AsiaInfo Technologies Limited (ASIAINFO TECH; 01675) issued a profit warning for the six months ended 30 June 2026, projecting a notable deterioration in both revenue and earnings versus the prior-year period.

Revenue outlook • Management expects first-half revenue of roughly RMB2.10 billion–RMB2.30 billion, down 11.5%–19.2% from RMB2.60 billion in H1 2025. • The decline is attributed to reduced telecom sector investment and the deliberate scale-back of low-margin, labour-intensive government and enterprise ICT projects.

Earnings guidance • Net loss is estimated at RMB460.00 million–RMB490.00 million, widening from a RMB202.00 million loss a year earlier—an increase of around 128%–143%. • Excluding one-off severance costs tied to organisational and workforce restructuring, the underlying net loss is guided at RMB240.00 million–RMB270.00 million.

Key drivers of the downturn 1. Telecom core system revenue pressure amid cyclical and structural investment adjustments in the sector. 2. Strategic withdrawal from low-efficiency traditional ICT contracts, temporarily reducing top-line contribution. 3. One-off restructuring expenses, including higher employee severance payments, as the group re-aligns its workforce for an “AI First” operating model and increases staff AI capability training.

Strategic progress despite short-term headwinds • Smart digital operation (AI-related) business recorded accelerated growth as the company deepened AI integration across industry use cases. • The Physical AI product suite is moving toward commercial rollout, aimed at supporting intelligent manufacturing. • In satellite internet, the “Satellite-Terrestrial Intelligent Connectivity” portfolio—covering satellite gateway core networks, spaceborne base stations and software—has entered key deployment stages within China’s low-Earth-orbit constellation system. • The “Tianshu” Token operations platform completed its inaugural pilot, offering enterprises end-to-end governance from computing power allocation to ROI assessment.

Management reiterated confidence in the “AI First” strategy to rebalance the revenue mix and restore profitability. Interim results are still being finalised and remain unaudited; definitive figures will be released in the forthcoming H1 2026 results announcement and interim report.

Shareholders and prospective investors are urged to exercise caution when trading the company’s shares.