HQVT Interim Results: Revenue Soars 84.5%, Profit Dips on R&D and IPO Costs

Bulletin Express
Aug 28

Hong-Kong-listed HQVT (Shenzhen HQVT Technology Co., Ltd.) released its unaudited interim results for the six months ended 30 June 2026, highlighting strong top-line momentum driven by surging Multispectral AI Large Model Services, offset by sharply higher investment in research and listing expenses.

Financial Highlights • Revenue jumped 84.5% year-on-year to RMB410.46 million (USD57.2 million), propelled by a fivefold surge in Multispectral AI Large Model Services to RMB319.98 million—now 78.0% of group turnover. • Gross profit rose 36.3% to RMB83.26 million, while gross margin compressed to 20.3% from 27.5% on a less favourable revenue mix weighted toward lower-margin hardware components. • Net profit attributable to shareholders declined 24.7% to RMB7.65 million, reflecting a 125.3% rise in R&D spending to RMB35.11 million and RMB15.73 million in one-off listing expenses. • Stripping out non-cash share-based payments (RMB4.19 million) and listing costs, adjusted net profit climbed 21.9% to RMB27.58 million.

Segment Performance • Multispectral AI Large Model Services: Revenue up 382.5% to RMB319.98 million, underscoring rapid adoption in Internet data centres and power-energy applications. • Multispectral AI Modules: Revenue fell 33.9% to RMB69.10 million due to delayed customer deliveries. • Multispectral AI Perception Terminals: Revenue dropped 63.8% to RMB16.87 million on shifting client demand and portfolio optimisation. • Other AI Vision businesses contributed RMB4.52 million. Geographically, Mainland China accounted for 99% of sales (RMB406.86 million), with overseas markets contributing RMB3.59 million.

Cost Structure Operating expenses escalated as HQVT accelerated technology development and prepared for its Hong Kong IPO: • R&D expenses: RMB35.11 million, up 125.3%. • General & administrative expenses: RMB34.46 million, up 74.1%, including higher professional fees related to the IPO. • Selling & marketing expenses: RMB9.37 million, up 11.4%. • Finance costs rose to RMB4.14 million (1H25: RMB2.24 million) on increased borrowings.

Balance Sheet & Cash Flow • Total assets more than doubled to RMB1.31 billion post-listing. • Cash and cash equivalents surged to RMB595.56 million, reflecting net IPO proceeds of HKD536.8 million (about RMB494.33 million) and additional bank borrowings of RMB235.00 million. • Net cash used in operations was RMB34.19 million; financing activities generated RMB586.20 million. • Total borrowings stood at RMB301.16 million; cash on hand outstripped debt, underpinning liquidity. • Equity increased to RMB871.03 million from RMB362.20 million at end-2025 after share issuance.

Strategic Developments HQVT listed 85.16 million H shares on 22 June 2026, becoming the leading multispectral AI provider in China with a 3.3% domestic market share and a 23% share in the multispectral AI large-model segment (Frost & Sullivan). The company signed new partnerships with Hangzhou Yunshenchu Technology and Singapore-based Linkwise Technology to advance applications in power inspection, embodied intelligence, and Southeast Asian markets.

Dividends & Outlook No interim dividend was declared. Management will continue to expand high-value scenarios, enhance R&D in multispectral perception and on-device/cloud collaborative architectures, and deploy IPO proceeds as outlined in the prospectus.

Corporate Governance & Other Matters HQVT notes a deviation from the Corporate Governance Code as Chairman and General Manager Mr. Zhou Bo occupies both roles, citing efficiency and industry expertise. No material acquisitions or disposals occurred, and there were no significant contingent liabilities post-period-end.

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