Xunce shares surge 20% on 389% revenue jump to RMB967 million

Xunce Technology forecast H1 revenue of RMB967 million, up 388.76% from a year earlier, and a swing to a RMB72.51 million net profit.

"The results mark the company's first profitable half-year and confirm the transition from the investment phase to the profit realization phase," the Shenzhen-based company said in its profit alert to the Hong Kong exchange.

Revenue for the six months ended June 30 reached about RMB967.02 million, a record for the period. Net profit attributable to shareholders swung to RMB72.51 million from a loss of RMB89.43 million a year earlier, while adjusted net profit reached about RMB67 million versus an adjusted net loss of about RMB105 million. The company did not disclose an interim dividend.

Management attributed the growth to surging demand for enterprise AI deployment, the build-out of real-time data infrastructure, expansion into new verticals including smart vehicles and the low-altitude economy, the scaling of its token-driven business model and rising overseas contribution. In May, Xunce launched TokenOS, an operating system that converts enterprise data into standardized, priceable scenario tokens, and has signed a memorandum of understanding with a European digital and AI service provider to build a token factory. The company has also partnered with GPU makers Muxi, Tianshu Zhixin and Biren to expand computing-power and data capabilities, and with the Shenzhen Data Exchange and Beijing International Big Data Exchange to lay the compliance groundwork for global expansion.

Shares of Xunce jumped 19.81 percent to HKD124 on July 31, after opening 14.98 percent higher and touching a session peak of HKD130.7, with turnover of 3.81 million shares worth HKD468 million. The stock carries a market value of about HK$27.76 billion. The company, which listed in Hong Kong in January, plans to publish detailed interim results in August.

The profit turnaround reflects a shift from project-based revenue to a token-call-volume model that management says carries higher margins. Investors will watch the August interim report for segment margins and the pace of token commercialization across its eleven industry verticals, as Beijing's 15th Five-Year Plan prioritizes research into models, computing power and data.

This article is for informational purposes only and does not constitute investment advice.