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Revenue Up 35.4% Year-on-Year API Token Call Volume Surges Nearly 6 Times

HONG KONG SAR – Media OutReach Newswire – 22 May 2026 – Phancy Group Co., Ltd. (“Phancy” or “The Company”, stock code: 6682.HK), a leading general artificial intelligence company, today announced its unaudited consolidated results for the first quarter ended 31 March 2026.

During the period, Phancy achieved revenue of approximately RMB1.458 billion, representing a 35.4% year-on-year increase. Gross profit margin remained at 35.1%. Phancy leveraged its deep expertise in full-stack AI cloud services, to capitalize on the accelerating adoption of localized computing power and strong enterprise demand for AI solutions. The Company achieved robust growth in its core businesses, accelerated product innovation, and secured several major partnerships, sustaining strong operational momentum.

2026 First Quarter Business Highlights:

Unified Enterprise AI Platform Drives Explosive Core Business Growth

Global computing resources remain constrained, while demand for both private enterprise AI deployments and API-based model calls continues to grow rapidly. Phancy’s enterprise-grade AI platform is built on a unified core architecture that seamlessly supports both API calling scenarios and dedicated private deployments. This significantly boosts AI application efficiency and resource utilization. Supported by a mature computing power supply chain developed over many years, Phancy’s deployable computing power resources have increased by over 200%. This enables the Company to effectively meet surging Token demand and consistently deliver stable, high-quality AI services to its customers.

In the first quarter of 2026, API Token call volume surged nearly 6 times compared to the same period in 2025, and already accounted for nearly 40% of the full-year 2025 total. Meanwhile, the Agentic AI business expanded rapidly, with deepening commercial adoption. Orders on hand grew nearly 100% compared to the end of 2025, emerging as a major growth driver for the Company.

AI Technology Iteration Accelerates, Commercialization Beats Expectations

Building on its continued push into digital employee applications and AI empowerment across business units, Phancy has significantly shortened the product development cycle from R&D to commercialization, enhancing overall operational efficiency and customer satisfaction.

As of mid-May 2026, ModelHub XC has completed adaptation and optimization for over 70,000 AI models on domestic chips, achieving more than 70% of its full-year target – well ahead of schedule.

In May, Phancy launched PhanthyMovie, a professional-grade AI video generation platform designed to enhance creativity, control, and stability in video production, enabling standardized and large-scale content creation for the industry.

Leveraging its advanced technology and proven execution capabilities, PhanthyMovie achieved rapid commercial traction. Just days after launch, the Company entered into a strategic cooperation agreement with Huanxi Media, covering approximately US$200 million in AI Token usage. The two parties will also collaborate on the development of a next-generation AI-powered film and television content production platform, further strengthening Phancy’s position in the AI-driven cultural and creative sector.

Core Products Align Closely with Policy Trends, Strengthening Compute-Model Integration

Since May 2026, China’s AI sector has seen a series of positive policy developments focused on computing infrastructure, data element circulation, and open-source compliance governance. Phancy’s core products, including HAMi vGPU and ModelHub XC, are well-aligned with national policy directions and mainstream industry trends.

In terms of computing resource allocation, policies emphasize cross-regional collaboration and broader access to computing power. Phancy’s HAMi vGPU offers unified scheduling and fine-grained resource partitioning, effectively improving utilization rates, optimizing data center energy efficiency, and supporting unified management across multiple chips to boost single-card efficiency.

In data and model governance, the government continues to promote high-quality dataset development and compliance management. ModelHub XC supports multi-model adaptation and optimization, incorporates data traceability and security certification features to help enterprises reduce compliance risks, and uses the EngineX engine for batch adaptation of domestic chips and models. This significantly improves compatibility while enhancing Token output efficiency through targeted model tuning.

Through deep integration of its computing and model layers, Phancy has built a comprehensive “Compute–Model” integrated solution. This addresses key industry needs such as efficient computing utilization, secure data supply, enterprise compliance, and domestic substitution, while strengthening its technological moat. The Company is well positioned to capture policy dividends and industry opportunities, supporting enterprises in their digital and intelligent transformation.

Hashtag: #PhancyGroup

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

About Phancy Group

Phancy Group (6682.HK) is a leading full-stack AI cloud services platform, providing comprehensive solutions for the AI 2.0 era. Our offerings include SageAIOS, HAMi vGPU and ModelHub XC, delivering efficient and scalable AI infrastructure with end-to-end capabilities. We provide a complete solution from heterogeneous compute resource management and optimization to the deployment of intelligent agent models. These solutions empower digital transformation across a wide range of industries, supporting our vision of building a large-scale and efficient “Token Factory.”

