Inspur Digital Enterprise Technology (596) H2 2025 earnings summary

Executive summary

• Revenue declined 10.9% year-over-year to RMB7.31 billion, with all major segments posting lower sales.

• Gross profit fell 8.8% to RMB2.01 billion, but gross margin improved to 27.6% from 26.9%.

• Profit attributable to owners dropped 38.2% to RMB237.5 million; adjusted profit was RMB301.4 million.

• Final dividend proposed at HK$0.04 per share, down from HK$0.08 last year.

Financial highlights

• Cloud services revenue decreased 0.8% to RMB2.74 billion; management software down 12.5% to RMB2.24 billion; IoT solutions down 19.1% to RMB2.33 billion.

• Basic EPS was RMB20.59 cents, down from RMB33.69 cents year-over-year.

• Adjusted profit excludes fair value changes in investment properties and share-based payments.

• Other income dropped 37.3% due to lower government grants and rental income.

Outlook and guidance

• Focus remains on "AI First" strategy, expanding AI-native products and enterprise digital transformation.

• Plans to accelerate development in management software, industrial software, and platform-enabling software.