Sealand Securities Co.,Ltd. released a research report noting that PHANCY (06682) announced its Q1 2026 business performance on May 22, achieving revenue of RMB 14.58 billion, a year-on-year increase of 35.4%, with a gross margin of 35.1%. Against the backdrop of rising Token demand and increasing pressure on computing power supply, the company currently maintains relatively stable delivery efficiency. The company is strengthening its integrated capabilities in "domestic computing power adaptation + model optimization + Token efficiency improvement," which helps enhance customer stickiness and platform barriers. The main views of Sealand Securities are as follows:
Q1 2026 revenue continues high growth, with Token calls rapidly scaling up. (1) Financial Performance: Q1 2026 revenue maintained rapid growth, and gross margin improved sequentially. The company achieved operating revenue of approximately RMB 14.58 billion in Q1 2026, a year-on-year increase of 35.4%. The gross margin was 35.1%. The rising demand for enterprise-specific AI deployment, security, stability, and data protection has driven growth in platform-based business demand, leading to a sequential gross margin improvement of 2 percentage points. This indicates that, despite increasing Token demand and computing power supply pressures, the company can still maintain relatively stable delivery efficiency. (2) API Business: Token call volume is expanding rapidly, and the commercialization demand for APIs is accelerating. In Q1 2026, the company's API Token call volume approached six times that of Q1 2025 and exceeded the total call volume for the full year 2025 by nearly 40%. Concurrently, the company's available computing power resources increased by over 200%, helping to alleviate supply pressure from the rapid growth in Token demand.
AgenticAI Business: Order backlog nearly doubled, business enters accelerated implementation phase. As of Q1 2026, the number of the company's AgenticAI orders in hand increased by 99% compared to the end of 2025. The bank believes the core change in the company's AgenticAI business currently lies in the rapid accumulation of order volume. The subsequent focus will be on the pace of order delivery, revenue recognition, and the ability to replicate success in key industry scenarios.
Xinchuang Model Box: Number of models adapted for domestic chips exceeds expectations, strengthening the company's integrated "computing power - model" capability. As of May 22, the Xinchuang Model Box has launched over 70,000 AI models adapted and optimized for domestic chip environments, significantly exceeding the company's previous expectations. The product achieves batch adaptation of domestic chips and models through the EngineX engine. Combined with the support of HAMi vGPU for unified management of multiple chips and fine-grained computing power scheduling, the company is enhancing its integrated capability in "domestic computing power adaptation + model optimization + Token efficiency improvement," which helps strengthen customer stickiness and platform barriers.
PhanthyMovie: Company enters the professional-grade AI video generation platform, opening up incremental Token usage in cultural and creative scenarios. In May 2026, the company launched the professional-grade AI video generation platform PhanthyMovie, focusing on improving the professionalism, controllability, and stability of video creation. Within days of the product launch, it entered into a long-term cooperation agreement with the Huanxi Media Group, involving Token usage cooperation with a total value of approximately USD 200 million. The two parties will also jointly develop a new AI film and television content production platform, indicating that the company's Token commercialization model is expanding from enterprise AI platforms and API calls to AI cultural and creative application scenarios.
Risk Warnings: Risks related to macroeconomic and policy changes; risks of slower-than-expected progress in domestic substitution; risks associated with high customer concentration; risks of accounts receivable collection; risks to the sustainability of revenue growth; risks of loss of core technical talent; risks of intensified market competition; risks of slower-than-expected overseas business expansion; risks related to exchange rate fluctuations.