Phancy Group (6682) H2 2025 earnings summary

Executive summary

• FY25 revenue reached RMB7.135bn, up 35.6% YoY; adjusted net profit was RMB6.3m, a turnaround from an adjusted net loss of RMB292.5m in FY24, while IFRS net loss was RMB37.8m.

• More than 1,000 contracted clients span 20+ industries; orders on hand exceeded RMB8.9bn, and machine-learning platform market share ranked first in China for a seventh consecutive year.

Financial highlights

• Gross profit rose 10.6% YoY to RMB2.483bn; gross margin fell to 34.8% from 42.7%, mainly on product-mix changes and higher hardware procurement costs.

• Operating loss narrowed 62.4% to RMB133.5m; net loss attributable to owners fell 90.2% to RMB26.3m, while adjusted net profit attributable to owners was RMB17.8m.

• Cost of sales increased 54.2% to RMB4.652bn; R&D expense rose 7.7% to RMB2.337bn, while selling and marketing expense fell 23.6% and administrative expense fell 20.2%.

Outlook and guidance

• For 2026, the three growth engines remain AI Platform, API and Agentic AI; the API and Agentic AI businesses are positioned to expand on the platform foundation.

• Token revenue in Q1 2026 already exceeded the full-year 2025 total; the outlook cites OpenClaw-driven model and computing demand as a growth catalyst.

• Orders on hand exceeded RMB8.9bn as of the report date; management expects Agentic AI solutions to deepen penetration of clients’ core business areas.