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.
Sinosoft Co LtdDeducted non-recurring net profit fell over 45% for two consecutive years, with revenue and gross margin declining.
Taiji Computer Corp Ltd
China National Software & Service Co Ltd
Neusoft Corp