China's leading artificial intelligence chip company, Cambricon Technologies Corporation Limited (hereinafter referred to as "Cambricon"), anticipates a historic turning point in its performance for 2025, achieving its first annual profit, driven by a surge in industry computing power demand and successful market expansion. According to the company's 2025 annual performance forecast, Cambricon expects to achieve a net profit attributable to the parent company's owners in the range of 18.5 billion to 21.5 billion yuan for the full year. This not only completely reverses the loss of over 4.5 billion yuan from the previous year but also signifies a new stage in the company's commercialization journey. This robust profit expectation stems primarily from explosive revenue growth, which expanded more than fourfold within a year; projected 2025 revenue is expected to be between 60 billion and 70 billion yuan, representing a staggering year-on-year increase of 410.87% to 496.02%. This performance forecast significantly surpasses conventional growth expectations for local AI chip companies and validates the strong resilience of demand in the high-performance computing market. As a core stock in the A-share market's AI chip sector, Cambricon's signal of turning profitable may reshape investor valuation logic regarding the profitability of the domestic computing power supply chain and could provide a positive boost to market sentiment for related sectors. Cambricon explicitly stated in its announcement that the accelerated implementation of artificial intelligence application scenarios is the core driver behind the current performance shift. The company capitalized on the opportunity presented by rising computing power demands through its product competitiveness, achieving an overall leap in operational performance. The substantial improvement in profitability is the standout feature of this performance forecast. The announcement data indicates that Cambricon expects a net profit attributable to the parent company's owners of 18.5 billion to 21.5 billion yuan for 2025. Recalling the 2024 financial data, the company reported a net profit attributable to the parent company's owners of a 4.52 billion yuan loss, with a total profit loss of 4.56 billion yuan. Within just one year, the company has not only filled the multi-billion yuan loss gap but also generated a positive profit at the approximate 20-billion-yuan level. Furthermore, the net profit after deducting non-recurring gains and losses is also impressive, projected to reach 16 billion to 19 billion yuan. This stands in stark contrast to the adjusted net loss of 865 million yuan for the same period in 2024, demonstrating a fundamental improvement in the profitability of the company's main business operations. Regarding the reasons for the dramatic performance change, Cambricon's board of directors explained in the announcement that the company has long been deeply involved in the research, development, and technological innovation of AI chip products and is now benefiting from positive changes in the industry's macro-environment. During the reporting period, the demand for computing power in the artificial intelligence industry continued to climb. Cambricon stated that it has been continuously expanding its market reach leveraging the superior competitiveness of its products and actively promoting the implementation of AI application scenarios. It is precisely this combination of expanding market demand and the competitiveness of the company's products that led to the significant revenue growth in this period, thereby driving the overall improvement in the company's operational performance and ultimately achieving a turnaround from loss to profit. Cambricon also emphasized that the disclosed figures are only preliminary calculations by the finance department and have not yet been audited by certified public accountants. Although, as of the announcement date, the company has not identified any major uncertainties that could affect the forecast's accuracy, the specific financial data are still subject to the officially disclosed "2025 Annual Report." Investors should be aware of the associated investment risks.
Comments