Enterprise Development Holdings FY2025: Revenue Jumps 8.44-fold, Net Profit More Than Doubles on AI-Driven Hardware Sales

Bulletin Express
Mar 23

Hong Kong-listed Enterprise Development Holdings released its audited results for the year ended 31 December 2025, highlighting explosive top-line growth and sharply higher profitability fuelled by booming demand for high-performance computing infrastructure.

Revenue and Profitability • Group revenue surged 844.7% to RMB3.86 billion, driven by a 923.0% rise in cost-of-sales-intensive hardware and server products and a 65.3% increase in software services. • Gross profit expanded 223.1% to RMB148.65 million, but gross margin compressed to 3.9% (2024: 11.3%) as lower-margin server sales dominated the mix. • Profit attributable to shareholders climbed 109.3% to RMB152.19 million; total net profit reached RMB192.23 million. • Basic EPS rose to RMB0.621 (2024: RMB0.321). • Operating profit advanced 157.2% to RMB217.31 million, while finance costs fell 18.3% to RMB7.51 million.

Segment Highlights • Software & Hardware Business contributed 99.9% of revenue and delivered RMB140.23 million in adjusted pre-tax profit (2024: RMB6.09 million). • The “Others” segment (security trading and cassava trading) remained stable at RMB81.28 million in adjusted pre-tax profit.

Balance Sheet Developments • Total assets rose 162.9% to RMB1.47 billion, lifted by inventories (RMB279.57 million, +648.0%), prepayments to suppliers (RMB471.79 million, +196.6%) and interests in associates (RMB185.08 million, +781.3%). • Current ratio fell to 1.58 x (2024: 3.75 x) after a sharp rise in contract liabilities to RMB482.77 million and interest-bearing borrowings to RMB134.73 million. • Net assets climbed 60.1% to RMB674.11 million, with non-controlling interests increasing to RMB162.12 million (2024: RMB52.10 million). • The Group remained in a net cash position; cash and pledged deposits totalled RMB258.27 million versus borrowings of RMB134.73 million.

Investment & Fair-Value Gains • Share of profit from associates added RMB64.59 million, mainly from newly acquired stakes via limited-partnership structures. • Realised and unrealised gains on financial assets at FVTPL contributed RMB72.11 million (2024: RMB104.13 million).

Capital Management • Net proceeds of HK$84.35 million from a June 2024 share placing and HK$102.65 million from an April 2023 rights issue have been fully deployed, primarily toward AI server inventory and working capital. • No dividend was declared for FY2025.

Outlook Management will continue to deepen its software-driven IT solutions while expanding upstream and downstream computing-power services—particularly AI computing, edge computing and data-asset operations—to capture sustained demand for high-end servers and graphics processors.

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