Inspur Digital Enterprise Technology Limited (Inspur Digital) has issued a profit warning for the six months ended 30 June 2026, indicating a pronounced contraction in both top- and bottom-line performance.

Revenue Outlook • Management expects turnover of RMB 3.70–3.80 billion, representing an 11.6%–14.0% decline from RMB 4.30 billion in the prior-year period.

Earnings Projection • Net profit attributable to shareholders is forecast at RMB 60.00–70.00 million, down 61.1%–66.7% from RMB 180.00 million a year earlier.

Key Factors Behind the Declines 1. Business Realignment: The group scaled back traditional Internet of Things (IoT) solution orders to concentrate on higher-margin, AI-centric activities, reducing overall revenue contribution from legacy segments. 2. Project Delays: Stricter client compliance demands and rising product specifications linked to rapid AI-technology upgrades extended delivery cycles, deferring revenue recognition. 3. Upfront AI Investment: Increased expenditure to advance the company’s AI-native strategy compressed near-term profitability.

Growth Highlights Despite headline weakness, Inspur Digital reported “strong growth momentum” in its AI Application and Intelligent Computing Center units: • Rollout of the “1321” strategy and launch of core products—such as the Inspur Haiyue Mano Intelligent Execution System—have secured deployments across multiple central and state-owned enterprises. • Domestic intelligent computing infrastructure expanded around China’s eight national “East Data, West Computing” hubs, while overseas operations targeted Southeast Asian markets, lifting regional market share.

Strategic Outlook Management affirmed commitment to the “1321” roadmap and plans to concentrate on enterprise software and AI products, pursuing ongoing business-mix optimisation and operational enhancements. Interim results are scheduled for release by end-August 2026.

Investors are advised to exercise caution when dealing in the company’s shares pending the audited interim results.