Key takeaway

The company released its 2025 annual report and 1Q26 report. In 2025, the company recorded operating revenue of RMB3.623bn, down 8.46% YoY; net profit attributable to shareholders of the parent company reached RMB432mn, up 13.69% YoY. The company’s profitability quality continued to improve, with overall gross margin rising to 32.10%. Net profit attributable to shareholders of the parent company after excluding non-recurring items reached RMB471mn excluding the impact of share-based payment, up 26.26% YoY. By segment, the innovative operations business delivered strong performance, with revenue reaching RMB169mn, up 38.26% YoY. The company has fully launched its “AI+ globalization + Web3.0” strategic upgrade, and AI-related business revenue reached RMB200mn. As overseas digital currency projects commenced operation smoothly, and revenue from overseas foreign-funded banks and clients doubled, the company’s globalization pace further accelerated. Together with incremental demand for bank IT development driven by the launch of the digital RMB 2.0 era, the company is expected to enter a new growth stage, and a “Buy” rating is assigned.

Event

On March 30, the company released its 2025 annual report. In 2025, the company recorded operating revenue of RMB3.623bn, down 8.46% YoY; net profit attributable to shareholders of the parent company reached RMB432mn, up 13.69% YoY; net profit attributable to shareholders of the parent company after excluding non-recurring items reached RMB415mn, up 18.77% YoY.

On April 29, the company released its 2026 first-quarter report. In 1Q26, the company recorded operating revenue of RMB502mn, down 4.32% YoY; net profit attributable to shareholders of the parent company reached RMB46mn, down 21.58% YoY; net profit attributable to shareholders of the parent company after excluding non-recurring items reached RMB39mn, down 30.37% YoY.

Risks

(1) Risk of intensified market competition. As customer demand for IT services continues to grow, existing competitors in the industry strengthen their capabilities and new entrants increase, which may lead to intensified industry competition. If the company fails to effectively enhance its technological capabilities and expand scale, it may face the risk of declining market position.

(2) Risk of relatively concentrated industries served and sales customers. The company’s business relies to a certain extent on banking clients. If the banking industry experiences operational changes due to macroeconomic fluctuations or other factors, leading to a significant decline in demand for its IT products and services, it will adversely affect the company’s performance.

(3) Risk related to technology and product development quality. If the company fails to accurately grasp the development trends of industry technologies (such as AI large models) or cannot apply new technologies to product development and upgrades in a timely manner, it will adversely affect the company’s reputation and profitability.

(4) Risk that overseas market expansion falls short of expectations. The company is actively advancing its globalization expansion. However, due to insufficient familiarity with overseas markets, uncertainties and challenges remain in regulatory policies, local culture, and competitive environments across different countries.