On August 9, Moore Threads Technology Co.,Ltd. (688795.SH), known as "China's first GPU stock," released its first half-year report since its IPO and announced plans for a secondary listing in Hong Kong.
The half-year report shows that for the first half of this year, Moore Threads achieved operating revenue of 1.736 billion yuan, a year-on-year increase of 147.42%, already surpassing its full-year 2025 revenue. Net loss attributable to the parent was 12 million yuan, narrowing by 95.73% from the same period last year, while non-GAAP net loss attributable to the parent was 151 million yuan, narrowing by 52.37% year-on-year.
With significant revenue growth and overall narrowing losses, Moore Threads' first-half performance appeared impressive. However, breaking down the first and second quarters, the company turned profitable in Q1 but returned to a loss in Q2. In the first quarter, Moore Threads reported revenue of 738 million yuan, net profit attributable to the parent of 29 million yuan, and a non-GAAP net loss attributable to the parent of 54 million yuan.
On the same day as the half-year report release, Moore Threads also announced its plan for a secondary listing on the H-share market in Hong Kong. The company stated that the move aims to deepen its internationalization strategy, continuously attract and gather top R&D and management talent, and further enhance its corporate governance and core competitiveness.
This move quickly sparked market discussion. When Moore Threads listed on the A-share market in December last year, it raised 7.58 billion yuan in net proceeds. As of the end of June, approximately 5.6 billion yuan of that remained unused. Shortly after its IPO, the company announced it would use up to 7.5 billion yuan of idle fundraising proceeds for cash management, raising questions about the necessity of a secondary listing in Hong Kong.
On the day after the half-year report, Moore Threads' shares fell 4.00% to 573.97 yuan per share, reducing its total market capitalization to about 270 billion yuan. The company listed on the Science and Technology Innovation Board in December last year, reaching a high of 941.08 yuan per share that month, with a market cap exceeding 440 billion yuan. Since then, the stock has declined, now down nearly 40% from its peak, with a market cap loss of approximately 170 billion yuan.
Founder and actual controller Zhang Jianzhong, aged 60, directly and indirectly holds 10.83% of Moore Threads' shares. Based on the latest stock price, his stake is worth about 29.2 billion yuan.
Moore Threads' financial pressure has eased significantly since its A-share listing. As of the end of June, the company's cash balance stood at 6.492 billion yuan, while total short-term borrowings and non-current liabilities due within one year were about 683 million yuan, indicating ample liquidity. However, from a cash flow perspective, the company is in an expansion phase, with operating cash flow in a net outflow state. In the first half of this year, net cash used in operating activities was -2.169 billion yuan, a year-on-year increase of about 86.30%. The company attributed the outflow to increased procurement spending to expand production scale.
As of the end of June, Moore Threads' inventory book value was about 3.55 billion yuan, up significantly from 1.332 billion yuan at the end of 2025. During this period, raw material book value rose from 524 million yuan to 1.51 billion yuan, work-in-progress increased from 555 million yuan to 1.171 billion yuan, and finished goods grew from 246 million yuan to 844 million yuan. Moore Threads acknowledged that the 3.55 billion yuan inventory represents about 20.97% of total assets. If raw material prices, supply chain costs, or market conditions change, or if product prices decline due to technological updates or supply-demand shifts, the company faces the risk of increased inventory impairment, impacting operating performance.
With Moore Threads not yet achieving stable profitability and costs rising, seeking fresh capital through a Hong Kong listing has become a practical choice. Notably, the company faced controversy over its "7.5 billion yuan wealth management" plan soon after its IPO. The half-year report now provides initial clarity on this: as of the end of June, the cash balance in the company's fundraising accounts was about 2.725 billion yuan, mostly held in agreed deposits. Funds used for cash management stood at 2.9 billion yuan, all in safe, highly liquid, principal-guaranteed products. In the first half, interest income from fundraising proceeds was about 28.9888 million yuan.
Moore Threads is one of the "four little dragons" of domestic GPU companies. Founded in 2020 by Zhang Jianzhong, who spent 14 years at Nvidia, including roles as global vice president and Greater China general manager, the company is now among the few domestic manufacturers capable of mass-producing and selling full-function GPUs. It has built a complete chip product matrix covering the cloud, edge, and terminal markets.
Since its listing on the Science and Technology Innovation Board, Moore Threads has accelerated the commercialization of its products. In 2024, it launched the fourth-generation GPU architecture "Pinghu," represented by the S5000 chip, which supports full-precision computing from FP8 to FP64. Based on the S5000, the company also built the KUAE 10,000-card intelligent computing cluster, designed to support training and inference of ultra-large models.
To advance product commercialization, Moore Threads has been actively adapting the S5000 chip for domestic AI large models. The half-year report shows it has completed adaptation for models including DeepSeek-V4, MiniMax M3, and GLM-5.2. In July, it quickly adapted to new models like Kimi K3 and Minmax H3.
Strong demand for full-function GPUs, combined with the accelerating commercialization of the KUAE cluster, drove Moore Threads' revenue growth in the first half. In March, the company announced it had signed a product sales agreement worth 660 million yuan, with the KUAE cluster as the main product.
Despite revenue growth, Moore Threads turned to a loss in the second quarter, driven by a decline in gross margin and rising R&D expenses. In the first half, gross margin was about 56.95%, down 12.2 percentage points year-on-year, and below the Q1 figure of 67.35%. According to a research report from Guotai Junan Securities, the margin decline was mainly due to rising raw material prices in the semiconductor industry. In the first half, multiple wafer foundries raised quotes for mature process nodes, and packaging and testing firms also increased prices, pressuring downstream chip companies.
R&D expenses also grew, reaching 769 million yuan in the first half, up about 38.16% year-on-year. However, due to faster revenue growth, the R&D expense ratio fell to 44.30%, from 79.33% in the same period last year. Moore Threads is investing heavily in R&D, not only strengthening its existing architecture but also developing the next-generation "Huagang" architecture, with chips named "Huashan" and "Lushan" for AI training and inference, and high-performance graphics rendering, respectively.
At the MUSA developer ecosystem conference in December last year, Moore Threads unveiled the fifth-generation "Huagang" GPU architecture, which supports full-precision computing with significantly improved compute density and efficiency. Based on this architecture, the company plans to launch the "Huashan" chip for high-performance AI training and inference, and the "Lushan" chip for high-performance graphics rendering.
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