Financial software giant UFIDA Network, with annual revenues exceeding 9 billion yuan, continues to operate at a loss. The company recently released its 2025 performance report, showing annual revenue of 9.182 billion yuan, a marginal increase of 0.32% year-over-year. However, total profits stood at a negative 1.389 billion yuan, though this represented a 32.6% improvement compared to the previous year. This marks another year of losses for UFIDA following its nearly 2.1 billion yuan loss in 2024. While the loss amount has slightly narrowed, it remains the second-highest annual loss in the company's history.
Throughout 2025, UFIDA experienced successive changes in its president position, attempted a business model transformation, and witnessed large-scale departures of grassroots staff. During the year, the company reduced its workforce by 2,228 employees, a reduction exceeding 10.4%. Even as 2026 began, the trend of workforce reduction appears to be continuing.
It has been learned that in recent months, UFIDA's BIP product, a platform in which the company has invested over 10 billion yuan, has undergone personnel optimization. Reports indicate staff reductions of approximately 20% for the flagship version and up to 50% for the advanced version.
Notably, this annual report is the first since founder Wang Wenjing returned to leadership in April of last year. Industry observers note that while Wang possesses deep understanding of the enterprise and strong resource control, the challenges he faces are substantial. These include persistently negative financial performance and low team morale following massive layoffs, making a successful turnaround difficult to achieve.
**Three-Year Losses Exceed 44 Billion Yuan**
Since the beginning of 2023, UFIDA's performance has sharply declined. As growth in both revenue and net profit plummeted, the company's profits turned negative, resulting in operating at a loss.
Statistics show that from 2023 to 2025, UFIDA's cumulative net loss attributable to shareholders reached approximately 4.417 billion yuan. The year 2024 was particularly severe, with a loss of 2.061 billion yuan, the worst performance in the company's 24-year history as a listed entity. The 2025 loss of 1.389 billion yuan, while a reduction year-over-year, still represents a significant loss, ranking as the second-largest annual loss on record, surpassed only by the 2024 result.
On the revenue front, growth remains under pressure. The 0.32% increase in 2025 is relatively weak. In 2024, UFIDA experienced its first-ever negative revenue growth since listing, with revenue of 9.153 billion yuan representing a 6.57% decline year-over-year.
**Root Causes of the Losses**
In discussions, a former UFIDA employee pointed to the core reason for the persistent losses: a long-term reliance on a "large projects + major clients" business model. This approach has led the company to prioritize "client-specific development over product," often resulting in rework and delays due to changing demands from powerful clients, ultimately driving up costs, particularly labor expenses.
Unlike competitors such as Kingdee, UFIDA's core clientele is concentrated in the large government and enterprise sector. While these clients bring substantial contracts, they also come with disadvantages, including highly customized project requirements and long delivery cycles. These factors contribute to rising fixed costs for labor, R&D, and other IT software services. Furthermore, if client requirements change, project delays are common, and clients typically do not provide additional payment for these changes.
"Project delays lead to losses. It's similar to home renovation—a project scheduled for 30 days might be extended by over ten days due to last-minute client changes, but the client won't pay extra. This directly leads to increased costs," the source explained. Correspondingly, UFIDA's financial reports over the years show that sales expenses and administrative expenses, as the company's two largest cost items, have consistently grown at a faster rate than revenue.
Analysis reveals that since 2020, the growth rate of the company's sales expenses has persistently exceeded revenue growth. It was only in 2025 that this trend initially reversed, with sales expense growth falling below revenue growth. Coincidentally, these past three years have also seen the most severe losses in the company's history as a public company.
Simultaneously, rapidly depleting cash flow is pushing UFIDA into a precarious position. At the end of 2024, the company's monetary funds stood at 6.424 billion yuan. By the end of 2025, this had dwindled to 3.955 billion yuan, a sharp decline of 38.42% year-over-year, primarily used for debt repayment and covering operational expenses. In an attempt to address its funding challenges, UFIDA made its first application to list on the Hong Kong Stock Exchange in June 2025. After the initial application lapsed without a hearing, the company submitted a second application within two days. However, the prospect of successful financing appears dim given three consecutive years of losses and an unclear plan for returning to profitability.
