Core Viewpoint - China Software International (00354) has successfully entered the centralized procurement project for human outsourcing services by Sinochem Information Technology Co., Ltd. for the years 2025-2027, which includes key packages in consulting services, ERP, and implementation operations [1] Group 1: Project Details - The project aims to promote digital consulting, cloud planning, and innovative IT applications in the chemical industry, ensuring efficient application and continuous optimization of ERP systems within enterprises [1] - The inclusion in this project signifies a high recognition of the company's ERP consulting implementation and digital transformation service capabilities [1] Group 2: Strategic Implications - This milestone marks a solid step for the company in empowering the digital transformation in the energy sector, further consolidating its penetration advantage among central state-owned enterprises [1] - The company plans to continue focusing on the petrochemical industry, aligning with industry development trends and customer needs, while integrating technology leadership with industrial upgrading [1] Group 3: Future Directions - The company will persist in driving efforts in digital transformation, domestic substitution, and innovative applications of large models, contributing to the cultivation of innovative-driven new productive forces for central state-owned enterprises [1] - The goal is to contribute more wisdom and strength to promote high-quality development in the industry [1]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公佈的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公 佈全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINASOFT INTERNATIONAL LIMITED 中軟國際有限公司 * （於開曼群島註冊成立之有限公司） （股份代號：354） 自願性公告 中軟國際入圍中化信息2025-2027年 咨詢、ERP、實施運維服務集中採購項目 中軟國際有限公司 主席兼首席執行官 陳宇紅博士 中軟國際有限公司（以下簡稱「中軟國際」或「公司」）發佈本公告作為自願公佈，讓 公眾人士知悉本公司最新資料。 本公司欣然宣佈，近日，公司成功入圍中化信息技術有限公司（以下簡稱「中化信 息」）2025-2027年人力外包服務集中採購項目，涵蓋咨詢服務類、ERP類、實施運 維類三個關鍵標包。該項目旨在推動化工領域數字化咨詢、雲規劃、信息技術創 新應用項目建設，助力ERP系統在企業內的高效應用和持續優化，為項目實施和 系統運行提供堅實保障。 此次入圍，不僅是對中軟國際ERP咨詢實施及數字化轉型服務能力的高度認可， 更標誌 ...

Financial Performance - The company reported a revenue of RMB 8,506,642, an increase of 7.3% compared to RMB 7,926,183 in the previous year[5] - Service revenue reached RMB 8,248,232, reflecting a growth of 7.8% from RMB 7,647,920 year-on-year[5] - The company's profit before tax was RMB 348,946, marking an 18.0% increase from RMB 295,834 in the previous year[5] - Net profit for the period was RMB 315,031, up 10.4% from RMB 285,353 year-on-year[5] - Basic earnings per share increased by 15.6% to 12.64 cents[74] - The company's net profit for the period was RMB 315,563 thousand for the six months ended June 30, 2025, compared to RMB 285,720 thousand for the same period in 2024, reflecting a growth of 10.4%[118] - The adjusted profit for the first half of 2025 was RMB 277,093 thousand, up 11.9% from RMB 247,534 thousand in the first half of 2024, with an adjusted profit margin of 3.3%[97] AI and Technology Investments - The company has invested over RMB 2.5 billion in its "1+3" AI strategy, with RMB 1.5 billion in business investments and RMB 1 billion in financial investments[7] - The company achieved a total AI revenue of RMB 6.56 billion during the reporting period[9] - The company launched the AI-R1 series products, with over 300 AI projects implemented across various industries[11] - The company's full-scenario AI product and service revenue grew by 130% year-on-year, becoming a new growth engine for the business[19] - The company is enhancing its talent structure to meet emerging AI job demands, focusing on roles such as AI data engineers and AI solution experts[15] - The company has developed the R1-EIMOS digital transformation support platform, integrating AI capabilities to enhance operational efficiency across various industries[18] - The company collaborated with Deep Open Hong to create the "KaihongOS+AI" platform, achieving personalized teaching and refined management through AI large models, with 38 "Open Source Hongmeng Engineers" certified during the reporting period[23] Strategic Collaborations and Market Expansion - The company is focusing on the "Belt and Road" initiative, establishing a global service system covering the Asia-Pacific and Middle East regions, leveraging a dual-driven model of "technology going abroad + ecosystem landing"[14] - The company has signed a memorandum of cooperation with Huawei to deepen collaboration in the Middle East and Central Asia, joining multiple strategic alliances[14] - The company is actively participating in the construction of "Hongmeng Cities" and has established a development center in Xi'an[12] - The company is expanding its market presence in the Greater Bay Area, Yangtze River Delta, and key cities like Beijing and Shenzhen, while also establishing a global service system in the Asia-Pacific and Middle East regions[83] Product Development and Innovation - The company launched the "Yangfan R/7" ERP core management system for the energy and power industry, now available on Huawei Cloud Store, marking a significant step in digital transformation[13] - The company introduced the world's first distributed heterogeneous multi-machine collaborative robot operating system, addressing industry fragmentation issues[22] - The company has developed the "Hongyun Virtual Machine" to ensure compatibility with the Windows ecosystem, facilitating the large-scale application of domestic operating systems[27] - The company has launched multiple financial AI products, including a dialogue platform and risk control solutions, which have been implemented in various financial institutions[44] - The company has launched the "AI Medical Compliance Officer" solution, which has successfully reduced the hospital's insurance rejection rate and inspection violation rate through a comprehensive compliance management system[50] Financial Position and Liabilities - The company's total equity increased to RMB 11,733,041 thousand as of June 30, 2025, compared to RMB 11,438,494 thousand as of December 31, 2024, reflecting a growth of about 2.6%[104] - The company reported a net loss from operating activities of RMB (990,209) thousand for the first half of 2025, compared to a loss of RMB (686,433) thousand in the same period of 2024, indicating a worsening performance[107] - The company's borrowings stood at RMB 3,599,918 thousand as of June 30, 2025, slightly down from RMB 3,640,752 thousand as of December 31, 2024, indicating a minor reduction in debt levels[104] - The net debt ratio for the first half of 2025 was 12.8%, compared to a negative net debt ratio at the end of 2024[95] Corporate Governance and Shareholder Information - The company has adopted a share incentive plan effective from December 10, 2018, aimed at motivating selected employees and directors to contribute to the group's ongoing operations and development[137] - The board believes that the dual role of Dr. Chen as Chairman and CEO provides strong and consistent leadership for the group's long-term business strategy[131] - The audit committee, consisting of three independent non-executive directors, reviewed the interim results for the six months ending June 30, 2025, ensuring compliance with applicable accounting standards[148] - Major shareholders include Bank of Communications Trustee Limited with approximately 251,368,914 shares (9.20%) and UBS Group AG with approximately 138,992,423 shares (5.09%) as of June 30, 2025[145]

