The deployment of large models on edge devices has long been bottlenecked by the transmission link between computing power and storage. During model inference, the movement of massive parameters and intermediate state data consumes significant bandwidth resources, becoming a core constraint on computing power release. The strategic cooperation agreement recently signed between Toread's subsidiary Shanghai Tongtu Semiconductor and Horizon Robotics targets precisely this industry pain point—large model bandwidth compression technology. The significance of this cooperation lies in marking the official transition of edge AI from technical research to industrial-scale application.
Technical Breakthrough: Three-Layer Compression System Targets Memory Wall
Tongtu has built a full-stack compression system covering three layers—input data, intermediate states, and model parameters—forming a systematic technical moat. On the input side, for high-capacity data such as video, the system can compress data volume to 1/5 of its original size, significantly reducing input bandwidth pressure on edge devices. At the intermediate state level, it can achieve an additional 50% compression on top of Google's compression results, effectively alleviating the memory wall bottleneck during inference. At the model parameter level, for models with hundreds of billions or trillions of parameters, it can achieve 30% parameter compression, all without retraining and with plug-and-play capability.
Toread Group Vice President and Shanghai Tongtu Semiconductor CEO Wang Hongjian noted at the 2026 Zhongguancun Forum that Tongtu's full-stack data compression technology is highly consistent with Google's TurboQuant memory compression algorithm in terms of core pain points, technical paths, and industrial directions, jointly confirming that 'using compression to liberate computing power' is a deterministic industry direction. This means Tongtu's technical route has received side validation from the world's top technology company.
Performance Validation: Chip Business Becomes Primary Growth Curve
The confidence in technical layout is ultimately validated by performance data. Toread's Q1 2026 report showed revenue of 496 million yuan, up 39.41% year-on-year; net profit attributable to parent company of 56.45 million yuan, up 14.44%; and non-GAAP net profit of 63.94 million yuan, up 32.36%. The chip business stood out particularly—Q1 main revenue of 179 million yuan, up 206.92% year-on-year, accounting for 36.09% of total revenue. The chip business has become the primary growth curve driving the company, while the outdoor business grew 8.02% during the same period, forming a strong pattern of 'chip high growth, outdoor stable growth.'
Institutional signals are also positive. On June 17, Toread received 11 institutional investor surveys. Huaxi Securities maintained a 'buy' rating, forecasting net profits attributable to parent company of 237/369/454 million yuan for 2025-2027. China International Capital Corporation raised its 2026 revenue forecast by 29% to 1.952 billion yuan and its EPS forecast by 60% to 0.15 yuan. These figures indicate that capital market recognition of Toread's dual-business strategy is rapidly increasing.
Industry Impact: Full-Chain Self-Sufficiency from Chip to End Product
Since establishing its 'outdoor + chip' dual-business strategy in 2021, Toread has acquired five chip-related companies, building a chip product matrix covering the entire chain of 'perception-interaction-display.' Tongtu's full-stack compression technology serves not only as an independent chip business growth pole but also provides core technical support for Toread's second-generation intelligent exoskeleton and outdoor smart shoes. During the 618 shopping festival, the company's self-developed intelligent exoskeleton Crest C3 began pre-sales, achieving daily sales of over 100 units on Tmall, with a weight of just 1.8 kg and a thrust-to-weight ratio of 10:1. Full-chain self-sufficiency from chip to end product is accelerating.
For the textile industry, Toread's case offers an important lesson: traditional outdoor brands entering the hard-tech track through technology acquisitions are redefining the industry boundary of 'textile + technology.' When a company known for outdoor apparel sees its chip business revenue growth far exceeding its main business, the industry needs to rethink—whether future competitiveness lies in fabric or underlying technology.
Market Outlook: Edge AI Blue Ocean Accelerates
Wang Hongjian predicted at the 2026 Zhongguancun Forum that edge AI will form a huge blue ocean market, with China's edge AI market size expected to grow from 600 billion yuan in 2026 to 2.1 trillion yuan by 2030. Leveraging its full-stack compression capability, Tongtu can widely enter eight major scenarios including personal devices, smart spaces, smart vehicles, industrial internet, embodied robots, and AR/VR wearables.
When a technology can solve the core bottleneck of the global AI industry, complete joint development with industry leaders in real business scenarios, and be supported by strong performance data—it is no longer a 'concept' but a real industry variable. As the edge AI market accelerates, Toread, with its 'hard tech' strength and dual-business synergy, is expected to continue breaking through in chips and smart equipment, steadily entering a new phase of high-quality development.