Shanghai Xizhi Technology Posts RMB3.26 Billion Interim Loss Amid 284% Revenue Surge

Bulletin Express
Sep 24

Shanghai Xizhi Technology reported interim revenue of RMB79.78 million for the six months ended 30 June 2026, up 284.0% from RMB20.79 million a year earlier, driven by strong optical-interconnect demand.

Gross profit expanded to RMB52.52 million, lifting gross margin to 65.8% from 40.0% in the prior-year period.

The IFRS loss widened sharply to RMB3.26 billion, versus RMB346.27 million in first-half 2025, largely reflecting a RMB2.92 billion non-cash loss on fair-value changes of pre-IPO preference shares that automatically converted to ordinary shares at the April 2026 listing.

Excluding share-based payments, fair-value movements and listing expenses, adjusted net loss stood at RMB147.15 million, little changed from RMB131.44 million a year earlier.

Operating expenses rose on accelerated product development: • Research & development outlays more than doubled to RMB349.72 million, representing 438% of revenue. • Selling and marketing costs reached RMB39.50 million, up 86.0%. • General and administrative expenses climbed 124.2% to RMB120.96 million.

Segment performance: • Optical Interconnect revenue soared 275.2% to RMB60.70 million, led by commercial deployment of the LightSphere X GPU supernode solution and overseas sales of Scale-up Electric-to-Pluggable (EPS) products. • Optical Computing revenue advanced 312.9% to RMB19.08 million, underpinned by shipments of the PACE 2 chip and Gazelle evaluation hardware.

Cash and equivalents, including short- and long-term deposits, totalled RMB2.86 billion at 30 June 2026, bolstered by HK$2.74 billion (approximately RMB2.43 billion) of IPO proceeds. The gearing ratio improved to 12% from –127% at end-2025 after conversion of preference shares.

Capital expenditure reached RMB53.11 million; outstanding commitments stood at RMB20.20 million. R&D investment accounted for 70% of IPO proceeds, with HK$1.88 billion remaining to fund future optical-interconnect and optical-computing projects.

Management reiterated expectations to meet the Hong Kong Stock Exchange revenue threshold for Commercial Company status by 2027.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10