Beijing Xunzhong Communication Technology Co., Ltd. (Xunzhong) released its unaudited 2026 interim report.

Revenue and Profitability • Group revenue rose 19.06% year on year (YoY) to RMB 326.25 million, driven mainly by cloud-based communications services. • Net profit attributable to shareholders fell 48.22% YoY to RMB 13.27 million as gross profit margin narrowed 1.62 ppt to 20.13% and credit-impairment charges increased. • Gross profit increased 10.17% YoY to RMB 65.69 million, but rising channel costs and the initial ramp-up of the intelligent computing business weighed on margin.

Segment Performance • Cloud-based communications services remained the core contributor, generating RMB 297.64 million (+17.93% YoY). • Project-based communications solutions were stable at RMB 13.82 million (+0.07% YoY). • Newly launched intelligent computing scheduling and operation services delivered first-time revenue of RMB 11.92 million. • Other communications services and accessories declined 63.39% YoY to RMB 2.87 million as the company scaled back low-margin activities.

Cost and Expense Trends • Operating costs climbed 21.53% YoY to RMB 260.56 million, reflecting higher telecom channel procurement and initial computing power investments. • Selling expenses fell 17.46% YoY to RMB 6.02 million due to digital sales initiatives. • R&D outlays contracted 29.95% YoY to RMB 13.03 million following a shift to commercialisation-focused projects. • Finance costs increased 29.16% YoY to RMB 6.66 million on higher borrowing and interest rates.

Cash Flow and Balance Sheet • Operating cash outflow reached RMB 191.09 million versus an inflow of RMB 73.78 million a year earlier, largely because of upfront payments for telecom and computing resources. • Cash and cash equivalents dropped to RMB 29.55 million from RMB 207.21 million at end-2025; prepayments stood at RMB 963.60 million, or 48.3% of total assets. • Interest-bearing borrowings totalled RMB 356.17 million, keeping the gearing ratio broadly stable at 36.69%.

Shareholder Returns • The board did not declare an interim dividend.

Legal Matters • Two ongoing contractual disputes with Beijing Yakang Huanyu Technology and Beijing Yunxi Technology, and separate litigation with Qingdao Guoshi Data Service, have led to frozen bank accounts and subsidiary equity. Management states these cases have not materially affected operations or finances. An additional claim against Beijing Zhongke Xinkong for RMB 40 million has been filed post-period.

Outlook Management plans to deepen AI-driven upgrades to its cloud communications and contact-centre platforms, scale the intelligent computing scheduling segment, and explore Southeast Asian expansion. No major investments beyond existing commitments were announced.