WellCell Holdings Co., Limited released its audited results for the year ended 31 December 2025, underscoring softer top-line momentum but resilient profitability aided by investment gains.
Financial performance • Revenue declined 21.4% to RMB 218.53 million (2024: RMB 278.22 million), reflecting muted demand in core telecommunications services and a smaller ICT integration pipeline. • Profit attributable to equity holders slipped 23.8% to RMB 15.34 million (2024: RMB 20.14 million). • Operating profit fell 19.8% to RMB 16.74 million; basic EPS eased to RMB 1.5 fen from RMB 2.0 fen. • No final dividend was proposed, unchanged from the prior year.
Segment trends • Wireless telecommunication network enhancement: revenue down 16.2% to RMB 64.08 million, pressured by intensified price competition and lower project allocation. • Telecommunication network infrastructure maintenance & engineering: surged 93.9% to RMB 56.81 million as 5G and computing-power networks progressed into maintenance phase. • ICT integration: contracted 42.5% to RMB 83.12 million amid deferred government and enterprise IT budgets. • Software & hardware sales and development: dropped 48.0% to RMB 14.47 million on fewer custom projects. • Fintech services, launched mid-2025 via the “Fopay” platform, contributed RMB 0.05 million in first-year revenue.
Cost and margin dynamics • Subcontracting charges fell 11.5% to RMB 165.38 million in line with lower integration workloads. • Employee expenses edged down 4.6% to RMB 18.47 million following workforce optimisation. • Depreciation and amortisation more than doubled to RMB 7.57 million, driven by rising investment in equipment and self-developed software. • Other operating expenses rose 86.2% to RMB 17.31 million, mainly from higher professional fees and R&D outlays. • Net impairment losses on receivables and contract assets increased 4.7% to RMB 5.15 million, mirroring slower customer payments.
Balance-sheet highlights • Total assets reached RMB 330.83 million (2024: RMB 325.32 million). • Cash and cash equivalents fell to RMB 53.97 million (2024: RMB 104.98 million) following investment and debt repayments. • Interest-bearing bank borrowings decreased to RMB 29.52 million (2024: RMB 41.78 million), cutting the gearing ratio to 13.7% (2024: 20.8%). • Financial assets at fair value through profit or loss expanded to RMB 62.44 million (2024: RMB 11.60 million), generating RMB 31.08 million fair-value gains that lifted other income to RMB 31.61 million (2024: RMB 4.02 million).
Capital moves • A 1-for-1 share subdivision took effect on 31 March 2025, doubling issued shares to 1 billion at HK$0.005 par value. • A further 1-into-4 share subdivision is proposed, pending April 2026 shareholder approval. • Unutilised IPO proceeds stood at RMB 18.60 million as of year-end, earmarked primarily for R&D and staffing expansion per the original prospectus.
Strategic developments • WellCell entered fintech with the July 2025 launch of “Fopay,” a stablecoin-based global payment platform offering virtual VISA prepaid cards and cross-border QR payments. • In September 2025 it acquired 80% of Hwabao Trust Limited, securing a Hong Kong Trust and Company Service Providers licence to support Fopay’s custodial services.
Outlook (management commentary) Management anticipates continued pressure on telecom margins amid industry saturation and geopolitical uncertainties. Priorities include stringent cost control, targeted R&D—especially in AI-enabled telecom solutions—and expansion of the fintech segment to additional jurisdictions via licensed partners or further licence acquisitions.
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