I. Hidden Cash Flow Concerns Behind Single-Quarter Non-GAAP Profit Turnaround and Revenue Surge
On the evening of October 28, 2026, Moore Threads (688795), the first domestic GPU stock, officially disclosed its 2026 third-quarter report. The report shows that in the third quarter, the company achieved operating revenue of 1.552 billion yuan, a year-on-year increase of 1773.92% and a quarter-on-quarter increase of 55.4%, setting a new single-quarter revenue high; net profit attributable to shareholders of the parent company was 49.2604 million yuan, and non-GAAP net profit attributable to shareholders of the parent company was 20.0724 million yuan, both turning from loss to profit year-on-year, with single-quarter non-GAAP net profit turning positive. From cumulative data, in the first three quarters the company achieved operating revenue of 3.289 billion yuan, a year-on-year increase of 319.15%; net profit attributable to shareholders of the parent company was 37.6973 million yuan, turning from a loss of 724 million yuan in the same period last year to a profit, but non-GAAP net profit attributable to shareholders of the parent company was still a loss of 131 million yuan. The company explained that the rapid revenue growth was mainly due to strong demand from the artificial intelligence industry for high-quality computing power and full-function GPUs. The company strategically laid out three major AI factories: the "Model Training Factory," the "Token Production Factory," and the "Agent Production Factory." Intelligent computing products represented by MTT S5000 are accelerating deployment in scenarios such as internet and cloud service providers, telecom operators, and intelligent computing centers.
However, behind the simultaneous high growth in revenue and profit, pressure on the company's capital chain is accumulating significantly. In the first three quarters, net cash flow from operating activities was -3.309 billion yuan, mainly due to expanded production scale and strategic inventory stocking to respond to demand growth and ensure supply chain resilience. As of the end of September, the book value of the company's inventory was 3.363 billion yuan, surging 152% from the end of the previous year, with inventory even exceeding total revenue for the first three quarters; prepayments were 2.599 billion yuan, up 45% from the end of the previous year; accounts receivable were 994 million yuan, up 129% from the end of the previous year; monetary funds were 5.39 billion yuan, down 41% from the end of the previous year. At the same time, R&D investment in the first three quarters was 1.340 billion yuan, a year-on-year increase of 55.72%, already exceeding the full-year 2025 scale of 1.305 billion yuan, with R&D investment accounting for 40.75% of revenue. Under "high growth, just profitable, heavy investment," the company's continued net operating cash outflow and the rapid rise in inventory and prepayments have become key factors constraining its valuation and operational soundness.
II. Ji'an Commentary
Based on a professional rating framework, the Ji'an Jinxin Listed Company Evaluation Center conducted a comprehensive evaluation of Moore Threads' (688795) financial condition through the company competitiveness rating and eight financial capabilities.
(1) Company competitiveness rating:
The Ji'an Jinxin competitiveness rating aims to promptly identify problems in the company's scale strength, cash flow, profitability, operating efficiency, solvency, development capability, capital structure, asset quality, and other areas. By detecting capability shortcomings and downward trends, it dynamically allocates weights and conducts ratings quarter by quarter.
Moore Threads rating: CCC
On the high-growth, high-investment track of domestic GPUs, Moore Threads has demonstrated explosive revenue growth capability and the first glimmer of positive profit, but its overall financial condition presents the characteristics of "rapid growth, tight finances": revenue scale is expanding rapidly and development momentum is strong, yet profitability remains fragile, operating cash flow is flowing out substantially, and asset quality is under pressure, with scale strength still in the middle tier of the industry. Its core characteristics can be summarized as: explosive revenue growth and initial single-quarter profitability, but non-GAAP losses remain, cash flow continues to bleed, inventory surges, and financial soundness urgently needs to be consolidated.
(2) Ratings of eight financial capabilities:
According to the Ji'an rating system, the results of Moore Threads' eight major financial capability ratings are as follows:
1. Development capability (rating aaa): The performance growth rate is at the highest level among semiconductor listed companies in the A-share market, and the capability for sustainable development is extremely strong.
In the first three quarters of 2026, Moore Threads' operating revenue increased by 319.15% year-on-year, and third-quarter single-quarter revenue surged 1773.92% year-on-year, ranking among the top in the A-share semiconductor sector. This high-speed growth benefited from strong demand from the artificial intelligence industry for full-function GPU computing power. The company's intelligent computing products represented by MTT S5000 have been delivered at scale in scenarios such as large model training and inference, with customers covering internet and cloud service providers, AI model companies, telecom operators, intelligent computing centers, and research institutions. The company has reached cooperation with JD Cloud to build a 100,000-card full-function GPU cluster; developers of the MUSA software stack have exceeded 800,000; and R&D on the new-generation "Huagang" architecture and "Lushan" graphics card is progressing smoothly, with ample long-term growth momentum. Although the non-GAAP basis is still not profitable, the high growth of the main business has laid a solid foundation for the company's future sustainable development.
2. Operating efficiency (rating bb): Resource management is relatively full and effective, asset operating efficiency is average, and asset returns are at the average level of semiconductor listed companies in the A-share market.
With the rapid expansion of revenue scale, the company's operating assets have also accumulated rapidly, and operating efficiency is facing a test. As of the end of September, the book value of the company's inventory was 3.363 billion yuan, surging 152% from the end of the previous year, with inventory even exceeding total revenue for the first three quarters; prepayments increased 45% from the end of the previous year, and accounts receivable increased 129%, with working capital occupation clearly increasing. To respond to demand growth and supply chain resilience, the company implemented strategic inventory stocking, which supported deliveries while also lowering asset turnover efficiency. Although the company relied on relatively strong supply chain management capabilities to ensure delivery pace, the rapid rise in inventory and accounts receivable has kept asset returns only at the industry average, and operating efficiency needs to recover as delivery recognition and collection pace improve.
