Produced by | Bullet Finance

Art Editor | Qianqian

Reviewed by | Songwen

On July 30, HAND Enterprise Solutions resubmitted its prospectus to the Hong Kong Stock Exchange, aiming for a listing on the Hong Kong stock market. The company had initially submitted its prospectus on December 29, 2025, but failed to pass the hearing within the given timeframe, resulting in the initial attempt being unsuccessful.

In recent years, HAND Enterprise Solutions has been actively transitioning into an AI application enterprise. Benefiting from increased revenue in the AI sector, its performance has shown consistent growth since 2024.

With strong operating cash flow and substantial cash reserves, HAND Enterprise Solutions is still planning to raise funds in Hong Kong.

One key objective of this fundraising in Hong Kong is to establish a global operations and service system. However, as a domestic B2B enterprise, the question remains whether HAND Enterprise Solutions can successfully expand into overseas markets solely through raising funds in Hong Kong.

After incurring losses in 2023, HAND Enterprise Solutions' performance has rebounded over the following two years. Data indicates that from 2023 to 2025, the company's net profit after deducting non-recurring items was -83.39 million yuan, 137.3 million yuan, and 190.7 million yuan, respectively.

It is evident that HAND Enterprise Solutions' recovery from losses to profitability is closely tied to revenue growth and an increase in gross profit margin. In 2023, a decline in revenue from traditional ERP software and increased R&D investment for transformation led to losses.

Despite these losses, in 2023 HAND Enterprise Solutions began transitioning from a traditional IT implementation service provider to an "AI + digitalization" service provider. In 2025, it launched its proprietary AI business brand "Deling," which is primarily an enterprise-oriented AI application product and service system.

During investor research activities, HAND Enterprise Solutions showcased the five-tier architecture of "Deling," comprising the application layer, tool layer, model layer, training layer, and service layer. The application layer, Lingshou, serves as the core revenue source for the company's AI business. The company stated that nearly a hundred enterprise-level AI agents have been launched for this product.

Currently, this product primarily covers four major application scenarios: finance, marketing, supply chain, and manufacturing. It provides enterprises with intelligent general ledger, intelligent shopping guides, logistics scheduling, and intelligent production scheduling, among other services.

It is reported that HAND Enterprise Solutions has established partnerships with companies such as Li Auto, Xinhecheng, and Sieyuan Electric, providing relevant services. This has driven a continuous increase in the company's AI-related revenue.

Prospectus data shows that from 2023 to 2025, HAND Enterprise Solutions' AI-related revenue was 22.1 million yuan, 78.1 million yuan, and 310 million yuan, respectively, marking a growth of over 13 times in three years.

This growth has propelled HAND Enterprise Solutions' operating revenue, which reached 2.98 billion yuan, 3.235 billion yuan, and 3.415 billion yuan from 2023 to 2025, respectively.

Additionally, compared to traditional ERP business, AI-driven business boasts a higher gross profit margin. For instance, the gross profit margins for industrial digitalization-C2M and financial digitalization-GMC, where AI is deeply integrated, were 33.38% and 26.12% in 2023, respectively, and increased to 42.92% and 35.49% for these two major businesses in 2025.

(Image / Shutterstock, based on VRF protocol)

Thanks to the significant increase in gross profit margins for industrial digitalization-C2M and financial digitalization-GMC, HAND Enterprise Solutions' overall gross profit margin rose from 26.8% to 35.67% during the same period.

Against this backdrop of increasing revenue and gross profit margin, HAND Enterprise Solutions' net profit after deducting non-recurring items began to recover. However, its profitability still lags behind its peak period, such as in 2018 when its net profit after deducting non-recurring items reached 271 million yuan. In 2025, even with AI assistance, the company's net profit after deducting non-recurring items was only 191 million yuan.

Whether HAND Enterprise Solutions' profit can return to its peak amid continuous AI development remains to be seen over time.

The shift towards AI has not only driven performance growth but also attracted investor attention in the capital market. Since February 2024, the company's stock price has surged by over 200%.

For a long time, HAND Enterprise Solutions has been known as an ERP software supplier. Due to its less "glamorous" business model, its price-to-earnings (PE) ratio has long been below 30 times, and its stock price has remained below 10 yuan per share.

After AI started contributing revenue, HAND Enterprise Solutions gained investor attention, with its stock price rising from less than 5 yuan per share in February 2024 to a peak of over 33 yuan per share in January 2026, marking a maximum increase of over 560%.

As of August 25, although the company's stock price has significantly dropped to 15.18 yuan per share, it is still up by over 200% from the February 2024 low, even outperforming its peak profit period in 2018.

Driven by the stock price surge, the company's controlling shareholder has also reaped substantial profits.

Public information reveals that HAND Enterprise Solutions traces its roots back to 1996 when Fan Jianzhen and Chen Diqing founded "Shanghai HAND Computer Service Co., Ltd.," initially focusing on the consultation and implementation of international mainstream ERP software such as Oracle and SAP.

In 2002, HAND Enterprise Solutions was officially registered and established, and the company began setting up branches nationwide, entering a period of rapid development.

Against this backdrop of expanding business scale, HAND Enterprise Solutions officially listed on the ChiNext board of the Shenzhen Stock Exchange in 2011, providing an exit channel for the equity held by the two major controlling shareholders, Chen Diqing and Fan Jianzhen.

(Image / Shutterstock, based on VRF protocol)

According to incomplete statistics, since 2017, Chen Diqing has cumulatively reduced his holdings by over 36 million shares in the secondary market, cashing out over 320 million yuan. In 2019, Chen Diqing also transferred 23.3278 million shares to Baidu through a negotiated transfer, cashing out about 275 million yuan.

