Taiji Computer (002368)

Equity Research Report | Industry: IT Services / Xinchuang and Digital Government | Report Date: September 13, 2026 | September 11, 2026 (Friday) Close, Beijing Time

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Taiji Computer is currently in a phase characterized by “declining revenue, consecutive losses, and operating-quality recovery”: in 2025, net profit attributable to the parent was a loss of RMB 763 million, marking the first annual loss in its 15 years as a listed company; in 2026H1, operating revenue was RMB 1.689 billion, down 53.18% year on year, net profit attributable to the parent was a loss of RMB 353 million, non-recurring net profit attributable to the parent was a loss of RMB 383 million, and net cash flow from operating activities was RMB -1.728 billion. The company’s consolidated gross margin fell to 21.72% in 2025, while substantial credit-impairment and asset-impairment losses were recognized. The earnings forecast and valuation basis have shifted from a profitable state to a loss-recovery period.

The company is a listed software and information-services platform under China Electronics Technology Group Corporation (CETC), with businesses covering cloud and data services, proprietary software products, industry solutions, and digital infrastructure. Its principal customers include government and Party organizations, smart-city operators, public-security entities, and industry enterprises. All four major business segments recorded year-on-year declines in 2026H1. Industry solutions revenue was RMB 992 million, down 53.97%, while digital-infrastructure revenue fell 75.44%. The company attributed the pressure on results partly to its proactive contraction of systems integration and digital-infrastructure businesses.

Positive factors include continued business-structure adjustments. In 2026H1, gross margins were 47.75% for proprietary software products, up 8.92 percentage points year on year; 18.58% for industry solutions, up 4.45 percentage points; and 27.97% for digital infrastructure, up 14.88 percentage points. The company has proposed a three-engine strategy centered on “trusted, data, and intelligence.” Its controlled subsidiary Kingbase Technologies generated revenue of RMB 180 million and net profit of RMB 7.5177 million in the first half, although gross margin for cloud and data services declined 18.78 percentage points year on year, meaning the effectiveness of the transformation still requires further verification.

As of September 11, 2026, the share price closed at RMB 13.23, implying a market capitalization of approximately RMB 8.245 billion and a price-to-book ratio of approximately 2.22x, near the 52-week low of RMB 12.82. The share price was below the MA5, MA10, and estimated MA20, with short-term moving averages in a bearish alignment. PE was negative because the company is loss-making. Attention is therefore better focused on net assets, PS, and future earnings recovery than on conventional P/E. No clear technical reversal signal was evident; trading value and turnover were relatively limited, and the market remained primarily a stock-based trading environment.

2. Company Overview

2.1 Basic Information

2.2 Principal Businesses and Product Structure

• Cloud and data services: Using proprietary cloud-computing resources and data-service infrastructure to provide cloud-computing and data-intelligence services (2025 revenue of RMB 950 million, or 12.20%; 2026H1 revenue of RMB 262 million, or 15.53%, down 46.70% year on year)
• Proprietary software products: Sales, customized development, and services for basic software products, general-purpose software products, and industry applications (2025 revenue of RMB 1.518 billion, or 19.49%; 2026H1 revenue of RMB 295 million, or 17.44%, down 44.89%)
• Industry solutions: Consulting and planning, design and development, integration and construction, and operation and maintenance (2025 revenue of RMB 3.495 billion, or 44.87%; 2026H1 revenue of RMB 992 million, or 58.73%, down 53.97%)
• Digital infrastructure: Design, construction, operation, and maintenance of digital infrastructure such as data centers and computing centers (2025 revenue of RMB 1.678 billion, or 21.54%; 2026H1 revenue of RMB 93.4 million, or 5.53%, down 75.44%)
• Strategic framework: “One core, two wings, three engines” (one core = industry digital intelligence; two wings = product industrialization + service platformization; three engines = trusted, data, and intelligence), with a vision of “becoming China’s outstanding digital-services provider”

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Taiji Computer is a leading listed software and information-services platform within CETC and occupies the integration and platform layer in the middle of the IT-services value chain. It procures hardware, basic software, cloud resources, and other inputs upstream, and provides information infrastructure, basic software, public-service platforms, business applications, and data-intelligence services downstream to government and Party organizations, smart cities, public-security entities, and industry enterprises. The research notes do not fully cover the company’s procurement-cost structure, supplier concentration, or specific customer-concentration figures. The following discussion is therefore limited to facts in the notes, with missing data identified.

