Bairong AI Inc. reported a RMB321.64 million loss for the six months ended 30 June 2026, reversing a RMB201.22 million profit in the prior-year period. Total revenue slid 42.9% year on year to RMB914.32 million, mainly after several lending-institution clients voluntarily suspended certain products to meet new regulatory requirements.

Financial highlights • Revenue: RMB914.32 million (-43%). • Gross profit: RMB488.29 million (-58.7%); gross margin contracted to 53% from 73%. • Operating loss: RMB307.62 million versus a RMB200.89 million profit a year earlier. • R&D expense rose 30.7% to RMB394.16 million, lifting the R&D-to-revenue ratio to 43%. • Sales and marketing costs fell 40.4% to RMB361.53 million. • Net cash and cash equivalents stood at RMB692.69 million; total cash resources, including time deposits and restricted cash, were RMB1.73 billion. The gearing ratio remained low at 0.12.

Segment performance • AI Decisioning revenue fell 26.0% to RMB371.92 million, reflecting lower query volumes at smaller financial institutions affected by tightening rules on online lending. The segment retained 141 key clients with a 96% retention rate. • AICC revenue grew 51.7% to RMB165.77 million. – AICC for New Use Cases nearly tripled to RMB11.26 million as deployments expanded to logistics, airlines and securities. – AICC for the Lending Use Case rose 46.5% to RMB154.51 million, though management remains “cautiously optimistic” given continued industry adjustments. • Other Business declined 62.3% to RMB376.63 million, hurt by reduced credit-product marketing volumes.

Operational developments • Proprietary multimodal voice model BR-Voice ranked third globally and first among Chinese industry participants in the INTERSPEECH 2026 MLC SLM Challenge. • A benchmark logistics client scaled daily inbound calls handled by “silicon workforce” agents from fewer than 1,000 to more than 15,000 within one month of launch. • Contracts have been signed or are in progress with 13 securities firms; one leading firm expanded deployed agents from about 30 to roughly 210 since January.

Capital management and corporate actions • The company repurchased 11.82 million Class B shares during 1H26 for HK$141.63 million and a further 3.68 million shares after period-end for HK$18.01 million, holding 18.15 million treasury shares as of 31 August 2026. • On 26 August 2026, Bairong completed a placing of 37.39 million non-listed warrants, raising net proceeds of approximately HK$10.12 million. Full exercise could generate up to HK$299.15 million. • On 2 July 2026, 3.13 million share awards (0.83% of outstanding Class B shares) were granted to employees under the 2024 Share Scheme.

Governance update Effective 31 August 2026, Dr. Li Yao replaced Professor Chen Zhiwu as chairperson of the Remuneration Committee; Professor Chen remains chair of the Corporate Governance Committee and serves on the Audit and Nomination Committees.

Outlook Management views AI Decisioning as a cash-flow cornerstone and expects gradual recovery as financial institutions consolidate procurement with leading providers. Simultaneously, AICC for New Use Cases is positioned as the primary growth engine, with ongoing client roll-outs in logistics, securities and other sectors aimed at diversifying revenue streams.