Moore Threads Technology Co., Ltd. (688795.SH) released its semi-annual financial report for 2026, revealing a significant boost from surging domestic demand for computing power and the accelerated deployment of large-scale AI computing clusters. The company achieved operating revenue of RMB 1.736 billion in the first half of the year, a substantial 147.42% increase year-on-year. Its net profit attributable to the parent company narrowed dramatically by 95.73% to a loss of RMB 11.56 million, placing it just a step away from reaching a break-even point.
The report indicated that the commercialization of the Moore Threads KUAE computing cluster accelerated, driven by its "full-function GPU" architecture and MUSA software ecosystem. To ensure supply chain stability, the company proactively increased its inventory, resulting in a net outflow of cash from operating activities. The company also announced that it is planning to issue H-shares and list on the Main Board of The Stock Exchange of Hong Kong Limited.
Completion of a Major RMB 660 Million Order Drives Revenue Growth and Loss Reduction
The significant revenue increase was primarily attributed to the accelerated commercialization of the KUAE computing cluster and stable product supply. During the reporting period, a RMB 660 million KUAE computing cluster daily operational sales contract, signed in March, was fully delivered and revenue recognized. On the profit side, the company achieved a gross profit of RMB 989 million in the first half of the year, a 103.78% increase year-on-year, with an overall gross margin of 56.95%. After deducting non-recurring gains and losses, the net profit attributable to the parent company was a loss of RMB 151 million, narrowing by 52.37% compared to the same period last year. With the substantial revenue growth, the company's basic earnings per share improved from a loss of RMB 0.68 in the same period last year to a loss of RMB 0.02.
R&D Spending Exceeds 44% of Revenue, Core Metrics for Large-Scale Clusters Compete with International Standards
In the first half of the year, Moore Threads invested RMB 769 million in research and development, a 38.16% increase year-on-year, accounting for 44.30% of operating revenue. As of the end of the period, the company had 1,019 R&D personnel, representing 74.16% of its total workforce. At the underlying architecture level, the company is focusing on developing the next-generation "Huagang" architecture, which natively enhances hardware-level acceleration for low-precision mixed computing formats like FP8 and FP4, boosting computing density by 50% and computational energy efficiency by 10 times. In terms of engineering implementation, the KUAE 10,000-card computing cluster achieved a Model FLOPS Utilization (MFU) of 60% for dense large model training, 40% for MoE large models, 95% linear scalability across multi-node distributed training, and over 90% effective training time, with several core metrics reaching international mainstream levels. The MUSA software ecosystem continued to mature, with the company completing Day-0 level adaptation for industry-leading large models including DeepSeek-V4, Kimi K3, and Zhipu GLM-5.2 during the first half of the year.
Computing Power Expands to Edge and Terminal Devices, Cloud PC Business Achieves Commercial Deployment in Multiple Provinces
Beyond cloud computing, Moore Threads launched terminal products based on its "Yangtze River" SoC chip, including the MTT E300 edge module, MTT AIBOOK computing device, and the MTT AICUBE home AI hub, supporting local deployment of large models and intelligent agents on the device side. In the cloud PC sector, the core MTT S3000 product supports 32 concurrent streams per card, and through dynamic elastic vGPU partitioning technology, reduces CPU load by 75% and improves rendering performance by 10 times. The company has achieved commercial deployment in multiple provinces and cities in collaboration with leading operators, including China Mobile.
Proactive Inventory Building Increases Stock Levels, Plans for H-Share Listing in Hong Kong
The financial report showed that the company's net cash flow from operating activities in the first half of the year was a negative RMB 2.169 billion, compared to a negative RMB 1.164 billion in the same period last year, primarily due to expanded production scale and increased procurement expenses. As of the end of the reporting period, the book value of Moore Threads' inventory was RMB 3.55 billion, accounting for 20.97% of total assets, an increase of 166.48% from the end of the previous year. Prepayments stood at RMB 1.344 billion. In its report, the company explained that due to changes in the internal and external environment and related policies, it proactively adjusted its supply chain strategy, increasing inventory in response to anticipated market demand growth and to ensure supply chain stability, and made advance payments to upstream suppliers in line with industry practice. During the reporting period, the company recognized an asset impairment loss of RMB 39.0477 million, mainly from inventory write-downs and impairment of contract fulfillment costs. Alongside the release of its semi-annual report, Moore Threads announced it is planning to issue H-shares and list on the Main Board of The Stock Exchange of Hong Kong Limited.
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