Core Viewpoint - The report from BOC International maintains the earnings per share forecast for China Software International (00354) for this year but raises the forecasts for 2026 and 2027 by 5% and 6% respectively, reflecting accelerated AI revenue growth and the nationwide penetration of the HarmonyOS IoT [1] Group 1: Earnings Forecast and Valuation - The target price for China Software International has been raised from HKD 5.6 to HKD 7.6 based on a 20x price-to-earnings ratio for 2026 [1] - The company’s performance in the first half of this year was strong, with revenue and gross margin meeting expectations, while operating profit margin and net profit exceeded expectations year-on-year [1] Group 2: Management Outlook - Management is optimistic about revenue growth from full-scenario AI business in the next two years, driven by open-source HarmonyOS IoT, AI agents, and ERP business [1] - It is expected that by 2026, the revenue contribution from related businesses will reach approximately 20% [1] - Management anticipates a continued recovery in demand for its cornerstone business (IT outsourcing) in the second half of the year [1]

Core Viewpoint - China Software International (00354) maintains its earnings forecast for this year but raises the earnings per share (EPS) estimates for 2026 and 2027 by 5% and 6% respectively, reflecting accelerated AI revenue growth and increased penetration of the HarmonyOS IoT nationwide [1] Group 1: Earnings Forecast and Valuation - The target price for China Software International has been raised from HKD 5.6 to HKD 7.6 based on a 20x price-to-earnings ratio for 2026 [1] - The company reported strong performance in the first half of the year, with revenue and gross margin meeting expectations, while operating profit margin and net profit exceeded expectations with year-on-year increases [1] Group 2: Management Outlook - Management is optimistic about revenue growth from full-scenario AI business in the next two years, driven by open-source HarmonyOS IoT, AI agents, and ERP business [1] - It is anticipated that by 2026, the revenue contribution from related businesses will reach approximately 20% [1] - The management also expects a continued recovery in demand for its core IT outsourcing business in the second half of the year [1]