Guided by the mission of “AI for Everyone” and positioned as the “Navigator of AI,” Phancy Group is committed to becoming a global leader in Artificial General Intelligence.

A 2026 software supply chain security assessment shows that about 65 per cent of organisations in India cannot detect malicious packages, while 71 per cent do not use container security tools. The findings underline a widening gap between the speed of AI-led software development and the controls needed to secure code, dependencies, models and deployment pipelines before they reach production systems.

Security teams are facing a more complex threat environment as AI coding assistants, model registries, agent frameworks and machine-learning libraries become embedded in day-to-day software engineering. AI is no longer confined to application features or analytics layers. It is becoming part of the software supply chain itself, influencing how code is written, tested, packaged and deployed.

Enterprises in India have been quick to adopt AI tools to improve developer productivity, reduce repetitive work and accelerate product releases. Yet the same shift has increased reliance on open-source packages, pre-trained models, plug-ins and automated build systems. Each of these components can introduce hidden risks if provenance, integrity and behaviour are not continuously verified.

Global software repositories are now attracting sustained attacks because they provide a direct route into enterprise development environments. Malicious npm packages rose by 451 per cent during 2025, while more than 48,000 new Common Vulnerabilities and Exposures were disclosed worldwide, a rise of about 20 per cent from the previous year.

The pressure on security teams is being amplified by the volume of AI-generated code. Developers in India are spending about 51 per cent of their time reviewing, validating and hardening code produced by AI tools. About 53 per cent treat such output only as a starting point and review every line before use, while 11 per cent rewrite AI-generated fixes from scratch.

This shift has altered the economics of software engineering. AI may reduce the time needed to draft code, but it can also transfer effort to verification, testing and security review. Weaknesses such as cross-site scripting, SQL injection and missing authorisation checks can still be reproduced by automated tools, particularly when developers rely on generated code without adequate scrutiny.

Governance is emerging as another area of concern. Nearly 97 per cent of organisations surveyed said they had certified AI model governance programmes, but only 59 per cent claimed full provenance visibility across production environments. About 48 per cent still needed a week or longer to produce audit-ready compliance evidence.

That gap points to a difference between policy and enforceable control. Many enterprises have AI governance frameworks on paper, but fewer can prove where every model, library, container image and software artefact came from, how it changed, who approved it and whether it complies with internal policy.

CERT-In has also warned that software supply chain compromises are increasingly targeting developer tools and trusted repositories. Its April 2026 activity note referred to attacks affecting npm, PyPI, GitHub Actions and container registries, including incidents involving Checkmarx, Trivy, LiteLLM, Axios, Telnyx and npm packages linked to the CanisterWorm campaign. The payloads observed in these attacks included credential harvesting, data exfiltration, remote execution and persistence within developer systems.

Model registries have added another layer to the risk. Around 1.4 million new AI artefacts were published on Hugging Face during 2025, representing 58 per cent of all new software packages tracked in one assessment. Researchers identified 495 malicious AI models in public repositories with active payloads capable of credential theft, command execution and reverse-shell activity, along with 969 malicious AI-agent skills designed to exploit developer environments and automation workflows.

For enterprises in India, the challenge is sharpened by the country’s role as a major software engineering and global capability centre hub. Bengaluru, Hyderabad, Pune, Chennai and Gurugram host large engineering teams serving banking, retail, telecoms, manufacturing and cloud services. These centres are increasingly responsible not only for maintenance work but also for product development, AI integration and security-sensitive digital platforms.

Regulatory and customer expectations are also tightening. Buyers are asking for software bills of materials, vulnerability disclosure processes, provenance records and proof that build pipelines are protected. CERT-In’s technical guidance on SBOM, QBOM, CBOM, AIBOM and HBOM has emphasised regular updates, vulnerability exploitability exchange documents and staff training around software supply chain visibility.

Security leaders are therefore moving towards stronger controls across development pipelines. These include automated malicious package detection, container image scanning, secrets detection, signed artefacts, dependency pinning, model provenance checks, policy enforcement in CI/CD systems and continuous monitoring of developer environments.

The investment case is becoming harder to ignore. Software supply chain attacks can bypass perimeter defences because they enter through trusted development channels. Once inside, malicious packages can steal credentials, alter builds, move into cloud environments or compromise downstream customers. AI raises the stakes because it can accelerate both legitimate development and attacker experimentation.

The investment is designed to strengthen the chipmaker’s partnerships with foundries, packaging houses, substrate suppliers and server manufacturers that are central to its next generation of AI systems. The programme places Taiwan at the centre of AMD’s effort to scale production of high-performance processors, accelerators and rack-level systems built for increasingly complex AI workloads.

