ASIAINFO TECH (01675) Projects 2025 Cash Flow Turnaround, AI Business Experiences Rapid Growth

Stock News
Jan 22

ASIAINFO TECH (01675) announced its expectations for the fiscal year ending December 31, 2025. The Group anticipates total revenue to be between approximately RMB 6.20 billion and RMB 6.35 billion (2024: approximately RMB 6.646 billion), with a net profit ranging from about RMB 70 million to RMB 110 million (2024: approximately RMB 516 million). Notably, net operating cash flow is projected to be an inflow of around RMB 400 million (2024: a net outflow of approximately RMB 100 million). The decline in the Group's net profit for the period is partly attributed to non-operational factors, which are not expected to negatively impact daily operations or long-term business development. This is primarily due to a one-time severance compensation expense of approximately RMB 175 million related to workforce optimization. Excluding the impact of these non-operational items, the Group's adjusted net profit for the period is expected to be between approximately RMB 250 million and RMB 290 million. Furthermore, the company has proactively addressed a challenging and complex external environment, leading to improvements in certain business areas and performance metrics. These improvements mainly include: i) Innovating within traditional business lines and actively responding to cost-reduction pressures from telecom operator clients, resulting in a significant control and improvement in the revenue decline trend from the operator market, which shifted from a high double-digit percentage decrease in 2024 to a mid-single-digit percentage decrease in 2025; ii) Continuously increasing business expansion and investment in areas like AI delivery, building a sustainable AI delivery system, and deepening close collaborations with leading companies such as Alibaba Cloud and NVIDIA, leading to substantial growth in revenue and orders, a healthy pipeline of business opportunities, and increased forward-looking investments in areas like Physics AI and satellite internet; and iii) A major enhancement in collection efficiency, with operating cash flow turning from a net outflow in 2024 to a net inflow. In 2026, the company will firmly implement its "AI First" strategic focus, consolidate its core business foundation in operator services, seize the strategic high ground in digital-intelligent operations, and cultivate a second growth curve with intelligent connectivity products. This strategy aims to transform the company into a leader providing professional services, digital-intelligent operations, and intelligent connectivity for enterprise clients in the era of the agentic internet. The Board of Directors and management express strong confidence in the company's future development.

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