Phancy Group (6682) investor relations material

Executive summary

• H1 2026 revenue rose 43.4% YoY to RMB3,765.3m; profit for the period was RMB128.3m versus a loss of RMB73.9m a year earlier.

• Adjusted net profit was RMB159.9m, adding back RMB31.5m of share-based compensation; adjusted net loss in H1 2025 was RMB50.6m.

• API and Token services accelerated sharply, while the AI Platform remained the largest business and Agentic AI revenue grew modestly.

Financial highlights

• Revenue RMB3,765.3m, up 43.4% YoY; gross profit RMB1,233.4m, up 24.5% YoY.

• Operating profit RMB136.4m versus an operating loss of RMB84.9m; profit before tax RMB126.2m versus a loss of RMB75.3m.

• Net profit attributable to owners RMB118.9m versus a loss of RMB67.0m; basic and diluted EPS RMB0.22 versus a loss per share of RMB0.14.

• Cost of sales rose 54.8% YoY to RMB2,531.9m; gross margin fell to 32.8% from 37.7%, mainly on higher computing costs.

• Other gains, net were RMB449.7m versus RMB37.6m, mainly from increased fair value of investment projects.

Outlook and guidance

• Strategy prioritizes prudent operations, balancing computing-power capex with profit realization and focusing on markets with stable profitability.

• Plans center on deepening private-deployment services and scaling the Token Factory, using shared compute and model technologies to support both growth engines.

• Management expects enterprise AI adoption to shift toward hybrid deployment and AI agents to expand Token-service demand.

• R&D will remain focused on reusable core platforms HAMI and Model Hub; Model Hub adaptations exceeded 200,000, with a target to exceed one million next year.