Domestic computing power demand continues to explode, Sugon (Inspur) expects a 30% year-over-year increase in non-recurring net profit by 2025 | Financial Report Insights

Sugon (Inspur) Releases 2025 Performance Briefing on February 24. During the reporting period, the company’s revenue increased by 13.86% year-over-year; net profit attributable to shareholders grew significantly faster than overall net profit, indicating that the endogenous growth momentum of the company’s main business continues to strengthen.

Highlights of the performance briefing:

• Total operating revenue of 14.97 billion RMB, up 13.86% year-over-year.

• Net profit attributable to shareholders of 2.113 billion RMB, up 10.54% year-over-year.

• Non-recurring net profit of 1.785 billion RMB, a substantial increase of 30.17% year-over-year.

The company attributes its growth to three main drivers: continuous optimization of product structure, offering diversified high-quality solutions, and ongoing improvements in operational efficiency. Against the backdrop of sustained explosive demand for domestic computing power, Sugon, as a leading enterprise in China’s high-performance computing and server sectors, is accelerating to capture market dividends.

From the balance sheet perspective, the company’s total assets grew by 12.47% from the beginning of the year to 41.183 billion RMB. Shareholders’ equity attributable to the parent increased to 22.161 billion RMB, and net asset per share rose to 15.15 RMB, further strengthening the financial foundation. Overall, the operating situation remains healthy and positive.

30% Surge in Non-Recurring Net Profit Demonstrates Business Resilience

In 2025, Sugon achieved total operating revenue of 14.97 billion RMB, a 13.86% increase, adding 1.822 billion RMB compared to the same period last year. This growth confirms the company’s continued market advantage in servers, high-performance computing, and cloud infrastructure.

Benefiting from the rapid expansion of domestic AI large model training and inference demands, coupled with accelerated government and enterprise digital transformation, the procurement demand for high-performance servers and computing infrastructure remains strong. Leveraging its early-mover advantage in the domestic industry chain, the company effectively seizes this industry cycle.

Higher-Quality Profit Growth. During the reporting period, net profit attributable to shareholders was 2.113 billion RMB, up 10.54%; non-recurring net profit reached 1.785 billion RMB, a sharp increase of 30.17%, significantly outpacing overall net profit growth. The narrowing gap between the two indicates that the company’s reliance on non-operating income is decreasing, and profitability is increasingly driven by core business expansion and efficiency improvements.

Operating profit and total profit were 2.451 billion RMB and 2.448 billion RMB respectively, with year-over-year growth around 7%, maintaining a healthy profit chain.

Steady Asset Expansion

During the period, basic earnings per share increased from 1.31 RMB to 1.45 RMB, a 10.69% rise, closely matching net profit growth. Share capital slightly decreased by 0.01% to 1.463 billion shares. Shareholders’ equity per share increased from 13.94 RMB to 15.15 RMB, up 8.68%, continuously increasing net assets. The weighted average return on equity was 9.96%, slightly higher than last year’s 9.81%, indicating improved profitability efficiency.

As of the end of 2025, the company’s total assets reached 41.183 billion RMB, a 12.47% increase from the beginning of the year; shareholders’ equity attributable to the parent was 22.161 billion RMB, up 8.62%, aligning with the pace of profit accumulation. The steady expansion of assets reflects ongoing capital investment during business growth and provides a solid foundation for future large-scale orders and new business development.

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