What happened
For the first half of 2026, Yuegangwan Intelligent Computing reported revenue of approximately RMB 2.56 billion, a year-on-year jump of around 1,020.9%. Net profit reached roughly RMB 281 million, about five times the prior year's full-year profit of approximately RMB 56 million, with the company stressing that the gain came from high-margin core AI operations rather than extraordinary items.
AI-related business generated 93.1% of total revenue, and AI compute technical services alone brought in about RMB 1.52 billion at a gross margin of 35.5%. Management describes the company as a 'large AI intelligent computing technology service provider and ecosystem building platform,' aiming to become a 'Super Token Factory' that increases token output per watt of electricity through a self-developed 'Quantum Pai' scheduling platform for cross-region, cross-chip and cross-cloud heterogeneous compute.
The company's order book reached more than RMB 37 billion in intended orders, with delivered and stable billing scale surpassing RMB 20 billion. It also runs an FP16 dense compute cluster above 50,000 PFLOPS, has received over RMB 1 billion from state-backed investors, and is pushing toward a 100,000-card-scale cluster while expanding into applications such as the 'Lingzhi' AI comic drama platform.
Why it matters
The sharp rise in revenue and margin suggests that compute providers can move beyond selling cabinets or raw GPU hours. With GPU utilization in China's intelligent computing cloud market below 30%, Yuegangwan's bet is that standardized, per-token services can make fragmented heterogeneous resources more efficient and more commercially viable. Its high gross margin and multi-year order backlog show a path from heavy infrastructure investment to operationally leveraged profitability.
The company's strategy also ties scale to financing power: state capital, large credit lines and lower borrowing costs form the foundation for its next expansion stage. However, the same ambition magnifies execution risk. The report explicitly highlights the challenge of building and operating a 100,000-card cluster, potential supply-chain disruption from overseas geopolitics, and the speed of AI technology evolution as factors that could affect the story.
Key facts
In 2026 H1, revenue rose about 1,020.9% year on year to roughly RMB 2.56 billion, and profit reached about RMB 281 million.
AI business accounted for 93.1% of revenue, with AI compute services revenue of about RMB 1.52 billion and a 35.5% gross margin.
Intended orders stood above RMB 37 billion, stable billed scale exceeded RMB 20 billion, and the FP16 dense compute cluster surpassed 50,000 PFLOPS.
What to watch next
Whether Yuegangwan can deliver on the move to 100,000-card scale without eroding utilization rates or gross margin.
How overseas expansion in Southeast Asia and Northeast Asia progresses, including the use of Hong Kong's 'super connector' role and exposure to geopolitical supply chain risk.
A possible 2027 Stock Connect inclusion and broader international capital access after the February 2026 entry into the MSCI China Small Cap Index.