Breaking Down Ruijie Networks Co., Ltd. Financial Health: Key Insights for Investors

Founded in 2000 and listed on ChiNext in 2022, Ruijie Networks Co., Ltd. has rapidly scaled from a network-equipment startup to a public company with a market capitalization of 62.69 billion CNY (ticker 301165.SZ), delivering nearly RMB 11.7 billion in revenue in 2024-up over 40% year-on-year-and employing 7,137 people who generate roughly 1.96 million CNY in revenue each; its growth is fueled by a 'Co-Create Partnership Model' of more than 20,000 partners serving nearly 30,000 customers, eight R&D centers, a Smart Factory in Fuzhou with ~80% automation and ~90% digitalization, and a strong IP position of 1,201 patents (1,168 invention patents) alongside product lines from 200G/400G data-center switches-where it ranks first for two consecutive years-to wireless, security, cloud desktops and WaaS, enabling diversified revenue from equipment sales, managed services, cloud and security platforms, and network management while expanding across 90+ countries and convening hundreds of global partners at strategic summits.

Ruijie Networks Co., Ltd. (301165.SZ) - Intro

• Founded in 2000, Ruijie Networks Co., Ltd. (301165.SZ) began as an R&D-driven company focused on network equipment, network security products, and cloud desktop solutions.
• 2019 - launched the 'Co-Create Partnership Model,' building a partner ecosystem that grew to over 20,000 partners and enabled service to nearly 30,000 customers.
• 2022 - listed on the Shenzhen Stock Exchange ChiNext Board, marking Ruijie's transition to a publicly traded enterprise and broader capital-market access.
• 2024 - reported revenue of nearly RMB 11.7 billion, a year-on-year increase of over 40%.
• 2025 - continued expansion via ecosystem events: the 2025 Enterprise Business Group (EBG) Partner Conference with theme 'Open Collaboration, Co-Building Experiences,' and the 2025 Ruijie & Reyee Global Channel Partner Summit in Xi'an, convening 700+ global channel partners.

• Listed ticker: 301165.SZ (ChiNext, Shenzhen Stock Exchange).
• Ownership mix: institutional investors, retail shareholders, and company founding/shareholding management; post-IPO share float increased public ownership while founders and management retained strategic stakes (typical post-listing structure - specific share percentages vary by reporting period).
• Partner ecosystem acts as an extended commercial channel and indirect stakeholder group through long-term partnership agreements and co-selling/co-development initiatives.

• Mission: Deliver secure, reliable, and intelligent network infrastructure and cloud-desktop solutions to enterprises, service providers, and public-sector customers.
• Strategic focus: R&D-led product innovation (networking, security, cloud desktop), channel-led go-to-market via a broad partner network, and expanding cloud and AI-enabled services.

• Product lines:
  • Core networking: switches, routers, wireless LAN equipment.
  • Network security: firewalls, secure access, unified threat management.
  • Cloud & desktop: cloud desktop solutions, SD-WAN, cloud-managed networks.
  • Software & services: management platforms, network analytics, professional services.
• Go-to-market:
  • Primary channels: channel partners (resellers, integrators), direct enterprise sales, and public-sector bidding.
  • Co-Create Partnership Model: joint product localization, joint marketing, technical enablement, and revenue-sharing mechanisms with partners (20,000+ partners supporting ~30,000 customers as of rollout scale).
• R&D & production: Continuous in-house R&D investments to maintain product differentiation; manufacturing and supply-chain partnerships for hardware production and distribution.

• Hardware sales: primary revenue from switches, routers, wireless APs, and security appliances (one-time product sales).
• Software & licensing: recurring and term-based licenses for management software, security updates, and cloud services.
• Cloud & subscription services: cloud desktop subscriptions, cloud-managed networking, SD-WAN services (growing recurring revenue component).
• Professional services & maintenance: installation, integration, technical support, and extended warranty contracts.
• Channel-driven model: most revenue flows through partners who purchase and resell products and services; the Co-Create model increases partner-led recurring revenue and cross-sell opportunities.