• Upstream cost structure: The research notes do not disclose detailed procurement-cost categories, such as the proportions of hardware, basic software, and cloud resources, nor supplier-concentration data.
• Business-model dependence on upstream hardware and third-party software: Industry solutions and digital infrastructure involve integration and construction as well as the design, construction, and operation of data and computing centers. These businesses generally require externally sourced hardware and software components, but the notes provide no scale or proportion.
• Upstream bargaining power: The notes contain no direct evidence regarding the company’s pricing power over upstream suppliers, such as advance payments or accounts-payable ratios. Its upstream bargaining position cannot therefore be determined.
• Downstream customer areas: Government and Party organizations, smart cities, public security, and industry enterprises, with services including information infrastructure, basic software, public-service platforms, business applications, and data intelligence (wording from the 2025 annual-report summary, announced April 30, 2026).
• Customer concentration: The research notes do not provide the combined share of the top five customers. They only state that CETC’s central-SOE background is a key premise for understanding the company’s customer structure and bargaining relationships.
• Structural bargaining dynamics: The notes mention project delays among government and industry customers (“Project delays + increased investment pressure revenue and profit”), as well as the first annual loss in 15 listed years and RMB 870 million in bad-debt pressure in 2025, indicating substantial downstream collection pressure. The notes do not specify annual price reductions, rebates, or other detailed bargaining terms.
• The research notes do not disclose receivables relative to net profit or revenue, receivables turnover days, or specific working-capital indicators such as advances and payables. They only mention the RMB 870 million bad-debt pressure in 2025, based on media and annual-report-related coverage. This may serve as an indirect signal of downstream collection pressure, but there are no cross-checkable quantitative turnover indicators.
• The notes do not provide the combined share of the top five customers or supplier-concentration data. The customer background can be assessed by noting that the actual controller is CETC and that customers are primarily in government and Party organizations, smart cities, public security, and industry enterprises, but no specific percentages are available.

Taiji Computer occupies the integration and platform layer in the middle of the IT-services value chain. Industry solutions accounted for 44.87% of 2025 revenue and digital-infrastructure integration for 21.54%, making these primarily middle-stream, integration- and project-based businesses. Gross- and net-margin data were not provided in the research notes, so profitability cannot be quantified. The notes identify potential drivers of further earnings improvement, including business-structure optimization, cloud and Xinchuang enablement, product industrialization through proprietary software, service platformization through cloud and data services, and the contraction of low-margin integration businesses. However, no specific data or estimates were provided regarding the impact of these initiatives on gross margin, so their effectiveness cannot yet be verified.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Results

The latest financial report is the 2026 interim report, disclosed on August 23/24, 2026. In 2026H1, non-recurring net profit attributable to the parent was RMB -382.61 million (down 32,332.62% year on year), basic/diluted EPS was RMB -0.5664, weighted-average ROE was -9.03%, net cash flow from operating activities was RMB -1.72838 billion (up 13.96%), total assets were RMB 15.35235 billion (up 0.75% from year-end), and net assets attributable to the parent were RMB 3.71864 billion (down 9.26% from year-end). The company attributed the results to the proactive contraction of systems integration and digital-infrastructure businesses and invested RMB 233.86 million in R&D during the first half. In 2026Q1, non-recurring net profit was RMB -122 million versus +RMB 270,000 in the prior-year period; selling, administrative, and R&D expense ratios increased 2.25, 12.77, and 1.54 percentage points year on year, respectively. According to Securities Star, 2026Q1 book value per share was RMB 6.38, EPS was RMB -0.19, gross margin was 35.87%, and the debt-to-assets ratio was 71.17%. Consolidated gross margin in 2025 was 21.72%, down 2.36 percentage points, while selling, administrative, and R&D expense ratios were 4.34%, 9.76%, and 6.04%, respectively. Credit-impairment losses increased RMB 585 million year on year and asset-impairment losses increased RMB 95 million. Q4 quarterly revenue was RMB 3.099 billion, down 11.43%, and net profit attributable to the parent was RMB -760 million. In 2024, non-recurring net profit was RMB 176 million, down 48.53%; basic EPS was RMB 0.3066, weighted-average ROE was 3.66%, gross margin was 24.08%, the debt-to-assets ratio was 65.02%, operating cash flow was RMB -207 million, and the company paid RMB 0.925 per 10 shares, including tax. No dividend was paid for 2025 because of the loss, and no distribution proposal was found. The 2025 annual report received a modified audit opinion. In May 2026, the company received a regulatory letter from the Shenzhen Stock Exchange because the net profit disclosed in its 2025 earnings forecast differed substantially from the annual report and was not corrected in a timely manner.