A major focus will be Elevated Fanout Bridge, or EFB, a 2.5D packaging technology intended to improve the speed and efficiency of connections between chip components. AMD plans to use the technology in its sixth-generation EPYC central processing units, codenamed “Venice”, which are being positioned for AI, cloud and high-performance computing deployments.

The move comes as AI infrastructure spending shifts from individual chips towards complete systems that combine CPUs, graphics processors, high-bandwidth memory, networking and software. Advanced packaging has become a critical bottleneck because AI workloads require large volumes of data to move quickly between processors while keeping power consumption and heat within manageable limits.

AMD Chair and Chief Executive Lisa Su said customers were rapidly expanding AI infrastructure to meet rising compute demand. The company is seeking to combine its high-performance computing portfolio with Taiwan’s manufacturing and packaging capabilities to support integrated, rack-scale AI systems.

AMD is working with partners including ASE, SPIL, Powertech Technology, Wiwynn, Wistron, Inventec, Unimicron, AIC, Nan Ya PCB and Kinsus. These companies cover key parts of the supply chain, from advanced packaging and substrates to server assembly and mechanical architecture. Sanmina is also involved in manufacturing support for the company’s Helios platform.

The investment will support both wafer-based and panel-based EFB interconnect development. AMD and Powertech Technology have qualified what they describe as the industry’s first 2.5D panel-based EFB interconnect, a step aimed at improving scalability and production economics for high-volume AI processors.

The technology is expected to help the “Venice” EPYC processors deliver higher interconnect bandwidth and better power efficiency. That matters because data centre operators are increasingly constrained by electricity availability, cooling capacity and rack density, not only by chip performance.

AMD has also begun ramping production of “Venice” CPUs using Taiwan Semiconductor Manufacturing Company’s 2-nanometre process technology in Taiwan. Future production is planned at TSMC’s Arizona facility, extending the supply chain beyond Taiwan while preserving the company’s close reliance on TSMC’s leading-edge manufacturing.

The “Venice” chips will be a central element of AMD’s Helios rack-scale platform, which also includes AMD Instinct MI450X graphics processors, advanced networking and the ROCm open software stack. The platform is scheduled for deployments beginning in the second half of 2026, with AMD describing the opportunity in terms of multi-gigawatt AI infrastructure rollouts.

The strategy puts AMD in a more direct contest with Nvidia, which dominates AI accelerator sales and has built a strong lead through its GPUs, networking, software ecosystem and full-rack systems. AMD’s challenge is not only to deliver competitive silicon but also to prove that it can scale complete AI infrastructure with dependable supply, efficient packaging and broad software support.

AMD’s data centre business has become the company’s main growth engine. First-quarter 2026 data centre revenue reached $5.8 billion, up 57 per cent from a year earlier, driven by demand for EPYC processors and the ramp-up of Instinct GPU shipments. That performance has strengthened investor expectations that AMD can capture a larger share of AI and cloud infrastructure spending.

Taiwan remains critical to that effort because of its concentration of semiconductor expertise. TSMC anchors the foundry side, while packaging, substrate and system-assembly partners provide the manufacturing depth needed to turn chip designs into deployable infrastructure. The concentration also creates geopolitical and supply-chain risks, particularly as governments and companies seek greater resilience across strategic technologies.

As a full-stack self-developed provider of enterprise-grade AI infrastructure (AI Infra) and solutions, QingCloud Technologies Corp. deeply understands enterprise demands and implementation scenarios, and has built end-to-end digital and intelligent solutions. With deep roots in livelihood services, TECSUN SCIENCE & TECHNOLOGY CO.,LTD. boasts integrated capabilities of “Data + Algorithms + Scenarios”, self-developed innovations such as government affairs large models and AI-powered employment services, as well as profound industry customer resources and operational experience. Oriented by solution collaboration, the two parties will combine TECSUN’s scenario-based intelligent applications with QingCloud’s private cloud, information technology application innovation cloud, intelligent computing platform and MaaS services to form solid technological synergy.

Focusing on core sectors including employment, healthcare and government services, the two sides will promote the integrated deployment of employment Agent and intelligent computing platform to achieve precise job matching and intelligent recommendation; advance the implementation of a fusion architecture of contactless medical payment systems and edge AI inference cloud; and accelerate the joint optimization of government affairs large models and intelligent guidance systems in the information technology application innovation cloud environment.