• Listing on ChiNext provided access to growth-focused capital and increased liquidity for investors seeking exposure to Chinese networking and cloud infrastructure companies.
• Investor interest centers on Ruijie's strong partner network, accelerating recurring revenue from cloud services, and consistent R&D-driven product upgrades supporting higher ASPs (average selling prices) and cross-sell potential.

• 2025 EBG Partner Conference: emphasized open collaboration and co-building customer experiences with partners across enterprise segments.
• 2025 Ruijie & Reyee Global Channel Partner Summit (Xi'an): gathered 700+ global partners to align on product roadmap, channel incentives, and international expansion strategies.

Ruijie Networks Co., Ltd. (301165.SZ): History

• Listed on: Shenzhen Stock Exchange ChiNext (Ticker: 301165)
• Market capitalization: ~62.69 billion CNY (as of 19 Dec 2025)
• Stock price: 78.81 CNY (19 Dec 2025)
• P/E ratio: 74.41 (19 Dec 2025)
• Employees: 7,137 (as of 31 Dec 2024)

• Publicly traded company with broad institutional and retail investor participation via the ChiNext market.
• Market capitalization and high P/E reflect strong investor growth expectations for networking, cloud-managed services, and enterprise digital transformation demand.

• Product sales: enterprise and campus switches, routers, wireless APs, security appliances.
• Software and services: cloud management subscriptions, network management software, professional services and maintenance contracts.
• Solutions and integration: turnkey smart campus and vertical industry networking projects.
• Recurring revenue mix growing via SaaS/cloud-managed offerings, supporting higher valuations.

Ruijie Networks Co., Ltd. (301165.SZ): Ownership Structure

• Mission: Be a market leader worthy of long-term trust by delivering end-to-end, experience-driven value.
• Core value: 'Open Collaboration, Co-Building Experiences' - fostering partnerships to accelerate innovation and growth.
• Customer focus: Solve real-world application problems through integrated technology and services.

• How it works: Productize networking hardware, software-defined solutions, cloud and campus AI-driven services; sell direct to enterprises, education, government and via partner ecosystem.
• How it makes money: Hardware sales, software/firmware licensing, managed services and partner-driven projects that bundle devices + recurring services.

Ruijie Networks Co., Ltd. (301165.SZ): Mission and Values

• Co-Create Partnership Model: collaboration with over 20,000 partners to reach nearly 30,000 customers.
• R&D footprint: eight dedicated R&D centers driving product innovation and vertical solutions.
• Manufacturing: fully automated Smart Factory in Fuzhou with ~80% automation and ~90% digitalized processes to scale quality and throughput.

• Product development: centralized R&D centers develop hardware, firmware and cloud-based software in coordinated release cycles.
• Partner enablement: certified partners resell, integrate and provide local services under the Co-Create model, enabling rapid regional deployment.
• Manufacturing & supply: the Fuzhou Smart Factory produces networking hardware at high automation levels to reduce lead times and improve consistency.
• Service delivery: Ruijie and partners provide IT operations & maintenance (O&M) services for ongoing management, upgrades and SLA-driven support.

• Hardware sales: switches, access points, gateways and servers sold through partners and direct channels.
• Software & cloud subscriptions: licensing for cloud management, security features and DaaS offerings.
• Services: installation, customization, managed O&M contracts and training provided via partner network and Ruijie service teams.
• Channel-driven scale: partner commissions and value-added integration increase recurring revenue and broaden market reach.

• Education: campus Wi‑Fi, cloud desktops, unified access for tens of thousands of classrooms.
• Government: secure networks, identity management and high-availability infrastructure.
• Healthcare: reliable wireless access, secure data transport and cloud-based desktop services for clinical workflows.
• Manufacturing: industrial networking, automated production site connectivity and OT/IT convergence.

• Partner network scale: >20,000 partners amplifying sales, deployment and localized O&M.
• Customer base: nearly 30,000 customers across public and private sectors.
• R&D investment focus: eight R&D centers concentrating on networking, cloud and security innovation.
• Factory automation/digitalization: Smart Factory in Fuzhou with ~80% automation and ~90% digitalized workflows to increase throughput and reduce defects.

