Grand Technology (SDA.US) achieved a 28% year-on-year increase in revenue in Q1, with profits for three consecutive quarters. The premium for new energy vehicle insurance increased by 43% year-on-year.

Chinese artificial intelligence-driven car insurance and car service innovation leader Shengda Technology Group Co., Ltd. (SDA.US, hereinafter referred to as "Shengda Technology" or the "Company") officially released its financial report for the first quarter ending March 31, 2026. The financial report shows that the company's profitability continued to strengthen, achieving profitability for the third consecutive quarter, with core indicators such as revenue, new energy vehicle insurance, and technology services showing high growth. The cost structure continued to optimize, and the annual revenue guidance of 600 million US dollars remains unchanged, indicating strong growth momentum. Core financial data is impressive, and profitability levels steadily rise In the first quarter of 2026, Shengda Technology's financial performance was strong, achieving new breakthroughs in operational quality. Total revenue was 131.2 million US dollars, a year-on-year increase of 28% (compared to 102.6 million US dollars in the same period in 2025); net profit was 1.6 million US dollars, compared to a net loss of 3.6 million US dollars in the same period in 2025, showing a firm reversal in profitability. Adjusted EBITDA was 4.5 million US dollars, compared to -1.3 million US dollars in the same period in 2025; adjusted EBITDA profit margin was 3.4%, a significant improvement from -1.3% in the same period last year, indicating strengthened profitability. Balanced growth in various business sectors with abundant momentum Car electronic insurance revenue was 62.3 million US dollars, a year-on-year increase of 36%; technology service revenue was 15.3 million US dollars, a year-on-year increase of 43%, accelerating the commercial value of AI; car service revenue was 53.5 million US dollars, a year-on-year increase of 16%, with continuous expansion of government and enterprise high-end travel services. Significant cost control effectiveness, with significant year-on-year decreases in sales expenses and management expenses, and research and development investment steadily increasing to 1.2 million US dollars, laying a solid foundation for technological innovation and continuously optimizing operational efficiency. New energy vehicle insurance leading strongly, in-depth cooperation with mainstream new energy vehicle companies and Huawei ecosystem As a core growth engine, the new energy vehicle business continued to perform impressively. In the first quarter of 2026, new energy vehicle insurance premiums reached 514.4 million US dollars, a significant year-on-year increase of 43%; new energy vehicle-related insurance revenue was 22.6 million US dollars, a year-on-year increase of 37%, with continued increase in market share. The company deepened cooperation with Tesla, Inc., continuing to implement an integrated "insurance + services" equity platform, optimizing the one-stop service experience for car owners. In addition, the Xiaomi cloud platform customer service system was successfully launched, verifying the flexibility and scalability of the CRM system, significantly improving customer conversion rates and satisfaction; LEAPMOTOR completed the full-process digitalization of the platform, achieving 100% SaaS-based transactions for employees and customers, highlighting the effectiveness of digital empowerment; awarded as the exclusive insurance service provider for Huawei ecosystem retail stores, with 20 stores already connected to the platform in the first quarter, demonstrating ecosystem synergy; jointly building an ecosystem with China Earth Insurance to empower its customers in accessing products, developing products, and risk management capabilities, continuously expanding cooperation boundaries. Multiple breakthroughs in car service business, intensive landing of government and enterprise major clients The company's car service sector focuses on high-end travel and government and enterprise scenarios, with large-scale high-quality contracts landing intensively, continuously expanding the business scale. This includes signing a three-year 50 million US dollar special car service contract with Agricultural Bank of China, covering the bank's three major business units; winning a three-year 13 million US dollar concierge special car service contract with China Minsheng Banking Corp., Ltd.; being selected as the comprehensive transportation service provider for airport/high-speed rail travel projects of the Industrial and Commercial Bank of China; becoming the exclusive concierge special car service provider for Huaxing Bank; and reaching enterprise-level cooperation with Ping An Insurance, The Pacific Insurance, Ping An Bank, and other financial insurance institutions to provide value-added services such as special cars, chauffeurs, and car washes, continuously improving brand recognition. AI deeply empowers the entire chain, collaborating with Bytedance Douyin to strengthen technological barriers The company continues to deepen its AI strategic cooperation with Bytedance Douyin, with technological empowerment running through the entire business chain: leveraging Douyin's large models to iteratively launch core functions such as predictive maintenance, intelligent policy pricing, and AI renewal reminder calls; AI technology comprehensively optimizes insurance risk control, service dispatching, and operational management efficiency, helping to reduce costs and increase efficiency. Technology service revenue increased by 43% year-on-year, with continuous commercialization of AI applications, building industry-differentiated competitive barriers. The annual revenue guidance remains at 600 million US dollars, enhancing long-term growth certainty Shengda Technology reaffirmed its 2026 full-year revenue guidance of 600 million US dollars, expressing confidence in the expansion of new energy vehicle insurance, the scale-up of government and enterprise services, and the commercialization of AI products. Ye Zaichang, Chairman and CEO of Shengda Technology, said, "In the first quarter of 2026, the company achieved profitability for three consecutive quarters, with a 28% year-on-year growth in revenue. This is the result of strategic focus, technological innovation, and ecological synergy. The rapid growth of new energy vehicle insurance, continuous landing of government and enterprise major clients, and deep empowerment of AI technology have laid a solid foundation for the company's high-quality development. In the future, we will continue to focus on the car insurance and high-end travel service tracks, deepen ecological cooperation, strengthen technological barriers, and create long-term value for partners and shareholders."