Sinosoft Co Ltd

Sinosoft released its 2026 interim report. Total operating revenue was 2.436 billion yuan, a slight increase of 0.06% year-on-year. Net profit attributable to the parent company was 90.34 million yuan, down 15.60% from the same period last year. Net cash flow from operating activities was negative 1.08 billion yuan, an improvement of 254 million yuan year-on-year. The asset-liability ratio rose to 59.55%, gross margin was 27.77%, return on equity was 2.94%, and diluted earnings per share were 0.11 yuan. The company had 64,300 shareholders, and the top ten shareholders held 39.82% of total share capital.

Sinosoft released its 2026 half-year report. First-half net profit attributable to the parent was 90.34 million yuan, down 15.6% year-on-year. Operating revenue was 2.44 billion yuan, down 14.6% year-on-year. Net profit attributable to the parent after deducting non-recurring items was 87.52 million yuan, down 12.9% year-on-year. Net operating cash flow was negative 1.08 billion yuan, an improvement of 19.1% year-on-year. Second-quarter operating revenue was 1.43 billion yuan, down 11.8% year-on-year, and net profit attributable to the parent was 106 million yuan, down 13.9% year-on-year. The company said that during the reporting period, industries continued to advance digital transformation, and the company actively promoted its AI strategic transformation, established an FDE talent system, and pushed forward the engineering implementation of AI across various industries.

Sinosoft disclosed its 2026 semi-annual report. In the first half, it achieved operating revenue of 2.436 billion yuan, up 0.06% year on year. Net profit attributable to shareholders of the listed company was 90.3443 million yuan, down 15.6% year on year. Basic earnings per share were 0.1087 yuan. The company plans to distribute a cash dividend of 0.5 yuan per 10 shares, tax included. The year-on-year decline in net profit was mainly due to a higher base of non-operating income in the same period last year and a decrease in the current period.

Sinosoft has replied to the Shanghai Stock Exchange's inquiry letter regarding its 2025 annual report, explaining the reasonableness of declines in revenue and gross margin, as well as a drop of over 45% year-on-year in deducted non-recurring net profit for two consecutive years. Data shows that from 2024 to 2025, the company's revenue fell from 6.375 billion yuan to 6.028 billion yuan, and gross margin slipped from 26.87% to 24.71%. The company stated that the insurance segment's gross margin dropped 2.73 percentage points to 26.64%, mainly due to moderate concessions to downstream clients cutting costs. Gross margins in non-insurance finance, government, and healthcare segments rebounded by 1.91 to 5.74 percentage points respectively, as the share of low-margin system integration business declined. The education, science, culture, and other segments saw gross margin plunge 8.02 percentage points to 16.30%, impacted by large-scale integration projects. Compared with peers, Taiji Computer and Neusoft saw synchronous weakening in gross margins, while China Software lifted the industry average with its high-margin operating system business. The company's gross margin fluctuations show no significant anomaly. In the first quarter of 2026, net profit attributable to the parent company narrowed its loss by 394,400 yuan year-on-year, while gross margin continued to decline by 1.12 percentage points year-on-year. Meanwhile, research and development, administrative, and selling expenses fell by 1.72%, 8.96%, and 12.63% year-on-year respectively.