Zhongjin Technology Services Group Company Limited Overview
| Field | Detail |
|---|---|
| Entity profiled | Kingwisoft Technology Group Company Limited (金慧科技集團股份有限公司) |
| Current legal name | Kingwisoft Technology Group Company Limited |
| Former names (chronological) | Asian Capital Holdings Limited (at 2010 GEM listing) → ZZ Capital International Limited 中植資本國際有限公司 (renamed 7 Sep 2016) → Zhongjin Technology Services Group Company Limited 中金科技服務集團股份有限公司 (in use by June 2021) → ZZ Technology Group Company Limited 中植科技集團股份有限公司 (renamed 7 Dec 2021) → Kingwisoft Technology Group Company Limited (in use by Nov 2022) |
| Date of incorporation | 5 January 2010 (Futu / Stockopedia) |
| Incorporation jurisdiction | Cayman Islands (exempted company with limited liability) |
| Principal place of business (Hong Kong) | Unit 1608, Level 16, Tower 1, Grand Century Place, 193 Prince Edward Road West, Kowloon, Hong Kong. Changed in Sept 2024 from Room 1204, 12/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay. |
| Operating headquarters (PRC) | Dalian, Liaoning Province. This is the base of the main operating subsidiary, DaLian Kingwisoft (大連金慧融智科技股份有限公司), acquired via KingNine Holdings in Oct 2020. |
| Exchange / ticker | The Stock Exchange of Hong Kong, GEM, stock code 08295 (8295.HK) |
| Listing date | 18 June 2010. IPO price HK$0.20, 300 million shares offered (Futu). |
| ISIN | KYG989MR1033 |
| CUSIP | Not applicable / not publicly disclosed (non-US issuer) |
| Fiscal year end | 31 March |
| Employees (latest) | 15,575 at 31 Mar 2026 (FY2026 annual results announcement) |
| Employees (trend) | ~13,446 (FY2024, Google Finance/TradingView) → 14,377 (31 Mar 2025) → 15,575 (31 Mar 2026) |
| Auditor | Ernst & Young (安永會計師事務所), per FY2026 annual results announcement. FY2026 auditor's remuneration RMB3.84m. |
| Shares in issue | 4,776,019,590 ordinary shares of HK$0.01 each (31 Mar 2026) |
| Market capitalisation (current) | About HK$229m–HK$253m per aggregators (Google Finance HK$229.25m at ~HK$0.050/share, mid-Oct 2026; TradingView HK$253.1m). |
| Controlling shareholder (economic) | Tian Xi Capital Company Limited, through Zhong Zhi Xin Zhuo Capital Company Limited (≈50.46%) and Kangbang Qihui (HK) Limited (≈9.54%). Voting rights on these shares are entrusted to Mr Hu Shilong's concert group (see Section 9). |
| Website | www.kwtech-group.com (current). Legacy domains: www.zhongjintechnology.com and www.zztech-group.com. |
The name on the input list, Zhongjin Technology Services Group Company Limited (中金科技服務集團股份有限公司), is a former name of the HKEX GEM issuer with stock code 08295. The same legal entity has changed its name several times. It currently trades as Kingwisoft Technology Group Company Limited (金慧科技集團股份有限公司). The stock code and ISIN are unchanged throughout, so the issuer on the input list is the same entity profiled here.
Kingwisoft Technology Group is a Hong Kong GEM-listed, Cayman-incorporated holding company. Effectively all of its revenue comes from business-process outsourcing (BPO) services delivered in Mainland China. Its operating core is the Dalian-based KingNine/DaLian Kingwisoft group, acquired in October 2020 from a vehicle that previously carried the "ZZ"/Zhongzhi brand. The group runs self-operated contact-service centres with 22,791 seats across first- to fourth-tier Chinese cities. These centres provide outsourced customer-service solutions to large internet platforms, securities and financial institutions, telecom carriers, manufacturers, retailers and logistics firms. Management is repositioning the business from labour-intensive "traditional back-office" work toward "data services": multimodal data annotation and training-data preparation for Chinese large-language-model developers. The business has grown revenue at double-digit compound rates since FY2022, but it has thin gross margins, heavy customer concentration (top three customers ≈58% of FY2026 revenue), recurring net losses since FY2023, and a controlling stake caught up in the Zhongzhi Enterprise Group bankruptcy liquidation.
What the company does
The company is an investment holding company. Its subsidiaries provide what the company calls "value-added telecommunications and related services" in Mainland China, in three revenue lines plus a small rental line (FY2026 annual results announcement, Note 4):
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Back-office services. These comprise (a) provision of customer-service solutions, meaning outsourced inbound/outbound customer-service operations, and (b) establishment of contact-service systems and centres. FY2026 revenue was RMB1,270.5m, 97.0% of group revenue.
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Comprehensive marketing and agency services. FY2026 revenue was RMB2.8m, down from RMB22.9m in FY2025.
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Data centre services. FY2026 revenue was RMB35.9m, up from RMB26.4m.
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Rental income from investment property. FY2026 revenue was RMB0.2m.
Since FY2025 management has given the "data services" business a separate profile within the back-office line. It covers text, image, speech, video and multimodal data annotation, and participation in training-data preparation for several Chinese large-model companies. Data services are not reported as a separate revenue line. Management calls this business "the most important strategic growth engine" (FY2026 results, Outlook; paraphrased).
Company's own description (paraphrased from the FY2026 annual results announcement)
The company says that, in FY2026, it kept the competitive strengths of its traditional back-office business while expanding new data-centric back-office services. It reports deepening relationships with leading clients in internet, financial securities, telecom carriers, advanced manufacturing, retail and logistics. It says its top-five customer relationships were stable and that it won new orders from several leading internet companies. It describes deploying digital operating tools across service delivery: intelligent scheduling, automated quality inspection and real-time data dashboards. On data services, it describes a "milestone" year, with annotation capability across all major data modalities and cooperation with multiple leading domestic large-model firms.
