[ 메디채널 황정호 기자 ] Revenue Grows Rapidly with Year-on-Year Increase in Net Profit Margin

BEIJING, Aug. 28, 2025 -- Bairong Inc. (the "Company", "we" , "us" or "our" ; HKEX: 6608), a leading cloud-based AI turnkey service provider, today announced the interim results of the Group for the six months ended June 30, 2025.

Mr. Zhang Shaofeng, Founder, Chief Executive Officer and Chairman of the Board, commented:
"In the first half of 2025, the Company achieved a year-on-year revenue growth of 22% while maintaining sustained profitability. The revenue of our MaaS business increased by 19% year-on-year. Our BaaS business also achieved rapid growth, especially the revenue of the BaaS financial industry cloud driven by generative AI, which surged by 45% year-on-year. Our gross profit remained strong at over 70% while non-IFRS profit for the period reached 254 million, with a non-IFRS net profit margin of 16%. This demonstrates that our investments in the AI business have not only brought first-mover advantages but also achieved meaningful economies of scale. In terms of technology and products, relying on the intelligent voice product VoiceGPT and the Bairong enterprise-level intelligent agent platform CybotStar, we have deeply integrated our cross-industry AI capabilities into high-potential sectors such as telecom operators, medical care, and large-scale retail. Notably, the commercialization of the Bairong CybotStar enterprise-level intelligent agent platform has been commercialized."

Financial Summary

Revenue

For the six months ended June 30, 2025, our revenue reached RMB1,611.80 million, representing a period-over-period increase of 22% from RMB1,321.35 million for the six months ended June 30, 2024. During the Reporting Period, our non-IFRS profit was RMB 254.45million and our non-IFRS profit margin remained healthy at 16%, representing a period-over-period increase of 1 percentage point.

For the six months ended June 30, 2025, our MaaS business reported revenue of RMB 501.94million, representing an increase of 19% period-over-period, primarily attributable to expanded fields of application and enhanced product competitiveness combining AI algorithms to optimize product performance. During the Reporting Period, the number of Key Clients reached 167, while average revenue per Key Client was RMB 2.28 million. Our Key Client retention rate was 98%.

Key metrics of MaaS

For the six months ended June 30, 2025, our BaaS – Financial Scenario business reported revenue of RMB 856.96million, representing a year-over-year increase of 45% from RMB589.47 million for the six months ended June 30, 2024.In the first half of 2025, following the algorithm registration of our enterprise-grade agent platform, CybotStar, our proprietary large language model, BR-LLM, has now also completed registration as a national large-model. Leveraging BR-LLM, we have launched a comprehensive suite of AI products, including CybotStar, Digital Humans, VoiceGPT intelligent voice capabilities, and others. This forms a complete AI product ecosystem, creating a commercial closed loop from customized foundational models and mid-layer agent development to final solution delivery. As AI integration deepens across application scenarios, our BaaS Financial Scenario continues to capitalize on its strengths in scenario-driven AI to achieve breakthroughs in multiple sectors.

Key metrics of BaaS – Financial Scenario

In the first half of 2025, our BaaS – Insurance Scenario revenue decreased by 19% period-over-period to RMB 252.90million. Total premiums increased by 9% period-over-period to RMB 3,118.79million. In the first half of 2025, first year premiums increased by 5% period-over-period to RMB 2,006.15million. Renewal premiums increased by 15% period-over-period to RMB 1,112.64million. The persistency rate of life insurance premiums continued to exceed 90%, ranking among the top in the industry.

Key metrics of BaaS – Insurance Scenario

Cost of sales

Our cost of sales increased by 21% from RMB354.19 million for the six months ended June 30, 2024 to RMB429.37 million for the six months ended June 30, 2025, in line with the growth of our business scale.

Gross profit and gross margin

As a result of the foregoing, the Group's gross profit increased by 22% from RMB967.16 million for the six months ended June 30, 2024 to RMB1,182.43 million for the six months ended June 30, 2025. The Group's gross margin remained stable at 73%.

