Inspur Digital Enterprise Technology Limited released its unaudited interim results for the six months ended 30 June 2026.

Revenue and Segment Mix • Group turnover fell 13.50% year-on-year to RMB 3.76 billion. • Enterprise AI revenue surged 192.44% to RMB 0.14 billion, equal to 3.65% of group sales. • Cloud Services & Management Software revenue declined 33.64% to RMB 1.61 billion, representing 42.83% of total. • Intelligent Computing Centres & Other revenue rose 7.43% to RMB 2.01 billion, accounting for 53.52% of total.

Profitability • Gross profit decreased 14.11% to RMB 0.87 billion; group gross margin was stable at 23.20% (-0.17 ppt). • Profit before tax plunged 66.55% to RMB 0.06 billion. • Profit attributable to owners dropped to RMB 0.06 billion, down 66.06%; basic EPS fell to RMB 5.09 cents. • Enterprise AI posted an operating loss of RMB 0.09 billion, while Cloud Services & Management Software contributed RMB 0.13 billion (-41.11% YoY).

Cost Structure • Administrative expenses rose 7.37% to RMB 0.21 billion. • Total R&D spending (expensed and capitalised) was stable at RMB 0.44 billion. • Selling & distribution costs edged down 0.24% to RMB 0.26 billion. • Other income dropped 20.93% to RMB 0.05 billion due to lower government subsidies; other gains/losses recorded a RMB 2.46 million loss.

Liquidity and Capital Resources • Current ratio slipped to 1.26x (31 Dec 2025: 1.30x). • Cash and cash equivalents stood at RMB 1.04 billion, down RMB 0.22 billion from year-end; net cash used in operations was RMB 0.69 billion. • Total borrowings were RMB 1.03 billion, including RMB 0.42 billion from Inspur Group Finance. • Pledged bank deposits rose to RMB 0.11 billion. • 1H26 capex for intangible assets reached RMB 0.07 billion.

Balance Sheet • Total assets grew to RMB 9.38 billion; equity attributable to owners increased slightly to RMB 3.19 billion. • Trade and bills receivables expanded to RMB 3.25 billion; receivables over 180 days were 42% of the total. • Contract assets climbed to RMB 1.75 billion; contract liabilities fell to RMB 0.57 billion. • Net assets per share were approximately RMB 2.62.

Operational Highlights • Signed AI-related contracts worth RMB 0.48 billion during the period. • Intelligent Computing Centre new orders totalled RMB 2.95 billion, up 56%. • Employee headcount was 7,303; staff costs under operating activities amounted to RMB 0.89 billion.

Corporate Actions • Utilised HK $343.16 million of November 2025 placing proceeds for R&D and expansion; HK $48.91 million remains to be deployed by November 2027. • Repurchased 4.01 million shares in May–June 2026 for HK $10.76 million, earmarked for employee share options. • Interim dividend not declared.

Outlook and Strategy Management will continue executing the “1321” strategy, prioritising AI-native product development, deepening penetration in central and state-owned enterprises, and enhancing efficiency through business portfolio optimisation.