Earnings trend: revenue and profit both declined in 2024; revenue was broadly flat in 2025 but the company recorded a substantial RMB 763 million loss, primarily due to impairments; revenue then fell sharply in 2026Q1 and 2026H1, by 27.54% and 53.18%, respectively, while losses continued. The earnings forecast and valuation basis have shifted from that of a “profitable company” to a “loss plus recovery period.” 2026H1 product revenue was RMB 991.9 million for industry solutions (-53.97%), RMB 294.6 million for proprietary software products (-44.89%), RMB 262.3 million for cloud and data services (-46.70%), and RMB 93.41 million for digital infrastructure (-75.44%). By customer sector, government revenue was RMB 642.3 million (-57.78%), public institutions RMB 97.19 million (-74.84%), and enterprises RMB 753.2 million (-52.03%). Gross-margin improvements reported by the company were 47.75% for proprietary software products (+8.92 percentage points), 27.97% for digital infrastructure (+14.88 percentage points), and 18.58% for industry solutions (+4.45 percentage points). Cloud and data services gross margin was 34.53%, down 18.78 percentage points. Kingbase Technologies, in which the company holds 55.99%, generated first-half revenue of RMB 180 million and net profit of RMB 7.5177 million. The notes’ own estimates, which are not disclosed figures, imply 2026H1 core-business gross profit of approximately RMB 461 million and a gross margin of approximately 27.3%; these figures should be checked against the full interim report.

3.2 Earnings Forecast

Only two formal brokerage reports identified as genuinely reflecting the post-2025 annual-report fundamentals are available: Huatai Securities (Guo Yali and Yue Boxiong, May 4, 2026, Buy maintained, target price RMB 20.11) and Huachuang Securities (Wu Mingyuan, May 11, 2026, Outperform / target lowered, target price RMB 19.60). Other institutional ratings were concentrated around the 2025 interim- and third-quarter reporting windows, before the substantial 2025 annual loss and the halving of 2026 revenue, and have limited reference value. Third-party and overseas model forecasts contain substantial contradictions and outdated figures. StockAnalysis.com forecasts FY2026 revenue of RMB 8.28 billion (+6.29%) and non-GAAP EPS of RMB 0.72, based on one analyst; this conflicts materially with Huatai and Huachuang and is not adopted. Fiscal.ai’s DCF model forecasts revenue of RMB 8.279 billion/RMB 9.176 billion/RMB 10.330 billion in 2026E/2027E/2028E, and EBIT of RMB -12.9 million/RMB 178 million/RMB 462 million. Simply Wall St, updated May 25, 2026, is exactly consistent with Huatai Securities and appears to reproduce the same source, so it is not independent cross-validation. Its Swedish version and Zonebourse still show old figures such as 2025E revenue of RMB 8.937 billion and net profit of RMB 333 million. Eastmoney Choice’s forecasts of RMB 281 million/RMB 379 million/RMB 485 million for 2025E/2026E/2027E are old consensus estimates from early 2025 and are no longer valid. Securities Star’s 2027E EPS of RMB 0.21 and 2028E EPS of RMB 0.36 have no date or source and are presumed to originate from Huachuang. Eastmoney’s industry-comparison table, based on the 2026 interim report, shows TTM revenue growth of -33.51%, 2026E/2027E/2028E growth of +9.14%/+10.43%/+9.25%, and EPS growth of -95.56%/-552.82%/+120.43% for 2026E/2027E/2028E, respectively.

3.3 Valuation and Institutional Ratings

Market capitalization and multiples, based on Eastmoney’s industry-analysis page using 2026 interim-report data as of approximately August 2026: total market capitalization of approximately RMB 8.245 billion and free-float market capitalization of approximately RMB 8.223 billion; PE (TTM) of -7.38x, PE of -10.81x for 2025A, -243.48x for 2026E, 53.74x for 2027E, and 24.39x for 2028E; PS of 1.06x for 2025A, 1.40x on a TTM basis, 0.97x for 2026E, 0.88x for 2027E, and 0.80x for 2028E; PEG of -0.06x. PE (TTM) is negative and 2026E PE is also negative, rendering PE largely unusable at present. Meaningful valuation anchors are PS and 2027E and later PE. PB, calculated in this report and not disclosed, is approximately 2.2x, based on 2026H1 net assets attributable to the parent of RMB 3.719 billion divided by 623.2 million shares, or book value per share of approximately RMB 5.97, against market capitalization of RMB 8.245 billion. If 2026Q1 book value per share of RMB 6.38, according to Securities Star, is used with the share-price basis, PB is approximately 2.6–2.7x. Results vary substantially by reference date; the latest interim-report net assets should be preferred. The company has remained loss-making, and net assets declined 9.26% year on year, meaning the PB denominator is still contracting.

