AsiaInfo Technologies (01675) has issued a statement, projecting that the group's revenue for the six months ending June 30, 2026, will be approximately between 2.10 billion and 2.30 billion yuan (compared to roughly 2.598 billion yuan in the same period of 2025). The net loss for the period is estimated at around 460 million to 490 million yuan (versus approximately 202 million yuan in the same period of 2025).

After excluding the impact of one-off severance payments related to workforce optimization, the group expects a net loss of about 240 million to 270 million yuan for the period. The primary reasons for the revenue decline and increased net loss include:

i) Pressure on revenue from the core carrier business systems during the period. Business progress has slowed due to investment reductions and cyclical, structural adjustments in the telecommunications industry.

ii) The business structure optimization has had a temporary impact on period revenue. To further enhance business quality and operational efficiency, the group has proactively closed, suspended, merged, or transferred certain inefficient traditional ICT projects for government and enterprise clients, as well as high-labor-dependent legacy businesses, leading to a significant drop in overall revenue for the period.

iii) One-off expenses from organizational and workforce structure optimization. To actively adapt to business development needs in the era of artificial intelligence, the group has continued to advance organizational transformation, upgrading, and personnel structure optimization. This has resulted in a year-over-year increase in one-time expenses, such as employee severance payments. Concurrently, the group has increased investment in improving employee AI capabilities, focusing on building an agile organization and talent pipeline suited for the AI era.

Despite short-term performance pressure, the company is firmly committed to an "AI-First" strategy. While stabilizing its core business, it is actively deploying in emerging businesses in line with industry developments and customer transformation trends, achieving phased progress. This includes:

i) Accelerated growth in AI-related businesses (intelligent data operations). The company is rapidly deepening the integration of AI capabilities with industry scenarios, and the transformation of new businesses along with revenue structure optimization is gradually being validated.

ii) Physical AI businesses are entering the commercialization and deployment phase. The company has launched its Physical AI product portfolio. Leveraging its proprietary product matrix, it empowers the transformation and upgrading of physical production businesses, accelerates the large-scale commercialization of products, and helps China's industrial intelligent manufacturing move towards the new cycle of embodied intelligence at full speed.

iii) Positive progress in satellite internet. The company has released its "Star-Earth Intelligent Link" product system, including hardware products such as satellite ground core networks, on-board base stations, and on-board core networks, as well as a series of software products. These provide satellite operators and industry customers with three core capabilities: connectivity, orchestration, and governance, systematically solving key issues such as operation, commercial use, trustworthiness, and controllability. The group's full-stack satellite internet infrastructure has entered key nodes and commercial scenarios within the domestic low-orbit satellite constellation system, forming a complete closed loop from product validation to commercial delivery and replicable scale.

iv) Token operation products have completed online validation. The company has launched the "Tianshu" Token operation platform, providing enterprises with full-process closed-loop governance capabilities from computing power to Tokens, and from cost to return on investment (ROI) evaluation. The first pilot project has completed its online validation.

Furthermore, the group will continue to adhere to the "AI-First" strategy, building an AI-driven growth flywheel to achieve revenue structure optimization and profit recovery throughout the year, driving the company's high-quality development. The board of directors and management are confident in the company's future.