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Sugon delivered steady full-year performance growth in 2025, with accelerated implementation of its strategic layout for AI computing power.
According to the 2025 Annual Report, the company achieved operating revenue of 14.964 billion yuan, a year-on-year increase of 13.81%, and net profit attributable to the parent company of 2.176 billion yuan, up 13.87% year-on-year. The Board of Directors also proposed a 2025 profit distribution plan, with total cash dividends amounting to 658 million yuan, representing 30.24% of the net profit attributable to the parent company.
Regarding financing, in February this year, the company announced plans to issue 8 billion yuan in convertible corporate bonds to unspecified objects. The raised funds will be concentrated on three major projects: advanced computing cluster systems for artificial intelligence, next-generation high-performance AI training and inference integrated machines, and domestic advanced storage systems, directly targeting the core track of computing infrastructure.
Regarding mergers and acquisitions, the annual report disclosed that on December 9, 2025, the company terminated the major asset restructuring plan for Hygon Information to absorb Sugon via share exchange and raise supporting funds. The company stated that transaction conditions were not yet mature, and the market environment had changed significantly from the initial planning stage; the decision to terminate was based on prudent considerations.
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<h2>Core Profitability Repair: Shrinking Non-Recurring Gains Highlight Faster Growth in Core Profits</h2>
In 2025, the company achieved operating revenue of 14.964 billion yuan, up 13.81% year-on-year; net profit attributable to the parent company reached 2.176 billion yuan, up 13.87% year-on-year; and net profit attributable to the parent company excluding non-recurring gains and losses stood at 1.838 billion yuan, a significant year-on-year increase of 33.97%.
The gap in growth rates between the two net profit indicators stems from a substantial reduction in non-recurring gains and losses. In 2025, total non-recurring gains and losses amounted to approximately 339 million yuan, down about 200 million yuan from approximately 539 million yuan in 2024. This was primarily due to government subsidies recognized in the current period declining from approximately 529 million yuan to approximately 269 million yuan.
Against the backdrop of shrinking non-recurring income, the profit contribution from core businesses improved significantly, indicating a substantive improvement in the profitability quality of main operations.
Investment income from associates was another key support for this period's performance. Investment income from associates confirmed via the equity method in the consolidated financial statements totaled approximately 684 million yuan, up 21.2% year-on-year. Hygon Information contributed 711 million yuan, while losses from other associate companies offset part of the gains.
<h2>8 Billion Yuan Convertible Bond Targets AI Computing Power; Liquid Cooling Business Accelerates Globalization</h2>
In 2025, the company continued to promote business upgrades around its integrated business model of &#34;Hardware + Platform + Service + Operations.&#34;
In the computing power sector, the company launched the single cabinet-level super-node product scaleX640 and the ten-thousand-card super-cluster system. By February 2026, synchronous construction and launch were completed at core nodes of the national supercomputing internet. In October, it released OneScience, China's first one-stop development platform for scientific large models, providing support services to research institutions such as the Institute of Atmospheric Physics.
In February 2026, the company's Board of Directors reviewed and approved the proposal to issue 8 billion yuan in convertible bonds. The raised funds will be allocated to three major projects: advanced computing cluster systems for AI, next-generation high-performance AI training and inference integrated machines, and domestic advanced storage systems. This proposal still requires approval by the shareholders' meeting and must receive review by the Shanghai Stock Exchange and registration consent from the China Securities Regulatory Commission before implementation.
Regarding the liquid cooling business, its subsidiary Shuguang Digital Creation maintains a leading market share domestically and is expanding into the Southeast Asian market starting with Singapore, where it established a wholly-owned subsidiary. In June 2025, Shuguang Digital Creation released the C7000-F phase-change cold plate liquid cooling solution. According to the company, its heat dissipation capacity has increased by more than 15% compared to the previous generation.
<h2>Software and Service Revenues Surge Significantly; High Customer Concentration</h2>
From a product structure perspective, IT equipment revenue was 12.503 billion yuan, up 6.81% year-on-year, with a gross margin of 27.31%, remaining basically flat compared to the previous year.
Revenue from software development, system integration, and technical services reached 2.446 billion yuan, a significant year-on-year increase of 75.34%, with a gross margin of 47.25%, up 3.53 percentage points from the previous year. The primary drivers were substantial increases in data center, cloud computing, and custom development service revenues, which also drove improvements in the overall gross margin.
From a customer structure perspective, sales to the top five customers totaled 12.353 billion yuan, accounting for 82.56% of the total annual sales, indicating high customer concentration. Notably, the top two customers were new additions, with the largest customer contributing 2.897 billion yuan in revenue, accounting for 19.36%.
Regarding R&amp;D investment, R&amp;D expenses in 2025 amounted to 1.671 billion yuan, up 29.33% year-on-year, representing 10.95% of operating revenue. Materials and processing fees saw a significant year-on-year increase, directly related to increased R&amp;D investment in new computing products such as super-nodes and super-clusters.
<h2>Operating Cash Flow Dropped by Over Half; Company Attributes It to Fund Management Arrangements</h2>
Net cash flow from operating activities decreased from 2.722 billion yuan in 2024 to 1.313 billion yuan, a year-on-year decline of 51.75%, attracting investor attention.
The company provided two specific explanations for this: First, large payments received from entrusted development projects in the previous year were paid out according to development progress in the current period, resulting in a corresponding increase in cash outflows. Second, to optimize fund allocation and enhance returns on idle funds, the company purchased large certificates of deposit, resulting in operating cash outflows.
The company stated that these matters are all normal business operations and fund management behaviors, involving no significant adverse changes in the operational status of the main business.
Changes in the balance sheet further corroborate this: Other current assets increased from 821 million yuan to 2.047 billion yuan, and non-current assets due within one year increased from 105 million yuan to 3.303 billion yuan, primarily related to the purchase and maturity structure of large certificates of deposit.

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In 2025, Sugon reported revenue of 14.964 billion yuan and net profit attributable to the parent company of 2.176 billion yuan, both achieving growth of approximately 14%. Net profit excluding non-recurring gains and losses surged by 34%, significantly improving the quality of core profitability. The company plans to issue 8 billion yuan in convertible bonds to invest in AI infrastructure, while its liquid cooling business expands into Southeast Asia. Software and service revenues grew substantially, driving up overall gross margins, though customer concentration remains high

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Sugon

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Sugon's 2025 Net Profit Excluding Non-Recurring Gains and Losses Surges 34%; Plans 8 Billion Yuan Convertible Bond Offering to Bolster AI Computing Power | Financial Report Insights