A company known for outdoor gear sees its chip business quarterly revenue grow over 200%, now accounting for nearly 40% of total revenue. Toread's Q1 2026 report reveals a structural shift: chip operations are no longer a strategic reserve but a profit engine.
Dual-Pillar Structure Takes Shape
Q1 data shows revenue of 496 million yuan, up 39.41% year-on-year; non-GAAP net profit of 63.94 million yuan, up 32.36%. Chip business contributed 179 million yuan, a 206.92% surge, raising its share from about 30% in 2025 to 36.09%. Single-quarter chip revenue approached the full-year 2025 chip revenue of 230 million yuan.
Outdoor segment achieved main revenue of 315 million yuan, up 8.02%. Despite slower growth, it maintains stable expansion on a high base, forming a 'chip high-growth + outdoor stable-growth' pattern. The H1 2026 forecast confirms this: net profit expected 46-56 million yuan, up 128.92%-178.69%; non-GAAP net profit 42-49 million yuan, up 166.58%-211.01%.
Full-Stack Compression Technology as Moat
The chip explosion is not mere acquisition stacking. Shanghai Tongtu Semiconductor holds AI model full-stack data compression technology: input data compressed to 1/5, intermediate data further compressed 50% beyond Google TurboQuant, trillion-parameter models compressed 30%, all without retraining.
This aligns with Google TurboQuant, confirming 'compression to liberate computing' as a deterministic trend. The tech moat is accelerating: AI compression IP has been integrated into over 20 top domestic chip design firms. In June, a strategic cooperation was signed with an automotive-grade AI chip leader for joint development of bandwidth compression tech, enabling large model deployment in autonomous driving and robotics. Also, a memorandum with global ecosystem platform GNS was signed; G2 Touch touch chips have entered multiple automotive supply chains.
Edge AI Blue Ocean Expands
China's edge AI market is projected to grow from 600 billion yuan in 2026 to 2.1 trillion yuan by 2030, with AI data compression CAGR exceeding 50% over five years. Toread's chip business is riding this high-growth track with first-mover advantage.
On the outdoor side, a 'chip-driven outdoor, scenario-feeds-back-chip R&D' path is emerging. On June 17, 2026, the self-developed smart exoskeleton Crest C3 pre-sold at 7699 yuan, weighing 1.8 kg with a 10:1 thrust-to-weight ratio and AI gait algorithm. During 618 pre-sales, daily sales exceeded 100 units, with consumers from non-first-tier cities. In March, an outdoor smart shoe with high-precision sensing and AI agent was released. Full-chain self-reliance from chip to product is accelerating.
Translating Extreme Environment Tech
Toread's outdoor tech roots from 27 years of extreme environment experience: from Shenzhou-12 to -23, astronauts' cabin equipment were 100% domestic, with involvement in space suit standard-setting. Since 2009, 17 consecutive years supplying China's polar expedition teams, building 'Polar Bionic Technology Platform 2.0'. In 2020, HIMEX series provided high-altitude protection for Mount Everest survey. For 'Jiaolong' deep-sea submersible, it developed full diver gear.
These extreme validations convert into reliable mass-market outdoor gear, enhancing credibility and brand premium.