Biren Technology's revenue in 2025 is 1.03B yuan, but the stock price has fallen by 6.65%

Economic Information Network：After Biren Technology released its 2025 performance results, its share price fell. The main drivers were concerns about profit realization, a surge in inventory, a technical pullback, and accounting factors.

Operating Performance

Although Biren Technology’s 2025 revenue reached 1.03B yuan, its adjusted loss for the year was 874 million yuan, widening by 13.9% year over year. Market focus has shifted from high growth to the ability to realize profits—especially since R&D spending of 1.48B yuan (142.6% of revenue) has not yet translated into profits. In addition, valuation disagreements in Hong Kong-listed shares for unprofitable tech companies led some funds to choose to take profits.

Financial Position

As of the end of 2025, the company’s inventory balance was 949 million yuan, up 520.4% year over year—nearly matching the scale of full-year revenue. Although the company explained this as strategic stockpiling to meet downstream demand, high inventory may raise market concerns about potential inventory backlog and risks of capital being tied up—especially if the growth rate of downstream AI compute demand slows, which would directly affect liquidity.

Share Price Performance

From a technical perspective, after the earnings report was released on March 30, the stock surged to HK$30.90, but then experienced consecutive pullbacks. During trading on April 2, the intraday low fell to HK$29.00, breaking below the psychological HK$30 level. On that day, the Digital Solutions Services sector as a whole declined by 2.96%, while the Hang Seng Index fell by 0.70%, and sector sentiment dragged down the stock’s performance.

Recent Company Developments

In the 2025 annual report, net losses widened to 16.49B yuan due to changes in the fair value of redemption liabilities. Although that liability was terminated for recognition after listing, the short-term book loss still affects market sentiment. Moreover, the stock has risen significantly since listing (as of April 2, up 50.51% from the beginning of the year), and after some investors saw the earnings report’s positives realized, they chose to exit in stages.

The above content is compiled from publicly available information and does not constitute investment advice.

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