iSoftStone Information Technology (301236) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached ¥15.78 billion, up 25.99% year-over-year; net loss attributable to shareholders narrowed by 7.60% to ¥142.60 million.

• Gross margin for software and digital tech services was 14.60%, while computing products and smart electronics reached 5.43%.

• Q2 2025 saw sequential improvements: revenue up 25.10% and net profit of ¥55 million, a 127.87% increase over Q1.

• The company advanced its “intelligent, autonomous, green, international” strategy, with strong growth in AI, cloud, and smart hardware.

Financial highlights

• Operating cash flow was negative ¥479 million, down 29.17% year-over-year.

• Total assets at June 30, 2025: ¥25.92 billion, up 11.82% from year-end 2024.

• Net assets attributable to shareholders: ¥10.14 billion, down 4.12% from year-end 2024.

• R&D investment increased 10.64% to ¥529 million.

• Non-recurring gains totaled ¥124 million, mainly from government grants and fair value changes.

Outlook and guidance

• The company will continue to focus on full-stack intelligent products and services, aiming to strengthen its position in AI, digital infrastructure, and international markets.

• No interim dividend, bonus shares, or capital increase from reserves planned for H1 2025.