Chanjet reports profit turnaround on strong cloud service growth

For the six months ended June 30, 2025, Chanjet Information Technology Company Limited reported a profit attributable to owners of the parent of RMB33.51 million, a significant turnaround from a loss of RMB9.88 million in the same period last year. Basic earnings per share for the group were RMB0.105, up from a basic loss per share of RMB0.031 in 2024. Revenue increased by 7% to RMB483.11 million, with cloud subscriptions contributing RMB343.25 million, marking a 12% increase and accounting for 71% of total revenue.

The company's gross profit rose by 3% to RMB336.90 million. Other income and gains, net, saw a substantial increase of 86% to RMB32.72 million, primarily driven by a fair value gain of RMB7.94 million on unlisted equity investments, contrasting with a RMB9.82 million loss in the prior year. Selling and distribution expenses decreased by 10% to RMB194.50 million due to improved management and marketing efficiency.

Net cash flows from operating activities surged by 70% to RMB83.76 million. As of June 30, 2025, cash and bank balances stood at RMB1,334.30 million, and the current ratio improved to 224% from 193% at the end of 2024. The number of newly-added paying enterprise users of the group's cloud service business increased by 17% to 86,000, bringing the accumulated total to 861,000. The board did not recommend an interim dividend for the period.