Exhibit 99.1

OPERATING AND FINANCIAL REVIEW FOR THE SIX MONTHS ENDED JUNE 30, 2026

This section should be read in conjunction with our unaudited consolidated financial statements and the related notes included elsewhere in this interim report.

Unless otherwise indicated or the context otherwise requires, all references to “the Company,” “our company,” “we,” “our,” “ours,” “us” or similar terms refer to AIOS Tech Inc. and its subsidiaries.

Overview

On December 23, 2025, as part of the strategic repositioning of the Company, AIOS Tech Inc. completed the disposal of NiSun International Enterprise Management Group (British Virgin Islands) Co., Ltd. (“NiSun BVI”), formerly a wholly-owned subsidiary of AIOS Tech Inc., and all of its subsidiaries to an unrelated third-party enterprise, discontinuing its former financial services and supply chain trading businesses operated in mainland China. The results of these disposed businesses are presented as discontinued operations, with all prior-period amounts reclassified to conform to the current presentation.

In June 2025, the Company relaunched its SME financing solution business outside mainland China through AIOS Tech Inc. On December 1, 2025, it acquired YD Network Technology Company Limited ("YD Network") and shifted its business focus toward information technology services, advancing management's vision of positioning the Company as a provider of AI and technology-empowered professional services.

Following this restructuring, the Company has one single reportable segment which comprise two primary businesses:

The following discussion relates solely to our continuing operations, which primarily comprise the financial results of AIOS Tech Inc. and YD Network. Because YD Network was not owned by the Company during the comparative period, and our overseas SME financing solution business only commenced in June 2025, prior-period contributions are limited, significantly impacting year-over-year comparability. 

Selected Financial Results for the Six Months Ended June 30, 2026

All comparisons are on a year-over-year (“yoy”) basis unless otherwise noted.

Revenue

The following table presents a breakdown of our revenue for the six months ended June 30, 2026 and June 30, 2025.

Cost of revenue

The following table presents a breakdown of our cost of revenue for the six months ended June 30, 2026 and June 30, 2025:

Cost of revenue was $0.4 million for the six months ended June 30, 2026, as compared to nil in the same period of the last fiscal year, due to the acquisition of YD Network in December 2025 and the disposal of the legacy business.

Gross profit

Gross profit was $0.7 million for the six months ended June 30, 2026, as compared to nil in the same period of last fiscal year. Gross margin was 64% for the six months ended June 30, 2026. Gross profit was derived entirely from our information technology services, as the legacy PRC SME financing solution business was disposed of and reclassified as discontinued operations. Our information technology service business is project-based and asset-light with cost of revenue consisting primarily of subcontracting fees and direct project staff costs, and margin is driven by project mix, the proportion of work delivered in-house versus outsourced. Margins may fluctuate period to period depending on project mix and utilization, and there can be no assurance that current levels will be sustained.

Operating expenses 

Total operating expenses were $0.6 million for the six months ended June 30, 2026, compared to $0.1 million in the same period of last fiscal year, primarily due to the acquisition and divestiture mentioned above.

Income (loss) from operations

As a result of the foregoing factors, the Company recorded an income from operations of $0.1 million for the six months ended June 30, 2026, as compared to a loss from operations of $0.1 million in the same period of last fiscal year.

Other income (loss)

Interest and investment income was $0.2 million for the six months ended June 30, 2026, compared to a loss of $0.5 million in the same period of the prior fiscal year.

Other income was $0.3 million for the six months ended June 30, 2026, as compared to nil in the same period of last fiscal year. The increase was primarily driven by an unrealized gain on equity securities of $272,723.

Income tax expenses

Income tax expense was $32,031 for the six months ended June 30, 2026, compared with nil in the same period of last fiscal year. The income tax expense mainly relates to income tax expenses incurred by YD Network, a subsidiary newly consolidated in December 2025.

Net income (loss) from continuing operations

As a result of the foregoing factors, we recognized a net income from continuing operations of $0.6 million for the six months ended June 30, 2026, compared to a net loss from continuing operations of $0.6 million in the corresponding period of last fiscal year.