Another controlling shareholder, Fan Jianzhen, has also been aggressively cashing out since 2018, reducing his holdings by over 35.9 million shares in the secondary market, with a cumulative cash-out of over 320 million yuan. Additionally, in March 2019, he transferred 23.3278 million shares to Baidu, cashing out about 275 million yuan.

In August 2025, Fan Jianzhen transferred his holding of 5.0568 million shares to Chen Diqing. Since the two had previously terminated their concerted action agreement, Chen Diqing became the sole controlling shareholder of HAND Enterprise Solutions.

As of March 31, 2026, Chen Diqing holds 53.1394 million shares of HAND Enterprise Solutions, accounting for 5.19% of the company's total shares. Based on the current stock price, the market value of this equity exceeds 800 million yuan, an increase of over 500 million yuan from February 2024.

While the controlling shareholders have cashed out large sums and seen their wealth grow, HAND Enterprise Solutions has been continuously laying off employees since 2022.

Wind data shows that in 2022, HAND Enterprise Solutions had a total of 10,344 employees, which decreased to 9,026 in 2024, with the company cutting over 1,300 employees in two years.

According to data disclosed by HAND Enterprise Solutions, employee reductions have mainly been concentrated in the production sector. In 2022, the company had as many as 6,076 production personnel, which decreased to 4,854 in 2024. In 2025, due to the continuous expansion of AI business, the company's total number of employees rebounded to 9,273, but it was still down by over 1,000 from 2022.

Driven by AI, HAND Enterprise Solutions' operating revenue reached a record high in 2025. Thanks to the performance recovery, the market value of the controlling shareholder's holdings surged. However, in the era of AI development, some employees have already left HAND Enterprise Solutions.

After the failure of its initial submission at the end of 2025, on July 29, 2026, HAND Enterprise Solutions submitted its prospectus to the Hong Kong Stock Exchange for the second time. However, since 2024, due to the concentrated listing of mainland enterprises in Hong Kong, the number of enterprises waiting for hearings in the Hong Kong stock market has exceeded 500. Therefore, there is still significant uncertainty as to whether HAND Enterprise Solutions can successfully list after its second submission.

As a B2B enterprise, due to its good payment collection situation, HAND Enterprise Solutions has relatively abundant financial reserves. From 2023 to 2025, HAND Enterprise Solutions' net inflow of operating cash flow was 219 million yuan, 332 million yuan, and 480 million yuan, respectively.

Apart from part of the funds being used for dividends, most of the cash flow generated from the company's operations has been retained. As of March 31, 2026, HAND Enterprise Solutions had 1.322 billion yuan in monetary funds on hand, and at the same time, the company had 517 million yuan in trading financial assets.

On the liability side, apart from 500 million yuan in short-term liabilities, HAND Enterprise Solutions has almost no other interest-bearing liabilities. Therefore, from the perspective of funding needs alone, HAND Enterprise Solutions is not short of money, making the current fundraising in Hong Kong debatable.

Unlike the A-share market, as an international capital market, the funds raised in the Hong Kong stock market can be directly used for overseas investment, and the convenience of capital outflow is better than that of the mainland market. Therefore, many enterprises prioritize raising funds in Hong Kong when choosing to expand overseas markets.

One of the purposes of HAND Enterprise Solutions' fundraising in Hong Kong this time is to expand its overseas business. According to the description in HAND Enterprise Solutions' prospectus, this fundraising in Hong Kong will involve recruiting a global operations team of 65 engineers to be responsible for global market and product operations. Additionally, the company plans to recruit 100 marketing personnel, mainly responsible for the development of large clients.

(Image / Shutterstock, based on VRF protocol)

It is reported that HAND Enterprise Solutions' overseas business began around 2016 when the company established a subsidiary in the United States, marking the official start of its overseas business delivery.

Subsequently, HAND Enterprise Solutions successively established subsidiaries in Japan, Singapore, Europe, and other places to initiate global expansion. After 2022, the company's overseas revenue began to continuously increase.

Data shows that from 2023 to 2025, HAND Enterprise Solutions' overseas business revenue was 396 million yuan, 407 million yuan, and 528 million yuan, respectively. The company's overseas clients are mainly Chinese enterprises going overseas, with relatively few products sold to foreign clients.

Moreover, the company faces various constraints such as technical, commercial, and regulatory issues when selling products to large European and American enterprises, making true expansion not easy. Therefore, the company's overseas business is highly dependent on the overseas investment of manufacturing enterprises.

It is worth noting that in the first four months of 2026, HAND Enterprise Solutions' overseas business revenue was 161 million yuan, a year-on-year decrease of over 12%. Therefore, there is significant doubt as to whether HAND Enterprise Solutions' overseas business can continue to maintain growth.

Additionally, due to the large number of enterprises waiting to list in the Hong Kong stock market, it is not easy for HAND Enterprise Solutions to pass the hearing in the short term and smoothly obtain financing to carry out projects.

In this regard, "Bullet Finance" attempted to contact HAND Enterprise Solutions to understand whether, against the backdrop of the slow listing process in the Hong Kong stock market, the company would proceed with investing in and constructing the projects planned for the IPO fundraising. As of press time, no response had been received from HAND Enterprise Solutions.

Propelled by the power of AI, HAND Enterprise Solutions is steadily breaking free from the predicament of dwindling revenues in its traditional ERP business. Its overall performance in the capital market has been notably remarkable as well. Yet, the question of whether it can regain its profit to the peak levels of yore still lingers, hinging on whether the company's AI business can sustain its growth trajectory and whether it can successfully expand further into overseas markets.

*The featured image in this article is sourced from Shutterstock, adhering to the VRF protocol.