Summary of Key Points
In the first half of 2026, the annual reports of four leading domestic GPU manufacturers (Muxi Co., Ltd., Moore Threads, TianShuZhiXin, and Beren Technology) all showed year-on-year revenue growth. However, their profit performances varied: Muxi and TianShuZhiXin turned losses into profits, while Moore Threads and Beren Technology significantly reduced their losses. The growth was primarily driven by the surge in demand from the AI industry. Muxi's turnaround from loss to profit was supported by "book gains" (increases in the value of financial assets), although its cash flow remained negative. Overall, all companies increased their R&D investments, with Muxi and Moore Threads leading the industry in terms of market value.
Detailed Analysis
1. Revenue Growth Across the Board, but Divergent Profit Results
All four companies experienced revenue growth in the first half of the year:
- Largest Scale: Moore Threads (RMB 1.736 billion);
- Fastest Growth: Beren Technology (year-on-year increase of 1997.6%, nearly 20 times);
- Profit Highlights: Muxi (net profit of RMB 612 million) and TianShuZhiXin (RMB 106 million) turned losses into profits for the first time; Moore Threads' loss decreased by RMB 11.56 million (from RMB 271 million last year), and Beren Technology's loss decreased by RMB 377 million (from RMB 1.6 billion last year).
In simple terms, the industry is generally on the rise, but not every company is making money from GPU sales; some are still in the process of reducing their losses.
2. Growth Drivers: Dual Engines of AI Demand and Customer Expansion
GPUs are essential for large AI models and data centers, and the explosive growth of the AI industry in the first half of the year directly boosted demand:
- Moore Threads: The commercialization of its "KuaE Intelligent Computing Cluster" contributed to revenue growth;
- Muxi: Its GPUs have been used in "thousand-card scale clusters" (computing clusters consisting of 1,000 GPUs);
- Beren: It expanded its customer base to top internet companies, large AI model providers, and data centers, securing large-scale orders.
In other words, as AI becomes more popular, GPU sales are not a concern, and the more customers a company has, the more stable its revenue.
3. Muxi's Turnaround from Losses: Mixed Results
Muxi's net profit turned positive, but there are underlying concerns:
- Negative Cash Flow: Operating cash flow was -RMB 1.297 billion, indicating that daily operations cost more than revenue due to insufficient income and slow customer payments;
- Profit from Financial Assets: Gains from changes in fair value (RMB 887 million, accounting for 105% of total profit) came from the appreciation of stocks/bonds purchased by the company, not from GPU sales.
In other words, although Muxi reported a profit on paper, it is still operating at a loss and did not rely on its main business to turn around.
4. Heavy R&D Investments
All companies are investing heavily in R&D to stay competitive:
- Beren: The highest R&D investment (RMB 804 million, year-on-year increase of 40.7%);
- TianShuZhiXin: R&D increased by 23.8% due to chip trial production and the recruitment of additional researchers;
- **Moore Threads (RMB 769 million) and Muxi (RMB 525 million) also saw increases in R&D spending.
This indicates fierce competition in the industry, where only the most technologically advanced companies will survive.
5. Market Value Comparison: Muxi and Moore Threads Lead, with a Gap Between Hong Kong-listed Companies
Market value reflects market confidence:
- **Muxi (RMB 270 billion) and Moore Threads (RMB 250.9 billion) are far ahead;
- **TianShuZhiXin (HK$10.68 billion ≈ RMB 90 billion) and Beren (HK$10.17 billion ≈ RMB 80 billion) lag significantly behind the other two.
In conclusion, investors are more optimistic about the long-term potential of Muxi and Moore Threads, while the Hong Kong-listed companies still need to catch up.
Overall, the domestic GPU industry is growing rapidly thanks to the AI trend. However, the quality of profits and the technical barriers in the industry still need to be monitored. Especially, Muxi's situation, where it turned a loss on paper, should be watched carefully. The continuous increase in R&D investments suggests that competition will become even more intense.