Net loss from discontinued operations

The net loss from discontinued operations was nil for the six months ended June 30, 2026, as compared to a net loss from discontinued operations of $69.4 million in the corresponding period of last fiscal year, representing gains from the disposal of NiSun BVI and its subsidiaries and consolidated VIEs in December 2025.

Net income (loss) attributable to the Company’s shareholders

As a result of the foregoing factors, our net income attributable to our shareholders was $0.6 million for the six months ended June 30, 2026, as compared to net loss attributable to shareholders of $70.0 million in the corresponding period of last fiscal year.

Basic and diluted earnings (loss) per Share from continuing operations

Basic and diluted earnings per share from continuing operations were $0.27 and $0.27 for the six months ended June 30, 2026, compared with basic and diluted loss of $0.13 and $0.13 per share in the same period of last fiscal year.

Financial Condition and Cash Flow

As of June 30, 2026, the Company had cash and cash equivalents of $0.3 million, compared to $1.4 million as of December 31, 2025.

The Company’s other receivables amounted to $28,891,659 as of June 30, 2026, consisting of subscription receivable of $18,825,600, and loans to third parties of $10,066,059.

The subscription receivable represents amounts due from shareholders for unpaid consideration related to a private placement offering completed on March 6, 2026. As of the date of this report, approximately $6.08 million of the outstanding subscription receivable had been collected, with the remaining $12.7 million expected to be collected by the end of 2026. Loans to third parties include: (i) loans to a third-party enterprise, which increased from $2.0 million at December 31, 2025 to $4.8 million at June 30, 2026,primarily attributable to additional funds advanced to support the borrower's working capital needs, with a loan term of one year from the date of transfer and bearing interest at 2% per annum; (ii) loans of $5.3 million to another third-party enterprise for its working capital needs. The company can demand repayment of such amount at any time upon written notice.

In evaluating our liquidity, the Company diligently monitors and analyzes our cash reserves alongside our operating and capital expenditure commitments. Our liquidity requirements are primarily directed at meet our working capital needs, covering operating expenses, and fulfilling capital expenditure obligations.

Given these considerations, management is confident that we possess sufficient funds to meet our working capital requirements for the twelve months following the date of this report.

The following table provides summary information about our net cash flows for financial statement periods presented in this report:

Operating activities

Net cash provided by operating activities for the six months ended June 30, 2026 was approximately $1.8 million, which was primarily attributable to net income of approximately $0.6 million, adjusted for non-cash items, which had a net negative impact of approximately $0.2 million, along with adjustments for changes in working capital that totaled approximately $1.4 million.

Net cash used in operating activities for the six months ended June 30, 2025 was approximately $36.8 million, which was primarily attributable to net loss of approximately $70.0 million, which was adjusted for non-cash items of approximately positive $75.3 million, reduced by changes in working capital that totaled approximately $42.1 million.

Investing activities

Net cash used in investing activities was $8.1 million for the six months ended June 30, 2026, primarily attributable to cash outflows of $8.8 million for loans to third parties and $0.2 million for the purchase of short-term investments, partially offset by $0.8 million in collections on third parties loans and $0.1 million in proceeds from the sale of short-term investments.

Net cash provided by investing activities was $1.8 million for the six months ended June 30, 2025, primarily driven by a net cash outflow of $0.3 million loss on the sale of short-term investments, partially offset by $2.0 million in proceeds from the sale of a derivative asset and $0.1 million in proceeds from the disposal of property and equipment.

Financing activities

Net cash provided by financing activities was $5.2 million for the six months ended June 30, 2026, primarily attributable to $5.2 million of proceeds from issuance of ordinary shares. These proceeds represent the cash portion of the private placement completed on March 6, 2026, in which the Company issued 3,000,000 Class A common shares (as adjusted for the reverse share split) and warrants for an aggregate subscription price of US$24.0 million; US$18,825,600 remained receivable as of June 30, 2026 and $6.1 million was subsequently collected in August 2026.

Net cash provided by financing activities was $0.6 million for the six months ended June 30, 2025, primarily attributable to $0.7 million of proceeds from short-term bank loans, partially offset by $0.1 million in repayments of short-term bank loans.

AIOS TECH INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

( IN US DOLLARS) 

AIOS TECH INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

UNAUDITED

( IN US DOLLARS)

AIOS TECH INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED

(IN US DOLLARS)

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