WENGE AI (01956) has issued an announcement. Based on the board's preliminary assessment of the unaudited consolidated management accounts for the six months ending June 30, 2026 (the reporting period) and information currently available, the group expects to achieve revenue growth and a narrowed loss. Key performance indicators are as follows:
Revenue growth: For the six months ending June 30, 2026, the group expects to record revenue of approximately RMB 170 million to RMB 175 million, representing a year-on-year increase of approximately 44% to 48% compared to RMB 118.29 million for the six months ending June 30, 2025.
Loss narrowing: For the six months ending June 30, 2026, the group expects a net loss of approximately RMB 87 million to RMB 89 million, narrowing by approximately 23% to 25% year-on-year; adjusted net loss (non-IFRS measure) is expected to be approximately RMB 52 million to RMB 54 million, narrowing by approximately 28% to 31% year-on-year.
Improved operational efficiency in Q2 2026: The group expects a net loss of approximately RMB 22 million to RMB 24 million for the second quarter of 2026, a decrease of approximately 63% to 66% compared to the first quarter of 2026; the adjusted net profit for the second quarter of 2026 is expected to be approximately RMB 1.4 million to RMB 3.4 million, achieving a positive quarterly adjusted profit.
During the reporting period, the group's revenue growth was primarily driven by the following factors: (i) Accelerated commercialization of AI large models and decision platforms: As corporate demand for enterprise-level artificial intelligence (AI) decision-making and data analysis continues to grow, the group has continuously improved its product and technology system based on the DOMA (Data, Ontology, Model, and Agent) architecture. With the deepening application of the general decision-making large model (Decitron) and the AI4Science domain's scientific foundation model (ScienceOne) in key industries and customer scenarios, the alignment between customer demand and the group's product capabilities has improved, driving sustained growth in related business scale; (ii) Extended business scenarios and customer coverage: The expansion of new customers and the deepening of existing customer demand jointly promote the deployment and application of the platform in business scenarios such as business intelligence and industrial intelligence; and (iii) Increased proportion of subscription and API revenue: Customer usage patterns have shifted from project deployment to continuous subscription and API calls, with increased usage of subscription-based platform services and API services, driving related revenue growth.
During the reporting period, the group's loss narrowed year-on-year, and the group expects to achieve a positive adjusted net profit in the second quarter of 2026, primarily due to: (i) Increased gross profit contribution from the platform: As the standardization level and capability reuse rate of the AI decision platform improve, platform deployment efficiency is optimized, and the coverage of operating expenses by gross profit has further improved; (ii) Emergence of operating leverage effects: While maintaining R&D investment, the group has optimized organizational coordination and resource allocation, with sales expense ratios and management expense ratios declining, gradually improving operational efficiency; and (iii) Optimized cost and expense structure: The expansion of business scale and the effectiveness of cost control measures have driven improved operational efficiency in the second quarter, achieving a positive quarterly adjusted net profit.