Share-price and market performance: Sina Finance reported on August 23, 2026, that market capitalization had fallen by RMB 9.6 billion over one year to RMB 8.7 billion. The closing price on May 11, 2026 was RMB 17.37, down 1.36% that day, with a year-to-date decline of more than 25% at that time. Eastmoney, based on the 2026 interim report, reported performance of -7.48% over one month, -22.36% over three months, -35.08% over six months, and -45.98% year to date. Third-party 52-week ranges are inconsistent: Investing.com reported RMB 18.91–31.25, another page reported RMB 12.82–31.25, and Yahoo Finance showed a current price of RMB 16.73 and a decline of 3.74%. The current price is below the reported 52-week low, indicating inconsistent update dates; these ranges should not be cited directly. The target-price range of RMB 19.60–45.47 is excessively wide, exceeding a twofold difference. Most websites still include old target prices from August 2025, such as RMB 45.47 and RMB 34.00. The two reports that genuinely reflect post-2025 annual-report fundamentals are Huatai’s RMB 20.11 and Huachuang’s RMB 19.60. They should be described as “single-/dual-brokerage estimates, not a broad multi-institution consensus.” Consensus analyst counts are inconsistent: StockAnalysis/Yahoo report two analysts with an average target of RMB 27.06; Investing.com’s Chinese page reports two analysts with an average target of RMB 39.74; the English Investing.com page and MarketScreener report eight analysts with averages of RMB 33.46/RMB 36.11. Different language pages on the same platform conflict, so any consensus figure is single-source and cannot be cross-validated. The latest official financial report identified in this search is the 2026 interim report, disclosed on August 23, 2026. Latest share-price and market-capitalization data are spread across August 3, August 19, and August 23, 2026. The reported market capitalization of RMB 8.245 billion differs from RMB 8.7 billion, and the relevant as-of dates must be stated. The modified audit opinion on the 2025 annual report and the regulatory letter received in May 2026 are material risk facts affecting valuation.

4. Recent News and Announcements

4.1 Disclosure of the 2025 Annual Report Summary

Taiji Computer (002368) disclosed its 2025 annual-report summary. The relevant announcement is available through the CNINFO/Shenzhen Stock Exchange disclosure documents. The research notes do not provide specific financial data.

4.2 No Profit Distribution for 2025

Taiji Computer will not distribute profits for 2025. The research notes do not provide specific details of the distribution plan.

4.3 2025Q3 Net Profit of RMB 4.0465 Million, Turning from Loss to Profit Year on Year

Taiji Computer (002368.SZ) reported 2025Q3 net profit of RMB 4.0465 million, turning from loss to profit year on year.

4.4 Correction of Prior-Period Accounting Errors and Periodic Reports

Taiji Computer issued an announcement on correcting prior-period accounting errors and periodic reports. The announcement date was April 30, 2026.

4.5 Further Delay in Disclosure of the Verification Report on Accounting-Error Corrections

Taiji Computer further delayed disclosure of the verification report on accounting-error corrections after previously being “rejected” by an accounting firm. The research notes do not provide the revised disclosure date.

4.6 Receipt of a Shenzhen Stock Exchange Regulatory Letter

Because the net profit disclosed in its earnings forecast differed substantially from the annual report and was not corrected in a timely manner, Taiji Computer received a regulatory letter from the Shenzhen Stock Exchange. The research notes do not provide the specific difference.

4.7 “Earnings Reversal” Suspected of Violating Disclosure Rules and Triggering Investor Claims

Taiji Computer’s “earnings reversal” attracted regulatory attention. The suspected information-disclosure violation has triggered investor claims. The research notes do not provide specific claim amounts or progress.

4.8 Progress on the Contractual Transfer of Shares by the Controlling Shareholder and Persons Acting in Concert

Taiji Computer issued an announcement on the progress of the contractual transfer of shares by its controlling shareholder and persons acting in concert, together with a notification regarding changes in equity interests. The announcement date was December 23, 2025.

4.9 Completion of Registration for the Contractual Transfer of Shares

Taiji Computer announced the completion of registration for the contractual transfer of shares by its controlling shareholder and persons acting in concert. The announcement date was January 6, 2026.

4.10 Notification Regarding the Contractual Transfer of Shares

Taiji Computer issued a notification regarding the contractual transfer of shares by its controlling shareholder and persons acting in concert. The announcement date was November 9, 2025. The research notes do not provide the specific percentage transferred or information on the transferee.

4.11 Resolutions of the 22nd Meeting of the Sixth Board of Directors

Taiji Computer issued an announcement on the resolutions of the 22nd meeting of the sixth Board of Directors.

4.12 Resolutions of the First Extraordinary General Meeting of Shareholders in 2025

Taiji Computer issued an announcement on the resolutions of its first extraordinary general meeting of shareholders in 2025. The announcement date was November 18, 2025.

