Inspur Digital Slashes Dividend 50% as Profit Drops 38.3%

Edgen Stock

·Mar 30 2026, 16:57

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Key Takeaways

Inspur Digital Enterprise (00596.HK) revealed a significant downturn in its fiscal year 2025 performance, marked by sharply lower revenue and profitability. The weak results prompted the company to halve its final dividend, signaling concerns over its financial outlook and pressuring investor confidence.

Net profit plummeted 38.3% year-over-year to RMB238 million.
Full-year revenue declined 10.9% to RMB7.308 billion, indicating a contraction in business operations.
The company cut its final dividend by 50% to HKD0.04 per share from HKD0.08 in the prior year.

Net Profit Plummets 38.3% on Contracting Revenue

Inspur Digital Enterprise (00596.HK) announced a steep decline in profitability for its 2025 fiscal year, as net profit fell 38.3% year-over-year to RMB238 million. The drop was driven by a significant business contraction, with annual revenue decreasing by 10.9% to RMB7.308 billion. The deteriorating performance resulted in earnings per share (EPS) of RMB0.2059, reflecting broad operational challenges for the digital enterprise firm.

Dividend Slashed by 50% to HKD0.04

In response to the sharp earnings decline, the company's board declared a final dividend of HKD0.04 per share. This represents a 50% reduction from the HKD0.08 dividend paid in the same period last year. The decision to halve the shareholder payout signals a management move to preserve cash, underscoring concerns about the company's near-term profitability and growth prospects. This reduction directly impacts income-focused investors and raises questions about the sustainability of future returns.