Shangtang-W (00020) announced interim results. Profit attributable to shareholders was 607 million yuan, and generative AI revenue increased 28.2% year over year

According to the Zhitong Finance App, Shangtang-W (00020) announced results for the six months ended June 30, 2026. The Group achieved revenue of RMB 2,910.9 billion, an increase of 23.4% over the previous year; profit attributable to the company's equity holders was 607 million yuan. Among them, generative AI revenue was RMB 2,327.2 billion, up 28.2% year on year, and its share of the Group's revenue continued to rise to 79.9%, reflecting that “a set of models, a token factory, and a set of intelligent management and control systems” is being rapidly transformed into large-scale model services, token services, and smart applications. Visual AI's revenue was RMB 496.8 million, up 13.9% year on year. After experiencing optimization of business strategies, it resumed healthy growth and continued to play an important role as an entry point for the company into the industry and overseas markets. Overseas business revenue increased 127.0% year on year, far higher than the Group's overall growth rate, reflecting that the company is relying on mature visual AI capabilities, unified multi-modal models and localized delivery systems to expand system-level AI capabilities to a wider range of regions and customer groups.

The Group disclosed recurring revenue (RR) for the first time. The RR for the first half of 2026 was RMB 1,1447 million, up 124.4% from RMB 510.1 million in the first half of 2025, accounting for 39.3% of the group's revenue, and a significant increase from 21.6% in the first half of 2025. RR refers to revenue with continuous renewal attributes based on contracts already in effect during the reporting period. The rapid growth of RR reflects the evolution of cooperation between the company and customers from single project delivery to continuous service and in-depth workflows, and further increases the sustainability and predictability of the company's revenue.

The Group achieved gross profit of RMB 1,2006.2 billion in the first half of 2026, an increase of 32.9%; gross margin was 41.4%, an increase of 2.9 percentage points over the previous year. This performance is the result of the company's continuous optimization of the business structure and project quality, and continuous improvement of delivery quality and efficiency through joint optimization of models and infrastructure, improvement of token production efficiency, product standardization, and reuse of underlying capabilities. As the unified capability system serves more customers, users and tasks, the company's early investment in technology and infrastructure is gradually unleashing scale effects.