[Top 100 Insights] Q2 turns profitable, AI commercialization accelerates; Deepex Technology (01384.HK) surges over 12%

Recently, Deepex Technology Co., Ltd. released its interim report for the six months ended June 30, 2026. In the first half of the year, the company's revenue scale expanded significantly, with its AI-grade enterprise operating system platform solutions becoming the core growth driver. Profitability improved markedly, as the company achieved profitability in the second quarter alone and saw operating cash flow turn positive, marking substantial progress in the commercial implementation of industrial AI.

On August 31, Deepex Technology staged a strong rebound. By the close, shares rose 12.52% to HK$37.38, bringing the market capitalization to HK$13.04 billion.

In the first half of the year, the Group generated revenue of RMB 284 million, a 115.0% increase from RMB 132 million in the same period last year. The revenue growth was primarily driven by the DeepexiOS AI-grade enterprise operating system platform solution, an upgrade from the original FastAGI enterprise-level artificial intelligence solution. This business segment generated revenue of RMB 226 million, up 209.2% year-on-year, accounting for 79.6% of total revenue.

The other major business segment, FastData enterprise-level data intelligence solutions, generated revenue of RMB 58.04 million, a slight decrease of 1.7% year-on-year. As of the end of June, the Group's cumulative backlog of uncompleted orders stood at RMB 289 million, providing support for future performance.

In terms of downstream customer industry distribution, the industrial sector contributed RMB 168 million in revenue, accounting for 59.1% of total revenue. Within this, the manufacturing sector generated RMB 155 million, representing 54.5% of the total, making manufacturing the company's core application scenario.

The Group achieved a gross profit of RMB 160 million in the first half of the year, a year-on-year increase of 120.5%. The overall gross margin was 56.5%, an improvement of 1.5 percentage points from 55.0% in the same period last year.

By business segment, the gross margin for the DeepexiOS AI-grade enterprise operating system platform solution rose to 57.2% from 55.2% in the same period of 2025, with improved profitability driven by higher delivery efficiency. The gross margin for the FastData enterprise-level data intelligence solutions was 53.6%, compared to 54.8% in the same period last year, remaining largely stable.

The company's R&D expenditure in the first half of the year amounted to RMB 72.13 million, a year-on-year increase of 23.8%. The company increased its investment in computing power, enterprise agent platforms, self-developed enterprise large models, ontology datasets, and skill modules.

In the first half of the year, the Group's total loss for the period and comprehensive loss totaled RMB 31.92 million, a significant narrowing from RMB 308 million in the same period last year. Notably, the company turned a profit in the second quarter alone, with net profit reaching RMB 30.10 million. Revenue in the second quarter grew 326.6% quarter-on-quarter, driving the reversal to profitability.

Looking ahead, Deepex Technology stated that the focus of competition in enterprise-level AI is shifting continuously from competing on model parameters to implementing solutions in real enterprise business processes. Multi-agent collaboration and the orchestrator-executor model will become important directions for industrial AI. The company will continue to iterate the DeepexiOS platform, focusing deeply on the manufacturing, retail, scientific research, and public utility sectors. By centering on permission control, audit trails, human review, and security governance, the company aims to embed agents into existing enterprise business systems, accelerating the transition of AI solutions from pilots to scaled commercial deployment.

Notably, as a popular AI stock in the Hong Kong market, it remains to be seen whether Deepexi Technology will gain favor from the judging panel of the Top 100 Hong Kong Stocks Research Center and secure a spot on the candidate list for the 13th edition of the Top 100 Hong Kong Stocks ranking. It is understood that preparations for the 13th Top 100 Hong Kong Stocks selection are now underway, with nomination channels for candidate lists officially open.

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