4.13 Shareholders’ Meeting: President Zhong Kai Says the Most Difficult Period for the Industry Has Passed

Taiji Computer President Zhong Kai stated at the shareholders’ meeting that the industry’s most difficult period had passed and that native development following domestic substitution represented a large market opportunity.

4.14 Share Price Down Nearly 30% Year to Date; Debt-to-Assets Ratio Remains High

Taiji Computer’s share price had fallen nearly 30% year to date, while its debt-to-assets ratio remained high. The research notes do not provide the specific ratio.

5. Share-Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

Taiji Computer (002368.SZ) closed at RMB 13.23 on September 11, 2026, down 2.14%, near the lower end of its 52-week range and only approximately 3% above the 52-week low of RMB 12.82. The moving-average system (MA5 ≈ RMB 13.66, MA10 ≈ RMB 13.89, estimated MA20 ≈ RMB 14.0–14.1) was bearishly aligned, with the share price below all short- and medium-term averages. Eastmoney’s same-day technical indicators showed only “no clear signal,” with no authoritative same-day RSI/MACD readings. Investing.com RSI/MACD data were outdated July and August snapshots and are for trend reference only. In terms of capital flows, major-player funds recorded a small net inflow of RMB 4.8699 million on September 11, representing 4.32% of net trading value, although major-player funds had generally recorded net outflows over the prior month, indicating a tug-of-war. The margin-financing balance had declined for four consecutive days, suggesting marginal weakening of leveraged funds. Liquidity was relatively thin, with turnover of 1.38%, normal daily trading value of approximately RMB 100–120 million, and market capitalization of approximately RMB 8.2 billion. Ownership was dominated by CETC-related state-owned capital, with combined ownership of approximately 39%; institutional participation was approximately 20.91%, and retail ownership was relatively high. Both the 2025 annual report and 2026 interim report were loss-making, leaving valuation without earnings support. Overall, the short-term technical picture was weak and the stock was in a low-price area; directional selection depends on trading volume and sector catalysts.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following content is a subjective scenario analysis based on the September 11, 2026 closing data and historical prices and technical indicators. It is intended only as an analytical framework, does not constitute investment advice, does not guarantee future performance, and should be assessed independently with risks borne by the investor.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weighting, Not Statistical Probabilities)

• Scenario A — Low-level range-bound consolidation (relatively higher weighting, approximately 50%; subjective judgment, not a statistical probability): the share price fluctuates within RMB 13.03–13.66, with trading value around RMB 100 million and no material increase in volume. Trigger conditions: no major change in the broader market or sector, small inflows and outflows from major-player funds, and no expansion in trading volume. The current price is just above the 52-week low and major-player funds recorded a small net inflow on the day, making this the most consistent scenario.
• Scenario B — Weak downward move (medium weighting, approximately 30%; subjective judgment, not a statistical probability): if RMB 13.03 is decisively broken with increased trading value, the stock may test the strong support at RMB 12.82. If RMB 12.82 also fails, the next lower range would become exposed. Trigger conditions: weakness in the IT-services/Xinchuang sector, sustained net outflows from major-player funds, and a volume-backed decline. The company’s consecutive losses and lack of earnings support for valuation should be noted.
• Scenario C — Stronger rebound (lower weighting, approximately 20%; subjective judgment, not a statistical probability): if the share price moves above MA10 at RMB 13.89 with increased volume, it may rebound toward the previous-high area of RMB 14.10–14.40. Trigger conditions: catalysts involving Xinchuang, data factors, or domestic substitution; sector-wide resonance; and a clear increase in trading value. The moving averages are currently bearishly aligned, so a rebound would require a strong catalyst and is assigned a lower weighting.

③ Capital and Liquidity Background

Turnover was approximately 1.38%, normal daily trading value was approximately RMB 100–120 million, the recent range was approximately RMB 83 million–RMB 215 million, and market capitalization was approximately RMB 8.2 billion. The stock is a relatively illiquid Shenzhen small-cap, with a thin order book in which large orders can cause notable volatility and slippage. Ownership is dominated by CETC-related state-owned capital, with combined ownership of approximately 39%. As of March 31, 2026, China Electronics Taiji held 26.87%, the North China Research Institute of Computing Technology 7.24%, and CEC Investment 4.64%; the top 10 shareholders held approximately 43%–45.8% in aggregate. As of June 30, 2026, the corresponding stakes were 26.94%, 7.26%, and 4.65%; individual shareholder Wang Xiaoming newly entered with 2.93%, while the Southern Fund Stable Appreciation Mixed Pension Product newly entered with 0.56%. Institutional participation, including mutual funds, insurers, and pension funds, was low, at approximately 20.91% according to Eastmoney, while retail ownership was relatively high. The shareholder count was 54,241 on August 20, 2026, slightly below 54,545 on June 30 and 57,623 on May 20, indicating a modest tendency toward concentration, although the absolute level remains dispersed. The margin-financing balance had declined for four consecutive days, indicating marginal weakening in leveraged funds. Shareholder-structure data are dated March 31 and June 30, 2026, lagging by approximately two to five months; the latest structure is unknown.