Group 1: Automotive Industry Insights - The automotive industry is experiencing a significant shift towards intelligent driving technologies, with companies like HUAWEI and Horizon leading the way in advanced driver assistance systems [13][14]. - The penetration rate of L2 and above autonomous driving features in passenger vehicles reached 29.7% as of June 2025, reflecting a year-on-year increase of 13 percentage points [14]. - Investment recommendations include companies such as Xpeng Motors, Leap Motor, and Geely for complete vehicles, and suppliers like Suoteng Technology and Hesai Technology for components [15]. Group 2: Pharmaceutical Sector Developments - The pharmaceutical sector showed weaker performance compared to the overall market, with the biopharmaceutical segment rising only 1.05% [16]. - The World Lung Cancer Conference (WCLC) in September 2025 will showcase innovative research from Chinese pharmaceutical companies, highlighting the growing competitiveness of domestic products [16][17]. - Investment focus is recommended on companies presenting at major conferences like ESMO and WCLC, particularly those with promising clinical data [17]. Group 3: Mining and Metals Performance - Luoyang Molybdenum's net profit for H1 2025 increased by 60% to CNY 8.67 billion, driven by rising copper and cobalt prices alongside increased production [18][19]. - Zijin Mining reported a 54.41% year-on-year increase in net profit for H1 2025, attributed to a significant rise in gold production and prices [22][23]. - Cloud Aluminum's net profit for H1 2025 grew by 10%, with a strong performance in aluminum production and a proposed cash dividend of CNY 3.2 per share [20][21]. Group 4: Real Estate and Property Management - Poly Property's revenue for H1 2025 reached CNY 8.4 billion, with a net profit increase of 5%, indicating steady growth in property management services [31][32]. - Greentown China reported a significant decline in net profit by 89.7% for H1 2025, primarily due to uneven revenue recognition and asset impairment provisions [33][34]. - The company maintained a strong sales performance, with total sales area down only 10% compared to the industry average, reflecting resilience in a challenging market [34].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][9] Core Viewpoints - The company has been selected as a city partner for the construction of the Harmony ecosystem in Xi'an, collaborating with various industry partners to create a leading smart transportation ecosystem [2][3] - The company's all-scenario AI business has seen significant growth, with revenue reaching 656 million yuan in the first half of 2025, representing a year-on-year increase of 130% [2][6] - The company maintains its profit forecast, expecting revenues of 18.881 billion, 21.071 billion, and 23.467 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 693 million, 914 million, and 1.045 billion yuan [2][9] Summary by Sections Company Overview - The company has been appointed as the leading unit for the smart transportation field in Xi'an, working with multiple partners to implement a full-chain approach in consulting, planning, design, products, solutions, and industry [2][3] AI Business Growth - The all-scenario AI business has become a new growth engine for the company, with a structured 4E AI system that includes various product families and industry applications, contributing to significant revenue growth [6][9] Financial Forecast - The company forecasts revenue growth rates of 11.4%, 11.6%, and 11.4% for the years 2025, 2026, and 2027, with a corresponding price-to-earnings ratio of 24, 18, and 16 times [2][9]

Core Viewpoint - The report from Credit Lyonnais indicates that China Software International's revenue for the first half of the year was slightly below expectations by 2.8%, while net profit met expectations. AI-related business revenue now accounts for 7.7% of total revenue [1] Group 1: Financial Performance - Revenue was 2.8% lower than the bank's expectations [1] - Net profit aligned with expectations [1] - AI-related business revenue constitutes 7.7% of total revenue [1] Group 2: Business Outlook - The company's business outlook is considered better than in previous years, supported by a recovery in IT outsourcing [1] - Despite ongoing pressure on gross margins, there is a clearer trend of improvement in net profit margins due to strict cost control measures [1] Group 3: Target Price Adjustment - The target price has been slightly adjusted from HKD 7.1 to HKD 7.5 [1] - The rating remains "Outperform" [1]

Core Viewpoint - The report from CICC indicates that China Software International (00354) slightly missed revenue expectations by 2.8% for the first half of the year, while net profit met expectations. AI-related business revenue now accounts for 7.7% of total revenue [1] Group 1: Financial Performance - Revenue for the first half of the year was slightly below expectations by 2.8% [1] - Net profit aligned with expectations, indicating stable profitability [1] - The company has shown a clearer trend of improving net profit margins due to strict cost control measures, despite ongoing pressure on gross margins [1] Group 2: Business Outlook - The recovery in IT outsourcing business is expected to support the company's business prospects, which are better than in previous years [1] - The target price has been adjusted from HKD 7.1 to HKD 7.5, maintaining an "outperform" rating [1] Group 3: AI Business Contribution - AI-related business revenue has reached 7.7% of total revenue, highlighting the growing importance of this segment [1]

Core Viewpoint - China Software International (00354) reported a slight revenue miss of 2.8% compared to expectations, while net profit met forecasts. AI-related business revenue now accounts for 7.7% of total revenue [1] Group 1: Financial Performance - Revenue for the first half of the year was slightly below expectations by 2.8% [1] - Net profit aligned with the expectations set by analysts [1] - AI-related business revenue has reached 7.7% of total revenue, indicating a growing focus on this segment [1] Group 2: Business Outlook - The recovery in IT outsourcing business is expected to support the company's future prospects, which are seen as better than in previous years [1] - Despite ongoing pressure on gross margins, the company is implementing strict cost control measures, leading to a more noticeable improvement in net profit margins [1] Group 3: Analyst Recommendations - The target price has been slightly adjusted from HKD 7.1 to HKD 7.5 [1] - The analyst maintains a "outperform" rating for the stock [1]