DEEPEXI TECH (01384) saw its share price climb more than 15% during the morning session on Thursday. As of the latest update, the stock was trading up 14.09% at HK$39.04, with turnover reaching HK$274 million.

Market sentiment was buoyed by the company's recently released interim results, which showed that DEEPEXI TECH generated revenue of RMB 284 million in the first half of the year, representing a substantial 115% year-on-year increase. The core AI business, comprising the DeepexiOS AI-grade enterprise operating system platform solutions, contributed RMB 226 million in revenue, surging 209.2% compared to the same period last year. As a result, the AI segment's share of total revenue rose from 55.3% to 79.6%.

Notably, the company achieved a net profit of approximately RMB 30.1 million in the second quarter alone, successfully turning the corner to profitability. Gross margin improved from 55.0% to 56.5%, reflecting ongoing enhancements in earnings quality. Meanwhile, the adjusted net loss narrowed significantly by 48.5% year-on-year, and operating cash flow also turned positive in the second quarter.