q4 2025 earnings summary

Executive summary

• Revenue reached ¥35.09 billion, up 12.05% year-over-year; net profit attributable to shareholders was ¥206 million, up 14.27% year-over-year.

• Gross margin was 11.2%, with basic and diluted EPS at ¥0.22, both up 15.79% year-over-year.

• The company maintained a stable financial structure with an asset-liability ratio of 61.03%.

• Software and digital technology services accounted for 54.03% of revenue, while computing products and smart electronics contributed 45.05%.

• International business expanded, with overseas revenue up 11.69% year-over-year, now 7.03% of total revenue.

Financial highlights

• Operating cash flow was -¥242 million, a significant decrease from ¥741 million last year, mainly due to increased prepayments for raw materials.

• Total assets grew 18.26% year-over-year to ¥27.41 billion; net assets attributable to shareholders decreased 1.78% to ¥10.39 billion.

• Non-recurring gains totaled ¥164 million, mainly from government subsidies and fair value changes.

• R&D investment was ¥959 million, 2.73% of revenue, with a focus on AI, cloud, and digital transformation.

• Dividend proposal: cash dividend of ¥0.50 per 10 shares, totaling ¥51.76 million.

Outlook and guidance

• The company will continue to invest in AI infrastructure, computing intelligence, scenario intelligence, and terminal intelligence.

• Strategic focus on strengthening core businesses, expanding international markets, and enhancing R&D for full-stack intelligent products.

• Management highlights risks from macroeconomic fluctuations, supply chain, and market competition, but remains confident in long-term growth.