Business model and revenue model
| Dimension | Characterisation |
|---|---|
| Revenue model | Almost entirely service revenue recognised over time: RMB1,309.1m of RMB1,309.2m contract revenue in FY2026. Point-in-time revenue fell from RMB24.5m (FY2025) to under RMB0.1m (FY2026), consistent with the collapse of the marketing/agency line. |
| Product vs service vs subscription vs licensing | Effectively 100% services. There is no disclosed licensing or subscription revenue. Software is developed internally (438 software copyrights) and used to support delivery. The company receives VAT refunds under the software-product VAT policy (RMB1.4m in FY2026), so some revenue is treated as self-developed software sales for tax purposes, but the amount is not separately disclosed. |
| Pricing model | Not publicly disclosed. BPO contracts in China are typically priced per seat, per FTE, per transaction or per outcome. The company does not disclose which basis it uses. |
| Cost structure | Labour-dominated. Employee benefit expense was RMB942.0m in FY2026, 71.9% of revenue (derived). Cost of services was RMB1,204.0m, comprising staff costs, subcontracting, rent, depreciation and amortisation. |
| Value-chain position | A Tier-2/Tier-3 domestic BPO and contact-centre operator, delivering labour-intensive service work for large platform clients. It is moving down the AI value chain into training-data supply (annotation, RLHF-style data, multimodal alignment data) for LLM developers. |
| Customer types | Large enterprises. Disclosed sectors are internet platforms, securities/financial institutions, telecom carriers, advanced manufacturing, retail and logistics. Customers are not named. |
| Customer concentration (FY2026) | Customer A RMB343.7m (26.2%), Customer B RMB265.7m (20.3%), Customer C RMB146.4m (11.2%). Top three ≈57.7% (derived). In FY2025, Customer A was RMB432.1m (34.8%) and Customer B RMB259.0m (20.9%). |
| End-markets | Mainland China only. 100% of FY2025 and FY2026 revenue came from Mainland China customers. |
Independent characterisation
Kingwisoft is best understood as a low-margin, high-headcount Chinese contact-centre BPO whose economics depend on (i) utilisation of a large seat base, (ii) wage inflation versus contract repricing, (iii) local-government incentives (RMB18.3m grants in FY2026, more than the entire marketing expense line), and (iv) the order flow of two or three dominant platform clients. The "AI data services" narrative is strategically logical: annotation is labour-intensive, and the company has a trained workforce, quality systems and lower-tier-city seat capacity. However, the financial evidence of higher-margin data-services revenue is not yet visible. Group gross margin recovered to 8.1% in FY2026 from 3.3% in FY2025 but remains below the 21.6% of FY2022. The listed company's history is also far more complex than its operations. It has been through two takeovers, five names, an aborted control sale and a failed profit guarantee, and its controlling stake sits in a group under consolidated bankruptcy liquidation. Governance and control risk, not operating risk, is arguably the dominant valuation factor.
Strategy
Stated strategy themes (FY2026 annual results, Outlook; paraphrased)
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Data services as the primary growth engine. Deepen strategic cooperation with leading LLM developers, pursue higher value-added projects, build data-security and compliance systems suitable for sensitive sectors (finance, healthcare), and explore frontier technologies to raise technical barriers.
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Dual approach in traditional back-office services. "Intensive cultivation plus territorial expansion": grow orders with existing clients as their businesses grow, improve efficiency and profitability through digital tools, and win new clients among telecom carriers, traditional finance and emerging internet leaders.
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Contact-centre build-out and intelligent upgrade. Continue optimising and intelligently upgrading self-operated contact-service centres to support new orders with staff, space and technology.
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Talent transformation. Upskill traditional back-office staff into data-services roles through internal promotion pathways, optimise cross-regional organisation for agile data operations, partner with universities and research institutes, and participate in industry standard-setting.
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Policy alignment. Explicit alignment with the State Council's "AI+" action plan, national data-element market reforms, and the policy opinions on high-quality development of the data annotation industry.
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Acquisitive growth (opportunistic). Consider timely acquisitions of, or investments in, assets with synergies to the main business, to broaden services, expand the quality client base and raise R&D capability.
Strategic initiatives in the last 24 months
| Initiative | Timing | Detail | Status |
|---|---|---|---|
| Data annotation capability build | FY2025–FY2026 | Multimodal annotation; cooperation with several leading domestic LLM companies; participation in multiple model training-data programmes | Ongoing; revenue not separately disclosed |
| Seat capacity expansion | FY2026 | +3,778 seats to 22,791; new or expanded centres in Dalian, Chengdu, Yibin, Hefei, Puyang | Completed for FY2026 |
| Digital operations tooling | FY2025–FY2026 | Intelligent scheduling, automated QA, real-time dashboards | Deployed |
| R&D scope expansion | FY2026 | Data annotation products, data-standard training system, digital operations and talent management | Ongoing |
| Industry standards participation | FY2026 | Participated in drafting 4 group (association) standards, including technical requirements for multimodal data fusion processing for AI large models | Completed |
| Portfolio pruning | Mar 2024 | 51% disposal of Chengdu ThinkMore for RMB30.6m | Completed; residual 49% associate impaired in FY2026 |
| New joint venture | FY2026 | RMB9.7m JV investment (unnamed) | Completed; RMB0.3m share of loss |
| Capital commitments | 31 Mar 2026 | RMB11.4m of commitments (FY2025: nil) | Purpose not specified |
Medium-term financial targets and guidance
The company has not published medium-term financial targets, revenue or margin guidance, or capital-return policies. Its only forward-looking quantitative communications are statutory profit warnings: FY2023 loss up to ≈RMB280m, FY2025 loss no more than RMB210m, and FY2026 loss no more than RMB150m. Each was delivered within the warned range. There are no ESG or sustainability targets with quantified commitments.
Products & Services
The company does not publish product-level pricing, version histories or brand names for its offerings. The catalogue below is built from the service categories in its filings. Items marked "not disclosed" lack public data.