Volume-confirmation signal: sustained single-day trading value above RMB 150 million, materially above the recent normal level of RMB 100–120 million, may be regarded as a signal of capital inflows. Conversely, sustained trading value below RMB 100 million would indicate predominantly stock-based trading and limited directional conviction.

④ Key Points to Monitor (Analytical Observations Only, Not Trading Instructions)

• Monitor the short-term range between RMB 13.03, the lower edge of first support, and RMB 13.66, the lower edge of MA5/resistance. Directional selection following a breakdown or stabilization should be confirmed by trading volume.
• Monitor whether single-day trading value can remain above RMB 150 million, a verifiable observation point for determining whether incremental funds are entering.
• Monitor the effectiveness of the strong support near RMB 12.82, the 52-week low. A decisive break would further weaken the technical pattern.
• The above points are observations based on publicly available technical and capital-flow data, not trading instructions. Investors should make independent judgments using the latest market information.

This scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices may also be affected by news, capital flows, the broader market, and other factors. Technical indicators have inherent lag and limitations. This analysis does not guarantee future price movements and does not constitute a buy or sell recommendation. Investors should assess the latest market information independently and bear the associated investment risks.

6. Industry Structure and Competitor Analysis

6.1 Industry Overview

Taiji Computer is classified by Shenwan as Computer—IT Services II—IT Services III. The company describes itself as part of the software and information-technology services industry and is a leading listed software and information-services platform under central SOE CETC. Its businesses cover cloud and data services, proprietary software products, industry solutions, and digital infrastructure, serving government and Party organizations, smart cities, public security, and industry enterprises. The research notes do not provide macro data on the overall market size or growth rate of the IT-services or Xinchuang industries.

6.2 Competitive Landscape

• Competitive-landscape indications: Several sources in the research notes compare Taiji Computer with China National Software & Service Company (“ChinaSoft”), with headlines such as “ChinaSoft vs. Taiji: Xinchuang is booming, yet both have gone downhill” and “In the booming Xinchuang 2.0 era, why have ChinaSoft and Taiji gone downhill?” This indicates comparability in Xinchuang integration, but the notes provide no specific market-share data.
• Industry-position indications: The notes refer to rankings such as the “2025 Top 100 E-Government and Smart-City Companies,” the “2024 Xinchuang Integrator Ranking,” the “Top 50 Government Xinchuang Integrators,” and IDC sources, but do not provide Taiji Computer’s specific rankings.
• Demand-side changes: The notes refer to “project delays + increased investment pressure on revenue and profit,” the first loss in 15 listed years, and “RMB 870 million in bad-debt pressure,” indicating that project timing and collections are pressuring IT-service providers. However, no quantitative industry-level data were provided.

6.3 Major Competitors

The research notes do not provide comparable quantitative indicators for Taiji Computer and its peers, such as gross margin, net margin, revenue growth, or market share. They contain only qualitative comparisons with ChinaSoft and references to rankings such as the Xinchuang Integrator Ranking and Top 50 Government Xinchuang Integrators. Quantitative peer comparison is therefore not possible.

