AI X Tech Turns to Profit in 1H 2026 as Cost Cuts Offset Softer Advertising Sales

Bulletin Express
Yesterday

AI X Tech reported a solid turnaround for the six months ended 30 June 2026, posting net profit of RMB 16.99 million versus a RMB 1.77 million loss a year earlier. Basic and diluted earnings per share rebounded to RMB 0.014 from a loss of RMB 0.002.

Revenue edged up 3.5% to RMB 68.67 million. The core Online Advertising segment contracted 10.4% to RMB 57.78 million, but this was more than offset by a surge in Integrated Marketing Services, which expanded to RMB 10.89 million from RMB 1.87 million a year ago.

Cost discipline underpinned the earnings recovery: • Selling & distribution expenses fell 39.1% to RMB 17.98 million. • Administrative costs declined 18.1% to RMB 7.99 million. • R&D spending dropped 65.2% to RMB 2.36 million as the company moved from intensive development to maintenance of its AI platform. Gross profit rose 2.2% to RMB 44.69 million, with gross margin easing slightly to 65.1% (1H 2025: 65.9%).

Other income and gains more than doubled to RMB 8.85 million, driven by higher fund-management returns. Conversely, other expenses climbed to RMB 6.39 million, mainly reflecting foreign-exchange losses.

The balance sheet remains healthy. Cash and cash equivalents stood at RMB 228.33 million as of 30 June 2026, supporting a current ratio of 7.9 times (31 December 2025: 6.6 times). Net assets increased to RMB 549.43 million from RMB 532.43 million at year-end 2025. The company remains debt-light with no bank borrowings and a gearing ratio of 14.6%.

Investment activity included the disposal of the Ruibo Fund stake for RMB 21.00 million, resulting in a loss of RMB 1.16 million and the removal of RMB 22.16 million in related financial assets from the balance sheet.

No interim dividend was proposed.

Management reiterated focus on a “technology + content” model, highlighting full deployment of its AIGC tool “AI X” to enhance advertising conversion and cost efficiency. Strategic priorities for the second half include deepening the AI-enabled content ecosystem, strengthening AI-native capabilities and exploring industry-chain partnerships and investments.

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