Northking IT Q1 revenue up, profitability dips

Northking Information Technology (SZSE:002987) announced a 3.74% year-over-year increase in revenue for the first quarter of 2025, reaching CNY1.157 billion. Software and IT solutions contributed significantly, accounting for 65.85% of total revenue, a 2.46 percentage point increase compared to the previous year. While revenue grew, net profit attributable to shareholders declined by 3.71% to CNY46.732 million. The company cites increased investment in AI and data initiatives, the winding down of lower-margin businesses, and standard industry revenue recognition patterns as factors impacting profitability. Operating cash flow was negative at CNY-499.617 million. The company secured a significant contract for a full-stack innovative information technology project with a policy bank.