Yonyou Network Technology (600588) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 reached RMB 3.73 billion, up 4.08% year-over-year, with cloud services revenue up 4.6% and subscription revenue up 12.1%.

• Net loss attributable to shareholders was RMB -928 million, a reduction of RMB 16 million year-over-year; adjusted net loss (excluding non-recurring items) was RMB -947 million.

• Gross margin improved to 50.9%, up 2.6 percentage points year-over-year.

• AI-related contract value reached RMB 906 million, with AI-related revenue of RMB 464 million.

• Cloud service ARR reached RMB 2.87 billion, up 8.2% year-over-year; total paying cloud customers reached 1.19 million.

Financial highlights

• Operating income: RMB 3.73 billion, up 4.08% year-over-year.

• Net loss: RMB -928 million, improved from RMB -945 million year-over-year.

• Operating cash flow: RMB -1.00 billion, down from RMB -928 million year-over-year.

• Total assets: RMB 21.16 billion, down 2.17% from year-end 2025.

• Net assets attributable to shareholders: RMB 6.72 billion, down 11.56% from year-end 2025.

• Basic and diluted EPS: RMB -0.27 per share.

Outlook and guidance

• The company continues to accelerate its AI-first strategy, focusing on product innovation, global market expansion, and cost efficiency.

• Subscription and cloud services are expected to remain key growth drivers, with ongoing investment in AI and internationalization.