Shares of DEEPEXI TECH (01384) climbed over 9% intraday before settling up 5.96% at HK$35.20 during the morning session, with turnover reaching HK$163 million. The stock's rally followed the release of the company's interim report on August 28.

According to the 2026 interim results, DEEPEXI TECH generated total revenue of RMB 284 million in the first half, marking a 115% year-on-year increase. The core AI business, specifically the DeepexiOS AI-grade enterprise operating system platform solutions, contributed RMB 226 million in revenue, surging 209.2% compared to the prior year period. The share of AI business in total revenue climbed from 55.3% to 79.6%.

The company also reported that its adjusted net loss narrowed by 48.5% year-on-year in the first half. Notably, the second quarter alone turned to profitability, with net profit of approximately RMB 30.1 million, while operating cash flow turned positive during the April-June period. These metrics indicate meaningful improvements in both profitability and cash generation, reflecting a substantial enhancement in earnings quality.

Encouragingly, the sustainability of the company's revenue growth is corroborated by its order book. As of the end of the reporting period, cumulative outstanding orders stood at around RMB 289 million, providing a safety margin for continued high revenue growth in the second half of the year.

Industry observers suggest that as artificial intelligence becomes more deeply integrated with the real economy, enterprise-level AI is transitioning from technological validation to a phase of creating value at scale. With its single-quarter profitability achievement, robust order backlog, and continued penetration into leading manufacturing clients, DEEPEXI TECH is well-positioned to accelerate toward a stage of scaled profitability.