IPO Outlook | Hande Information: Annual revenue of 3.4 billion yuan, AI revenue soared 13 times in three years, but net profit was on a “roller coaster”

On July 29, Hande Information (300170.SZ), a GEM listed company on the Shenzhen Stock Exchange, once again submitted an H share listing application to the Hong Kong Stock Exchange. Cathay Pacific Haitong was the sole sponsor. This is another sprint following the failure of the first submission on December 29, 2025. The company was founded in 2002 and landed on the A-share GEM in 2011. This time, it is seeking an “A+H” dual capital platform layout.

However, just as the company was once again opening the doors of the Hong Kong Stock Exchange, the A-share price had dropped from a high of 27.49 yuan on January 30, 2026 to about 16 yuan at the end of July, and 40% of the market value evaporated in half a year. Going public in Hong Kong at a point where the stock price is almost at a loss, is it a value depression or a risk exposure?

Revenue has been rising steadily for three years, and net profit is on a “roller coaster”

According to Zhitong Finance, Hande Information is an enterprise IT consulting and digital solution service provider. The company can provide a full range of digital and intelligent solutions, including IT consulting services, independent software products, and comprehensive solutions for artificial intelligence applications.

According to Frost & Sullivan, in the highly competitive and highly fragmented IT consulting and digital solution service market for Chinese enterprises, the company ranked fourth in the overall ranking with a market share of 1.7% in terms of revenue, leading the local Chinese company.

Judging from superficial data, Hande Information's business performance is improving steadily — revenue is growing steadily and gross margin continues to improve.

From 2023 to 2025, the company's revenue was 2,980 billion yuan, 3,335 billion yuan, and 3.415 billion yuan respectively, growing steadily; gross profit was 770 million yuan, 1,059 billion yuan, and 1,188 billion yuan respectively, increasing year by year, and overall gross margin also increased from 25.9% to 32.7% to 34.8%.

Against the backdrop of active contraction of the traditional pan-ERP business, the company's revenue still achieved positive growth, mainly due to the strong performance of strategic emerging businesses represented by intelligent AI applications. The revenue structure continues to be optimized, and the share of industrial digital solutions increased from 28.3% in 2023 to 35.3% in 2025, becoming the largest source of revenue.

According to the prospectus data, the company's AI-related service revenue grew rapidly from 22.1 million yuan in 2023 to 310 million yuan in 2025. The three-year increase was about 13 times, and the revenue share of total revenue increased from 0.8% to 8.8%. This AI-related business has gradually become the core driver of Hande's transformation.

However, compared to the steady increase in revenue, the figures on Hande Information's profit statement show a completely different picture. The company's profit in 2022 was 492 million yuan; net loss was 14.89 million yuan in 2023; rebounded to 196 million yuan in 2024; and further increased to 234 million yuan in 2025. The ups and downs of profits reflect the instability of the company's core profitability, and in 2022, if non-recurring revenue, which is regarded as the sale of joint ventures, is excluded, the actual profitability of its core business will be weak.

If fluctuations in profits are “painful,” then high accounts receivable are a “sword of Damocles” hanging over the company's head.

According to the prospectus, the book balance of the company's trade receivables and notes receivable continued to rise during the reporting period, to $1.2 billion, $1.4 billion, $1.5 billion and $1.63 billion respectively. The increase in the size of accounts receivable was accompanied by impairment provisions — loss provisions of $693 million, $718 million, $758 million and $777 million, respectively, for the same period.

High levels of accounts receivable directly hamper capital turnover efficiency. During the reporting period, the turnover days for trade receivables, notes receivable and contract assets were 187 days, 175 days, 181 days and 209 days, respectively. Operating cash flow was under pressure due to a slowdown in capital return. In the first four months of 2026, the company's net cash used in operating activities was 178 million yuan.

Based on the above, it is easy to see that under Hande's well-informed revenue data, the two major hard core shortcomings also follow: sharp fluctuations in profits are transformation pains necessary for business iterations, while continuously rising accounts receivable, prolonged repayment cycles, and pressurized operating cash flow are the sword of Damocles hanging high above fundamentals.

