Executive Director Li Yue Thank you very much and welcome. Please enjoy the short clip provided by the company. Thank you. Please allow me to invite Mr. Louis Lau to talk about the AI and cloud service strategy of the company. Mr. Lau, please.
Good afternoon. Today, I'll present the update of our self-development segment, as well as strategy of 2026 and forward. First, let us talk about the very important segment here, self-developed technology. We'll leverage our in-house technology, core technology, and our core services to create value add for our clients. In 2025, we focus on productizing technology and solutions to help our clients for digitalization upgrade. In 2025, this is the summary of our progress. We can talk about four segment. Number one is product R&D. Second, industry solutions. Number three, ecosystems establishment. Number four, business model. Very importantly, we look at product R&D. In 2025, the core direction is smart agent and the service platform of foundation model. With AI R&D, we invest in core AI R&D from general computing to intelligent computing, from cloud management to AI agent.
We have also covered a full stack of AI products from foundational models to industry-specific applications. We have more than 40 intellectual property assets as of today. On AI agent and model services, we provide more than 18 offerings across such services. With R&D progressing, the number will keep increasing. In terms of core products and services, we have deployed in core industries as well. We focus on industries such as manufacturing, finance, government, and energy. We have Shenzhen Municipal People's Government, CRRC, Dongfeng Hongqi, and other clients among our top clients. We have established more than 200 deployment cases. We are not just looking at our own in-house technologies and products. In this segment, we also connect with our partners in the upstream, including cloud computing power and model partners. We have the principle of openness and synergies.
We also covered partners such as Alibaba Cloud, Huawei Cloud, and SmartAX and xFusion, among others. Here we integrate our in-house product with the product and services of our partners to establish cases for different industries. With the establishment of solutions, how can we implement on end users? Downstream, we worked with different partners to look at implementations and monetizations of various manners. On top of traditional marketing, we also provide our own marketplace. Last year in our marketplace, we have launched more than 500 products, including our self-owned product and products of our partners. We have achieved approximately RMB 200 million in revenue. On top of that, we also launch our product to the marketplace with our ecosystem partners. Say, for example, Huawei Cloud and Alibaba Cloud to form a series of solutions for different client. Coming up next.
With our investment in R&D, we have achieved a very comprehensive coverage from the computing power layer to cloud layer to management and agent. This is a full stack of product and solutions in different layers. We provide core product and technologies at different layer. Say, for example, on foundational model service layer, we have model orchestrations, cloud management. We also work with Alibaba, Huawei, NVIDIA and many domestic vendors to accelerate the development and synergies on this model layer. We worked with DeepSeek, Qwen, and Zhipu to build foundational model service centers. Right now, we provide five-six brands coming up all together, serving different versions. All combined, we could provide more than 14 versions of different models to establish regional level or city level service center. We'll also elaborate on this point later. On the very top level, we have agent layer.
Now, our core products and technologies include general purpose agent and industry-specific agent. We have products covering customer acquisition, conversion, operational efficiency, industry inspections, intelligence sensing, unmanned systems and others. We also have automated systems. All combined, this is more than 15 products. With all these said, we have the cloud level computing infrastructure layer, foundational model, scenario agent, and many others. We are not just a tool provider or a software provider. We provide our clients with full scenario services, including computational power to scenario application. In terms of AI agent, this is our understanding. AI agent is the real monetization and productization for AI. It will be integrated to the processes of our clients to really help solve issues. That is how we improve efficiency and productivity to really build a strong tool for our clients.
Right now we have more than 15 such agents accumulating more than 20 deployed cases, including front-end enablement to back-end support. There are two typical cases. Number one is the agent for China Mobile in Jiangsu Province. This is intelligent customer service agent. It provides 24/7 real-time response to customer inquiries. It also automatically answers and handles issues to reduce cost for the customer center. We have the second case, which is the declaration review agent for Maritime Safety Administrations. This is designed to address high professional barriers and high safety responsibility. It combines foundational models with maritime industry rules, and it verifies key element in tens of thousands of pages of complex cargo documentations. This is a transformation from purely manual processes into human-machine collaboration. This agent won the award last year in transportation industry.