In terms of delivery, the two parties will jointly conduct compatibility tests and performance verification to ensure the compatibility and stability of the joint solutions, and jointly deliver secure, controllable and ready-to-use intelligent livelihood solutions. Meanwhile, they will actively explore the co-construction of regional intelligent computing centers in mature areas to consolidate the computing infrastructure for “AI + Livelihood Services”.

Looking ahead, the two sides will take joint solutions as the anchor, jointly explore the closed-loop operation model of “Urban Livelihood AI Operation Base”, connect the full chain from computing supply, model iteration to service delivery, help elevate the intelligence of urban governance, and jointly build a new engine for livelihood services.

Hashtag: #Tecsun

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

As AI, data analytics, and virtualization platforms continue to reshape how Singapore enterprises operate their IT infrastructure, storage is no longer merely a place to keep data. It has become the foundation behind core operational applications. As a result, organizations are placing greater demands on access speed, service continuity, and long-term operational stability. This is also why enterprises are increasingly seeking high-performance storage platforms that can maintain reliable operations over time.

“PAS7700 reflects Synology’s 25+ years of experience in storage and our close collaboration with enterprise customers to address evolving requirements for high availability, performance, and scalability,” said Bie-i Chu, Executive Vice President of the Synology NAS Group. “After a year of extensive real-world validation through our enterprise proof-of-concept program, PAS7700 is field-proven to deliver high reliability and performance, while helping customers lower total cost of ownership (TCO).”

A Storage Platform for Mission-Critical Systems
PAS7700 is equipped with dual controllers and 48 NVMe SSD bays in a 4U chassis, and can scale up to 1.65 PB of raw storage capacity with up to seven expansion units. The system supports both file and block storage and offers broad protocol support, including NVMe-oF, iSCSI, Fibre Channel, SMB, and NFS.

With up to 2,048 GB of memory* and 100GbE networking, PAS7700 delivers up to 2 million IOPS, latency of under 1 millisecond and sequential throughput of up to 30 GB/s.

PAS7700 is designed for environments that require real-time data processing, such as virtualization, databases and large-scale data processing environments. It also targets performance-intensive and always-on workloads such as VDI, EDA and AI.

In addition, the solution is well suited for organizations operating data-intensive infrastructure in sectors such as data centers, manufacturing, semiconductor design, game development, and healthcare. These environments typically process large volumes of data concurrently and require systems that can sustain consistent performance and continuous service availability.

Designed to Minimize System Disruption
One of PAS7700’s most notable strengths is its active-active architecture, which enables both controllers to operate simultaneously rather than relying on a traditional active-standby model. If one controller or a network component fails, the system can continue delivering services, significantly reducing the risk of business disruption.

The system is built with multiple protection layers to ensure high availability, including triple-parity RAID, mirrored write cache protection, IP failover, and automatic failover mechanisms.

PAS7700 also includes Continuous Availability Manager that enables enterprise IT teams to visually monitor the health status of each system component and detect and address issues quickly before they affect services.

Multi-Layer Data Protection for Enterprises
Synology places strong emphasis on enterprise data protection. PAS7700 supports Self-Encrypting Drives (SEDs), providing hardware-level protection without compromising system performance.

The system also supports WORM folders and immutable snapshots, allowing snapshots to remain protected from unauthorized modification or deletion after creation, thereby reducing the risk of tampering and unauthorized data interference.

In addition, PAS7700 features Snapshot Replication and Hyper Backup that enable enterprises to build multiple layers of backup and recovery between production environments and secondary systems. This helps strengthen cyber resilience and improve data recoverability in the event of incidents or cyberattacks.

Lower Cost, Greater Efficiency
Beyond performance, Synology also addresses the challenge of optimizing long-term storage investment for enterprises. As many businesses in Singapore continue expanding their data infrastructure, virtual machines and internal AI workloads, the cost of high-speed storage is exerting increasing pressure on IT environments.

PAS7700 supports both inline and offline deduplication technologies to help reduce unnecessary data usage and extend SSD lifespan. This mechanism can significantly improve storage efficiency in large-scale data environments.

In the near future, the system will also support Synology Tiering, which automatically moves infrequently accessed data to high-capacity storage systems. This helps free up high-speed NVMe resources for active applications and hot data.

The entire platform runs on DSM Enterprise, Synology’s operating system developed specifically for enterprise storage, and is designed for environments that require high performance while maintaining intuitive management and operational simplicity.

PAS7700 is now available globally through Synology’s network of partners and distributors.

For more product information, please visit: www.synology.com/products/PAS7700.

*Memory module is upgradable to 1,024GB per node; 2,048GB for the whole PAS7700 system.

