Chinasoft International (354) investor relations material

Executive summary

• Revenue grew 0.5% year-over-year to RMB17,027 million, with service revenue up 2.3% to RMB16,686 million, driven by full-stack AI business expansion.

• Profit for the year declined 36.7% to RMB324 million, mainly due to one-off severance costs from workforce optimization and a goodwill impairment.

• Adjusted profit before taxation, excluding these special items, was RMB682 million, up 0.2% year-over-year, reflecting stable core business profitability.

• Gross profit margin fell to 20.4% from 22.1% due to transitional costs and delayed efficiency gains from AI Coding adoption.

• The company advanced its "One Body, Two Wings" AI strategy, with significant growth in AI product and service sales (up 109.2% to RMB2,000 million).

Financial highlights

• Revenue: RMB17,027 million (+0.5% YoY); Service revenue: RMB16,686 million (+2.3% YoY).

• Gross profit: RMB3,469 million (-7.3% YoY); Gross margin: 20.4% (down 1.7pp YoY).

• Profit for the year: RMB324 million (-36.7% YoY); Basic EPS: RMB0.1284 (-35.8% YoY).

• Adjusted profit before tax: RMB682 million (+0.2% YoY); Adjusted margin: 4.0%.

• R&D expenses: RMB1,041 million (+14.9% YoY); Finance costs: RMB119 million (-32.1% YoY).

Outlook and guidance

• Plans to accelerate AI software/hardware business and expand into energy, power, and finance sectors.

• Focus on global expansion, especially in Asia-Pacific and Middle East, and deepening partnerships with core partners.

• Continued investment in AI innovation, ecosystem development, and talent upgrading to lead industry transformation.