MANYCORE TECH (00068) Mid-term Performance: Revenue from new AI applications surged by 177%, positioning itself as a scarce physical AI target on the Hong Kong stock market.

MANYCORE TECH (00068) has released its first mid-term results report since going public: revenue of 405 million yuan, with a gross margin climbing to a historic peak of 83%. The adjusted net profit stands at 55.42 million yuan, representing a year-on-year increase of 211%, nearly reaching last years total for the entire year. What the market is more concerned about is that in the first half of the year, the companys revenue from new AI applications and products increased by 177% year-on-year. This demonstrates that MANYCORE TECH's strategy for spatial intelligence infrastructure is continuously being implemented, with acceleration in its commercialization process. Chairman Huang Xiaohuang stated: Spatial intelligence is a key piece of the AGI puzzle and a bridge for AI from the digital world to the physical world. Over the past three years, MANYCORE TECH has made significant strides from the application level of spatial intelligence to the underlying technological infrastructure. In the future, we will continue to intensify our investment in the research and development of world models, constantly broaden the application boundaries, and establish ourselves as the water sellers of infrastructure in the spatial intelligence era. I. AI applications have become the second growth curve, positioning itself in the underlying track of physical world digitalization Specifically, the company's professional AI video creation platform, LuxReal, launched in May, integrates the self-developed spatial generation model, SpatialGen, focusing on the long-standing pain point of spatial consistency in AI video that is, maintaining logical coherence and physical rules in visuals. In the month following its launch (June), its registered user base saw a month-on-month increase of over 270%, with revenue growing by 470% month-on-month. The dual acceleration in users and paying customers confirms the initial establishment of product-market fit (PMF). This also serves as a typical example of how spatial intelligence, as a foundational capability, enables new scenarios. Additionally, in the first half of the year, orders from SpatialVerse, which serves physical AI training, exceeded last years total. SpatialVerse has established partnerships with domestic physical AI companies such as Siasun Robot & Automation, Galaxy Universal, Qunche Intelligent, Hesai, and has formed close industrial and academic collaborations with several overseas tech giants. The core value of this product lies in generating "high-fidelity, physically accurate synthetic virtual data," which is currently one of the scarcest "fuels" in world models and embodied intelligence training. Unlike language models that rely on internet text, physical AI requires vast amounts of 3D environment data compliant with mechanics, optics, and collision rules, and the many years of accumulated 3D data, reconstruction, and generation capabilities of MANYCORE TECH constitute a first-mover advantage and competitive barrier in the era of physical AI. The strategic significance of this business lies not in short-term revenue but in positioning itself in the "data infrastructure" for the next generation of AI, as MANYCORE is penetrating this more foundational track of physical world digitalization. Furthermore, the company has integrated foundational capabilities such as spatial reconstruction, spatial generation, spatial editing, and spatial understanding into the Aholo spatial intelligence platform, making them available externally in the form of products and models, breaking industry limitations, and further enabling spatial intelligence across various sectors including entertainment media, agent training, cultural heritage and tourism, industrial twins, gaming, and spatial design. II. The computing power-model-application flywheel accelerates, potentially being included in the Hong Kong Stock Connect in early September Supporting this is the company's "computing power-model-application" full-stack architecture. MANYCORE TECH has built its own GPU cluster, processing approximately 12.9 million computing tasks daily in the first half of the year, forming the foundation of its computing power. During the reporting period, the companys capital expenditure grew by 124% year-on-year, a signal viewed by some short-term investors as profit erosion, but from a strategic perspective, it is precisely the necessary choice of "computing power first." In terms of models, in May, the companys spatial intelligence large model completed filing for generative AI service compliance, becoming one of the first spatial large models in the country to achieve compliant registration. Recently, MANYCORE TECH launched the 3D generative model Lux3D, initiating internal testing of the next-generation world model product, further enriching its model matrix. Currently, the AI track in the Hong Kong stock market is concentrated on large language model applications, and the "3D explicit route" world models that MANYCORE has opened up provide the market with a scarce differentiated asset. The company disclosed for the first time its "average daily token consumption" 2.4 billion. Although this figure may not seem substantial yet, its rapid increase indicates that whether for internal products or external API calls, the model inference layer is forming a large-scale traffic entrance. This corresponds to the "water sellers" logic at the infrastructure layer of MANYCORE: serving not only as a technical foundation for internal products but also providing computing power, models, and data services for all enterprises needing spatial intelligence capabilities. If the token billing model succeeds, it will become another revenue engine following software subscriptions. From computing power to models to applications, data accelerates layer by layer within the flywheel. The company's CFO, Shen Bei, summarizes it as a self-reinforcing cycle: "Applications generate massive 3D data; data feeds back into model training; models further empower products." In the capital markets, MANYCORE TECH has recently been officially included in the Hang Seng Composite Index, with related adjustments taking effect from September 7, 2026. Inclusion in the Hang Seng Composite Index is a core prerequisite for entry into the Hong Kong Stock Connect, which means that passive fund allocation and improved liquidity will simultaneously follow. Of course, risks also exist: spatial intelligence is still in the early stages of industry development; the token business model needs to validate scalability and willingness to pay; competition from overseas giants in the field of world models is intensifying. However, at the current juncture, MANYCORE TECH has demonstrated with solid performance that spatial intelligence is no longer a distant vision but is transforming into a quantifiable, compounding, and praiseworthy commercial reality. For the Hong Kong stock market, this may represent the true scarce value of being "the worlds first stock in spatial intelligence."