Detailed narrative
Strategic transition to AI agents and robotics
Management characterized 2026 as an important transition year, moving from a traditional internet company into a company enabling AI-agent applications and robotics, and shifting from capability-building into early-stage commercialization. The stated focus is turning AI capabilities into practical products that deliver customer ROI.
Starting this quarter, robotics and others is broken out as a separate reportable segment; historical results previously bundled under 'AI and others' were recast into robotics and others plus Global Enterprise Services. The two growth engines (robotics + cloud/AI infrastructure) reached 38% of Q1 revenue and are targeted to exceed 50% in H2 2026.
Robotics segment performance and commercial focus
Robotics and others revenue rose 175.9% YoY to RMB 51.2M (~19.8% of total), with adjusted operating loss narrowing 57.1% YoY on better operating efficiency and commercial execution. The robotics business targets commercial scenarios with real demand — reception, guide/tour, and intelligent service applications — plus a new smart personal mobility (smart wheelchair) product extending the platform into consumer/healthcare use.
Initial shipments began in Q2 to a leading mobility-products manufacturer and China's leading mobility-scooter manufacturer, with encouraging early feedback, especially strong sales momentum in Europe.
Cloud, AI infrastructure and token consumption
Within Global Enterprise Services, cloud and AI infrastructure services grew (68% YoY per CEO / 58.3% per CFO), contributing ~18% of total revenue, driven by rising demand for AI-related cloud and token-management services. The company works with Google Cloud and AWS to help enterprises access AI models across multi-cloud environments.
Token usage has increased more than 20x since January 2022, exceeding roughly 400 million (units ASR-garbled) in May, and management expects continued growth. An 'Ed Cloud'/'Open Cloud'-type product was referenced as early-stage.
Internet services as profit and cash engine
The legacy Internet services business remained profitable and cash-generative, delivering ~RMB 15.2M adjusted operating profit and providing the financial foundation for AI/robotics investment. Within the segment, internet value-added services grew 8.2% YoY and represented 72.8% of segment revenue, making Internet-service revenue increasingly predictable even as online advertising stayed weak.
Profitability, advertising headwind and balance sheet
Total revenue was roughly flat YoY at RMB 259M. Operating loss widened to RMB 28.3M from RMB 26.5M a year earlier, mainly reflecting lower profitability at Internet and Global Enterprise Services following declines in online advertising and advertising-agency services, plus continued AI/robotics investment.
Management attributed the advertising-agency decline to overseas ad-platform policy changes — an external factor, not weaker customer demand. Global Enterprise Services still earned ~RMB 13.8M adjusted operating profit. The company held ~USD 186M cash and equivalents plus over USD 100M in long-term investments, framed as sufficient flexibility for a disciplined AI/robotics investment approach.
Management's view on robotics-industry structure (Q&A)
The CEO argued the durable competitive barrier is not the model layer (where China-US gaps are ~half a year and not widening) but real-scenario operating capability and client networks that generate proprietary deployment data. He expects no highly versatile/humanoid robot within 2-5 years, favoring specialized vertical mobile robots that grow by accumulating scenario data.
Home robots should be pragmatic — mobility (A-to-B) plus companionship/elder-assistance — because physical-world reliability and picking success rates below 100% impose meaningful cost. Enterprise-AI differentiation, he said, comes from deep user/industry understanding and reorganizing the enterprise around AI, evidenced by more product launches on lower R&D spend.