Unisplendour Corporation Ltd. Resubmits Listing Application to HKEX: Expansion and Challenges Amid Short-Term Net Profit Pressure

ZC Asia has learnt that domestic ICT (information and communications technology) giant Unisplendour Corporation Limited (000938.SZ) has recently submitted an application to the Hong Kong Stock Exchange for a main board listing. This marks its second attempt following the failure of its initial application to the exchange in May this year. China Securities International, BNP Paribas and CMBI are acting as joint sponsors for this offering.

This established technology enterprise, which first listed on the Shenzhen Stock Exchange as early as 1999, is now vigorously advancing its Hong Kong listing process to establish an ‘A+H’ dual-market capital platform.

Industry research indicates China's digital solutions market has maintained rapid growth in recent years, achieving a compound annual growth rate of 18.1% from 2020 to 2024. As a core component of this market, the digital infrastructure sector, alongside cloud and intelligent platform markets, exhibits robust growth momentum, offering substantial development opportunities for leading enterprises.

Unigroup holds a significant position within this landscape. The company delivers full-stack digital solutions spanning ICT infrastructure products to software and cloud services, which play pivotal roles in cutting-edge applications such as artificial intelligence training and inference, and big data processing.

By revenue, the company ranks third in China's digital infrastructure market and leads the industry in multiple segments including networking and computing. Its diversified business portfolio is underpinned by core subsidiaries such as H3C and Unisplendour Cloud.

Financial divergence behind the growth trajectory

Financial data reveals a pronounced duality in Unisplendour's growth trajectory.

On the revenue front, the company maintains robust expansion. In the first half of 2025, it achieved operating revenue of RMB 47.425 billion, representing approximately 25% year-on-year growth. This acceleration is primarily driven by strong demand for products like AI servers, reflecting the company's adeptness in capturing market trends.

However, profit performance contrasts sharply with revenue growth. During the same period, the company's net profit declined by 25.53% year-on-year. This trend is not a short-term phenomenon; reviewing recent years' data reveals a persistent decline in the company's net profit levels.

More critically, the company's overall gross profit margin has also been steadily declining. From 2022 to the first half of 2025, this metric has continued to fall, becoming a key factor eroding profit margins. This shift stems from strategic choices made during the company's transformation process.

Short-Term Solvency and Cash Flow

As of 31 October 2025, the company held approximately RMB 7.848 billion in cash and cash equivalents. However, interest-bearing bank loans and other borrowings maturing within one year stood at RMB 11.759 billion during the same period, indicating a shortfall in funds for meeting short-term liabilities.

Furthermore, maintaining a substantial inventory level to ensure supply chain stability and respond to market demand, coupled with accounts receivable growth accompanying business expansion, presents challenges for the company's working capital management.

With the rapid advancement of artificial intelligence technology, the company's strategic positioning and market expansion in related fields necessitate sustained R&D investment. According to the prospectus, the net proceeds from this H-share issuance will be allocated towards enhancing R&D expenditure (particularly in cloud computing, artificial intelligence, and next-generation communication technologies), expanding overseas markets, and supplementing working capital for general corporate purposes.

Investors may wish to monitor when its gross profit margin stabilises and rebounds. Over the longer term, attention should be paid to whether its substantial investments can translate into sustainable competitive advantages and market share.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.