Ingdan H1 Profit Jumps 27% on IoT Demand

HONG KONG SAR - Media OutReach Newswire - 29 August 2025 - Ingdan, Inc. ("Ingdan, Inc." or the "Company", stock code: 400.HK; with its subsidiaries (the "Group")) - an application solution platform based upon artificial intelligence ("AI") chips, with its core businesses "Comtech" and "Ingdan" – announces its unaudited interim results for the six months ended June 30, 2025 (the "First Half of 2025" or the "Period").

Financial Highlights for the First Half of 2025

During the Period, benefiting from continued strong demand for AI computing power and growing demand for chips from industries related to AI technology, the Group recorded revenue of approximately RMB6,676.5 million, representing an increase of approximately 54.5% as compared to approximately RMB4,321.4 million for the corresponding period in 2024. Gross profit was approximately RMB585.9 million, representing an increase of approximately 28.0% year-on-year, primarily due to the increase in revenue. Profit from operations was approximately RMB275.6 million, representing an increase of approximately 20.8% year-on-year. Profit attributable to equity shareholders of the Company was approximately RMB132.1 million, a year-on-year growth of 17.2%.

As of June 30, 2025, the Company's cash and bank balances (including pledged deposits) totalled approximately RMB1,626.8 million; bank loans were RMB2,561.2 million; the inventory value was RMB4,877.3 million; the number of basic ordinary shares issued by the Group was 1,644,262,732, and the weighted average number of ordinary shares of diluted earnings per share was 1,544,335,000.

Business Review

During the Period, with deep insights into chip characteristics upstream and industry needs downstream, the Group developed mature application solutions for frontier sectors such as robotics, auto pilot, and the low-altitude economy, helping customers lower their technical barriers and accelerating product innovation. The Group created additional value from "chip selection" to "chip application", providing "ready-to-use" core technology modules. The modules have significantly shortened customers' R&D cycles, allowing them to focus on the differentiated innovation of their applications, and to capture early opportunities in the market. Meanwhile, the Group deeply integrated AI technology into its internal operations, achieving intelligent upgrades across our core business processes from marketing and customer acquisition, to supply chain management, which has so far effectively improved operational efficiency.

In terms of the business model, the Group has established a unique closed-loop business model and accomplished a strategic evolution from "chip selling" to "technology integration". The Group provides customers with efficient supply chain services, in-depth technical solutions, and customized products.

The Group leverages its industry ecosystem to integrate transaction data from all resources, including chips, software, and professional services, empowering the entire value chain both upstream and downstream. Additionally, the Group is providing customized solutions to downstream clients, while providing market demand data to upstream chip suppliers, forming a highly efficient and unique closed-loop business model. This model effectively strengthens our customer loyalty and builds a solid competitive barrier, making it a core driver of the Group's sustainable development.

Comtech: Advancing AI Computing Power Supply Chain, Comtech Drive Innovation and Operational Excellence

As a core supplier in the AI computing power supply chain, Comtech serves a broad spectrum of sectors, including computing centers, data centers, AI servers, AI switch networking products, optical modules and a wide range of AI applications. Comtech works closely with global leading chip manufacturers and has been an agent for the products of over 80 core chip companies, including Nvidia, Xilinx, Intel, AMD, ST, and other well-known international manufacturers, as well as numerous domestic chip makers.

With years of successful business operations, Comtech has accumulated extensive application technology experience and industrial resources, enabling it to provide chip application technology solutions and supply chain management services to tens of thousands of customers downstream of the innovation industry. At the same time, with the help of proprietary AI technology, LLMs, and professional knowledge bases, Comtech is providing intelligent and automated solutions in the areas of chip selection, hardware design, software development, and system integration. By utilizing AI technology and big data analysis, Comtech has achieved intelligent management of the supply chain, significantly enhanced operational efficiency while reduced costs. Additionally, Comtech holds a number of proprietary intellectual properties, giving it a competitive advantage in the fields of AI chip application and intelligent supply chain.

In addition, the Group has applied to the Shenzhen Bureau of the China Securities Regulatory Commission for pre-listing guidance regarding the proposed spin-off and proposed A-share listing of Comtech. The application has been accepted on the record. Upon completion of the Proposed Spin-off and Proposed A-share Listing, the Group will remain the ultimate controlling shareholder of Comtech, and its results will continue to be consolidated into the Group, being expected to generate long-term growth for the Group's business.

Ingdan: Targeting the New Energy Industry, Ingdan Academy Empowers the Chip Industry with AI and Digital Solutions

Bolstered by supportive national policies, the scientific research sector has increasing need for domestic computing power. Ingdan has seized the opportunity, and expanded its presence by providing high-performance adaptable hardware and dedicated domestic solutions, along with comprehensive, lifecycle technical maintenance. Ingdan has also integrated "hardware + software + service" into a closed-loop, one-stop service that fully meets our customers' needs. Meanwhile, through deep collaboration with Huawei and leveraging the Ascend 910 chip, Ingdan launched the DeepSeek all-in-one workstation to address the core computing power needs of scientific researchers. With the growth of Huawei's Ascend ecosystem, Ingdan will increase its focus on scientific research customers to quickly capture market opportunities in the short term; then leverage this foundation to expand into the broader enterprise market mid-term; and finally, achieve sustainable business growth through deep integration into the industry chain via joint R&D long-term.

Ingdan also focuses on the new energy industry, dedicating efforts to developing the industry for two-wheeler battery replacement and re-utilization, as well as building a reliable asset management platform for traceable lithium battery life-cycle data. Ingdan provides customized solutions for two-wheeler battery replacement, power re-utilization, and energy storage. Ingdan has strategically focused on two-wheeler battery cloud services, aiming to capture the market trend of new energy smart battery clouds. This supports the Group in achieving sustainable profit growth and contributing to advancing product standardisation in China's two-wheeler battery-swapping industry.

Based on the Group's resources and technological strengths in the chip industry, Ingdan Academy provides technical services and talent training for the industry. Through technical training, Ingdan Academy assisted upstream AI chip manufacturers in promoting their products and technologies in the market, while growing AI technical talents to help downstream AI application companies to swiftly adopt the latest AI technologies and products, and enhance enterprises' AI capabilities. Furthermore, Ingdan Academy provides enterprises with locally deployed AI LLM application solutions, and helps enterprises achieve multidisciplinary AI digital transformations. To date, Ingdan Academy has successfully trained over 8,000 chip application engineers. Through talent training and technical support, Ingdan Academy will support Shenzhen as it becomes a leading chip application industry hub in China and globally, making a greater contribution to the development of the national chip industry.

Jeffrey Kang, CEO of Ingdan, Inc., said, "During the Period, we successfully completed our strategic upgrade from a chip trading platform to a technology integration platform, underpinned by robust performance. During this transition, we established an efficient 'customer acquisition-engagement-conversion' business closed-loop, enabling us to serve tens of thousands of innovative enterprises. Our core competitiveness has evolved beyond the confines of a single business, demonstrating the synergistic strengths of our entire system. Moving forward, we will continue to leverage 'infrastructure + value-added services' as our dual engines, transforming data resources into strategic assets. This will further solidify our competitive moat as we progressively become a leading technology service platform for global innovative enterprises, generating long-term and sustainable value for our shareholders."

For further information, please refer to the Company's website at www.ingdangroup.com

The issuer is solely responsible for the content of this announcement.