Chinese GPU chip design startup Metax Integrated Circuits (Shanghai) Co., Ltd. has released its 2025 performance forecast. The data reveals that while the company achieved an astonishing year-on-year revenue growth of over 100%, it remains deeply entrenched in substantial losses, highlighting the immense challenges of achieving profitability in the artificial intelligence hardware race.
On January 27, Metax released preliminary estimates, projecting 2025 operating revenue to reach between 1.6 billion yuan and 1.7 billion yuan, a massive increase of 115.32% to 128.78% compared to the previous year's 743 million yuan. This growth indicates significant market demand for its GPU products.
The picture regarding profitability, however, is far more complex. The company expects its net profit attributable to owners of the parent company to remain in the red for 2025, with losses estimated between 650 million yuan and 798 million yuan. Nevertheless, this projected loss represents a substantial narrowing of 43.36% to 53.86% compared to the hefty loss recorded in the same period last year.
This financial snapshot immediately drew market attention to the commercialization progress of local Chinese AI chip companies. In an environment characterized by high R&D investment and intense competition, the coexistence of rapid revenue growth and persistent losses has become a common feature for many hard-tech startups.
Core Financial Data: Revenue Soars, Losses Narrow
The performance forecast from Metax Integrated Circuits provides key financial metrics to gauge its business progress. The explosive revenue growth is the most prominent highlight of this forecast; the projected 1.6 to 1.7 billion yuan in revenue not only signifies a step up in scale but also confirms the acceleration of its product commercialization.
However, the other side of the income statement continues to face pressure. After deducting non-recurring gains and losses, the company expects a net loss between 700 million yuan and 835 million yuan, narrowing by 20.01% to 32.94% compared to the 1.044 billion yuan loss in 2024. It is noteworthy that the forecast mentions a reduction in share-based payment expenses positively impacted profitability, helping to lower the overall loss magnitude.
Compared to the 2024 earnings per share (EPS) of -7.01 yuan, the market will closely watch whether its 2025 per-share loss narrows correspondingly. Together, these figures paint a portrait of a technology company in a phase of rapid expansion that has not yet crossed the breakeven point.
Drivers Behind the Performance: Product Recognition and Market Expansion
Regarding the significant revenue growth, the company attributes it in its announcement to enhanced product competitiveness and the advancement of its market strategy. The announcement states that, leveraging its long-accumulated R&D strength and technical barriers, the company has successfully built a GPU product portfolio covering multiple scenarios including general-purpose computing and AI inference/training, and has established a software ecosystem compatible with mainstream environments.
During the reporting period, the company adhered to its "1+6+X" development strategy, intensifying market expansion efforts aimed at enhancing its market position and influence in the high-performance GPU industry and promoting the integration of AI technology across various sectors. The company claims that, thanks to superior product performance and a comprehensive software ecosystem, its products and services have gained "widespread recognition and continuous procurement" from downstream customers.
This statement suggests that its products may have achieved substantial order breakthroughs with data centers, cloud computing service providers, or specific industry clients. For a Chinese startup striving to gain a foothold in the GPU market dominated by giants like Nvidia, securing "continuous procurement" from customers is a critical step in validating its business model.
Ongoing Challenges: The Path to Profitability Remains Long
Despite the positive growth signals, Metax's performance forecast also clearly reveals the persistent challenges it faces. Even with a significant narrowing of the loss amount, a net loss of at least 650 million yuan is still projected for 2025, underscoring the inherent characteristics of the chip design industry, particularly in cutting-edge GPU fields: high capital intensity and long return cycles.
The company frankly admitted that the reduction in share-based payment expenses during the reporting period was a factor contributing to the narrowed loss on the profit level. This reminds investors that improvements in the core operating business's profitability will require more time. High R&D expenses, tape-out costs, talent expenditures, and fierce market competition continue to squeeze profit margins.
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