Shanshi Netcom 2025 Annual Report Analysis: Revenue decreased by 8.55% to 911 million yuan, with losses expanding by 41.06% to 194 million yuan

Analysis of Core Revenue Performance Metrics

In 2025, Shanshi Wangke’s operating revenue declined year over year, and the loss amount further expanded. The specific core performance data are as follows:

During the reporting period, the company’s revenue decline was mainly driven by weak industry demand and intensifying market competition. At the same time, the company continued to invest throughout the year in core technology R&D, along with hardware cost fluctuations, which further widened losses. However, the company’s performance varies across business segments: its cloud security business revenue achieved 56.56% year-over-year growth, becoming the only core business segment showing growth.

Notable Effect in Expense Control

In 2025, the company implemented a strategy of “controlling costs to improve efficiency and ensuring healthy development.” The overall expense control was outstanding. The detailed expense data are as follows:

By optimizing staffing structure and strengthening expense control, the company’s per-capita output for sales personnel remained basically flat, and the selling expense decline was the most significant. Although R&D expenses decreased, core technology R&D still achieved key breakthroughs. Its self-developed ASIC security-dedicated chip has been successfully rolled out, and the related new products were already winning bids in multiple industries at the beginning of 2026.

R&D Team and Investment Overview

During the reporting period, the company’s R&D investment as a percentage of operating revenue was 37.36%, slightly down from 39.71% in 2024, but it still remained at a high investment level. The company did not disclose the specific number of R&D personnel and changes in their structure. However, the outcomes of its core technology R&D were significant: the ASIC security-dedicated chip R&D was implemented, the StoneOS system completed 335 functional upgrades, and multiple core products completed localized domestication adaptation iterations, laying the foundation for expanding the domestic substitution market going forward.

Cash Flow Continues to Face Pressure

In 2025, the company’s cash flows were still in a net outflow position. The cash flow data across different dimensions are as follows:

The net outflow from operating cash flow expanded mainly due to the revenue decline, changes in the timing of accounts receivable collection, and the rhythm of cost expenditures. The company needs to continue to monitor the health of its cash flows and avoid cash-flow pressure affecting R&D and business expansion.

Multiple Business Risks Facing the Company

Risk of Intensifying Industry Competition

While demand in the cybersecurity industry is weak, market competition has become increasingly fierce. Leading companies and cross-industry participants continue to increase investment. The company faces risks such as falling product prices and margin pressure. It needs to continuously strengthen its technological differentiation advantage.

Risk of Technology Iteration and R&D

Cybersecurity technologies iterate quickly. If the company cannot continuously track technology trends such as AI, chips, and Xinchuang, or if R&D results cannot be timely transformed into market competitiveness, product competitiveness will decline.

Risk That Domestic Substitution Progress Falls Short of Expectations

Although the company has deployed multiple products in the Xinchuang market, the pace of domestic substitution is influenced by multiple factors such as policy implementation, customer recognition, and ecosystem adaptation. If progress falls short of expectations, it will affect the growth of related businesses.

Risk of Cost Fluctuations

Factors such as fluctuations in hardware raw material prices and supply chain stability may lead to higher production costs, further squeezing profit margins.

Compensation of Senior Executives and Supervisors

During the reporting period, the company’s compensation data for directors, supervisors, and senior executives are as follows:

• Chairman Ye Haiqiang: total pre-tax compensation 1.5674 million yuan
• General Manager Luo Dongping: total pre-tax compensation 1.4822 million yuan
• Deputy General Manager Zhang Chonghao: total pre-tax compensation 1.0311 million yuan
• Financial Officer Chen Qing: total pre-tax compensation 0.6666 million yuan

The compensation level is basically in line with peer technology companies of similar scale in the industry, matching the company’s performance pressure. This reflects the company’s compensation management under its cost-control and efficiency-improvement strategy.

Investment Risk Warning

Although Shanshi Wangke’s 2025 performance faces periodical pressure, core technology R&D has achieved key breakthroughs, and businesses such as cloud security and security services have growth potential. However, investors still need to pay attention to:

1. Industry demand recovery falling short of expectations, leading to continued revenue decline;
2. Further expansion of the loss scale, impacting the company’s net assets and the safety of its capital chain;
3. Domestic substitution and new product rollout progress falling short of expectations, failing to contribute performance in time.

It is recommended that investors carefully evaluate investment value in light of industry trends and the company’s subsequent new product commercialization progress.

Click to view the full text of the announcement>>

Statement: The market has risk; investment requires caution. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s viewpoints. Any information appearing in this article is for reference only and does not constitute personal investment advice. If there is any discrepancy, please refer to the actual announcement. If you have questions, please contact biz@staff.sina.com.cn.

A vast amount of information and precise analysis—available in the Sina Finance app

责任编辑：小浪快报