Back-office services
| Offering | Description / capabilities | Target customers | Launch / latest | Pricing model |
|---|---|---|---|---|
| Customer-service solutions (客戶服務解決方案) | Outsourced inbound and outbound customer-service operations from self-operated contact centres, supported by digital tools: intelligent workforce scheduling, automated QA inspection, real-time analytics dashboards | Internet platforms, securities/financial firms, telecom carriers, advanced manufacturing, retail, logistics | Core business since before the 2020 acquisition; DaLian Kingwisoft has operated since at least 2014 | — |
| Establishment of contact-service systems and centres | Build-out of contact-centre systems and facilities for clients | Enterprise clients | Revenue fell to RMB15k in FY2026, effectively dormant | Not disclosed (project-based, inferred from point-in-time pattern) |
| Data annotation services (數據標注) | Annotation across text, image, speech, video and multimodal data; training-data preparation for multiple large-model programmes | Leading domestic LLM developers (unnamed) | Highlighted from FY2024–FY2025; described as a "milestone" in FY2026 | — |
| AI training / human-feedback data (inferred scope) | Management's outlook cites rising demand for high-quality human-feedback data, multimodal alignment data and embodied-AI interaction data | LLM and AI developers | Strategic target (FY2026 outlook) | — |
Comprehensive marketing and agency services
| Offering | Description | Target customers | Status |
|---|---|---|---|
| Comprehensive marketing services (全面營銷) | Marketing and agency services, including digital-marketing "brand-and-performance management" tools referenced in R&D disclosures | Enterprise clients | Revenue collapsed from RMB22.9m (FY2025) to RMB2.8m (FY2026) |
| New-media live-streaming e-commerce promotion | Business line funded by the July 2022 HK$215m subscription | Brands and merchants | Current status not disclosed; likely related to the restatement of FY2022/H1 FY2023 comparatives (inference, not confirmed) |
Data centre services
| Offering | Description | Target customers | Status |
|---|---|---|---|
| Data centre services (數據中心服務) | Data-centre-related services; specifics (colocation, IDC operations or managed services) not disclosed | Enterprise clients | RMB35.9m in FY2026 (+35.9%); the fastest-growing disclosed line |
Internal technology platforms (R&D outputs, not sold separately)
| Platform / tool | Function | Source |
|---|---|---|
| Data annotation products | Tooling for annotation workflows | FY2026 results |
| Data-standard training (實訓) system | Training system for annotators and data-standards practice | FY2026 results |
| Digital operations and talent management | Workforce management, scheduling, performance | FY2026 results |
| Enterprise service business systems | Contact-centre business systems | Sina Finance (company MD&A excerpt) |
| Digital-marketing brand-and-performance tools | Marketing effectiveness management | Sina Finance (company MD&A excerpt) |
Other
| Offering | Description |
|---|---|
| Investment property leasing | RMB0.2m rental revenue in FY2026; investment property carried at RMB9.8m |
| Money lending (legacy) | Hong Kong money lender licence via 金慧信貸; revenue not disclosed |
Financial Narrative
Income statement summary
Sources and notes: - FY2025–FY2026 come from the FY2026 annual results announcement (audited).
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FY2022–FY2024 come from TipRanks, Eulerpool, Stockopedia and Simply Wall St. The FY2024 EPS of RMB4.13 cents is derived and is consistent with Simply Wall St's RMB0.041 loss per share.
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FY2023 net income: Stockopedia reports loss attributable of RMB230.1m, while TipRanks shows RMB236.0m and Eulerpool RMB230.3m. The table uses RMB230.1m as attributable to owners; the RMB236.0m figure likely includes non-controlling interests.
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FY2022 EPS is derived (RMB80.4m ÷ ≈4.19bn weighted shares). TipRanks shows RMB0.02, which is consistent.
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EBITDA for FY2026 is derived (pre-tax loss + finance costs + depreciation and amortisation). The same method applied to FY2025 gives RMB-81.2m, matching TipRanks exactly, so the series is methodologically consistent. EBITDA includes impairment charges; adjusted for impairments, FY2026 EBITDA would be roughly +RMB9.2m (derived).
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Operating income is not presented as a five-year series because aggregator definitions conflict with the filing (TipRanks shows FY2025 operating income of RMB-99.6m, while the filing implies an operating loss before finance costs of about RMB-184.7m). See 6.2 for the audited two-year detail.
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Dividends: no dividend was proposed for FY2025 or FY2026. No dividends were found in announcements reviewed for FY2022–FY2024. The FY2021 results also state nil.
Revenue CAGR (FY2022–FY2026): 10.9% on the originally reported FY2022 base (RMB865.7m), or 15.6% on the restated base (RMB734.0m). Derived.
Detailed audited P&L, FY2025 vs FY2026
Source: FY2026 annual results announcement (audited by Ernst & Young).
Key cost disclosures (FY2026 vs FY2025, RMB M): employee benefit expense 942.0 vs 852.8; PPE depreciation 34.6 vs 46.0; right-of-use depreciation 30.4 vs 29.2; intangible amortisation 22.5 vs 31.2; government grants 18.3 vs 18.9; VAT refunds 1.4 vs 4.5.
Half-year trajectory
Sources: 2023 Interim Report (H1 FY2024 revenue RMB573.4m, +43.9% vs restated RMB398.5m; EPS RMB0.24 cents; profit derived from EPS, consistent with the Stockopedia "≈RMB12m" brief); FY2025 interim results announcement (15 Nov 2024); Tiger Brokers Bulletin Express (Nov 2025).
Implied second halves (derived): FY2025 H2 revenue RMB637.5m, loss attributable RMB155.6m (including the RMB56.7m goodwill impairment). FY2026 H2 revenue RMB690.5m, loss attributable RMB94.0m (including the RMB23.5m associate impairment). H2 FY2026 revenue grew ≈8.3% over H2 FY2025, an acceleration consistent with the seat build-out.
Balance sheet
Three-year summary (RMB M):
Sources: FY2025–FY2026 from the FY2026 annual results announcement. FY2024 total assets, liabilities, equity and cash from Google Finance (quarter ending Mar 2024; not reconciled to the audited report). FY2024 goodwill derived from the FY2025 impairment of RMB56.7m that fully wrote goodwill off. The FY2023 KingNine CGU recoverable amount was RMB542.3m after a RMB349.4m goodwill impairment (HKEX announcement 18 Jan 2024).