Research and development expenses

The Group's research and development expenses increased by 33% from RMB225.88 million for the six months ended June 30, 2024 to RMB301.54 million for the six months ended June 30, 2025, primarily attributable to the increased investments at corporate level for AI. Research and development expenses as a percentage of revenue increased by 2pct to 19%.

General and administrative expenses

The Group's general and administrative expenses were RMB140.21 million and RMB139.94 million for the six months ended June 30, 2025 and 2024, respectively, which remained stable on a period-over-period basis.

Sales and marketing expenses

Our sales and marketing expenses increased by 20% from RMB506.54 million for the six months ended June 30, 2024 to RMB606.28 million for the six months ended June 30, 2025, primarily due to an increase of RMB116.07 million in information technology services, promotion, advertising and other related expenses, which was mainly due to our continuous efforts to efficiently reach and engage users to improve conversion efficiency and the increased branding and business promotion to enhance our brand recognition.

Other income

Our net other income increased by 15% from RMB73.03 million for the six months ended June 30, 2024 to RMB83.75 million for the six months ended June 30, 2025. This is primarily due to the increase of RMB22.86 million in net gains on disposal of subsidiaries, partly offset by the increase in foreign exchange losses arising from depreciation of USD against RMB.

Profit for the year

As a result of the foregoing, the Group's profit for the period increased from RMB142.83 million for the six months ended June 30, 2024 to RMB201.22 million for the six months ended June 30, 2025.

Cash, cash equivalents and time deposits

The Group had cash and cash equivalents of RMB833.52 million and cash reserve of RMB2,895.78 million as at June 30, 2025, compared to the balance of RMB739.23 million and RMB2,917.94 million as of December 31, 2024, respectively. The cash reserve included restricted cash, time deposits and treasury investments. During the six months ended June 30, 2025, the Company repurchased a total of 3,274,500 Class B Shares (the "Shares Repurchased") on the Stock Exchange at an aggregate consideration (including transaction cost) of approximately HK$[25.78] million including expenses to enhance the Company's shareholder value in the long run.

Conference Call

Our management will hold a conference call at 9:00a.m. Beijing / Hong Kong Time on Friday, August 29, 2025 to discuss the financial results and answer questions from investors and analysts.

For participants who wish to join the call, please complete online registration using the link provided below prior to the scheduled call start time.

Participant Online Registration:
https://webcast.roadshowchina.cn/kxb22E/meet

Dial-in details for the earnings conference call are as follows:

International: +86-23-62737100
Mainland China: 023-63623333/4008-063-263
HK China: +852-30183602/+800-961505

English Dial-in Password: 649518155
Chinese Dial-in Password: 320556788

Please scan the QR code in the poster below to register for the conference:

About Bairong Inc.

Bairong Inc. is a leading artificial intelligence (AI) technology services company. The Company applies natural language processing (NLP), privacy computing, machine learning, cloud computing and other technologies to provide services to enterprises through model-as-a-service (MaaS) and business-as-a-service (BaaS). The MaaS services leverage discriminant AI to digitalize the know-your-customer (KYC) and know-your-product (KYP) process for enterprises, by analyzing users' risk, willingness, and capability. The BaaS services use discriminant AI to analyze and stratify users into groups and develops generative AI-powered VoiceGPT using human natural languages to interact with users. The Company's products and services are widely used by enterprise customers in banking, consumer finance, insurance, e-commerce, automobiles, logistics, ticketing, energy, construction and other industries.

For more information, please visit: http://ir.brgroup.com

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For investor inquiries, please contact:
Bairong Inc.
Ms. Sandy Qin, CFA, CMA, FCG HKFCG
Email: ir@brgroup.com

For media inquiries, please contact:
Bairong Inc.
Email: brmarketing@brgroup.com