Deepexi Technology Issues Positive Profit Alert for FY2025

Deepexi Technology Co., Ltd. (Stock code: 1384) has released a positive profit alert for the year ended December 31, 2025, signaling notable improvements in its financial performance and operational trajectory. This announcement, issued in compliance with Hong Kong Stock Exchange regulations, provides preliminary but significant insights for investors and shareholders.

Key Highlights from the Profit Alert

• Substantial Revenue Growth Expected: Deepexi projects its revenue for the 2025 reporting period to range between RMB 400.8 million and RMB 425.1 million. This represents a robust increase of approximately 65% to 75% compared to 2024. The main driver behind this surge is a significant expansion in revenue from its FastAGI enterprise AI solution, which is anticipated to grow by over 175% year-on-year. The company attributes this growth to increased investments in computing power and R&D for FastAGI throughout 2024, leading to a strong product base and market penetration in 2025.
• FastAGI Adoption Accelerates: The FastAGI enterprise AI solution has become a cornerstone of Deepexi’s growth, with its industrial generative AI applications gaining traction across sectors such as consumer goods, manufacturing, healthcare, and transportation. The company reports that FastAGI has achieved stable, high-quality, and replicable deployment, indicating growing market recognition and adoption.
• Net Loss Narrows Considerably: Despite the rapid revenue growth, Deepexi still expects to record a net loss between RMB 904.5 million and RMB 964.5 million for 2025. However, this anticipated net loss marks a reduction of more than 23% compared to the same period in 2024. The shrinking deficit is primarily credited to improved operational performance stemming from revenue gains.
• Non-operating Expenses Remain a Factor: Deepexi’s net loss continues to be affected by several non-operating expenses, namely:
  • Changes in the fair value of financial liabilities associated with shares with preferential rights
  • Share-based payment expenses
  • Listing-related expenses
• Adjusted Net Loss Shows Strong Improvement: Excluding the above non-operating items, the adjusted net loss for 2025 is expected to be substantially lower, ranging between RMB 24.1 million and RMB 33.7 million—a decrease of about 65% to 75% from 2024. This improvement is mainly due to the company’s higher gross profit, itself a result of top-line growth.
• Upcoming Results and Caution: The figures provided are based on preliminary internal assessments and have not been audited or reviewed. Deepexi will publish detailed audited results by the end of March 2026. Investors are advised to exercise caution when trading the company’s shares given the provisional nature of this announcement.

Shareholder and Investor Considerations

• The expected sharp increase in revenue and significant reduction in net and adjusted net losses may be seen as strong positives for the company’s growth prospects and could serve as price-sensitive information likely to affect share value.
• The impressive uptake and market acceptance of FastAGI solutions in multiple industries may further position Deepexi as a leader in enterprise AI, potentially enhancing its long-term valuation.
• However, investors should note that the company is still operating at a loss, and non-operating expenses—particularly share-based payments and fair value changes—remain a drag on profitability.
• Any further developments, especially in audited figures or changes in non-operating expense structures, may also materially affect share price.

Board Composition

As of the announcement date, the board comprises: Mr. Zhao Jiehui (Chairman, Executive Director, and CEO), Mr. Yang Lei, Dr. Li Qiang, Mr. Cao Lianfei, and Ms. Shi Yi (Executive Directors); Mr. Wang Zhenghao (Non-executive Director); and Dr. Yang Hongxia, Dr. Kong Xianguang, and Mr. Zhang Jielong (Independent Non-executive Directors).

Disclaimer: The information above is based on a preliminary announcement by Deepexi Technology Co., Ltd. The figures are unaudited and subject to revision in the company’s official annual results announcement. Investors are urged to exercise caution and seek professional advice where appropriate. The above does not constitute investment advice.

View DEEPEXI TECH Historical chart here