Chinasoft International reported a solid first-half performance for 2026, underpinned by rapid expansion of its full-stack, full-scenario artificial intelligence offerings.
Key Financials (six months ended 30 June 2026): • Revenue up 5.2% year on year (YoY) to RMB 8.95 billion. • Service revenue rose 4.1% YoY to RMB 8.59 billion. • Gross profit increased 3.2% to RMB 1.94 billion; gross margin held at 21.6%. • Profit before tax climbed 14.3% to RMB 399.01 million; adjusted profit before tax (excluding severance costs) advanced 27.1% to RMB 547.61 million. • Profit for the period reached RMB 349.92 million, up 11.1% YoY. • Profit attributable to shareholders grew 11.0% to RMB 350.38 million. • Basic EPS improved 9.7% to RMB 13.87 cents. • No interim dividend was proposed.
Operational Highlights: • Revenue from full-stack, full-scenario AI products and services surged 133.7% YoY to RMB 1.53 billion, moving the AI transformation from “investment” to “value demonstration” phase. • The company advanced its “One Body, Two Wings” strategy: – “Body”: computing power infrastructure, large-model ecosystem and Forward Deployed Engineer (FDE) delivery capabilities. – “Two Wings”: AI HarmonyOS (physical AI) and AI ERP/allmeta (digital AI). • Notable milestones included a revenue-sharing agreement with Moonshot AI’s KIMI model, a RMB 1 billion intelligent computing centre contract, and a RMB 44.16 million large-model project with Yalong River Hydropower. • Chinasoft’s computing-power business now spans hardware resale, leasing and token-based operations under new subsidiary Chinasoft Intelligent Computing Co. • The group maintained its leading position in the OpenHarmony ecosystem and is expanding HarmonyOS-based smart city and industry solutions, with flagship deployments in Xi’an, Shenzhen and other major cities. • Headcount trimmed by 5.4% to 71,194 as AI-driven automation improved efficiency; administrative expenses fell 2.7% YoY.
Financial Position: • Total cash (bank, time deposits and pledged deposits) stood at RMB 4.59 billion. • Net gearing was 11.3% versus –2.0% at end-2025, reflecting capital deployed for AI initiatives, share repurchases and dividends. • Working-capital position remained strong with a current ratio of 2.3.
Outlook (as stated by management): Chinasoft plans to accelerate its intelligent-computing rollout, scale FDE teams, expand HarmonyOS “city” projects and pursue AI ERP opportunities in central and state-owned enterprises, targeting a transition from “value demonstration” to “value realisation” in the second half of 2026.