Transwarp Technology (Shanghai) (688031) Q4 2025 earnings summary

Executive summary

• FY2025 revenue rose 20.47% to RMB447.53m; net loss attributable to shareholders narrowed 28.62% to RMB245.17m.

• Core growth came from software products and related services, supported by digital-transformation demand, repeat purchases and improved collection and expense controls.

• The business remains loss-making as revenue does not yet cover operating costs and continued R&D and sales investment; management targets growth, better cash flow and narrower losses in 2026.

Financial highlights

• Revenue was RMB447.53m, up 20.47% YoY; operating costs were RMB683.94m and operating loss was RMB245.19m, versus RMB344.58m loss in 2024.

• Net loss attributable to shareholders was RMB245.17m versus RMB343.46m; adjusted for non-recurring items, net loss was RMB263.73m versus RMB379.76m.

• Q4 revenue was RMB222.45m; Q4 attributable net loss narrowed to RMB31.94m from RMB83.58m in Q1.

• Operating cash outflow improved to RMB109.65m from RMB326.59m; investing cash flow was an outflow of RMB53.71m after inflows from investment maturities fell.

• Sales, management and R&D expenses fell 21.66%, 3.58% and 10.24% YoY, respectively; total R&D investment was RMB250.53m, down 4.55%.

Outlook and guidance

• 2026 targets are steady revenue growth, stronger overseas order acquisition, improved revenue quality and operating efficiency, better operating cash flow and narrower losses.

• Strategy prioritizes full-stack “AI × data” upgrades, integrated AI and data platforms, expanded product solutions, deeper customer and ecosystem partnerships, and international expansion.

• Focus overseas regions include Southeast Asia and the Middle East, with plans for stronger local channels, technical support and delivery capabilities.

• 2026 performance assessment continues to emphasize management profit, collections and revenue, with management profit and collections as key measures.