Bairong AI Inc. released its 2026 interim results, reporting a sharp year-on-year revenue decline and a swing to loss as regulatory headwinds trimmed legacy lending-related income while investment in artificial-intelligence capabilities accelerated.

Financial Performance • Revenue fell 43% to RMB914.32 million, dragged down by a 62% slide in “Other Business” to RMB376.63 million and a 26% drop in AI Decisioning to RMB371.92 million. • AICC operations remained the bright spot: segment revenue climbed 52% to RMB165.77 million, with “AICC for New Use Cases” up 195% to RMB11.26 million and “AICC for the Lending Use Case” up 47% to RMB154.51 million. • Gross profit contracted 59% to RMB488.29 million; gross margin fell twenty percentage points to 53% as higher-margin legacy products shrank. • The Group recorded an operating loss of RMB307.62 million versus a RMB200.89 million profit a year earlier; net loss reached RMB321.64 million compared with a RMB201.22 million profit in 2025. • Non-IFRS metrics turned negative: adjusted net loss was RMB256.62 million (2025 interim: RMB254.45 million profit); non-IFRS EBITDA was a loss of RMB203.45 million (2025 interim: RMB282.54 million profit).

Cost Dynamics • R&D spending rose 31% to RMB394.16 million, accounting for 43% of revenue, as Bairong intensified foundation-model development. • Sales and marketing costs declined 40% to RMB361.53 million amid reduced promotion for legacy lending products. • General and administrative expenses eased 12% to RMB123.51 million; other income rose 34% to RMB112.55 million, buoyed by investment gains.

Liquidity & Capital • Cash and cash equivalents stood at RMB692.69 million; total cash resources (including time deposits and restricted cash) were RMB1.73 billion. • Gearing ratio improved to 0.12. No interim dividend was declared. • The company repurchased 11.82 million Class B shares during the period for HK$141.63 million and held 18.15 million treasury shares at period-end. • IPO proceeds of RMB3.17 billion have been fully deployed, mainly into R&D, business expansion and strategic investments.

Operational Highlights • Bairong positions itself as a full-stack AI provider with domain-specific foundation models BR-Voice, BR-LLM-Proactive and BR-Vision-Doc. BR-Voice ranked third globally and first among Chinese industry participants in the 2026 INTERSPEECH Multilingual Conversational Speech Understanding benchmark. • AICC gained cross-industry traction: a logistics client scaled from under 1,000 to more than 15,000 daily inbound calls handled by silicon workforce; 13 securities firms signed or in process, with one leading brokerage ramping deployed agents from c.30 to c.210. • AI Decisioning served over 8,000 institutions, but revenue dipped as small- and mid-size lenders cut online-lending volumes to meet new regulations.

Corporate Actions & Governance • Name changed to Bairong AI Inc. (from Bairong Inc.) in July 2026. • Board refresh: Mr. Chan Chun Kit became CFO; Mr. Hong Hao appointed non-executive director; Mr. Zhang James Jian joined as independent non-executive director and Audit Committee chair; Mr. Zhou Hao retired. • Share-based incentives expanded: 9.82 million options and 11.93 million awards granted under the 2024 Share Scheme; RSU scheme issued 3.59 million awards. • Post-period, the company issued 37.39 million non-listed warrants, raising HK$10.12 million for R&D and general corporate use; 3.13 million additional share awards were granted on 2 July 2026.

Outlook & Strategy Management reiterates commitment to diversify beyond regulated lending, leveraging model leadership and onsite deployment teams to scale AICC across logistics, securities, banking, telecom and other sectors, while AI Decisioning remains a cash-generating cornerstone to fund continued R&D investment.