AsiaInfo Technologies Limited Announces Q1 2026 Financial and Operational Performance

Key Highlights

• Revenue: The Group recorded revenue of approximately RMB994 million for the three months ended 31 March 2026, marking a year-on-year decrease of 6.9%.
• Net Loss: Net loss was approximately RMB308 million, a 14.0% narrowing compared to the same period last year. Excluding one-off severance compensation from workforce optimisation, net loss improved further to RMB189 million, representing a 28.6% year-on-year decrease.
• Assets: As of 31 March 2026, total assets stood at approximately RMB9,308 million, and net assets at RMB6,120 million.

Operational Overview

AsiaInfo Technologies Limited has undergone significant business transformation and restructuring over the past year. Key factors impacting the Q1 results include:

• Seasonality: The company’s customer procurement cycles are highly seasonal, leading to substantial quarter-to-quarter fluctuations, with revenue and profit typically concentrated in the second half of the year.
• Business Structure Optimisation: The Company exited or scaled down low-margin businesses, divested underperforming traditional ICT projects for government and enterprise clients, and reduced labour-intensive operations. This contributed to the year-on-year decline in revenue but was essential for long-term margin improvement.
• Workforce Optimisation: One-off severance compensation related to workforce restructuring increased expenses, but excluding this, the net loss narrowed significantly, indicating progress in operational efficiency.

Despite the recorded net loss in Q1, the Group reported continuous improvement in operating margins, suggesting that the transformation initiatives are yielding positive results.

Strategic Initiatives and AI-Driven Growth

• “AI First” Strategy: The Group remains committed to its “AI First” approach, prioritising the development of AI-driven products and services.
• Partnerships: Strategic alliances with ecosystem partners such as Alibaba Cloud, Volcengine, Kimi, NVIDIA, and ABB have enabled the Group to create a full-stack suite of AI offerings spanning data, models, applications, and operations.
• AI Revenue: The smart digital operation business achieved explosive growth, with AI-related revenue nearly doubling year-on-year. This is a major growth driver and could significantly impact future earnings potential.
• Smart Connectivity Product Breakthroughs:
  • Collaborated with Gesi Aerospace to successfully complete the LEO satellite internet NTN 1st Call.
  • Finalised proof-of-concept for spaceborne base stations/core networks.
  • Participated in the development of Spacecom’s second-generation satellites.
  • Private 5G products were included in Gartner’s “Magic Quadrant for 4G and 5G Private Network Services” for the first time.
  • Maintained the industry-leading market share of 5G private networks for nuclear power applications.

Future Outlook

• The Group will continue its “AI First” strategy, focusing on intelligent agent applications, AI ecosystem synergy, and Physical AI to drive long-term growth in its smart digital operation business.
• In the smart connectivity product segment, the Company aims to establish dual growth engines in energy and aerospace intelligent connectivity, advancing into satellite internet for sustained development momentum.

Important Shareholder Information

• Unaudited Figures: All data provided in this announcement are based on internal management accounts and are unaudited. Actual figures may differ from those published in audited or semi-annual statements.
• Price-Sensitive Information: The narrowing net loss, explosive growth in AI-related revenue, and significant breakthroughs in smart connectivity products are all potentially price-sensitive and could influence share value.
• Caution Advised: Shareholders and potential investors should exercise caution when dealing in the Company’s securities and avoid placing undue reliance on this unaudited information. Professional advice is recommended if in doubt.

Board Composition

The Board consists of Executive Directors Dr. TIAN Suning and Mr. KWOK Bernard Chuen Wah; Non-Executive Directors Mr. HE Zheng, Mr. YANG Lin, Ms. LIU Hong, and Mr. E Lixin; and Independent Non-Executive Directors Dr. ZHANG Ya-Qin, Mr. GE Ming, Ms. TAO Ping, Dr. WANG Lei, and Dr. LIU Jun.

Disclaimer

Disclaimer: This article is based on unaudited financial and operational information provided by AsiaInfo Technologies Limited for the three months ended 31 March 2026. The information is subject to change and may differ from audited financial statements. Investors should not rely solely on this article for investment decisions and are advised to consult professional advisers.

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