In the context of surging demand for AI computing power, the ability of domestic GPU companies to deliver earnings and their ongoing fundraising needs have become a key focus for the mid-year reporting season. Moore Threads Technology Co.,Ltd. (688795.SH) recently released its semi-annual report for 2026, posting revenue of 1.736 billion yuan, a 147.42% increase year-on-year. Both its net loss attributable to shareholders and its recurring net loss narrowed by more than 50%, with the improvement driven by AI-fueled demand for GPUs and the accelerated commercialization of its Kuae intelligent computing cluster.
At the same time, the company's inventory at the end of the second quarter surged to 3.55 billion yuan, a four-year high, potentially signaling stockpiling for the traditionally stronger third and fourth quarters. Concurrently with its earnings release, Moore Threads announced plans to list on the Hong Kong Stock Exchange, just about eight months after its debut on the STAR Market. This makes Moore Threads and Metax Integrated Circuits (Shanghai) Co., Ltd. (688802.SH), both domestic GPU makers that listed on the A-share market last December, the latest to announce preparations for a Hong Kong IPO.
Revenue Surges 147% and Loss Narrows by Half
The semi-annual report shows that Moore Threads achieved operating revenue of 1.736 billion yuan in the first half of 2026, a 147.42% increase from 702 million yuan in the same period last year. Its operating costs surged 245.22% to 748 million yuan, a growth rate nearly 100 percentage points higher than revenue growth. The company attributed this cost increase to rising raw material prices in the semiconductor industry. On the profit side, the net loss attributable to shareholders was 11.56 million yuan, narrowing by approximately 259 million yuan year-on-year. The recurring net loss was 151 million yuan, narrowing by about 166 million yuan year-on-year. The significant difference between the two figures is due to the impact of non-recurring items. The disclosure shows that Moore Threads had a total of approximately 139 million yuan in non-recurring gains and losses in the first half, including 88.23 million yuan in government subsidies and 59.52 million yuan from changes in fair value and disposal of financial assets. Excluding the impact of share-based payments, the company's net profit for the first half was 83.53 million yuan, compared to a loss of 165 million yuan in the same period last year, turning profitable.
On a quarterly basis, Moore Threads achieved operating revenue of approximately 999 million yuan in the second quarter, a 35.4% sequential increase from 738 million yuan in the first quarter, with revenue growth accelerating. On the profit side, the company posted a net loss attributable to shareholders of about 40.92 million yuan in the second quarter, compared to a profit of 29.36 million yuan in the first quarter, swinging from profit to loss. The recurring net loss in the second quarter was approximately 96.54 million yuan, an increase of 42.26 million yuan from the 54.28 million yuan loss in the first quarter. Moore Threads focuses on general-purpose GPU chip design and system-level computing solutions. The company has built a full-stack "chip + software + platform" system around its proprietary MUSA unified architecture, covering core scenarios such as AI computing, graphics rendering, and video encoding. Since 2020, Moore Threads has launched five generations of GPU chip architectures (Sudi, Chunxiao, Quyuan, Pinghu, and Huagang), building a product matrix spanning cloud, edge, and terminal devices. While strengthening its existing chip architectures, the company has focused this year on developing the Huashan and Lushan chips under its new-generation "Huagang" architecture. R&D expenses for the first half reached 769 million yuan, accounting for 44.3% of revenue, a 38.16% increase year-on-year. In terms of operating expenses, Moore Threads' selling expenses were 158 million yuan in the first half, up 121.15% year-on-year, mainly due to increased investment in sales team building and customer service. Financial expenses were 29.65 million yuan, up 58.07% year-on-year, primarily due to higher interest expenses from increased bank borrowings. Administrative expenses were 151 million yuan, a slight decrease of 1.08% year-on-year.
Inventory Hits 3.55 Billion Yuan as A+H Share Listing Plan Accelerates
The third quarter is traditionally a peak season for the semiconductor industry. Following the release of the semi-annual results, the market's focus is on the company's performance in the second half. As of June 30, 2026, Moore Threads' book value of inventory stood at 3.55 billion yuan, an increase of about 166.5% from 1.332 billion yuan at the end of 2025, and a sequential increase of about 61.73% or 1.355 billion yuan from the end of the first quarter. Moore Threads explained that the increase in inventory during the first half was due to proactive stockpiling to meet growing market demand and ensure supply chain stability. Additionally, the company recorded an inventory impairment provision of approximately 39.05 million yuan in the first half. The rapid increase in inventory has drawn market attention. In the semiconductor industry, rising inventory is typically seen as a signal of a company's advance preparation for downstream orders. If it is smoothly converted into sales revenue, it could provide strong support for earnings. Moore Threads' current inventory of 3.55 billion yuan is the highest level in the past four years and is roughly twice its first-half revenue. Whether it can be successfully converted into revenue in the second half of the year is a key variable for observing future performance trends.
While releasing its financial results, Moore Threads announced plans to issue H-shares and list on the main board of the Hong Kong Stock Exchange. The company stated that the Hong Kong listing is intended to deepen its international strategy and attract top-tier R&D and management talent. Moore Threads listed on the STAR Market on December 5, 2025, with an issue price of 114.28 yuan per share, issuing 70 million shares and raising approximately 8 billion yuan. The interval between its A-share listing and the planning of a Hong Kong listing is only about eight months. With this, both Moore Threads and Metax, two domestic GPU manufacturers, have initiated H-share issuance plans. Metax is moving faster; it listed on the STAR Market on December 17, 2025, and announced its H-share listing plan on June 12, less than six months after its A-share debut. If the H-share issuance is successful, it will further bolster Moore Threads' cash reserves for R&D. According to the semi-annual report, the company's A-share IPO fundraising projects have all commenced investment, with the "supplement current capital and repay loans" project showing a significantly higher usage rate than other projects. As of June 30, Moore Threads' three major chip R&D projects funded by the IPO—the new-generation autonomous AI training and inference integrated chip R&D project, the new-generation autonomous graphics chip R&D project, and the new-generation autonomous AI SoC chip R&D project—have received investments of 527 million yuan, 520 million yuan, and 156 million yuan, respectively, with progress rates of 22.37%, 22.12%, and 8.36%. The "supplement current capital" project, mainly used for loan repayment, has a planned total investment of 1.006 billion yuan, with a cumulative investment of 780 million yuan, representing a 77.42% usage rate, the highest among all projects. This implies that Moore Threads has at most about 226 million yuan left from the IPO proceeds for supplementing working capital and repaying loans. As of June 30, the company's short-term borrowings and long-term borrowings were 443 million yuan and 2.825 billion yuan, respectively, with non-current liabilities due within one year reaching 240 million yuan. The relatively fast usage of the "supplement current capital and repay loans" funds may be related to the instability of the company's core business's operating cash flow generation. The disclosure shows that the company's net operating cash flow for the first half was -2.169 billion yuan, an outflow about 86% larger than the -1.164 billion yuan in the same period last year, mainly due to a significant increase in operational procurement payments. Cash received from sales of goods and services was 1.526 billion yuan, lower than the operating revenue for the same period, also reflecting that revenue has not yet been fully converted into cash collections. Moore Threads stated that the issuance and listing are still subject to shareholder approval and must obtain filing, approval, or clearance from relevant regulatory authorities, including the China Securities Regulatory Commission, the Hong Kong Stock Exchange, and the Securities and Futures Commission of Hong Kong, so there is significant uncertainty about whether it will ultimately be completed. The company is currently actively discussing with relevant intermediaries, but aside from the board's approval of the relevant resolutions, no other specific details have been finalized.
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