This is the second class award in the National Innovation Award. In addition to general and industry-specific agent, we also have Vclaw agent, our in-house agent. This is the opportunity for us to launch our own digital Vclaw. This aims to serve full scenario coverage for self-deployed scenarios for some client. Enterprises wants to ensure safety, controllability, and to address challenges. Say for example, some specific optimizations. The Vclaw support one-click installations on Windows OS, and it provides deployment with guidance. We have optimized Vclaw according to the office environment in China. Say for example, we have some specific skill sets, say for example, documentations, data analysis, competition monitoring, and ticket handling. We also connect with WeChat and Feishu in China. On top of that, we address safety, controllability and review processes. That is the concern of our client as well.
We encourage you to use and to give us feedback. This is our foundation service model services. When we talked about models, this is our understanding. Different foundation models have their own unique features with their own, specific scenarios, different advantages and limitations. We need to select different models for different scenarios, for different codings and different agents. Say for example, whether you use that for deductions or for language or for industrial visions, they will have their own differences. We have aggregated different foundational models, and we also aggregated different versions, including, the categorizations according to different scenarios and different networks and different versions. Right now, we have established regional large language models and a city level model service centers. Last year, we have implemented in three cities, and this year we aim to replicate that to eight core cities and above.
One of it is the flagship project in Dongguan City, which is adjacent to Shenzhen. The Dongguan Artificial Intelligence Large Model Center is the first city-level large model center. After the establishment of the center, it officially begun providing external model services in March 2025. It also aggregated DeepSeek and others. Altogether, there are around 40 versions of mainstream models combined, and it support around 50 demonstration AI services scenarios covering intelligent customer services, operations and maintenance diagnostics, data analysis, report generations, and many more. Well, beneath the models, we have cloud and computing power. This is the foundation business that we have been working on for many years. In cloud management, we work with Alibaba and other core vendors. We have established a long history of cooperation, and we have multiple hats to wear.
On top of being the general distributor, we are also service provider, solution provider, and software providers for our partners. Last year, we worked with Alibaba to gain AI Leading Partners Award in 2025. With AWS, we facilitated many customers venturing into overseas market, and our growth rate last year was about 120%. That is how we gained Global Rising Star Award in 2025. Working with top vendors, we built multiple identities. We have our core technologies, which is our in-house IP. We also have our in-house technology services. We also provide consulting, deployment to maintenance and operation. This is a full cycle system services. With our cloud partners, we'll be able to provide different scenarios. For example, government cloud, finance clouds, innovation clouds and many more. This is a holistic service from establishment to delivery and continued optimizations.
Coming up next, in terms of computing infrastructure, we provide computing with orchestration and operations. In our computing power ecosystem, we work with NVIDIA and Ascend in China. We also work with many others. We help our clients to pool their resources. On top of that, they could also help to improve their scalable computing capacity. Through our own operational product, we serve smart and intelligent computing centers to turn their computing power to services and product. Right now, we have support operations for more than 30 City-Level intelligent computing centers and our management scale is over 4,000 PFLOPS of computing capacity under management. We worked with Pengcheng Cloud Brain, Wuhan Supercomputing Center, China Mobile, among others.
That is how we help our clients to pool and manage their resources to reduce the complexity of management of migrations and operations and maintenance. Coming up next, strategy for 2026. We will continue with our investment into R&D. The plan is to increase investment into R&D of agent foundation model and orchestration of computing power. Our investment will grow by more than 100% in three core sectors to leverage our advantages of technologies and product. Our outlook will be optimistic. This is built upon our understandings of our advantages. Number one, we provide full stack AI product and solutions covering computing power orchestration to cloud management, to foundational model on the middle layer and to the agents on the top layer. Say, for example, we have vCloud and for scenarios and general agent or industry-specific agents.
