Neusoft (600718) Q4 2025 earnings summary

Executive summary

• 2025 marked a pivotal year for the company’s AI-driven transformation, with strategic investments in R&D and business model innovation amid macroeconomic volatility and intensified competition.

• Revenue grew 4.14% year-over-year to RMB 12.04 billion, but the company posted a net loss due to increased R&D and transformation costs.

• The company maintained leadership in core verticals such as healthcare IT, smart automotive, and digital government, with significant contract wins and product launches in AI and data-driven solutions.

Financial highlights

• Operating revenue: RMB 12.04 billion, up 4.14% year-over-year.

• Net loss attributable to shareholders: RMB -358 million, compared to a profit of RMB 63 million last year.

• Operating cash flow: RMB 451 million, down 47.24% year-over-year.

• Gross margin: 22.1%, down from 23.9% last year.

• Basic EPS: -0.31 yuan, down from 0.05 yuan.

• R&D expenses: RMB 1.19 billion, up 34.27% year-over-year, representing 10.26% of revenue.

Outlook and guidance

• 2026 revenue target set at RMB 13.0 billion, an 8% increase, with cost and expense growth expected to be controlled at 6% and 3% respectively.

• Strategic focus remains on AI, data value realization, and global expansion, with continued investment in core technology and talent.