Executive readout · one minute
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Earnings call · FY2026 Q2
Executive readout · one minute
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Management tone
Confident
Net tone +72 · low hedging
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and financial improvements we are encouraged by our progress and remain focused on driven driving sustainable high quality growth thank you we are now happy to take your questions thank you to ask a question please press star one one on your telephone and wait for your name to be announced to withdraw your question please press star one one again one moment while we compile our Q&A roster. Our first question is going to come from the line of Catherine Thompson with Edison. Your line is open. Please go ahead.
Hi there. Just check you can hear me okay?
Yes, I'm in. Hello.
Yeah, great. Thank you. A couple of questions for you. The first one, could you just talk me through the progress you've made with each of your four product lines? So, Talent Nova, Neo Learning, SalesSmart, and AI Box.
Thank you, Catherine, for the question. I will try to answer the questions and provide some of the updates in the four lines of business. This is Alan Wang. I'm the Vice President of YXP.com. And to answer your question, Telenova is our main business line. As the market leader in corporate learning platform, in 2026, we continue to sign new customers. We signed more than 120 clients, a more than 48% increase compared to last year's same period. And the boost in competitiveness is our successful integration of AI products into our existing corporate learning solutions and platforms. In terms of new learning, during the first half of 2026, we signed 32.7 million RMB engagement in terms of contract value. That's approximately 26.8% increase compared to last year's same period. And the majority of the increase came from AI-related products such as AI-augmented blended learning or ai orchestrated practice or ai curated courses in terms of sales smart our ai native sales enablement and productivity boost business we won over 20 new clients with a total signed contract value of more than 5.3 million rnb and lastly in terms of ai box adjusting to market landscape, we decided not to market AI Box as a separate business line, but integrated AI Box into our Telenova and Neo Learning product suites. In the first half of 2026, we saw clients needing AI infrastructure, and we provided AI Box as part of our Telenova service to the clients. So we have quite successfully pushed all four business lines to the market and saw significant growth in terms of revenue. Catherine, I think that that's the answer to our question.
That's really helpful. Thank you. And then just secondly, looking at the gross margin, so clearly there was big expansion year over year in H1. Are you able to give any sense of whether that margin can carry on increasing into H2 and then also into future years?
Okay, thank you. Thank you for your question.
The gross margin was 70.1% in the six months ended June 30, 2026, compared with 65.1% in the same period of last year, representing an increase of five percentage points, the gross in revenue, gross margin, and customer space. The significant decrease of net loss reflected the benefits of our AI transformation, AI-driven operational efficiencies, and also helped optimize our organizational structure and the work flows, leading to meaningful reductions in staff costs. Our improvements in revenue growth and cost efficiencies continue and strengthen our financial foundation. which means we expect we would achieve a higher gross margin in the second half of 2026.
Thanks.
Sorry, I missed the last part of that. You expect to get a higher gross margin in H2 compared to H1?
Yes.
Okay. And in future years, do you think you can still expand it further?
Of course. Yes, we believe we'll continue to boost our gross margin because our AI transformation is a continuous progress and we will continue to see benefits in both operational efficiency and business outcomes. So, yes, we do expect to see that.
Right. Okay. Thank you.
Thank you, Kathleen.
Thank you. And this is going to conclude today's question and answer session. Ladies and gentlemen, this will also conclude today's conference call. Thank you for participating and you may now just connect. Everyone, have a great day.
SEC call announcement
Filed Aug 13, 2026 · complete as-filed document