We serve leading technology companies, say for example, NVIDIA, Alibaba and Huawei. We provide multiple services. We are a strategic partner. We provide services from delivery to operations to optimization. This is a holistic service capabilities. We also provide a very full coverage of Asia-Pacific regions, so that help us to replicate our successful cases and to implement our services in the future. For 2026 to 2027, we aim to improve our growth target. For 2026, we are looking at 50% year-on-year growth. 2027, 120% year-on-year growth. That is how we build the leading Asia-Pacific provider of enterprise-grade full-stack AI product and solutions. Thank you.
Thank you, Mr. Lau, for your presentation. Coming up next, we would like to invite Mr. Ong Wei-Hiam, Executive Director and Group Chief Financial Officer to present the 2025 annual results and development strategy. Mr. Ong, please.
Good afternoon. VSTECS in 2025, we have highlight revenue. We grew by 9.6% to HKD 97.6 billion. Profit, net profit grew by 28.7% to HKD 1.35 billion. Earnings per share is 97.68 Hong Kong cents. Return on equity, 13.8%, which is higher than Hang Seng's stock average ROE, 10.53%. It is much higher. Dividend, 41.77 Hong Kong cents. In terms of revenue, we have recorded a record high, which is 97.6 billion Hong Kong dollars, and the average annual growth rate is 23%. Net- profit, recording a record high as well. It is HKD 1.35 billion. Average annual growth rate is 28%.
We can compare that to 2021 when we also recorded HKD 1.31 billion of net profit. However, the exchange rate between US dollars to RMB is 6.4, but in 2025 it is seven. If we apply the exchange rate of 6.4 of 2021, then our net profit would be HKD 100 million more. In 2021, when we look at the interest rate, the interest rate was lower comparing to the interest rate today. There is a difference of 5 percentage points. If we compare that to 2021, the interest that we save is about HKD 300 million. All these combined with the HKD 1.35 billion, we will look at a HKD 1.7 billion-HKD 1.8 billion. This is the net gearing to total asset.
This is a very healthy ratio of 0.09. Working capital days, inventory days is down from 48 days to 45 days. Account receivable days down from 72 days of 2024 to 69 days in 2025. Account payable days remains flat. Working capital days is down from 52 days to 46. Coming up next, I would like to present the review and strategy of FY 2025. In 2025, we focus on AI computing power. We built domestic and overseas dual computing power ecosystem. In terms of domestic computing power business, we grew by 27% in 2025. Within the year, we have implemented a number of key projects with State Grid. We have also stepped up the effort to integrate industry and education in AI. We also implement a project of data center from Centrin Data.
The company has worked with Huawei Kunpeng ecosystem partners such as xFusion, Huakun Zhenyu, PowerLeader, Baixin, and Yanzhi Computing for many years. These businesses have maintained rapid growth rate. In addition to Huawei, VSTECS also maintained good cooperative relationships with mainstream domestic computing power manufacturers such as Hygon and Cambricon. In 2025, we launched strategic cooperation with companies such as Moore Threads and Muxi, completing the comprehensive layout of domestic computing power ecosystem. Our Southeast Asia computing power business increased by 30%. We facilitated the establishment of multiple AI computing centers and key projects in Southeast Asia, providing crucial support for NVIDIA to build a local AI ecosystem. In 2025, VSTECS Singapore won NVIDIA's Network Business Distributor of the Year award, becoming a core driver of the local artificial intelligence ecosystem.
VMware's related business grew by 120% year-on-year, and we won VMware's Broadcom Asia Pacific Regional Distributor of the Year award in 2025. In AI computing infrastructure, our cloud business grew by 29%. AWS business surged by 120% year-on-year. For many years, we maintained rapid growth rate. For two consecutive years, we won AWS Global Best Performance Growth award. With Alibaba Cloud, our growth rates grew by 38% in businesses. In 2025, we also won Alibaba's award, including Best Channels award and Annual Outstanding Contribution award. We also worked with Huawei Cloud. Our core business with Huawei Cloud grew by 25%. For the year of 2025, we are the sole Huawei Cloud Global Outstanding General Distributor award receiver. We have self-developed technology segment.
