XtalPi - H 1H26 profit warning expected; Focus on continued AI platform achievement

Research evidence excerpt

XtalPi - H 1H26 profit warning expected; Focus on continued AI platform achievement

J P M O R G A N Asia Pacific Equity Research

27 July 2026

XtalPi - H Overweight

2228.HK, 2228 HK

1H26 profit warning expected; Focus on continued AI Price (24 Jul 26):HK$7.20

platform achievement Price Target (Dec-27):HK$10.00

XTAILPI’s 1H26 profit warning is largely anticipated given the group is cycling a Healthcare

AChigh base from the US$51mn upfront payment received from DoveTree in 1H25. Yang Huang

Stripping DoveTree BD (business development) revenue out, underlying revenue (852) 2800 3812

growth remained strong, led by non-BD services, while stepped-up R&D investment yang.huang@jpmorgan.com

into AI4S and agentic AI should support medium-term platform and pipeline J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

monetisation. The upcoming AI4S (AI for Science) Demo Day in Shanghai on 29 Jul,

Derek Choi

should further underline management’s continued execution on its AI platform (852) 2800-8744

development. derek.c.choi@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited• The reported YoY sales decline in 1H26 was broadly expected, in our view,

given the high comparison base in 1H25, when the company recognised the Eric Zhao, CFA

US$51mn upfront payment (RMB365.1mn) from its major collaboration (86-21) 6106 6256

project with DoveTree. In the profit warning, management guided 1H26 eric.zhao@jpmorgan.com

revenue to RMB380-400mn versus RMB517.1mn in 1H25, while net profit is SAC Registration Number: S1730524050001

J.P. Morgan Securities (China) Company Limited

expected to swing to a loss of RMB215-275mn. Importantly, the same

DoveTree collaboration continued to progress, with the company receiving the