NSFOCUS (300369) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 800.53 million, nearly flat year-over-year, with a net loss of RMB 171.50 million, narrowing the loss by 32.65% compared to H1 2024.

• Cash flow from operations increased 93.47% year-over-year to RMB 81.94 million, reflecting improved receivables management.

• The company continued to invest in AI-driven security solutions, data security, and international expansion, with notable progress in telecom, finance, and energy sectors.

Financial highlights

• Operating income: RMB 800.53 million, up 0.03% year-over-year.

• Net loss attributable to shareholders: RMB -171.50 million, a 32.65% reduction in loss year-over-year.

• Operating cash flow: RMB 81.94 million, up 93.47% year-over-year.

• Gross margin by product: Security products 68.64%, Security services 57.42%.

• R&D investment: RMB 289.48 million, stable year-over-year.

Outlook and guidance

• The company expects continued growth in AI security, data security, and international markets, with a focus on telecom, finance, and energy.

• Management will maintain strategic investment in R&D and new product development, especially in AI and cloud security.