Key takeaway

The company released its 2025 annual report and 2026 firstquarter report. In 2025, the company achieved operating revenue of RMB2.054bn, up 5.57% YoY; net profit attributable to shareholders of the parent company was RMB136mn, up 21.02% YoY; net profit attributable to shareholders of the parent company excluding non-recurring items was RMB89mn, up 7.96% YoY. In 4Q alone, operating revenue was RMB628mn, down 5.15% YoY, and net profit attributable to shareholders of the parent company was RMB26mn, turning from loss to profit YoY. In 1Q26, the company achieved operating revenue of RMB488mn, up 8.67% YoY; net profit attributable to shareholders of the parent company was RMB31mn, up 26.39% YoY. The company’s profit growth continues to outpace revenue growth, reflecting the gradual impact of expense control, product mix optimization, and improved profitability in digital government services; meanwhile, the digital-intelligent finance and taxation business grew rapidly under the AIBM strategy. AI product collections, paying users, and contract liabilities all maintained solid performance, enhancing revenue sustainability. We maintain “buy” rating.

Event

On April 23, 2026, the company released its 2025 annual report and 2026 first-quarter report. In 2025, the company achieved operating revenue of RMB2.054bn, up 5.57% YoY; net profit attributable to the parent company of RMB136mn, up 21.02% YoY; and net profit attributable to the parent company excluding non-recurring items of RMB89mn, up 7.96% YoY.

On April 23, the company released its 2026 first-quarter report. 1Q26, the company achieved operating revenue of RMB488mn, up 8.67% YoY; net profit attributable to shareholders of the parent company was RMB31mn, up 26.39% YoY; net profit attributable to shareholders of the parent company excluding non-recurring items was RMB29mn, up 33.28% YoY.

Risks

(1) Risk that changes in tax policies lead to product services falling short of expectations. Tax policies are characterized by a higher frequency of change and greater regional differences compared with accounting standards. Examples include tax rate adjustments in certain industries, additions or reductions of tax categories, and tax system reforms. If the company fails to update the design, functions, and service content of its digitalintelligent fiscal and tax service products in a timely manner, product services may fall short of expectations.

(2) Data leakage risk. The products developed by the company rely on network and internet technologies and therefore face potential risks such as hacker attacks, forced communication interruptions, and data leakage.

(3) Risk of contraction in government fiscal informatization spending. Affected by increasing economic downward pressure and tax and fee cuts, the national fiscal budget shows a tightening trend. Growth in the taxation industry has slowed in the past. There is a risk of contraction in fiscal informatization spending, which will have a certain impact on the company’s business development.