ASIAINFO TECH (01675) expects to turn its operating cash flow from a loss to a profit by 2025, with rapid growth in its AI business.

ASIAINFO TECH (01675) announced that the group is expected to achieve operating income of approximately RMB 6.2 billion to 6.35 billion for the year ending December 31, 2025 (2024: approximately RMB 6.646 billion), with a net profit of approximately RMB 70 million to 110 million (2024: approximately RMB 516 million), and operating cash flow of approximately RMB 400 million (2024: net outflow of approximately RMB 100 million). The decrease in net profit for the period was partially due to non-operating items and will not have a negative impact on the group's daily operations and long-term business development, mainly due to a one-time severance payment of approximately RMB 175 million resulting from optimization of personnel structure. Excluding the impact of these non-operating items, the group's net profit for the period is expected to be approximately RMB 250 million to 290 million. In addition, the company is actively responding to the challenging and complex external environment and pressure challenges, with some businesses and performance showing improvement, including: i) transformation of traditional businesses to actively address the pressure of cost reduction and efficiency improvement from operator customers, significant control and improvement of the downward trend in operator market revenue, from a significant decline in high double digits in 2024 to a moderate single-digit decline in 2025; ii) continued expansion and investment in AI delivery and other businesses, establishing a sustainable AI delivery system, deepening cooperation with leading companies such as Alibaba Cloud and NVIDIA, achieving significant growth in revenue and orders, adequate business reserves, and increasing investment in areas such as physical AI and satellite internet; and iii) significant improvement in payment status, with operating cash flow reversing from net outflow in 2024 to net inflow. In 2026, the company will firmly implement the "AI priority" strategic line, consolidate the core foundation of operator services, seize the strategic high ground of intelligent operations, cultivate the second growth curve of intelligent connected products, and help transform the company into a leader in providing professional services, intelligent operations, and intelligent connectivity for enterprise customers in the era of intelligent body internet. The board of directors and management are confident about the company's future development.