Debt composition at 31 Mar 2026 (FY2026 results, Note 13):
Maturity profile of borrowings (RMB M): within one year 25.1; second year 224.3; third year 20.0. The concentration in year two reflects the March 2028 related-party maturity.
Cash flow
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Google Finance shows, for the quarter to Mar 2024, operating cash flow of RMB18.8m, investing cash flow of RMB18.2m and financing cash flow of RMB-43.8m (quarterly, aggregator).
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No dividends were paid in FY2025 or FY2026. No share repurchases were made in FY2026 ("no purchase, sale or redemption of listed securities", FY2026 results).
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Cash and equivalents were broadly flat (RMB104.8m → RMB102.7m) while borrowings rose by RMB34.8m in FY2026. This implies that operations plus investing activities consumed cash net of the new borrowings (derived inference).
Ratios
Notes: The current ratio and gearing are company-reported (FY2026 results). All other ratios are derived from filing data; FY2025 averages use the Google Finance FY2024 balance. ROIC is not computed because NOPAT is negative and invested-capital definitions would be arbitrary. Net debt is borrowings minus cash and equivalents; including restricted cash and pledged deposits, FY2026 net debt is RMB151.6m. EBITDA and EBIT were negative in both years, so the coverage ratios are not meaningful.
Commentary on trends, inflections and drivers
Revenue: growth through scale, then a plateau, then a modest restart. Revenue roughly quintupled from FY2021 (≈RMB266m) to FY2024 (≈RMB1,241m) as the KingNine BPO business was consolidated and expanded. It then plateaued: FY2025 was flat at RMB1,240.7m. The concentration data explains the plateau. Customer A's revenue fell from RMB432.1m to RMB343.7m in FY2026 (‑20.5%). Group growth of 5.5% therefore required new wins of roughly RMB157m: Customer C rising above the 10% threshold at RMB146.4m, plus new internet-company orders. This is diversification under duress, not organic expansion with the anchor client.
Gross margin: structural compression with a partial FY2026 recovery. Gross margin fell from 21.6% (FY2022) to 3.3% (FY2025), then recovered to 8.1% in FY2026. Cost of services rose only 0.3% on 5.5% revenue growth. Management credits cost control and efficiency gains from digital tooling. A competing factor is the 3,778-seat capacity build-out, which should have pressured near-term margins, so underlying margin improvement may be somewhat stronger than reported. The employee-cost ratio still rose (68.7% → 71.9% of revenue), so the gross-margin improvement must have come from lower subcontracting, rent or depreciation. PPE depreciation fell by RMB11.3m and intangible amortisation by RMB8.7m.
Opex: rising in absolute terms. Administrative expenses rose 32.3% (RMB95.8m → RMB126.8m) and R&D 7.3% (RMB60.3m → RMB64.6m). Management attributes the increase to new-business R&D and more granular project management. Opex below gross profit (marketing, R&D, admin) totalled RMB201.2m in FY2026, about 1.9x gross profit. The business cannot break even at the operating level unless gross margin reaches roughly 15%, all else equal (derived).
Goodwill is now nil, which removes one source of future write-downs. The RMB480m receivables book (36.7% of revenue) remains exposed to ECL charges; the allowance rose from RMB31.7m to RMB50.6m. Positively, receivables over 180 days fell from RMB113.3m to RMB42.7m, suggesting collection of stale balances or write-off through the allowance.
Balance sheet: equity erosion and growing reliance on related-party funding. Total equity fell 43% in two years (RMB820.7m → RMB468.6m). Borrowings rose to RMB269.4m, of which 90.7% is owed to related parties: an entity controlled by the ultimate beneficial owner (RMB157m, mostly at 12%) and NINEGO (RMB20m at 8.4%). Bank debt is only RMB25m at 2.2%–2.55%. The 12% cost on related-party debt is very high relative to PRC bank rates. Interest on other borrowings was RMB16.7m in FY2026. The extension of the related-party maturity to March 2028 removes a near-term refinancing cliff but leaves the group dependent on controller goodwill.
Inflection to watch. H2 FY2026 losses narrowed to about RMB94m including a RMB23.5m impairment. Excluding that charge, the run-rate H2 loss was about RMB70m, versus about RMB99m excluding goodwill in H2 FY2025 (derived). The trajectory is improving, but there is no evidence yet of a path to profit within FY2027.
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Revenue by Segment and Segment Margins & Growth (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Value-added telecom and related services revenue (CNY Mn) | 865.7 | 888.6 | 1,240.9 | 1,240.7 | 1,309.4 |
YoY growth (%) | 225.2 | 2.6 | 39.6 | 0.0 | 5.5 |
Share of group revenue (%) | 100 | 100 | 100 | 100 | 100 |
Revenue by Segment
| Service line (CNY Mn) | FY2025 | FY2026 | YoY % | FY2026 share % |
|---|---|---|---|---|
Customer service solutions | 1,188.8 | 1,270.5 | 6.9 | 97.0 |
Establishment of contact-service systems and centres | 1.7 | 0.0 | -99.1 | 0.0 |
Back-office services subtotal | 1,190.5 | 1,270.5 | 6.7 | 97.0 |