3. Solvency (rating cc): There are major problems in repaying all maturing liabilities, debts are often delayed, and the company's creditworthiness is poor.
This is currently a relatively prominent shortcoming of the company. Although the company's asset-liability ratio is only about 28% and on-balance-sheet debt is limited, the core support for solvency—operating cash flow—continues to flow out substantially. In the first three quarters, net cash flow from operating activities was -3.309 billion yuan, monetary funds decreased 41% from the end of the previous year to 5.39 billion yuan, and the net increase in cash and cash equivalents was -3.827 billion yuan. With the company not yet achieving non-GAAP profitability and operations unable to generate self-sustaining cash, its ability to repay maturing debt and operating expenditures mainly depends on existing cash and refinancing, and there is considerable uncertainty regarding the stability and sustainability of debt repayment, with the company's overall creditworthiness affected to a certain extent.
4. Profitability (rating b): Operating performance is at the average level of semiconductor listed companies in the A-share market, revenue-generating capability is average, and cost and expense control capability is poor.
In the first three quarters, the company achieved net profit attributable to shareholders of the parent company of 37.6973 million yuan, turning from loss to profit year-on-year, but non-GAAP net profit attributable to shareholders of the parent company was still a loss of 131 million yuan, and the main business has not yet truly become profitable. The gross margin in the first three quarters was 53.71%, down about 8.16 percentage points from the same period last year, mainly affected by rising prices of semiconductor raw materials and changes in product delivery mix. R&D investment in the first three quarters reached 1.340 billion yuan, accounting for as much as 40.75% of revenue, and combined with costs such as share-based payment, the expense side continues to squeeze profits. Although single-quarter profitability has initially appeared and revenue scale has expanded rapidly, the operating characteristics of high investment and high expenses make its profit quality still appear fragile, and cost and expense control capability is relatively weak.
5. Cash flow (rating cc): Cash flow adequacy is extremely poor, the company's profitability is extremely unstable, and it faces the risk of a capital chain rupture.
During the reporting period, net cash flow from operating activities was -3.309 billion yuan, with the net outflow equivalent to about 100% of revenue in the same period, and clearly larger than the same period last year. Cash outflow mainly stemmed from expanded production scale and strategic inventory stocking to ensure supply chain resilience, leading to a substantial increase in procurement expenditures; at the same time, the rapid accumulation of inventory and prepayments further consumed cash flow. Although the company still had 5.39 billion yuan in monetary funds at the end of the period and book cash could still cover short-term operations, against the backdrop of continued "bleeding" on the operating side and the main business not yet profitable, if subsequent delivery collections fall short of expectations or refinancing is blocked, the capital chain pressure faced by the company will increase significantly, and cash flow safety is relatively fragile.
6. Capital structure (rating b): The current capital structure has problems, and the enterprise's own financing and development are constrained.
After the company listed on the STAR Market in December 2025, equity financing supplemented capital on a relatively large scale, and the book asset-liability ratio fell to about 28%, but hidden concerns remain in the capital structure: on the one hand, the company's unoffset losses are still relatively high (undistributed profit per share is negative), capital reserves account for a high proportion of net assets, operating accumulation is weak, and the equity structure is "somewhat inflated"; on the other hand, as revenue scale expands, the company's operating liabilities such as prepayments to suppliers and payables have risen rapidly, dependence on working capital continues to increase, and combined with the pressure from the unlocking of IPO restricted shares accounting for 39.55% of total share capital on December 7, capital operations and financing pace are constrained to a certain extent, and the capital structure urgently needs to be optimized through profit accumulation and more reasonable financing arrangements.
7. Scale strength (rating bbb): Scale promotes production efficiency improvement and technological progress, and production costs have certain advantages compared with semiconductor listed companies in the A-share market.
As the "first domestic GPU stock," Moore Threads had revenue of 3.289 billion yuan in the first three quarters, ranking among the top domestic GPU manufacturers, with scale continuing to expand rapidly. Relying on the scarce positioning of full-function GPUs and vertical integration capabilities from chips and boards to clusters, the company has certain advantages in supply chain bargaining and capacity assurance; at the same time, the large-scale mass production capability of leading foundry partners further dilutes its unit production costs. However, compared with larger peers such as Hygon Information and Cambricon, the company's revenue scale is still in the middle tier of the industry, and the room for scale effects to optimize costs and efficiency has not yet been fully released.
8. Asset quality (rating ccc): Asset quality is poor, affecting the company's long-term and short-term development, and there are certain difficulties in repaying debts.
At the end of the reporting period, the company's total assets were 17.743 billion yuan, but the asset structure is prominently characterized by "capital occupation": inventory of 3.363 billion yuan (surging 152% from the end of the previous year), prepayments of 2.599 billion yuan, and accounts receivable of 994 million yuan. The three together account for a relatively high proportion of current assets, and are mainly formed around GPU chip procurement stocking and project deliveries not yet collected, with certain impairment and collection risks. Under the industry attributes of rapid semiconductor product iteration and large price fluctuations, if high inventory encounters a downturn in demand or prices, it will face pressure from price decline and impairment, thereby affecting asset realization capability and the degree of protection for debt repayment, and overall asset quality is relatively weak.
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