Genew Technologies replies to SSE inquiry: 2025 revenue fell and swung to a loss, high fourth-quarter revenue share is an industry norm

Earnings
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Summary · why it matters

Genew Technologies disclosed its reply to the Shanghai Stock Exchange's inquiry letter on its 2025 annual report, addressing issues such as the revenue decline, swing from profit to loss, and high proportion of fourth-quarter revenue. The company's revenue last year was 877 million yuan, down 7.86 percent year-on-year, with a net loss attributable to the parent of 66 million yuan. Revenue from its optical network business halved, dropping 51.43 percent, mainly because Asia-Pacific operators cut capital expenditure, overseas projects were delayed, and orders shrank after Infinera was acquired. This was compounded by a 5.74 percentage point decline in overall gross margin and a goodwill impairment of 10.5227 million yuan at subsidiary Hangzhou Chenxiao. Regarding the fourth-quarter revenue of 368 million yuan and its high share, the company said its customers are mainly operators and government-enterprise clients, with projects typically accepted at year-end. From 2023 to 2025, fourth-quarter revenue accounted for nearly 40 percent each year, consistent with peers such as China Security and Shanghai Hanxun. Large revenue came from acceptance projects like the big data computer room of Super Telecom. The revenue recognition policy remained uniform, with no cross-period or inflated recognition. Quarterly profit fluctuations were due to varying hardware and software mixes in delivered projects causing gross margin swings, as well as differences in impairment provisions for inventory and receivables. The company and its peers have seen similar fluctuations over the years.

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Others▼ · 4 stocks
Genew Technologies Co Ltd
688418
▼ NegativeCapitalrelevance

Revenue fell 7.86%, swung to a net loss of 66 million yuan, and goodwill impairment of 10.5 million yuan.

Off-coverage companies 1

杭州晨晓Private▼ Negative
Capitalrelevance

Subsidiary Hangzhou Chenxiao had a goodwill impairment of 10.5227 million yuan, contributing to the parent's loss.

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