Comprehensive marketing and agency services | 22.9 | 2.8 | -87.9 | 0.2 |
Data centre services | 26.4 | 35.9 | 35.9 | 2.7 |
Rental income from investment property | 0.9 | 0.2 | -80.0 | 0.0 |
Total revenue | 1,240.7 | 1,309.4 | 5.5 | 100.0 |
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View Subscription PlansResults by Segment and Segment Margins & Growth (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross profit (CNY Mn) | 187.1 | 121.2 | 127.9 | 40.8 | 105.4 |
Gross margin (%) | 21.6 | 13.6 | 10.3 | 3.3 | 8.1 |
Pre-tax profit (CNY Mn) | 84.0 | -237.0 | -199.9 | -207.1 | -148.8 |
Pre-tax margin (%) | 9.7 | -26.7 | -16.1 | -16.7 | -11.4 |
Group Entities
| Entity | Role | Status |
|---|---|---|
Kingwisoft Technology Group Company Limited (Cayman) | Listed holding company | GEM 08295 |
KingNine Holdings Limited | Intermediate holding company of the BPO business; acquired 15 Oct 2020 | Wholly owned. Goodwill fully impaired by 31 Mar 2025. |
DaLian Kingwisoft (大連金慧融智科技股份有限公司) | Principal PRC operating company for back-office, data-centre and data-annotation services | Described as becoming wholly owned on 15 Oct 2020 (HKEX, 11 Oct 2021). Note: the 2023 offer documents separately describe Mr Hu, Ms Liu Yingying and Ms Zhou holding ≈32.91%, 40.83% and 9.47% of "DaLian Kingwisoft" shareholding. The relationship between these interests and the group's control (for example, contractual arrangements) was not clarified in the sources reviewed and should be verified against the annual report. |
金慧信貸有限公司 (formerly 中植資本信貸) | Hong Kong money lender licence holder | Subsidiary; immaterial revenue |
Chengdu ThinkMore Technology (成都融智互動科技) | Former wholly owned subsidiary | 51% sold (Mar 2024); 49% associate; investment largely impaired in FY2026 |
Unnamed joint venture | New JV investment of RMB9.7m in FY2026 | Not named in the results announcement |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue (CNY Mn) | 865.7 | 888.6 | 1,240.9 | 1,240.7 | 1,309.4 |
Gross profit (CNY Mn) | 187.1 | 121.2 | 127.9 | 40.8 | 105.4 |
EBITDA (CNY Mn) | 155.4 | -133.1 | -77.6 | -81.2 | -41.7 |
Pre-tax income (CNY Mn) | 84.0 | -237.0 | -199.9 | -207.1 | -148.8 |
Net income attributable to owners (CNY Mn) | 80.4 | -230.1 | -197.4 | -207.7 | -148.4 |
Basic EPS (MYR Bn cents) | 1.92 | -5.02 | -4.13 | -4.35 | -3.11 |
Diluted EPS (MYR Bn cents) | 1.92 | -5.02 | -4.13 | -4.35 | -3.11 |
Dividends per share (MYR Bn cents) | 0 | 0 | 0 | 0 | 0 |
Gross margin (%) | 21.6 | 13.6 | 10.3 | 3.3 | 8.1 |
EBITDA margin (%) | 18.0 | -15.0 | -6.3 | -6.5 | -3.2 |
Net margin (%) | 9.3 | -25.9 | -15.9 | -16.7 | -11.3 |
Income Statement
| Line item (CNY Mn) | FY2025 | FY2026 |
|---|---|---|
Revenue | 1,240.7 | 1,309.4 |
Cost of services | -1,199.9 | -1,204.0 |
Gross profit | 40.8 | 105.4 |
Other income and gains | 19.6 | 20.9 |
Marketing expenses | -7.6 | -9.8 |
R&D expenses | -60.3 | -64.6 |
Administrative expenses | -95.8 | -126.8 |
Goodwill impairment | -56.7 | 0.0 |
Net impairment of financial assets | -23.3 | -27.4 |
Impairment of investment in an associate | 0.0 | -23.5 |
Other expenses and losses | -1.3 | -1.9 |
Finance costs | -19.5 | -19.6 |
Share of losses of associates and JV | -2.9 | -1.6 |
Loss before tax | -207.1 | -148.8 |
Income tax credit | 3.7 | 3.7 |
Loss for the year | -203.4 | -145.1 |
Attributable to owners | -207.7 | -148.4 |
Attributable to non-controlling interests | 4.3 | 3.3 |
Income Statement and Per-Share Data (Half-Yearly)
| Metric | H1 FY2024 | H1 FY2025 | H1 FY2026 |
|---|---|---|---|
Revenue (CNY Mn) | 573.4 | 603.2 | 618.9 |
Profit/(loss) attributable (CNY Mn) | 11.5 | -52.1 | -54.4 |
Basic EPS (MYR Bn cents) | 0.24 | -1.09 | -1.14 |
Balance Sheet
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Total assets (CNY Mn) | 1,280.0 | 1,029.1 | 925.1 |
Total liabilities (CNY Mn) | 457.6 | 411.4 | 456.6 |
Total equity (CNY Mn) | 820.7 | 617.6 | 468.6 |
Cash and cash equivalents (CNY Mn) | 104.5 | 104.8 | 102.7 |
Goodwill (CNY Mn) | 56.7 | 0.0 | 0.0 |
Balance Sheet (FY2025–FY2026)
| Line item (CNY Mn) | FY2025 | FY2026 |
|---|---|---|
Property and equipment | 62.1 | 45.3 |
Investment property | 12.3 | 9.8 |
Right-of-use assets | 67.3 | 49.7 |
Other intangible assets | 131.1 | 109.1 |
Investments in associates | 24.7 | 0.0 |
Investment in a joint venture | 0.0 | 9.7 |
Deferred tax assets | 16.9 | 22.1 |
Total non-current assets | 323.5 | 255.8 |
Trade receivables (net) | 537.3 | 480.0 |
Prepayments and other receivables | 58.6 | 74.1 |
Cash, restricted cash and pledged deposits | 110.9 | 117.8 |
Total current assets | 705.6 | 669.3 |
Trade payables | 9.3 | 31.8 |
Other payables and accruals (current) | 69.8 | 80.4 |
Interest-bearing borrowings (current) | 26.0 | 25.1 |
Lease liabilities (current) | 28.8 | 27.7 |
Total current liabilities | 147.8 | 177.4 |
Interest-bearing borrowings (non-current) | 208.6 | 244.3 |
Lease liabilities (non-current) | 40.4 | 21.5 |
Total non-current liabilities | 263.6 | 279.2 |
Net current assets (working capital) | 557.8 | 491.9 |
Equity attributable to owners | 609.2 | 462.1 |
Non-controlling interests | 8.4 | 6.5 |
Total equity | 617.6 | 468.6 |
Debt Facilities
| Facility | Principal (CNY Mn) | Rate | Maturity / notes |
|---|---|---|---|
