Cloud Factory Technology Holdings Limited released its unaudited interim results for the six months ended 30 June 2026, highlighting a sharp expansion driven by Intelligent Computing while overall profitability narrowed.

Financial Performance • Revenue reached RMB 716.77 million, up 76.2% year on year, propelled by the inaugural RMB 436.93 million contribution from the Intelligent Computing segment, which now represents 60.9% of group turnover. • Gross profit rose 38.5% to RMB 66.04 million; the group gross margin declined to 9.2% (H1 2025: 11.7%) as lower-margin hardware sales and rising resource costs outpaced revenue growth. • Profit before tax climbed 76.3% to RMB 29.11 million; net profit improved 63.8% to RMB 24.44 million, translating to earnings per share of RMB 0.05 (H1 2025: RMB 0.03). • Finance costs increased 74.3% to RMB 6.09 million, reflecting higher bank-borrowing expenses.

Segment Highlights • Intelligent Computing: Generated RMB 436.93 million, including RMB 355.04 million from computing-equipment sales and RMB 81.89 million from computing-resource services; segment gross margin stood at 6.7%. • IDC Solution Services: Revenue fell 38.7% to RMB 230.70 million as the company trimmed lower-margin contracts; margin edged up to 11.0%. • Edge Computing Services: Revenue climbed 65.8% to RMB 48.41 million; margin compressed to 21.9% due to bandwidth-related cost escalation. • Other Services contributed RMB 0.72 million.

Cost and Expense Dynamics • Cost of sales surged 81.2% to RMB 650.72 million, largely linked to hardware procurement for Intelligent Computing and expanded edge-network resources. • R&D spending jumped 80.6% to RMB 16.80 million, reflecting intensified work on heterogeneous computing-power scheduling and AI platforms. • Administrative expenses rose 17.3% to RMB 20.29 million on higher professional and technical-consultancy fees.

Balance-Sheet Position • Cash and cash equivalents stood at RMB 489.76 million, down from RMB 603.79 million at end-2025, mainly due to prepayments for servers and AI equipment. • Interest-bearing bank borrowings increased to RMB 447.21 million (31 Dec 2025: RMB 378.10 million); gearing ratio rose to 0.9x from 0.8x. • Net current assets reduced to RMB 154.60 million (31 Dec 2025: RMB 426.15 million). • Trade receivables declined 23.2% to RMB 236.49 million, indicating tighter credit management; prepayments and other receivables doubled to RMB 639.0 million, reflecting project-related advances. • Capital commitments total RMB 7.15 million; no assets are pledged, and no significant contingent liabilities are reported.

Operational Developments • Eight intelligent-computing centres now operational; Phase I of the Yangtze River Delta Ecological Innovation Centre and a 5,000-card AMD GPU cluster in Wuxi commenced service. • Edge-computing footprint enlarged, supported by the “Lingjing Cloud” platform and a newly launched city-level computing-power scheduling platform in Wuxi. • R&D achievements include two new invention patents and designation of a key lab for heterogeneous computing-power scheduling and edge intelligence integration.

Capital Management and Returns • No interim dividend declared for H1 2026. • Of the HK$336.80 million net IPO proceeds (June 2024 listing), HK$315.63 million had been deployed by 30 June 2026, mainly for business expansion and product development, leaving HK$21.17 million unspent. • Of the HK$228 million raised from the August 2025 share subscription, HK$207 million was utilised by 30 June 2026; HK$21 million remains earmarked for business growth, intelligent-computing projects, and working capital.

Corporate Updates • Principal place of business in Hong Kong changed to Unit 8, 11/F, China Merchants Tower, Shun Tak Centre, 168-200 Connaught Road Central, effective 27 August 2026. • No share repurchases were conducted; treasury-share balance remained at 26.62 million, leaving 479.37 million shares outstanding. • Directors confirmed compliance with the Hong Kong Listing Rules’ Model Code during the period.

Outlook Management plans to deepen the “Edge Cloud + AI Services” strategy, prioritising intelligent-computing capacity build-out, enhancement of the Lingjing Cloud platform, and cautious expansion aligned with project timelines and market demand, while maintaining disciplined cost control and capital management.