DEEPEXI TECH (01384) posted a sharp top-line acceleration and a markedly improved bottom line for the six months ended 30 June 2026, underpinned by surging demand for its upgraded enterprise AI platform.

Revenue doubled to RMB 283.99 million, up 115.0 % year on year, driven by the successful transition of its FastAGI solution into the DeepexiOS AI-level enterprise operating system. The new flagship offering generated RMB 225.95 million, a 209.2 % jump and 79.6 % of total sales, while the more mature FastData suite remained broadly flat at RMB 58.04 million.

Gross profit rose 120.5 % to RMB 160.33 million, lifting margin to 56.5 % (H1 2025: 55.0 %), helped by enhanced delivery efficiency in DeepexiOS projects. Cost of sales increased 108.2 % to RMB 123.66 million, broadly in line with revenue growth.

Operating expenses moved mixed. Selling and marketing costs climbed 33.2 % to RMB 65.68 million as headcount expanded, and R&D outlays rose 23.8 % to RMB 72.13 million to support the enterprise Agentic AI platform and self-developed large model. Administrative expenses, however, fell 75.2 % to RMB 36.06 million, reflecting the absence of prior-year listing expenses and lower share-based payments.

The Group reported an interim net loss of RMB 31.92 million, a reduction of 89.6 % from RMB 308.22 million a year earlier. On a non-HKFRS basis, adjusted net loss narrowed 48.5 % to RMB 26.89 million. Management highlighted a turnaround in the second quarter with a standalone net profit of RMB 30.10 million, propelled by a 326.6 % sequential revenue surge.

Cash at banks reached RMB 959.60 million as of 30 June, up 34.1 % from end-2025, while short-term borrowings increased to RMB 102.40 million. Operating cash outflow improved to RMB 91.03 million versus RMB 100.92 million in the prior-year period; second-quarter operating cash flow turned positive at more than RMB 4.00 million. The gearing ratio remained stable at 23.6 %.

During May 2026 the company placed 7.94 million new H shares at HK$ 50.58 each, raising net proceeds of approximately HK$ 393.02 million (about RMB 342.40 million). Funds are earmarked for overseas expansion, strategic investments and general working capital. No interim dividend was declared.

By sector, manufacturing continued to dominate revenue with RMB 154.86 million (54.5 % of total), followed by public utilities at RMB 60.78 million (21.4 %), scientific research at RMB 26.27 million (9.3 %), retail at RMB 12.79 million (4.5 %) and energy at RMB 12.88 million (4.6 %).

Management expects competition in enterprise AI to shift from model capabilities to deployment efficiency and governance, and plans further investment in refining the DeepexiOS platform, enterprise-grade large models and domain-specific Skills to sustain growth.