Unsecured bank loans | 25.0 | 2.20%–2.55% fixed | Within one year. RMB15m guaranteed by Hu Shilong; RMB10m guaranteed by a third-party guarantor with counter-guarantees from Hu Shilong and Zhou Fang. |
Loans from an entity indirectly controlled by the company's ultimate beneficial owner | 60.0 | 12.0% | Maturity extended from 31 Mar 2027 to 31 Mar 2028 |
Loans from the same related entity | 70.0 | 12.0% | Same extension |
Loans from the same related entity | 27.0 | Interest-free | Same extension |
Loan from NINEGO Corporation (Hu Shilong's offer vehicle) | 20.0 | Interest-free to 31 Jul 2025, then 8.40% | Repayable 1 Aug 2028 |
Loan from FUNGHWA Ltd. | 0.0 | Interest-free | RMB1.0m fully repaid in FY2026 |
Total interest-bearing borrowings | 269.4 | — | Of which RMB244.4m is related-party "other borrowings" |
Lease liabilities | 49.1 | — | Separate from borrowings |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2025 | FY2026 |
|---|---|---|
ROE on average total equity (%) | -28.3 | -26.7 |
ROA on average total assets (%) | -17.6 | -14.9 |
ROIC (%) | not computed | not computed |
Current ratio (x) | 4.8 | 3.8 |
Gearing: borrowings ÷ total equity (%) | 38.0 | 57.5 |
Net debt excluding leases (CNY Mn) | 129.9 | 166.7 |
Asset turnover (x) | 1.07 | 1.34 |
Days sales outstanding (days) | 158 | 134 |
Days payables outstanding on cost of services (days) | 3 | 10 |
Cash conversion cycle, approximate (days) | 155 | 124 |
Revenue by Region and Revenue by Region (%)
| Region | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Mainland China revenue (CNY Mn) | 865.7 | 888.6 | 1,240.9 | 1,240.7 | 1,309.4 |
Hong Kong and other revenue (CNY Mn) | 0 | 0 | 0 | 0 | 0 |
Mainland China share (%) | 100 | 100 | 100 | 100 | 100 |
Locations
| Location | FY2025 | FY2026 |
|---|---|---|
Mainland China | 296.7 | 223.3 |
Hong Kong | 0.8 | 0.3 |
Total | 297.5 | 223.6 |
Share Price & Returns
| Reference point | Price (HKD) | Date | Source |
|---|---|---|---|
IPO price | 0.200 | 18 Jun 2010 | Futu |
All-time high | 1.240 | 29 Jul 2021 | TradingView |
July 2022 subscription price | 0.400 | 15 Jul 2022 | JRJ/Gelonghui |
Pre-offer close | 0.030 | 25 Jul 2023 | Zhitong/Moomoo |
NINEGO offer price | 0.0304 | Aug–Oct 2023 | HKEX joint announcements |
All-time low | 0.022 | 6 Dec 2023 | TradingView |
Recent price | ≈0.050 | mid-Oct 2026 | Google Finance |
52-week range | 0.022–0.090 | as displayed mid-Oct 2026 | — |
Share Price & Returns by Horizon
| Horizon | Approximate return | Basis |
|---|---|---|
3-year (Oct 2023 → Oct 2026) | ≈+64% | HK$0.0304 offer-period level → ≈HK$0.050 (derived) |
5-year (Oct 2021 → Oct 2026) | ≈-90% or worse | — |
Since 2021 peak | ≈-96% | HK$1.24 → ≈HK$0.050 (derived) |
Valuation Multiples
| Multiple | Kingwisoft | Comment |
|---|---|---|
Market cap (HKD Mn) | ≈239 | 4,776m × HK$0.050; aggregators show HK$229m–253m |
Market cap (CNY Mn) | ≈220 | Using the assumed FX rate |
P/B (FY2026, attributable equity MYR Bn462.1m) | ≈0.48x | Derived |
EV (CNY Mn) | ≈420 | Market cap ≈220 + borrowings 269.4 + leases 49.1 − cash, restricted and pledged 117.8 |
EV/Sales (FY2026) | ≈0.32x | Derived |
Capital Markets
| Item | Status |
|---|---|
Dividend history | No dividends for FY2021, FY2025 or FY2026 per results announcements; none identified for FY2022–FY2024 |
Buyback authorisation | No repurchases in FY2026. |
Credit Ratings
| Agency | Rating |
|---|---|
Moody's | Not rated |
S&P | Not rated |
Fitch | Not rated |
Bucket Details
| Bucket | Bank loans | Related-party and other loans | Total |
|---|---|---|---|
Within 1 year | 25.0 | 0.1 | 25.1 |
Year 2 | 0.0 | 224.3 | 224.3 |
Year 3 | 0.0 | 20.0 | 20.0 |
Total | 25.0 | 244.4 | 269.4 |
Analyst Conclusions
Management guidance
There is no quantitative guidance. Qualitatively, management expects (i) continued organic growth with existing back-office clients plus new wins among telecom carriers, traditional finance and emerging internet leaders, (ii) data services to become the main growth engine through deeper LLM-developer partnerships and higher-value projects, (iii) continued contact-centre optimisation and intelligent upgrades, and (iv) improving overall profitability (FY2026 Outlook; paraphrased).
Consensus expectations
None available (no coverage).
Bull case (grounded in the data)
-
Margin inflection is under way. Gross margin more than doubled (3.3% → 8.1%) while revenue grew 5.5% and cost of services rose only 0.3%. If data-services work carries the premium pricing management describes, each additional percentage point of gross margin on a ≈RMB1.3bn base adds ≈RMB13m of gross profit. Sustained progress toward 12–15% would bring the group close to operating breakeven (derived).
-
Capacity is already built. The 3,778 seats added in FY2026 represent sunk capital. If FY2027 revenue growth catches up with the 19.9% seat expansion, operating leverage would be significant on a fixed administrative and R&D base of ≈RMB191m.
-
Deep-value optics and impairments largely behind it. Goodwill is nil, the associate is written down, long-dated receivables have been cut by 62%, and the stock trades at ≈0.5x book and ≈0.3x EV/Sales. A stable outcome to the Zhongzhi-chain stake, such as a sale to a strategic buyer, could re-rate the shares.