7. Risk Factors

• Risk of continued earnings deterioration and expanding losses: 2026H1 revenue declined 53.18% year on year and net profit attributable to the parent was a loss of RMB 353 million. Revenue from industry solutions, proprietary software, cloud and data services, and digital infrastructure declined 53.97%, 44.89%, 46.70%, and 75.44%, respectively. If project recovery falls short of expectations, losses may continue.
• Receivables, collections, and impairment risk: The company faced RMB 870 million in bad-debt pressure in 2025; credit-impairment losses increased RMB 585 million year on year and asset-impairment losses increased RMB 95 million. Government and industry projects have been delayed, and further slowing in collections could erode profit and cash flow.
• Cash-flow and financial-leverage risk: 2026H1 net cash flow from operating activities was RMB -1.728 billion, while net assets attributable to the parent declined 9.26% from year-end. The debt-to-assets ratio was 71.17% in 2026Q1. If revenue recovers slowly, working-capital pressure and reliance on financing may increase.
• Accounting and information-disclosure risk: The 2025 annual report received a modified audit opinion. The company issued announcements correcting prior-period accounting errors and periodic reports and received a Shenzhen Stock Exchange regulatory letter because the net profit in its earnings forecast differed materially from the annual report and was not corrected in a timely manner. Subsequent verification of the accounting-error corrections and related matters may affect the credibility of financial data and market valuation.
• Uncertainty over revenue recovery due to business contraction: The company has proactively contracted its systems-integration and digital-infrastructure businesses, with 2026H1 digital-infrastructure revenue down 75.44%. If proprietary software, cloud, and data services cannot promptly replace the lost revenue, structural optimization may further pressure revenue and profit in the short term.
• Earnings volatility in cloud and data services: Gross margin for cloud and data services was 34.53% in 2026H1, down 18.78 percentage points year on year, showing that revenue growth and profitability improvement in this segment have not moved in tandem. If resource investment increases without sufficient commercialization progress, overall earnings recovery may be delayed.
• Valuation and share-price volatility risk: The company recorded losses in both 2025 and 2026H1, leaving PE negative and conventional earnings-based valuation metrics with limited reference value. As of September 11, 2026, the share price was near its 52-week low; normal trading value was approximately RMB 100–120 million and turnover was 1.38%. Thin liquidity means large trades may cause substantial price volatility and slippage.
• Forecast-deviation risk: Huatai Securities and Huachuang Securities differ materially in their 2026–2028 earnings forecasts, while certain market platforms continue to use old forecasts from before the annual report. If earnings recovery, project recognition, or impairments differ from expectations, the valuation anchor may be revised further.

8. Conclusion and Outlook

Taiji Computer’s medium- to long-term growth thesis primarily rests on its CETC background, its foundation in Xinchuang and digital-government businesses, and structural upgrades in proprietary software, cloud and data services, and data-intelligence capabilities. If project activity improves, the contraction of systems integration is completed gradually, and the shares of higher-margin proprietary software and data services increase, profitability could improve alongside revenue recovery. Both Huatai Securities and Huachuang Securities forecast a return to profitability in 2027 following the 2025 annual report, although the two institutions differ in their 2026–2028 earnings forecasts, indicating considerable uncertainty around the recovery path.

Short-term fundamentals remain unsupported by earnings. 2026H1 revenue declined sharply, net assets attributable to the parent fell 9.26% from year-end, operating cash flow remained negative, and the 2025 annual report received a modified audit opinion. The company also received a Shenzhen Stock Exchange regulatory letter after failing to timely correct a substantial difference between its earnings forecast and annual-report results. Key areas for monitoring include whether the revenue decline narrows, whether operating cash flow and receivables collections improve, whether impairment risks subside, and whether growth in proprietary software and cloud services can offset the contraction of traditional integration businesses.

From a technical and trading perspective, RMB 13.03 is the recent first support, while RMB 12.82 is the strong support near the 52-week low. RMB 13.66–13.90 corresponds to short-term moving-average resistance; a volume-backed recovery of the RMB 14.10–14.40 range would be required to signal improvement in the short-term pattern. These levels reflect only the current technical state. The share-price direction remains dependent on earnings recovery, sector catalysts, capital flows, and the broader market environment, and the discussion does not constitute a buy or sell recommendation.

