CHANJET (01588) releases its performance for the first three quarters, with a net profit attributable to the parent company of 42.55 million yuan, turning losses into profits compared to the same period last year.

CHANJET (01588) released the financial data for the third quarter of 2025, reporting that as of September 30, 2025, the group achieved operating revenue of RMB 723 million, a 7% increase compared to the same period last year. Among this, cloud subscription revenue was RMB 526 million, a 9% increase compared to the same period last year, and cloud subscription revenue accounted for 73% of total revenue. The cloud subscription contract liability at the end of the reporting period was RMB 729 million, a 16% increase compared to the end of the previous year. During the reporting period, the group achieved a net profit attributable to shareholders of the parent company of RMB 42.55 million, a significant improvement compared to a net loss attributable to shareholders of the parent company of RMB 28.95 million in the same period last year. This was mainly due to the group's steadfast implementation of a long-term strategy prioritizing cloud service business and subscriptions, benefiting from the successful transformation of the cloud subscription business model, and the continuous growth of cloud subscription revenue. Cloud subscription revenue from distribution channels and direct sales channels excluding ecosystem partner cooperation sales routes increased by 27% compared to the same period last year. The group also continued to implement efficiency-based operations, with a decrease in research and development expenses, sales expenses, and management expenses as a percentage of revenue compared to the same period last year. As of September 30, 2025, the group's total assets were RMB 1.823 billion, an 8% increase compared to the end of the previous year. During the reporting period, the group continued to focus on the intelligent finance and intelligent business fields for small and micro-enterprises, firmly upholding the principle of customer success, accelerating product innovation and development, enhancing product competitiveness, promoting global development of products, fully implementing the "AI-first" strategy, accelerating the application of AI technology in product innovation and company operations, and promoting ecological and mutually beneficial development. The group transitioned from application services to ecological platform services, promoting business scale development, and increasing operational efficiency and profitability. At the product level, the group continued to accelerate product innovation and development, implemented the "AI-first" strategy, further expanded intelligent body applications, and accelerated the intelligent development of products around two directions: intelligent employees and intelligent analysis. The AI applications for high-frequency scenarios of small and micro-enterprises have become mature, and the number of users using AI applications is growing rapidly. The intelligent finance product is based on the current comprehensive digitization and electronic invoice popularization and tax regulatory policy requirements, focusing on the core of "four streams in one," further strengthening the comparison of enterprise contract flow, goods flow/service flow, invoice flow, and fund flow to identify compliance risks in advance and provide technical support for the compliance development of small and micro-enterprises. The intelligent business product focuses on the deepening application in the fields of "new commerce, new retail, new manufacturing, and new services," improving operational efficiency for enterprises. On the marketing side, the group continued to enhance the density of channel market coverage in distribution channels, enhance the operational capability and professional competence of value-added distributors, and promote the upgrading of the business model. Around the economic industrial belt, focusing on core service scenarios, the group conducted "scenario-based + ecological linkage" activities through industry-based+ localized deep operation strategies, promoting the enterprise's intelligent transformation with the examples of intelligent lighting and intelligent beacon, helping small and micro-enterprises transform and upgrade digitally. In direct sales channels, the group continued to deepen precise customer acquisition marketing strategies, focusing on the popularization of financial and tax markets, further expanding the market coverage of financial and tax products, and using private domain operation strategies to increase customer conversion rates, maintaining continuous high growth in direct sales business. During the reporting period, the group's cloud subscription new order amount increased by 11% compared to the same period last year, with a 31% increase in the single quarter ending on September 30, 2025, compared to the same period last year. During the reporting period, the group's cloud service business added more than 130,000 paid enterprise users, a 21% increase from the same period last year, and as of the end of the reporting period, the cumulative number of paid enterprise users in cloud services reached 906,000. The company's board of directors believes that the overall business operation of the group is maintaining a good development trend.