Bear case (grounded in the data)
-
Structural loss-maker with eroding equity. Losses have totalled ≈RMB784m over FY2023–FY2026, and equity has fallen 43% in two years. At the FY2026 loss rate, equity of RMB468.6m covers roughly three more years before balance-sheet stress, absent recapitalisation (derived).
-
Concentration and substitution. The largest customer cut spending 20.5% in one year. The core service (97% of revenue) is the activity most directly displaced by generative-AI customer agents. Annotation demand may not offset lost seat volume, and specialist rivals may capture the premium work.
-
Control and funding overhang. A 60% economic stake sits in a chain caught up in a 316-entity consolidated liquidation. Operating management holds votes, not economics. About 91% of debt is related-party lending at up to 12%, mostly due by March 2028. A forced sale, a stalled change of control or withdrawal of related-party support could disrupt operations or dilute minorities.
Key catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Expected timing | What to watch |
|---|---|---|
| H1 FY2027 interim results | ≈Nov 2026 | Revenue growth vs seat growth; gross margin ≥8%; Customer A trend; loss narrowing below RMB50m |
| Zhongzhi liquidation administrator actions | Ongoing through 2027 | Any announcement of a disposal process for the Zhong Zhi Xin Zhuo/Kangbang stakes; possible MGO implications under the Takeovers Code |
| Post-lock-up share movements | Since 3 Aug 2026 | Block trades or new substantial-shareholder filings |
| Related-party loan terms | Ongoing | Any further extension, conversion or repricing of RMB157m of UBO-entity loans and the RMB20m NINEGO loan |
| Disclosure of data-services revenue | FY2027 reporting | Whether management begins quantifying AI-data revenue and margin |
| Named AI-client announcements | Any time | Contracts with identifiable LLM developers would validate the pivot |
| FY2027 profit warning or positive alert | ≈Jun 2027 | Direction and size of the FY2027 result |
| Receivables and ECL | Each reporting period | Allowance trend; DSO below 130 days |
| Board and governance | AGM Aug 2026 onward | INED re-election; any further executive changes |
Concluding analyst verdict
Kingwisoft Technology Group, the entity formerly listed as Zhongjin Technology Services Group, is a real operating business inside a fragile listed structure. The operating core, DaLian Kingwisoft's contact-centre BPO platform, has proven it can win and deliver large-scale work. It generates about RMB1.3bn of revenue with more than 15,000 staff and 22,791 seats across China's lower-tier cities, and its two anchor customers each contribute more than RMB250m a year. FY2026 brought the first genuine evidence of operational repair. Gross margin rebounded to 8.1%, losses narrowed 29% to RMB148.4m, long-dated receivables were cut sharply, and the goodwill legacy of the 2020 reverse-style acquisition is fully written off. The strategic logic of redeploying a trained, low-cost workforce into AI training-data services is sound and policy-aligned.
The investment case, however, is dominated by factors outside operations. The controlling economic stake traces back to the Zhongzhi group, now in court-ordered consolidated liquidation. Voting control rests with operating management through an entrustment arrangement rather than ownership. The balance sheet relies on related-party loans priced at up to 12% that mature mainly in March 2028. Equity has nearly halved in two years. The core service is the type of work most directly exposed to generative-AI substitution, and the largest customer cut spending by a fifth last year. Disclosure is thin. Data-services revenue is not separated, AI clients are unnamed, and medium-term targets are absent.
Verdict: a speculative, event-driven micro-cap. Valuation (≈0.5x book, ≈0.3x EV/Sales) reflects these risks rather than mispricing them. A constructive re-rating would require three things together: disclosed and growing data-services revenue at visibly higher margins, a clean resolution of the Zhongzhi-linked stake, and refinancing of related-party debt on arm's-length terms. Until then, the risk/reward is balanced to negative for minority shareholders.
SOURCE INDEX
HKEX/GEM filings (primary): FY2026 Annual Results Announcement (26 Jun 2026); H1 FY2026 interim results (Nov 2025, via Tiger Brokers Bulletin Express); FY2025 profit warning and results (12 and 26 Jun 2025); H1 FY2025 interim results (15 Nov 2024); FY2024 Annual Report (28 Jun 2024); Chengdu ThinkMore disposal announcements (27 and 29 Feb 2024); FY2023 goodwill impairment supplemental (18 Jan 2024); 2023 Interim Report (10 Nov 2023); NINEGO offer joint announcements (28 Aug, 3 Oct, 24 Oct 2023); Rule 3.7 and resumption announcements (7–8 Mar, 16 Apr, 24 Apr, 26 Jul 2023); profit-guarantee update (26 Jun 2023); FY2023 profit warning (12 Jun 2023); H1 FY2023 interim results (8 Nov 2022); board announcement (11 Oct 2021); inside-information announcement (1 Nov 2021); FY2021 annual results (22 Jun 2021).
Aggregators (secondary; flagged where used): MarketScreener / Zonebourse; TipRanks; Stockopedia; Eulerpool; TradingView; Google Finance; Futu; Sina Finance; Morningstar; Moomoo/Zhitong; Simply Wall St; MarketsMojo; JRJ/Gelonghui.
Context on the controlling-shareholder chain: Wikipedia (Zhongzhi Capital); Reuters via DealStreetAsia; Caixin Global (9 Feb 2026; 13 Apr 2026; Jul 2024); Bloomberg Law (13 Apr 2026); Asia Financial; SZSE filings of other Zhongzhi-linked issuers (28 Jun 2024).
