Phancy Group Co., Ltd. reported revenue of RMB 3.77 billion for the six months ended 30 June 2026, up 43.40% year-on-year, driven by an eight-fold increase in API sales to RMB 463.90 million. Net profit swung to RMB 128.35 million from a RMB 73.89 million loss in the prior-year period, marking the company’s first interim profit since listing.
\n\nThe core AI Platform remained the largest contributor, generating RMB 3.09 billion, a 30.00% rise versus 1H 2025. Gross profit expanded 24.50% to RMB 1.23 billion, though gross margin eased to 32.80% from 37.70% due to higher computing costs. Agentic AI revenue grew 4.90% to RMB 213.70 million.
\n\nResearch and development expenditure reached RMB 1.21 billion, equal to 32.10% of revenue, underpinning continued investment in HAMi vGPU and ModelHub technologies. Operating profit totalled RMB 136.42 million versus a RMB 84.88 million operating loss a year earlier.
\n\nTotal assets increased to RMB 12.13 billion from RMB 9.29 billion at end-2025, while total liabilities rose to RMB 2.99 billion, reflecting expanded borrowings of RMB 1.66 billion. Cash, equivalents and deposits stood at RMB 1.57 billion; the current ratio was 2.7. The gearing ratio climbed to 18.40% from 2.70%.
\n\nPhancy raised approximately HK$1.56 billion through an April 2026 H-share placing and repurchased 0.75 million H-shares for HK$30.38 million during the period; 0.19 million shares were subsequently cancelled. The company intends to use placing proceeds mainly for heterogeneous AI computing infrastructure, global expansion and potential acquisitions.
\n\nDuring the half, Phancy consolidated Shenzhen Wake UP Technology Co., Ltd. after lifting its stake to 84.58%, recognising RMB 289.91 million of goodwill. It also gained control of Beijing Paradigm AI Fund, adding RMB 278.32 million of fair-value investments. These transactions contributed a combined RMB 31.88 million remeasurement gain.
\n\nThe board confirmed plans for an A-share IPO on the ChiNext Market and is pursuing full circulation of 53.16 million domestic shares into H-shares, pending regulatory approvals.
\n\nLooking ahead, management highlighted continued focus on scaling the Token Factory, sustaining R&D intensity and balancing computing-power investments with profitability, while leveraging China’s “AI+” initiatives and enterprise demand for hybrid AI deployments.
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