Hanshow Technology Co.,Ltd. (301275.SZ) unveiled its interim report for the first half of 2026 on the evening of August 25, posting revenue of RMB 2.907 billion, a robust year-on-year increase of 47.23%. Net profit climbed 51.22% to RMB 336 million, while net cash flow from operating activities surged 1,285.75% to RMB 774 million, underscoring the company's sustained improvement in core operational metrics, profitability quality, and growth resilience.

Against the backdrop of accelerating global retail digitalization, Hanshow Technology is leveraging its "Hanshow 2.0" strategy as a driving force to pivot from a hardware supplier toward a provider of comprehensive smart retail solutions. Public information highlights that Hanshow Technology is one of the world's leading providers of digital store solutions for the broader retail sector. Anchored by cutting-edge technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data, the company has built an integrated business framework encompassing smart hardware, solutions, digital twin platforms, and value-added data services. According to the interim report, its revenue ranks second among global listed peers in the industry.

Global markets are expanding in depth, with new smart terminal businesses achieving breakthroughs across multiple fronts. Electronic shelf labels (ESL), serving as Hanshow Technology's core smart hardware product, continued to see robust global demand during the reporting period. Data from Discien indicates that global ESL shipments reached 270 million units in the first half of 2026, up 19.3% year-on-year, with full-year shipments projected to surpass 500 million units. In North America, top-tier clients are accelerating adoption, and based on public information, the company is expected to add two to three new contracted clients among the Top 100 North American retailers in the coming months, positioning it to capitalize on the industry tailwinds of accelerating penetration in the region.

With the ESL business maintaining steady growth as a foundation, Hanshow Technology, through its "Hanshow 2.0" strategy, is extending its core capabilities from individual products to a broader array of in-store smart terminals and solutions, accelerating deployment across global markets. Its smart shopping cart solution has entered a phase of large-scale commercialization. In the first quarter of 2026, the company signed a sales intent agreement with Woolworths, a leading Australian supermarket chain, to deliver 10,800 smart shopping cart systems to approximately 300 stores in the initial phase, enabling batch shipments. Meanwhile, its subsidiary Xi'an Chaohai has cumulative smart shopping cart shipments exceeding 30,000 units, and with the additional order pipeline of over 10,000 units, global shipment volumes continue to scale upward.

Beyond the batch rollout of smart shopping cart solutions, its inspection robot offering has also seen major progress. In April 2026, Hanshow Technology launched the NexMate intelligent robot solution, featuring two product lines: the SPatrol intelligent inspection robot and the Spure intelligent cleaning robot, which can autonomously handle repetitive tasks such as cleaning, inspection, and out-of-stock detection. These solutions are currently undergoing proof-of-concept trials with domestic and international supermarket clients. From the batch shipment of smart shopping carts to the formal entry of inspection robots, and from Australia to North America, Hanshow Technology's full-scenario smart terminal capabilities are advancing simultaneously across multiple global markets.

The accelerated implementation of its AI strategy is equally noteworthy, alongside the sustained growth driven by core products and solutions. As AI applications expand across industries, the deployment of AI in offline retail faces data-related constraints: insufficient data collection capabilities, reliance on manual inspections for shelf conditions, difficulty in real-time tracking of customer behavior, and an inability to promptly monitor equipment status. This lack of data prevents AI from effectively integrating into store operations. In reality, for retail AI, the scarcest resource is not computing power or models, but authentic, granular in-store context—the dynamic variations of the same product across different stores, time periods, and promotional states—which serves as the foundation for AI to make precise decisions.

Hanshow Technology's business layout precisely addresses this pain point. Through intelligent IoT terminals such as electronic shelf labels, smart shopping carts, and inspection robots, the company forms the "sensory nerve endings" of physical stores, converting physical variables like shelves, inventory, pricing, and foot traffic into data assets that AI can read, reason over, and act upon, enabling AI to evolve from "analyzing" to "operating". Leveraging its accumulated expertise in IoT terminals, the company fully launched the "Hanshow 2.0" strategy in 2025, establishing "AI × Data" as its core strategic direction and upgrading from an ESL system supplier to a comprehensive service provider integrating smart hardware, solutions, SaaS, and AI software platforms.

In 2026, the pace of strategic implementation has visibly accelerated. In June, Hanshow Technology, in collaboration with Microsoft, unveiled the xPilot platform—a one-stop real-time intelligent store execution platform—at the NRF APAC exhibition in Singapore. Built on AI at its core with a digital twin foundation, xPilot adopts a collaborative architecture combining retail-specific small models and general-purpose large language models, delivering end-to-end capabilities from real-time insights, automated decision-making, and precise execution to closed-loop validation. The launch of xPilot represents a key product-level milestone in the "Hanshow 2.0" strategy. Building on this, in July, Hanshow Technology and Microsoft formally signed a long-term global strategic cooperation agreement in Seattle, deepening collaboration in areas such as physical AI, store digital twins, and Azure cloud services, elevating their relationship from project-level joint innovation to a group-level long-term strategic alliance targeting global markets. This partnership upgrade marks key recognition of the company's "AI × Data" strategic direction within the technology ecosystem.

The market has also responded positively. In June 2026, UK retailer Tesco signed a multi-year strategic agreement with Hanshow, planning to deploy ESL solutions across approximately 3,000 of its stores. To date, the company has signed contracts with over 30 of the global Top 100 retail clients. From Microsoft's technology ecosystem endorsement to commercial choices by top-tier clients like Tesco, the company's "AI × Data" strategic transformation is gaining dual validation from both technology and market perspectives. Hanshow Technology's deep moat in the global ESL smart hardware sector provides solid foundations for the comprehensive rollout of its AI strategy. As AI moves from the cloud to store shelves, the company is building a complete loop of "sensing, connecting, deciding, and executing", transforming itself from a smart hardware supplier into the "AI infrastructure" for physical retail.

A research report from Guosen Securities notes that AI applications in the retail sector are beginning to proliferate. The company's full launch of the "Hanshow 2.0" strategy, centered on "AI × Data" to build a digital twin platform and develop four dedicated AI agents for merchandise, operations, marketing, and inventory, is expected to accelerate AI-driven retail progress, with the retail media network market holding significant potential. In this wave of retail digital transformation, its earnings growth validates the certainty of its profitability, while the continued realization of its AI strategy opens up new long-term value space for its ascent from an "ESL leader" to a "global leader in physical AI for retail".