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Tenure / appointment | Background (as disclosed) |
|---|---|---|---|
QIU Xiaojian (邱曉健) | Executive Director, Chairman | Chairman since at least March 2023 (signed announcements from 7 Mar 2023) | — |
LI Xiang (李響) | Executive Director | On board since at least March 2023 | — |
HU Shilong (胡仕龍) | Executive Director; Chief Executive Officer | Group role announced 11 Oct 2021; CEO since 7 Nov 2023 | Aged 39 in Oct 2021 (≈44 now). Joined DaLian Kingwisoft in Jan 2014 as legal representative and general manager; later director and chairman of DaLian Kingwisoft; director of KingNine and other subsidiaries. Controls NINEGO Corporation (40.60%) and leads the concert group holding ≈66.83% of voting interests. Personally guarantees group bank loans. |
ZHOU Fang (周芳) | Executive Director | Appointed early 2024 (Stockopedia brief) | Linked to FUNGHWA Ltd (wholly owned by Ms Zhou per 2023 offer documents); counter-guarantor of group bank debt |
LIU Xiaochen (劉小琛) | Executive Director | — | — |
XU Gang (徐剛) | Executive Director | — | — |
WANG Rui (王睿) | Executive Director | Appointed 2024 (Stockopedia brief) | — |
WANG Li (王力) | Independent Non-Executive Director | On board since at least March 2023 | — |
LI Guiying (李桂英) | Independent Non-Executive Director | — | — |
TIAN Wenyu (田文裕) | INED; Chair of Remuneration Committee; Audit Committee member | Appointed 26 Jun 2026; 3-year term; fee HK$120,000 p.a. | Age 37. BSc Economics, LSE (2011); MBA, CEIBS (2018). Goldman Sachs Gao Hua investment banking (2011–14); startup founding-team roles (2014–16); HSBC (China) Beijing, commodity and structured trade finance (2018–20). |
JIANG Ning (江寧) | INED; member of Nomination, Remuneration and Audit Committees | Appointed 26 Jun 2026; 3-year term; fee HK$120,000 p.a. | Age 51. BEng Applied Electronics, Shanghai Tiedao University (1995); MBA, Donghua University (2014). Beijing Railway Bureau engineer; ZTE (1997–2000); Huawei (2000–14, service marketing and procurement roles); Ant Group (2014–24, head of group procurement and related functions). |
Governance Overview
| Attribute | Status |
|---|---|
Board size | 11 (7 executive, 4 independent non-executive) |
Independence ratio | 36% (4/11). Meets the GEM minimum of one-third. |
Chair/CEO separation | Yes. Chairman: Qiu Xiaojian. CEO: Hu Shilong. |
Committees | Audit, Remuneration and Nomination Committees (per FY2026 committee reconstitution announcement) |
Corporate Governance Code compliance | The company states it complied with all code provisions of GEM Appendix C1 throughout FY2026 |
Gender diversity | 3 women among 11 directors (Zhou Fang, Liu Xiaochen, Tian Wenyu), plus Li Guiying if female; gender not confirmed in the sources |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
| 2021 | Niu Zhanbin (Chairman), Jiang Yulin (CEO), Wu Hui (COO) lead the board under the Zhongjin name | HKEX announcements, 2021 |
| — | Niu Zhanbin resigns as Chairman | Stockopedia brief |
5 Mar 2023 | CEO Liu Yang resigns; board changes | Zonebourse |
7 Nov 2023 | Hu Shilong appointed CEO; further board appointments | Zonebourse; MarketScreener |
8 Feb 2024 | Directorate appointments (Zhou Fang, Wang Rui) | MarketScreener; Stockopedia |
23 Aug 2024 | Board and committee changes | MarketScreener |
26 Jun 2026 | INEDs Zeng Liang (Remuneration Committee chair) and Yang Hongjun resign; Tian Wenyu and Jiang Ning appointed | FY2026 results announcement |
Major Shareholders
| Holder | Shares | % of issued | Notes |
|---|---|---|---|
Zhong Zhi Xin Zhuo Capital Company Limited | 2,409,823,718 | 50.46 | Wholly owned by Tian Xi Capital; voting rights entrusted to the Hu concert group; economic interest retained |
Kangbang Qihui (HK) Limited (康邦齊輝) | 455,820,525 | 9.54 | Wholly owned by Tian Xi Capital; voting rights entrusted to the Hu concert group |
NINEGO Corporation and FUNGHWA Ltd (Hu Shilong / Zhou Fang) | 325,531,138 (pre-offer) | 6.82 | NINEGO ≈4.44% (pre-offer), FUNGHWA ≈2.38% |
Shares acquired under the offer | 670,000 | 0.01 | Valid acceptances only |
Concert group voting interest (total) | 3,191,845,381 | 66.83 | Hu Shilong and parties acting in concert, including entrusted votes |
Public / other | ≈1,584,174,209 | ≈33.17 | Derived |
Competitive Landscape
Competitors by Segment
| Activity | Named competitors | Positioning vs Kingwisoft |
|---|---|---|
China contact-centre / customer-service BPO | Teleperformance (China operations); Concentrix (China operations); TELUS Digital; captive in-house service centres of platform companies and telecom carriers; numerous private regional PRC contact-centre operators | Global players serve multinationals in China with premium pricing. Kingwisoft competes on cost in lower-tier cities for domestic platform clients. Captive centres are the main "competitor" for platform volume. |
China IT / BPO services (listed) | Beijing Northking (京北方, 002987.SZ); ChinaSoft International (0354.HK); iSoftStone (軟通動力, 301236.SZ); Beyondsoft (博彥科技, 002649.SZ); Hope Origin (慧博雲通, 301316.SZ) | Much larger, more diversified, with stronger balance sheets and IT-services margin mix. Northking overlaps most in financial-sector BPO. |
AI training data / data annotation | Haitian Ruisheng / SpeechOcean (海天瑞聲, 688787.SH); Datatang (數據堂); Testin (雲測數據); Scale AI and other global providers (outside PRC); in-house annotation teams at LLM developers | Specialists have stronger data-product IP. Kingwisoft's advantages are workforce scale, seat capacity and quality systems in lower-cost cities. |
Peer Comparison FY2026
| Metric | Kingwisoft (FY2026) | Teleperformance (FY2024) | Concentrix (FY2024) | ChinaSoft International (FY2024) |
|---|---|---|---|---|
Revenue | RMB1,309m | ≈EUR10.3bn (indicative) | ≈USD9.6bn (indicative) | ≈RMB17bn (indicative) |
Revenue growth | +5.5% | — | — | — |
Gross margin | 8.1% | — | — | — |
Net margin | -11.3% | — | — | — |
R&D intensity | 4.9% | — | — | — |
Employees | 15,575 | — | — | — |
Recent Developments
The company's announcement flow is sparse, so the register includes all identifiable material items in the window plus closely relevant context items.