Data Sources

• Taiji Computer: 2025 Annual Report Summary - Home >
• SZ.002368 Taiji Computer - A-Share Real-Time Quote - Company Information
• Stock Code: 002368
• 002368 Taiji Computer
• Taiji Computer (002368.SZ) Detailed F9 Information
• Taiji Computer (002368) Stock Overview
• Taiji Computer (sz002368)
• Taiji Computer Listed-Company Information
• Taiji Computer Corporation Limited
• Detailed F9: Taiji Computer (002368)
• 002368 Taiji Computer - Principal Business
• Taiji Computer - Principal Business Composition - 2025-12-31
• Taiji Computer Stock Overview
• Taiji Computer: 2026H1 Operating Revenue of RMB 1.689 Billion
• Taiji Computer (002368): Business Structure Continues to Improve
• Taiji Computer’s History and Current Position
• 002368 Taiji Computer - Regional Classification
• Taiji Computer 2025 Interim Report: Revenue Growth and “One Core, Two Wings, Three Engines” Strategy
• Taiji Computer
• Taiji Computer (002368) - Principal Business
• Taiji Computer (002368): Expanding Cloud and Data Services
• Taiji Computer (002368): Improving Revenue Structure
• Taiji Computer Financial Report Summary
• Company Information Update Report: Improved Business Structure
• Taiji Computer (002368): Strengthening Product Competitiveness
• Taiji Computer (002368): Q4 Results Stabilize
• Revenue Remains Under Pressure, Profitability Improves Rapidly
• Taiji Computer (002368): Project Delays + Increased Investment Pressure Revenue and Profit
• RMB 760 Million Loss! Taiji Computer’s First Loss in 15 Listed Years
• Taiji Computer
• Taiji Computer: 2025 Annual Report
• Taiji Computer Records First Loss in 15 Listed Years
• Taiji Computer: 2025 Annual Report PDF
• Shareholders’ Meeting: President Zhong Kai Says the Most Difficult Period Has Passed
• Taiji Computer - Operating Analysis
• Company Announcement Titles - Taiji Computer: 2025 Annual Report
• Taiji Computer: 2025 Annual Report
• Taiji Computer (002368): 2025 Annual Report Summary
• 2025 Top 100 E-Government and Smart-City Companies
• 2024 Xinchuang Integrator Ranking
• 2024 Xinchuang Integrator Ranking
• ChinaSoft vs. Taiji: Xinchuang Is Booming, Yet Both Have Gone Downhill
• 2025 Top 100 E-Government and Smart-City Companies
• Xinchuang Companies Ranked by EPS
• IDC Table of Contents
• Top 50 Government Xinchuang Integrators
• Top 50 Government Xinchuang Integrators
• In the Booming Xinchuang 2.0 Era, Why Have ChinaSoft and Taiji Gone Downhill?
• Taiji Computer (002368) 2026 Interim Management Discussion and Analysis
• Taiji Computer: 2025 Annual Report Summary
• Taiji Computer: 2024 Annual Report Summary
• SZ.002368 Taiji Computer - Company Information
• China Securities Journal - Taiji Computer Corporation Limited
• 002368 Taiji Computer
• Taiji Computer Investor Relations Information
• Taiji Computer Investor Relations Platform
• Taiji Computer Earnings Data
• Yingmei (002368) Financial Indicators
• Taiji Computer (002368.SZ): 2024 Annual-Report Net Profit
• Taiji Computer Income Statement
• Taiji Computer: 2024 Net Profit Declined 49.08%
• Weekly Stock Review: Taiji Computer
• Taiji Computer Annual Income Statement
• Taiji Computer Financial Overview
• Taiji Computer Financials Overview
• Taiji Computer Stock Forecast and Price Targets
• Taiji Computer Analyst Consensus Estimates
• Taiji Computer 2025 Annual and 2026Q1 Review
• Taiji Computer Stock Forecast and Analyst Recommendations
• Taiji Computer: Awaiting Steady Earnings Recovery in 2026
• Taiji Computer Industry Analysis
• Taiji Computer Stock Forecast
• Taiji Computer DCF Valuation
• Taiji Computer: Revenue Declined from RMB 1.9 Billion to RMB 1.7 Billion
• Taiji Computer: 2026 Interim Report Summary
• Taiji Computer: 2026 Interim Report
• Taiji Computer: 2026 Interim Report Summary
• Taiji Computer: 2026H1 Revenue of RMB 1,688,860,282.51
• Taiji Computer: Non-Recurring Net Profit Declined 32,332.62%
• Taiji Computer Company Profile
• Taiji Computer Shareholders’ Meeting Notice
• Taiji Computer Major Events and Announcements
• Taiji Computer: Resolutions of the First Extraordinary General Meeting in 2025
• Taiji Computer: No Profit Distribution for 2025
• Taiji Computer: Resolutions of the 22nd Meeting of the Sixth Board
• Shenzhen Stock Exchange—Periodic Reports
• Taiji Computer: 2025Q3 Net Profit of RMB 4.0465 Million
• Taiji Computer: Correction of Prior-Period Accounting Errors
• Taiji Computer Receives Shenzhen Stock Exchange Regulatory Letter
• Taiji Computer “Earnings Reversal” Triggers Investor Claims
• Taiji Computer Further Delays Accounting-Error Verification Report
• Taiji Computer Contractual Share Transfer Announcement
• Taiji Computer: Completion of Share-Transfer Registration
• Taiji Computer Share Price
• Taiji Computer Technical Analysis
• Taiji Computer Capital Flows
• Taiji Computer Shareholders
• Taiji Computer (002368.SZ): 2025 Annual-Report Net Loss of RMB 763 Million
• Taiji Computer (002368.SZ): 2026 Interim-Report Net Loss of RMB 353 Million
• Taiji Computer Major Shareholders
• 002368 Taiji Computer - Basic Information

This report was automatically retrieved, compiled, and generated by AI based on publicly available information. Information is current through the September 11, 2026 (Friday) close, Beijing Time, and may differ in timing. Specific data should be confirmed against the company’s official announcements and authoritative data terminals. This report is for information organization and research reference only, does not constitute investment advice, and investors should make independent judgments and bear their own investment risks.