Nuobikan Artificial Intelligence Technology (Chengdu) (2635) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 23.7% YoY to RMB498.2m, while gross profit grew 12.2% and net profit rose 2.1% to RMB117.8m; operating cash inflow was RMB85.8m.

• Urban management became the largest business line by revenue, offsetting declines in transportation and energy; gross margin fell as urban management carries a lower margin.

Financial highlights

• Revenue increased to RMB498.2m from RMB402.6m; gross profit was RMB266.2m versus RMB237.2m, and profit before tax rose 3.6% to RMB130.6m.

• Net profit increased 2.1% to RMB117.8m; basic and diluted EPS was RMB3.45 versus RMB3.44.

• R&D expenses rose 39.3% to RMB83.0m; administrative expenses increased 16.4% to RMB41.7m, while selling and distribution costs fell 8.9% to RMB14.9m.

• Net impairment losses on financial and contract assets fell 35.7% to RMB12.5m; finance costs rose 22.0% to RMB4.2m, mainly reflecting higher bank loans.

Outlook and guidance

• 2026 strategy centers on the NBK-INTARI AI platform, deepening transport infrastructure operations and safety monitoring applications amid the national “AI +” initiative.

• Plans include expanding from transportation into energy and urban governance, including smart energy and urban safety, and broadening AI applications across industries.