(Yicai) July 31 -- Shares of QuantumCTek rose after the Chinese quantum communication firm’s net loss narrowed 16 percent in the first half, thanks to increased revenue from the quantum computing and quantum accurate measurement businesses.

QuantumCTek’s shares [SHA: 688027] closed 2.4 percent up at CNY161.84 (USD22.39) in Shanghai today.

Net loss was CNY35.3 million (USD4.9 million) in the six months ended June 30, compared with nearly CNY42 million a year earlier, the Hefei, Anhui province-based firm announced on July 29. Revenue rose 22 percent to CNY69.5 million.

QuantumCTek’s revenue from the quantum computing business soared 90 percent, and that from the quantum accurate measurement business skyrocketed 216 percent in the period.

The company’s quantum communication business has been slowly shrinking. According to data from Wind Information, its revenue from such business accounted for only 55 percent of the total last year, compared to 94 percent in 2020.

QuantumCTek built its quantum computing supply chain through independent research and development and cooperation with institutions, such as the University of Science and Technology of China. The firm told Yicai it has sold four complete quantum computers so far.

The global quantum computing industry was worth USD4.7 billion last year, according to data from science and technology consultancy firm ICV TAnK. It is expected to achieve an average annual growth rate of 45 percent between last year and 2028 and a total market size of USD811.7 billion by 2035.

QuantumCTek spent nearly 83 percent of its revenue on R&D last year, compared with 101 percent in 2022, 51 percent in 2021, and 45 percent in 2020, according to Wind data. High R&D spending is one of the main reasons the firm has not yet turned profitable.

In a separate statement on the same day, QuantumCTek announced that the State-Owned Assets Supervision and Administration Committee of the State Council had agreed in principle for a wholly-owned unit of China Telecom to gain control of QuantumCTek through means such as the subscription of new shares. The proceeds will be used to supplement QuantumCTek’s working capital.

Editors: Shi Yi, Futura Costaglione