Baiwang Co. reported that first-half 2026 revenue fell 14.4% year on year to RMB297.54 million, mainly on lower RegTech project deliveries.

The group swung to a net loss of RMB43.80 million from a RMB3.65 million profit a year earlier; adjusted net loss reached RMB39.70 million versus a RMB4.60 million adjusted profit in the prior period.

Gross profit declined 20.4% to RMB128.87 million and margin narrowed to 43.3% from 46.6%, reflecting a higher cost base and weaker mix.

Segment performance: • RegTech revenue dropped 15.5% to RMB205.08 million after completion of a large “Leqi” tax-system project in 2025. • FinTech revenue was stable at RMB68.66 million, while CreditTech generated its first RMB6.52 million. • Other services shrank 53.4% to RMB17.28 million following a strategic cut-back in low-margin digital marketing.

R&D expenses rose 18.4% to RMB80.83 million as the company invested in its TaxSwift global e-invoicing platform and AI transformation. Administrative costs climbed 12.8% to RMB50.49 million on organisational upgrades, while selling expenses fell 6.4% to RMB46.09 million after channel optimisation.

Cash and cash equivalents decreased to RMB297.68 million from RMB385.68 million at year-end 2025; total cash plus wealth-management products stood at RMB389.40 million. The current ratio remained 3.9.

Management highlighted ongoing restructuring toward AI-driven fiscal-tax solutions, with focus on subscription and token-based revenue models. CreditTech recorded initial sales, and the overseas TaxSwift platform now covers more than 50 jurisdictions.

No interim dividend was declared. The board reaffirmed its strategy to prioritise R&D and channel efficiency while pursuing scalable, recurring revenues.