**BIP Becomes a Focal Point for Staff Reductions**
According to the 2025 annual report, UFIDA's total employee count sharply decreased from 21,283 at the start of the year to 19,055, a reduction of 2,228 employees, representing a layoff ratio of 10.47%. In the first half of 2025 alone, severance payments reached 116 million yuan, averaging approximately 53,300 yuan per person. As 2026 commenced, reports of further staff reductions at UFIDA have emerged.
According to multiple UFIDA employees, early this year, the company's strategic digitalization product for enterprises and public organizations, UFIDA BIP, also underwent workforce adjustments. It is reported that during this adjustment, the flagship version of BIP saw a staff reduction of about 20%, while the advanced version experienced a reduction as high as 50%. Some employees indicated that the R&D department was particularly affected, with approximately "20% of R&D personnel leaving."
According to UFIDA's official descriptions, BIP is a "strategic" product for the company's transition towards cloud and artificial intelligence. Development began as early as 2017, aiming to provide enterprises with digital business application solutions covering ten major areas, including production operations and management. Investment in this product has reportedly exceeded 10 billion yuan to date. Yet, this very business, representing the company's future direction, has initiated personnel adjustments and optimizations at a time when enterprise digital and intelligent transformation is accelerating.
Against the backdrop of dismal performance, layoffs appear to be a necessary "self-rescue" measure for the company to optimize its financial structure. However, regarding the aforementioned personnel adjustments, UFIDA had not responded to inquiries by the time of publication.
**Has Wang Wenjing's "Firefighting" Failed?**
Consecutive years of financial and personnel crises have increased pressure on the company's top leadership. In April of the previous year, President Huang Chenhong, who had served for only three months (88 days), departed abruptly. Sixty-one-year-old founder Wang Wenjing was compelled to assume the role of president for the third time, taking on the "firefighting" mission. This marked the third change in president within less than a year and a half, exposing deep-seated issues in the company's strategic transformation and talent pipeline development.
Looking back at the governance history, Wang Wenjing's repeated returns to leadership appear driven by necessity. In 2019, to promote younger leadership, he handed the presidency to Chen Qiangbing, who had risen from the grassroots, hoping he would lead the cloud transformation. However, after two years of declining performance, Wang was forced to resume the role. In January 2024, Chen Qiangbing was reappointed but failed to reverse the decline; instead, the large government and enterprise client business experienced a rare downturn, and losses doubled. In January 2025, Wang recruited Huang Chenhong from SAP, attempting to leverage his international experience to break the impasse. Unexpectedly, Huang departed after just three months due to "work adjustments," leaving Wang to take command personally.
Frequent changes in leadership, ultimately resulting in the founder's direct involvement, reflect multiple contradictions within Wang Wenjing's governance challenges.
From an industry perspective, as a leader in enterprise services for over thirty years, UFIDA faces both the opportunities of industry-wide digital transformation and intense competitive pressure from emerging players. Strategic indecisiveness has made it difficult for management to form stable execution capabilities. On the other hand, internally groomed successors have failed to shoulder the transformation burden, while externally hired professional managers struggle to quickly adapt to the corporate culture. This talent gap has repeatedly hindered the implementation of strategy. Although Wang Wenjing's return brings deep corporate understanding and resource control, the difficulty of "turning the tide" is immense, given the ongoing financial losses and low morale following large-scale layoffs.
The annual report shows that in 2025, Wang Wenjing received a total pre-tax compensation of 1.9855 million yuan from the company, a decrease of 43,500 yuan compared to the 2.029 million yuan he received in 2024. In contrast, Huang Chenhong, who served as president for only 88 days before quickly transitioning to a director role, received an annual salary of 1.6106 million yuan.
Perhaps for UFIDA, staff reduction is merely a short-term measure to stem the bleeding. To truly escape its predicament, the company requires not only a clear strategic plan and a timeline for returning to profitability from Wang Wenjing but also must solve the cost trap of the large-client model, rebuild a stable management team, and revitalize the profit-generating capability of its core business.