Yonyou Network Technology (600588) Q1 2026 earnings summary

Executive summary

• Achieved revenue of RMB 1.46 billion in Q1 2026, up 5.9% year-over-year; cloud services revenue grew 8.1% and core BIP product revenue rose 26.8%.

• Net loss attributable to shareholders was RMB 722.6 million, a reduction of RMB 13.2 million year-over-year; gross margin improved by 5.7 percentage points to 44.7%.

• AI business generated RMB 137.4 million in revenue, with significant product launches and major enterprise contracts signed.

• Employee count reduced by 1,308 to 17,747 by end of Q1 2026, reflecting organizational optimization.

Financial highlights

• Operating income: RMB 1,459 million, up 5.9% year-over-year.

• Net loss attributable to shareholders: RMB -722.6 million, improved from RMB -735.8 million year-over-year.

• Basic and diluted EPS: -0.22, unchanged year-over-year.

• Operating cash flow: RMB -1,005 million, slightly improved from RMB -1,022 million year-over-year.

• Total assets: RMB 21.13 billion, down 2.31% from year-end 2025.

Outlook and guidance

• Continued focus on AI-driven product innovation, global market expansion, and cloud services growth.

• Ongoing organizational optimization and talent acquisition in AI.