Hashtag: #Synology, #PAS7700

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

About Synology

Founded in Taiwan in 2000, Synology is a technology company specializing in network-attached storage (NAS), data backup and recovery, video surveillance, and networking solutions for businesses and individuals worldwide. Over the past two decades, Synology has continuously expanded its ecosystem to help users manage, protect, and unlock the value of data more effectively in the era of cloud, AI, and big data.

Synology’s core philosophy is to build a comprehensive hybrid-cloud ecosystem that enables businesses to protect, synchronize, and manage data through a centralized, intuitive, and easy-to-operate platform. From enterprise storage, data backup, file sharing, and collaboration to video surveillance and network infrastructure, Synology’s solutions are designed to simplify IT management and accelerate digital transformation.

Alongside ongoing technology innovation, Synology also focuses strongly on long-term stability, security, and scalability for data infrastructure. More than half of Fortune 500 companies use Synology solutions, reflecting the brand’s credibility and ability to support large-scale data operations worldwide.

Website: https://www.synology.com/en-sg

By combining Phancy’s comprehensive full-stack AI capabilities with Huanxi Media’s extensive film and television data, intellectual property (IP) assets, and production expertise, the two companies aim to drive the entertainment industry’s shift from digitalization to true intelligence.

Under the framework agreement, the parties plan to set up a joint venture as the collaboration platform. They will pursue in-depth cooperation across several key areas, including data collaboration, development of large models and Agents for film and television, exploration of AI applications in new entertainment scenarios, AI-powered joint production and content creation, IP derivative development, and broader resources collaboration.

In addition, the two parties have signed a framework agreement for large model API services. Huanxi Media intends to adopt Phancy’s advanced large model and API services, with a targeted cumulative service value of no less than US$200 million through Token consumption over the next three years. The substantial long-term commitment highlights strong market confidence in the reliability and commercial strength of Phancy’s AI Platform, and is expected to provide the Company with stable, recurring revenue streams.

Dr. Dai Wenyuan, Founder and CEO of Phancy, said: “The entertainment sector is one of the most valuable and promising application scenarios for AI. This in-depth strategic partnership with Huanxi Media represents a strong alliance between our two companies and our shared vision to build a new industry ecosystem. As a leader in full-stack AI infrastructure and technical services, we at Phancy will fully leverage our core strengths in large model development, Agentic AI, heterogeneous computing power scheduling, and our Token ecosystem to empower the entire value chain of the entertainment industry. Moving forward, we will work closely with Huanxi Media, combining our respective technological advantages and industry resources to unlock new growth potential in the AI-powered entertainment sector.”

Strategic Significance of the Partnership

Phancy’s full-stack AI capabilities have taken a major step forward, moving from general platform services into deep vertical integration within the entertainment ecosystem. By embedding its self-developed AI technologies into Huanxi Media’s rich data, production environments, and IP assets, Phancy can integrate cutting-edge tools directly into content creation and daily operations, turning advanced technology into real business impact.

The film and television industry is going through a fundamental transformation. From assisted creation to intelligent production, and from virtual actors to interactive film and gaming experiences, AI is reshaping the entire content production process. The two parties will collaborate on frontier areas such as co-productions, digital human actor development, AI-generated realistic dramas, and interactive film-game projects. This partnership will move AI beyond a supporting tool and make it a core driver of content creation. Leveraging Phancy’s strengths in domestic computing power adaptation and integrated hardware-software solutions, the collaboration will significantly reduce the barriers and costs of using AI in the entertainment industry and speed up its adoption in actual productions.

This strategic alliance is an important move for Phancy as it expands its presence in real-world AI applications and deepens its industry impact. It is also expected to set a new benchmark for intelligent transformation in the entertainment sector. The two companies will continue to explore innovative ways to integrate AI with entertainment, create high-quality intelligent content, and help drive the industry into a new stage of high-quality intelligent development.

Hashtag: #PhancyGroup

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

About Phancy Group

Phancy Group (6682.HK) is a leading full-stack AI cloud services platform, providing comprehensive solutions for the AI 2.0 era. Our offerings include SageAIOS, HAMi vGPU and ModelHub XC, delivering efficient and scalable AI infrastructure with end-to-end capabilities. We provide a complete solution from heterogeneous compute resource management and optimization to the deployment of intelligent agent models. These solutions empower digital transformation across a wide range of industries, supporting our vision of building a large-scale and efficient “Token Factory.”

Guided by the mission of “AI for Everyone” and positioned as the “Navigator of AI,” Phancy Group is committed to becoming a global leader in Artificial General Intelligence.