Z.ai Reports Revenue Growth and Narrowed Losses for First Half

Revenue for the six months ended June 30 rose to 953.89 million yuan (US$142 million). Full-year sales were expected to expand 514 per cent from last year’s 724.3 million yuan, according to consensus estimates from analysts polled by Bloomberg.

Total loss for the six months ended June 30 narrowed 12.1 per cent to 2.07 billion yuan, while adjusted net loss increased 12.1 per cent to 1.96 billion yuan.

Shares of Hong Kong-listed Z.ai closed up 9.63 per cent at HK$1,195 on Monday ahead of the earnings release. The stock remains down about 60 per cent from its record high of HK$2,980 reached in June, when the company’s market capitalisation briefly approached HK$1 trillion (US$127.5 billion).

Top-line performance in the first half was primarily driven by cloud-based deployment services, where revenue jumped 2,736 per cent year on year to 825 million yuan from 29 million yuan.