Neusoft (600718) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 1.85 billion, up 1.06% year-over-year, with net profit attributable to shareholders at -RMB 12.09 million, a significant decline from the prior year.

• New contract value and order backlog grew, especially in AI+ product applications, with notable growth in vertical AI and data value contracts.

Financial highlights

• Operating income was RMB 1.85 billion, up from RMB 1.83 billion year-over-year.

• Net profit attributable to shareholders dropped 330.18% year-over-year to -RMB 12.09 million.

• Net profit excluding non-recurring items was -RMB 51.02 million.

• Basic and diluted EPS were both -0.010, down from 0.004 in the prior year.

• Operating cash flow was negative at -RMB 539.04 million, compared to -RMB 515.68 million a year ago.

Outlook and guidance

• AI+ product scenario applications and vertical AI contracts are expected to drive future growth, with AI+ medical contracts up 211% year-over-year.