We deployed a full range of AI product solutions as presented by Mr. Lau. Cloud Star won bids for project including Panjin Cloud Computing, Nantong and Shenyang Artificial Intelligence Computing Center, among others. Cloud Star self-developed AI computing power scheduling and management software has completed in-depth compatibility testing with Huawei Ascend AI processor and has officially joined the Huawei Ascend AI community. In terms of overseas business, our overseas computing power business grew by 30%. Starlink business grew by 69%. We empower Chinese brands to expand into overseas. Chinese brand in Southeast Asia grew by 18%. Huawei's business in Indonesia grew by over 100%. Their business in the Philippines grew by 83% as well. Within our development strategy, we have three legs. We focus on AI computing power, building domestic and overseas dual computing power ecosystem.
Number two, we expand self-developed technology sector, AI product and solutions. Number three, we actively explore overseas market and seek M&A opportunities. This is all my presentation. Thank you very much.
Thank you, Mr. Ong, for your presentation. Coming up next, we'll have the Q&A sessions. We welcome questions from the meeting room, including from the investors, analysts, and the press. Please identify yourself before you ask questions. Coming up next, we would like to invite the first question.
Hi. Management.
I'm from North America Investment Consulting, Shenzhen. My question is that in 2026, do you have any strategy for expanding overseas and M&A? Second, when we look at comparisons to our competitors, what are your advantages and disadvantages? Number three, in terms of cost saving and efficiency gains, what are the new measures in 2026? Thank you very much.
I would like to address the last question first. If we compared against our competitors, what are our advantages? According to the limited numbers that we compiled within the world, if we look at the listed distributors here in these sectors with, if you look at companies with good ROEs for the last 20 years, and that is quite limited. We maintained at 13 and above. Only for two years during COVID, it is below 13. With such a stable performance, that is very limited.
We are among the few. For the last 20 years, we have been through different cycles of economic development and technologies evolving. We manage so many products. We have such a long product list. We worked with tens of thousands of people. We work with more than 700 vendors. This is a very complicated portfolio. However, we can maintain stable profitability. This is very challenging. That also demonstrates our advantages. We are very good at management. We have excellence in management and operations. If you look at core competitiveness, we have some competitors, say for example, Zhengzhou, Shuma. Of course, there are some US companies as well. Compared to these competitors, we might be latecomers. However, we captured opportunities. Of course, this industry was very hot in history. Coming up next in the history, it was not so hot.
We might have missed some windows of opportunities. If you look at our talent pool, we might be lower. For Lenovo and Zhengzhou, Shuma, they have many graduates from Tsinghua University or Peking University. I've got many alumni in Tsinghua to those companies. We might had some challenges in recruitment of top talent. We have been in these industries for more than two decades. However, I would still like to say that it is later compared to competitors. This is the advantages and disadvantages as I can see. To your second question in relation to overseas strategy, in the short run, we focus on Asia. We had some negotiations about eight, nine years ago with our European counterpart. We were looking at some M&A opportunities in Europe to become fully global.
However, if you look at the PE and the ROI of those companies, it was 15-19. However, our PE was low back then. We talked with the second-largest European channels. They have the PE of about 15. So we did not merge with that company because that would be loss recording for us. However, if we look at M&A in the future, we are looking at M&A opportunities in Vietnam. Because now we cover nine out of ten Southeast Asian companies. We did not covered some small regions. However, we cover a lot. For the Vietnam counterpart, we have been through several rounds of negotiations, and that is very positive for us. Number one questions? I've addressed two, but I remember there were three. What about the first one? Could you please ask again?
Thank you very much. Yes. In terms of cost saving and efficiency gain, what are the new measures in 2026?
If you talked about cost saving and efficiency gains, we don't have any substantial measures or new measures because this industry has been through a very long time, and this is not a segment with great potential, so that is not our concern. We mainly look at opportunities of development. To be frank with you, this industry requires lean management. Of course, we attaches importance to cost saving. However, we don't really have any strategies on that, but that is built in our DNA, so we do not have any additional new measures on that.
