Shanghai Baosight Software (600845) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB 10.97 billion, down 19.6% year-over-year; net profit attributable to shareholders was RMB 1.31 billion, down 42.4% year-over-year.

• Cash flow from operating activities increased 28.5% year-over-year to RMB 2.15 billion.

• The company maintained a leading position in industrial software and AI-driven solutions, with significant progress in AI, cloud, and robotics.

• Major awards were received for AI and industrial automation innovations.

Financial highlights

• Operating income: RMB 10.97 billion (down 19.6% YoY); net profit: RMB 1.31 billion (down 42.4% YoY).

• Gross margin for software development and engineering services was 25.8%, down 5.4 percentage points YoY.

• Basic EPS: RMB 0.457 (down 42.7% YoY); ROE: 11.88% (down 8.8 percentage points YoY).

• Operating cash flow: RMB 2.15 billion (up 28.5% YoY); capital expenditures increased due to data center investments.

• Dividend proposal: RMB 2.3 per 10 shares, total RMB 660 million, representing 50.6% payout ratio.

Outlook and guidance

• 2026 focus: strengthen steel sector, expand non-steel and overseas markets, and accelerate AI-driven industrial solutions.

• Strategic priorities: AI+ manufacturing, SaaS product matrix, robotics, PLC, and cloud infrastructure.

• Targeting significant revenue and profit growth in 2026, leveraging new product launches and market expansion.