Raisecom has replied to the Shanghai Stock Exchange's inquiry regarding its 2025 annual report, explaining that the main reasons for its revenue declining for three consecutive years to 1.232 billion yuan, a year-on-year drop of 10.9 percent, were capital expenditure cuts by the three major telecom operators and the contraction of traditional broadband services, compounded by earlier industry overstocking that led to inventory digestion and order deferral pressures. The company's top five customers remain the three major operators, with combined sales accounting for 65 percent, and subsequent payments for related receivables are normal. Fourth-quarter revenue accounted for 31.33 percent due to the concentrated implementation of year-end centralized procurement orders and the industry practice of centralized acceptance, with complete revenue recognition documentation. Software revenue grew 21.3 percent year-on-year while costs fell 66.9 percent, mainly benefiting from higher sales volumes of high-value-added non-terminal products and cost reductions through hardware integration technology, with a logical coordinated sales approach for bundled software and hardware. Overseas business achieved revenue of 208 million yuan, a slight year-on-year increase of 3.35 percent, with an overall gross margin of 49.62 percent and long-term stable cooperative distributors. The company distinguishes revenue recognition standards across multiple categories, strictly recognizing revenue at milestones such as receipt, acceptance, and customs declaration, with accounting policies applied consistently across periods.
Raisecom Technology Co LtdRevenue fell for three consecutive years due to telecom operators' capex cuts and industry overstocking, as explained in reply to SSE inquiry.