Thank you for the answer. Coming up next, we would like to answer the next questions.
Hello, management. I am analyst from International Electronics.
Congratulations on the outstanding performance in 2025 and a very good shareholders' reward. I am the analyst from Leading Technology. I would like to ask questions in relation to technology. First, SpaceX, the commercial aerospace business of Elon Musk that has garnered many attentions in the capital market, and Starlink has covered 163 countries and regions as well, and their downstream customers has achieved 11 million. I saw from the video that VSTECS has about 70% growth in Starlink's business. My question for the management is that in the SpaceX and Starlink business, will that be a new driver for 2026? And do you have any business plan for commercial aerospace?
Starlink. To your question, Starlink. Number one, we'll be able to maintain the current growth rate.
They have the issue of the lack of supply. Say, for example, they have the Ukraine issue, and then if you look at Indonesia is a country composed of thousands of islands, so they really need the product. It is not a sales issue, it's a supply issue of Starlink. To the questions about implementing Starlink. It is not just about us, it is about the approval of individual companies, countries and regions. Say, for example, Thailand has the opportunity. I believe in Southeast Asia, if Starlink is looking at implementing and expanding their business, we will be their preferred partner. Starlink is not just a random new business. They do not have a large sales rep teams, so in terms of their business expansion, they search online to find us.
They discover us because we have a broad network and service capabilities. We sign the agreement with them online. We do not meet with them. That is, it sounds random. However, that is the result of our continued business development here. I would say Thailand will be a very good potential. We are looking at two countries right now. Very likely, if they try to implement in Southeast Asia, we'll be their preferred distributor. However, they have a supply bottleneck. That's not our issue.
Thank you. Next question, please.
Thank you, management. I'm from Green Holdings in Hong Kong. You have launched Vclaw, which is your in-house product. I haven't tried it out yet. However, I have experience in relation to OpenClaw. It takes a long time to adjust OpenClaw.
After that, you cannot really assure the quality of its work, so you need to spend times to review the result. I've got two questions. Number one, Vclaw. Why do you want to launch such a product? Do you want to sell the tokens or do you look at improvement of your services? What is the target? And number two, is it based on open source OpenClaw or is it a brand new product that you develop?
I would like to address the question. The target of such a product, we have two. We are actively exploring the implementation and deployment of agent. OpenClaw can be a intelligent client service agent, and we can also use that for knowledge inquiry. For our full scenario agent, Vclaw is a very good potential.
It can integrate with the foundational model service platform, and it can be turned into a tool for full scenarios. That is our ultimate goal. Of course, we use OpenClaw as our foundations. We have optimized that in terms of safety and improved efficiency. As you mentioned, traditional OpenClaw is very complicated. It requires professional teams to deploy it. However, we can deploy that to Windows and Mac, and we provide one-click installations, and we also provide guidance of deployment for enterprise scenarios. We provide extra safety and approval assessment, and also we have optimized that for different scenarios. Say, for example, official document drafting and many other office scenarios. We are not looking at selling tokens. With this product, we aim to provide full stack and full scenario agent. Our aim is different from foundation model providers. The next question, please.
Hi, management.
I'm from Times-Journal. As we can see, there is an increase of prices for storage. What is the impact to your business?
Of course, hard disk can be the product category. After the price hike, they actually have the demand issues, so in the future there will be no price war again. That help us with our GP margins. Previously, that is a 2C product. However, it has disadvantages for 2B business because if you look at 2B, it takes a long time for partners to validate your product. Previously, they were reluctant to give us product for testing. In the recent two to three months, we are supplying to Alibaba and Tencent and Kuaishou. It help us to expand into different partners. It helps us with business development.
We have completed the deployments to big companies here, so with the growth of sales, our profitabilities will improve as well. It is very difficult for us to quantify the contribution at this moment. However, it is very meaningful for us that this product is not just 2C anymore. It is a 2B business right now. It helps us to gain access to many important clients. The overseas department of Alibaba have already used that. Tencent and Kuaishou and Chinese branch have used that as well. Next question, please.
