AI chip company Cambricon released their performance report for the first half of this year. During the period, the company’s revenue reached 87.2 million yuan, a year-on-year decrease of 11.01%. The net loss totaled 202 million yuan, compared with a loss of 30.8 million yuan in the same period last year.
Calculated on the basis of 182 days in the first half of the year, the company lost an average of 1.11 million per day, Chinese tech media 36Kr reported.
After the release of the semi-annual report, Cambricon’s stock price dropped by 7% and its market value shrank by more than 5 billion yuan, falling below 70 billion yuan. Compared with its 100-billion-yuan market capitalization after its initial listing, the stock plummeted by more than 40%.
Cambricon stated that the loss in the first half of the year was mainly due to the company’s increase in R&D investment. During the period, the company’s R&D investment totaled approximately 277 million yuan, an increase of 109.06% year-on-year, accounting for 318.1% of operating income.
Dubbed one of the few domestic companies that provides a full range of smart chips and processor products for the cloud, edge and terminals, Cambricon racked up 4,766,700 yuan in revenue from its IP licensing business for terminal smart processors, a year-on-year decrease of 85.07%. Revenue from smart chips for cloud services and accelerator cards reached 62.218 million yuan, a year-on-year decrease of 5.83%.
The company’s edge smart chip and accelerator card business have generated large-scale sales this year, achieving revenue of 9,975,100 yuan. Its smart computing cluster system revenue was 127,900 yuan, basic system software revenue totaled 100.8 million yuan, while other business revenue reached 107,600 yuan.
Cambricon said the company expects to maintain its revenue growth for the rest of 2020. However, due to the company’s continuous increase in R&D investment, it is possible that the company’s net profit will decline significantly compared with 2019 once non-recurring gains and losses are deducted.
As of the press time, Cambricon’s stock price was trading at 174.5 yuan, up about 0.13%.