“Long slope heavy snow” in the 100 billion market, where competition and opportunity coexist in a fragmented landscape

From a market perspective, the track where Hande Information is located is wide enough and has the potential for “long slopes and heavy snow”.

According to Frost & Sullivan data, due to increasing demand for enterprise digital infrastructure construction and upgrading of independent products, the market size of information technology consulting and digital solution services for Chinese enterprises expanded from RMB 147.64 billion in 2021 to RMB 196.20 billion in 2025, with a compound annual growth rate of 7.4%.

Furthermore, the trend of enterprise AI application development is already evident: with the breakthrough progress of generative AI technology and the growing demand for intelligent management, the global enterprise AI application market will increase from 610 million yuan in 2022 to 37.72 billion yuan in 2025. It is expected to reach 522.04 billion yuan in 2030, with a compound annual growth rate of 69.1%. The size of the Chinese market grew from 540 million yuan in 2023 to 5.05 billion yuan in 2025, with a compound annual growth rate of 298.6%, making it the fastest growing region among the world's major markets. It is expected to reach RMB 82.45 billion in 2030, with a compound annual growth rate of 74.8%.

Among these, the overall market shows a K-type differentiation pattern where foreign giants occupy the high-end and local manufacturers are divided, and Hande Information has stabilized its leading position in the region with its core advantages.

The overall market presents a pattern of “foreign giants seize high-end, local leaders have concentrated their breakthroughs, and small and medium-sized manufacturers have homogenized internal volume”: SAP and Oracle still control the high-end ERP market for large multinational enterprises with years of global product advantages; in the local camp, you and Kingdee rely on standardized cloud products to cover a large number of small and medium-sized enterprises, while Hande Information focuses on customized digital delivery by large groups, ranking first among local enterprises with an overall market share of 1.7%.

At the same time, Hande Information is also further widening the gap in the APS field of supply chain planning: in the APS field of supply chain planning, IDC data shows that Hande ranked second in the country with a 6.8% market share, second only to overseas manufacturer Blue Yonder. Localization replacement orders for high-end manufacturing supply chains continue to land, and segmentation barriers are strong.

According to reports, the reason why Hande Information can release a leading effect for a long time is, on the one hand, that the company's customer retention rate exceeds 80%, forming a deep B-side customer barrier. The data rights, business rules, and organizational processes of large enterprises are difficult for new entrants to quickly grasp. AI agents can follow existing projects to enter manufacturing, marketing, supply chain and financial scenarios; on the other hand, through continuous R&D investment (the company has accounted for more than 7% of R&D in the past 3 years), the company has established a comprehensive enterprise technology system centered on AI technology, cloud-native technology frameworks, and big data analysis, and formed strong technical barriers.

However, the development intention of Hande Information probably did not stop there. According to the prospectus, the strategic path for Hantech Information's listing in Hong Kong is clear: broadening international capital market channels, increasing global brand exposure, and attracting and motivating talents. The purpose of fund-raising is more business-oriented — capital plans are invested in AI application frameworks, manufacturing and supply chain intelligence, AI platforms, industry model research and development, and global delivery system construction.

As can be seen, as the “long slope” of digital delivery is paved and the “heavy snow” of AI agents gradually accumulates, Hande Information not only stabilizes the value anchor of leading local companies, but also creates a strong B-side moat with over 80% customer retention and continuous increase in R&D investment. And this listing in Hong Kong is not only a business card presented to the international capital market, but also a firm bet on the next growth engine.

epilogue

Taken together, Hande Information is a typical “stable stock chassis+high growth incremental business” transformation enterprise. Traditional ERP and supply chain digitalization maintains the bottom line of operation, enterprise-level AI opens up room for growth imagination, and the major industry trend of domestic substitution provides definitive support for the company's medium- to long-term development.

For Hong Kong stock investors, in the short term, they need to be wary of risks such as fluctuations in accounts receivable, increased competition in the industry, and AI implementation falling short of expectations, and marginal improvements in game performance. In the medium to long term, value changes can be tracked around two core indicators: one is whether the AI business's share of revenue and gross margin can continue to rise, and the other is the progress of replacing overseas ERP products with independent software. As long as the two logics are implemented simultaneously, Hande is expected to complete the transition from an A-share cyclical IT service provider to a Hong Kong stock technology growth target.