Hi, management. I'm an individual investor. I came to Shenzhen back in 1991 when the stock exchange was initially launched. There were eight tickets back then. I actually have been through many ups and downs, including the financial crisis of Hong Kong back in 1997.
The four dragons of Southeast Asia collapsed. However, Prime Minister, Mr. Zhu Rongji, supported Hong Kong to guard against externalities. Soros, the daughters of Soros was my teacher. I was born in a remote village in Qinghai Province. I graduated from a school where we had a U.S. teacher who taught us English for free. I did not know that she was the daughter of Soros. However, after the graduations, about seven years after the graduations, I came back to the Qinghai Province, and I heard the rumors that our English foreign teacher back in the days was the daughter of Soros. That was the supported programs of Soros. My question for you, we come here not just with concern on performance. We shouldn't have any concern for the financial performance of VSTECS at all.
I am also a frequent visitor on Tonghuashun and Xueqiu and East Money. Many of us concerned about the stock price. We believe Mr. Li and the dedication of the team of the company, we do not have any doubt in relation to the business performance. This is all very good. Again, Mr. Li, you actually were enrolled to Tsinghua University back in 1979, I remember, as I recalled. That is very excellent because only one in ten thousand, 100 million will be able to get that opportunity. However, for investor relations team of the company, I have some dissatisfactions. Many people and among investors on DIA fortunes and Tonghuashun ask many questions which got no reply at all. Investors in both Hong Kong and domestically, I am not sure if you know the stock price or not.
Before 21st of February last year, there were no tradings of the company. That was below 10 million. However, after that, the trading volume has surged.
14th of February, 2025, the trading volumes of VSTECS has increased. It is up by 15 percentage point. The trading volume has reached 90 million. I have listed out all Hong Kong listed companies with the increase of 10% or above. I did not find such companies in either H-share or A-share. I bought Tencent back in 2003. However, the performance of Tencent is even lower compared to today's what we observe at VSTECS. The trading volumes was about 90 million. However, after three days it is up by 40%.
When it's up by 40%, there were some people shorting the company, so the stock price was down from HKD 9.3. I bought 50,000 shares, but after that I can see people shorting the company. I believe I know who shorted the company. HSBC, of course, they got 23% and some got 15%. It's quite obvious they shorted the company. If I'm allowed to carry on, I would like to continue.
I want to say, in the interest of time, we have more opportunities to talk about that offline after the meeting. Thank you very much. We can have a separate session after the meeting to address your comment.
Of course, we have some improvement if we talk about management in capital markets.
Our second largest shareholders want to gain more liquidity, so they sold many shares. I visited them before, and we have reached agreement. Next time we'll have some share placement. They will not be selling in the secondary market anymore. To your questions in relation to the stock price, number one, to address your concern, I've never been to share tour before. Of course, with the improvement of share price, this will be beneficial to shareholders and to us as well. We have bought back before with cash. In the future, that will be a very good foundation for our expansions in capital market. In the future, we'll try our best to improve our communications while working on business performance. Thank you very much.
In the interest of time, we would like to invite the next question.
Thank you. Hi, management. Good afternoon. I am Analyst Chen Anyu from Minsheng Securities. I've got three questions. Number one, I know that this is an annual result announcement, so we would like to ask a question in relation to the future, guidance for revenue and profit. What are the expectations? This is question number one. Number two, according to the presentation of the company, you have AI agents and cloud management among other, AI-related, services. Say, for example, you have, computing power orchestrations and others. So is it my understanding correct that the company has maintained traditional distribution, but at the same time you are looking at the second development curve? If true, then what is the expected scale for the second curve? What is the strategy?
Number three, cloud vendor and computing power is very short in supply. The supply is shorter compared to demand, so it's very hard. For distributor, can we help our clients to search vendors?
To your first question, it is hard to predict, or the predictions tend to be inaccurate. Historically, our profit and revenue growth was about 30%. Of course, we have a driver of margin acquisitions is not fully organic. In the future, we are open to M&A as well. This industry is hard to predict because humans keep progressing, and we get smarter and smarter with the development of AI. The content provided by the vendors and the product accessible by individuals keeps getting richer and richer. The IT industry is a big industry with fast growth rate. Our organic growth is about 10%, I believe.
