Shares of Knowledge Atlas Technology JSC, known as Zhipu, surged as much as 35% on Wednesday following the release of its first earnings report, marking a significant market reaction to the company's performance. The stock later pared gains but remained up approximately 30% in afternoon trading, reflecting strong investor enthusiasm for the Beijing-based artificial intelligence firm, which went public in Hong Kong in January after a $558 million initial public offering [1].
Zhipu reported that its revenue rose about 132% to 724 million yuan in 2025 compared to the previous year. However, this figure missed the mean analyst estimate of 760 million yuan, as polled by Reuters. The company also posted a net adjusted loss of 3.18 billion yuan, an increase of 29.1% from the prior year, attributed to higher research and development spending [1].
Founded in 2019 by Tsinghua University researchers, Zhipu recently launched its GLM-5 model, claiming performance parity with U.S. competitors on several key metrics. The company is considered one of China's "AI tigers," startups focused on building large language models to rival global leaders like OpenAI and Anthropic. Zhipu's CEO, Zhang Peng, stated during the earnings call that the company is accelerating its adoption of domestic Chinese chips to address a significant rise in computing demand since February, aligning with Beijing's push to strengthen its semiconductor industry. This shift is particularly notable given previous constraints from U.S. export restrictions, which limited Zhipu's access to advanced semiconductor technology [1].
Zhipu was placed on the U.S. Commerce Department's Entity List in January last year due to alleged links to China's military. The broader market also saw gains, with shares of MiniMax, another Chinese AI firm listed in Hong Kong, rising about 16% on Wednesday [1].
CONCLUSION
Zhipu's first earnings report triggered a sharp rally in its shares, despite missing analyst revenue estimates and reporting a larger net loss. The company's strategic shift toward domestic chip usage and its strong backing from Beijing highlight its pivotal role in China's AI sector. The positive market response underscores investor confidence in Zhipu's growth trajectory and the broader Chinese AI industry.