Xiechuang Data H1 profit jumps 331% on AI computing demand

Xiechuang Data reported H1 revenue of 12.64 billion RMB, up 156% year over year, as AI computing power demand surged.

"The scale delivery of computing power business was key to the rapid growth in revenue and profit," the Shenzhen-listed company said in its earnings statement.

Net profit attributable to shareholders jumped 331% to 1.86 billion RMB, while non-GAAP profit rose 343% to 1.86 billion RMB. Earnings per share reached 3.85 RMB, and weighted average return on equity climbed to 34.68%, up more than 22 percentage points from a year earlier. Total assets nearly doubled to 48.11 billion RMB from the start of the year.

The results make Xiechuang Data a direct beneficiary of China's AI infrastructure buildout, a theme that also lifted Lenovo's first-quarter revenue 43% and fueled demand for Nvidia-powered servers as large-model inference accelerates. The company is extending from equipment supply toward a fuller AI computing service model, with computing clusters, server remanufacturing, and data storage forming a coordinated business.

AI computing power products and services were the primary growth engine. The company expanded investment in computing cluster construction, delivery, and maintenance, improving project efficiency through supply-chain coordination and quality management. As large-model iteration and inference demand grow, the computing business scaled rapidly.

Server remanufacturing benefited from rising prices for servers and key components. Xiechuang Data's recovery, testing, repair, and component-reuse capabilities released value from existing equipment, turning higher input costs into a profit tailwind. Data storage, anchored by long-term agreements with strategic customers and stable pricing, provided a steadier base and strengthened coordination with the computing business.

The balance-sheet expansion deserves attention. Total assets of 48.11 billion RMB, up 102% from the start of the year, signal that receivables, inventory, and project investment are scaling with the computing business. Equity attributable to shareholders rose 38.6% to 6.09 billion RMB, though per-share net assets eased to 12.44 RMB from 12.69 RMB after a capital-reserve share conversion.

The profit growth outpacing revenue points to profit elasticity as AI computing deliveries scale. Investors will watch whether the company sustains this margin trajectory through the second half, when large-model inference demand typically accelerates.

This article is for informational purposes only and does not constitute investment advice.