In terms of profitability, our sales network have been set. We do not need to redesign and redevelop our ERP, and we have a established clientele as well. With the revenue growth, our net profits will keep rising as well. Our planning is that in the next three years, we maintain a 20% growth for net profit. In terms of GP margin for self-developed product, it is quite high. It's about 60%-70%. However, this is a new industry. We keeps investing. Despite a high GP margin, the expenses will be high as well because we need to keep investing into new product, otherwise we'll be eliminated by the era. However, we are very lucky. Many companies will be loss-making when they develop into new product. We are already profit-making.
In the short run, we do not have a specific aim of profitability for this specific department. Our goal is to provide a full scenario service of AI. We want to be the leading service provider. The profitability will be hard to predict right now. We will have a more concrete answer in five years.
My third question, for cloud and computing power industry, the demand is higher than supply, what can you do in distribution? I believe we have different understanding.
Yes, people were fighting for the chips of NVIDIA, but it seems that, Huawei and among many other vendors are having a price war. If the margin is very high, then it is quite correct to say that, the supply is lower than demand. I disagree with you on this.
My exact question is that when we work with vendors, who has the right to choose? Is it you or is it the cloud and computing power vendors?
It is not such dynamics. They needs to expand their business, and they expand their clienteles through us. So the fact is, the cloud business is not having the full power to select client. People will be happy if they have new business, and they will be open to accept new business. NVIDIA is exceptional because, in the last few years, you will not be able to buy from NVIDIA, but the cloud is different. Yes, for the storage, the price is higher. The hardware is more expensive, so it push up the price. But the cloud business doesn't have a very good dynamics if you look at supply only.
The supply and demand is more balanced than what you think. In China, it is very difficult to find cheap cloud service provider with NVIDIA's chips. However, without NVIDIA's chips, it's easier to do it. Okay, in the interest of time, we would like to invite the last questions.
Congratulations for the excellent performance in 2025. I am Chief Analyst Miao Xinjun from Tianfeng Securities Research Institutions. I've got two questions. Chairman Li answered some questions in relation to investment, including the sales of share from shareholders. How about the guidance of the next three years? You talked about 20% net profit growth for the next three years. Is it aligned with your historical pattern?
Right. Indeed. We were affected by FX. Without adjusting this FX implications, our CAGR growth for net profit is about 20% as well.
You also mentioned Nie Tong's sales of shares. In the Q4 last year, they have some trading. You also mentioned that you will do some communications in the future if they want to sell shares, then it could be one-off trading. When you talked about one-off trading, what is the format?
Right. They need liquidity, which is factual. Many securities, including CITIC and Guotai Junan, approached them before to help them to sell their shares one-off. However, they have some collateral, so they need to split their sales of shares. However, as we understand that there are someone who wants to take up the totality. They sold 2% before, but the share price did not drop. I contacted them before, and they said they would not sell in the future.
However, they continue their sales, so that caused some uncertainties in the market. In the future, I believe there will be no such questions again. In terms of secondary open trading, there will be no such sales of shares again. Right. That is not a good thing for them as well. That is not to serve our interest that they wants to serve their own interest as well. Taking the lessons learned, they believe they should go to one-off sale in the not on the secondary market. Second question in relation to our fundamentals. I believe stock price is a reflection of performance. In the short-term, we are more interested in the demand of your business. In the Q1 , we can see that no matter on storage or computing power, the industry is quite good.
The price keeps increasing. My question is that, what is your outlook for Q1? We are still within Q1 as of today. The profitability and the growth rate of revenue is no less than that of last year. We needs to fulfilled our commitment, so we need to be conservative on our guidance. We are working very hard to achieve the results that we presented.
Thank you very much for your questions, and we would like to thank the management for all the answers. This is the end of today's conference. Thank you again for your participation and your long-term interest and support to the company. We'll see you next time.