Ruijie Networks Co., Ltd. (301165.SZ): How It Works

• Core product sales - switches, routers, wireless APs, security appliances and cloud terminals sold directly and via channel partners.
• Recurring services - Wi‑Fi as a Service (WaaS), cloud management subscriptions, security management and SaaS-style cloud desktop licenses.
• Professional services - deployment, integration, managed network operations and support contracts.
• Platform and ecosystem - unified networking central solutions and cloud platforms that increase customer stickiness and enable upsells.

• Hardware + software bundling: Customers purchase networking devices (switches, routers, APs) bundled with subscription licenses for management, security and cloud features.
• WaaS & managed networking: Ruijie operates managed wireless and network management offerings (WaaS) that convert capital equipment purchases into ongoing service revenue.
• Security & cloud platforms: Centralized security management and cloud security platforms are sold as recurring services or software licenses to protect large campus and branch deployments.
• Channel ecosystem: A multi-tier channel network (distributors, integrators, MSPs) drives volume hardware sales and recurring contract acquisition.

• Network equipment (switches, routers, APs): ~48% of revenue
• Security products & platforms: ~18% of revenue
• Cloud desktop & cloud services: ~12% of revenue
• WaaS / managed networking subscriptions: ~10% of revenue
• Professional services & support: ~12% of revenue

• Switches/Routers/Access Points - sold as physical devices with options for on‑box or cloud-managed operation; firmware and license tiers unlock advanced features (QoS, segmentation, SD‑WAN).
• Unified Networking Central - a single-pane controller that integrates campus, branch and cloud networking, enabling centralized policy, automated provisioning and telemetry.
• Security Management & Cloud Platform - combines on-prem firewalls/UTMs with cloud SIEM/management and threat intelligence to deliver layered defense and subscription-based updates.
• Wi‑Fi as a Service (WaaS) - Ruijie supplies hardware and operates or manages the wireless estate under multi‑year contracts, billing customers periodically for connectivity, monitoring and helpdesk.
• Cloud Desktop Solutions - virtual desktop infrastructure (VDI) and cloud terminals hosted on Ruijie's platform or customer cloud, monetized via per-seat subscriptions.

• Higher-margin recurring revenue: Subscriptions and managed services lift gross margins compared with pure hardware sales and increase lifetime value (LTV).
• R&D-led differentiation: Significant R&D spend supports proprietary firmware, cloud orchestration and security analytics that justify premium pricing.
• Channel leverage: Distributor and integrator partnerships reduce customer acquisition cost (CAC) for hardware while enabling recurring contract conversions.
• Cross-sell/upsell motion: Deployments of core switching or wireless infrastructure create upgrade paths to security, cloud management and WaaS offerings.

• Education and public sector momentum - large campus rollouts and standardized procurement cycles drive multi-year projects.
• Enterprise digital transformation - customers consolidating network and security platforms favor integrated vendors like Ruijie.
• International expansion - exports and regional channel development increase addressable market beyond China.
• Subscription conversion - increasing the attach rate of cloud management and security licenses to hardware sales boosts recurring revenue percentage.

Ruijie Networks Co., Ltd. (301165.SZ): How It Makes Money

• Core product lines: switches (including 200G/400G data center switches), wireless LAN equipment, routers, security appliances.
• Recurring revenue: network OS/software licenses, cloud-managed networking subscriptions, technical support and maintenance contracts.
• Services: system integration, consulting, deployment, certification and long-term managed services for large customers and carriers.

• Ranked #1 in China's 200G/400G data center switch market for two consecutive years (leading share in the high-speed DC segment).
• Ranked #2 in China's data center switch market share for the Internet industry.
• Ranked #3 in China's Ethernet switch market share overall.
• Highest share growth rate in the global wireless market (IDC, 2022).
• Recognized in the 2020 Gartner® Magic Quadrant™ for Wired and Wireless LAN Access Infrastructure.
• Global footprint: business coverage in over 90 countries and regions, supporting international revenue diversification.

• Hardware sales: primary source-switches, APs, routers, security appliances.
• Software & subscriptions: growing share via cloud-managed networking and licensed features.
• Services & maintenance: steady recurring cash flow from enterprise and carrier contracts.