Over 2 billion! Cambricon achieves profitability for the first time in annual report! Proposes 10 shares dividend of 15 yuan with 4.9 shares bonus conversion.

Domestic artificial intelligence chip company, AI chip “star” Cambrian (688256), has achieved its first annual profit, with a net profit of 2.059 billion yuan in 2025, compared to a loss of 452 million yuan in the same period last year.

On the evening of March 12, Cambrian announced its annual report, showing that in 2025, the company achieved operating revenue of 6.497 billion yuan, a year-on-year increase of 453.21%. Net profit was 2.059 billion yuan, compared to a loss of 452 million yuan in the same period last year. The net cash flow from operating activities increased by 1.12 billion yuan compared to the previous year. The company plans to distribute a cash dividend of 15 yuan (tax included) for every 10 shares to all shareholders, and also to transfer 4.9 shares for every 10 shares.

Cambrian stated that benefiting from the continuous rise in demand for computing power in the AI industry, the company has continued to expand its market with its excellent product competitiveness, actively promoting the implementation of AI application scenarios. The significant increase in operating revenue in 2025 was mainly due to the substantial growth in revenue.

Since its establishment in 2016, Cambrian has been focused on the research and development of AI chip products and technological innovation, dedicated to creating core processor chips in the AI field to help machines better understand and serve humans. The company’s main business involves the research, design, and sales of AI core chips used in various cloud servers, edge computing devices, and terminal devices. Currently, its main product lines include cloud, edge, IP licensing, and software.

Previously, Cambrian experienced continuous annual losses, with losses of 1.256 billion yuan in 2022, 848 million yuan in 2023, and 452 million yuan in 2024. In 2025, Cambrian’s gross profit margin was 55.15%, slightly lower than 56.71% in 2024.

Cambrian indicated that in 2025, relying on significant progress in AI chip products, basic software platforms, and cluster software toolchains, its products have been deployed at scale in key industries such as telecommunications, finance, and internet. They have passed rigorous customer environment testing, and their versatility, stability, and ease of use have been widely recognized by customers. During the reporting period, the company closely followed the open-source ecosystem, significantly reducing customers’ development and migration costs, laying a solid foundation for future product promotion and ecological development.

Specifically, in the telecommunications sector, Cambrian focuses on core AI application scenarios, continuously providing deeply optimized computing solutions and platform capabilities to enhance customer service experiences related to AI. In finance, Cambrian continues to strengthen cooperation with core financial institutions, supporting the regular deployment of large models and other technologies in operations and management, helping to shift financial AI applications from exploratory models to value-creating solutions.

In the internet sector, Cambrian leverages core applications such as large models and multi-modality, engaging in deeper technical cooperation with multiple industry clients on operator development, performance optimization, framework improvements, and communication enhancements. In vertical industries like smart mining, smart energy, and smart healthcare, Cambrian collaborates deeply with key industry clients to provide core computing power for safety production, intelligent equipment maintenance, and medical image analysis, as well as flexible and efficient computing solutions for AI-based Q&A systems. In the field of industry data intelligence, Cambrian’s products continue to serve scenarios such as multimedia data automation, multimedia information retrieval, and intelligent verification, effectively supporting the digital transformation and intelligent upgrade of related businesses.

In 2025, Cambrian continued to increase R&D investment, focusing on AI chip product development to strengthen core competitiveness and solidify its chip technology foundation. During the reporting period, R&D expenditure was 1.169 billion yuan, accounting for 17.99% of operating revenue. Currently, Cambrian has a R&D team of 887 people, accounting for 80.13% of total employees, with over 80.95% holding master’s degrees or higher.

Cambrian stated in its annual report that in hardware, the company’s new generation of intelligent processor microarchitecture and instruction set are under development. Meanwhile, the company continues to iterate its training and inference software platforms, achieving significant results. The training software platform has made progress in model adaptation breadth, training performance, and user experience. The inference software platform continues to advance in technological innovation and open-source ecology, improving system-level collaborative optimization and strengthening platform entry points and user base.

Overall, Cambrian noted that AI chip technology is still in the development stage, with rapid technological iteration and ongoing exploration of development paths. No architecture or system ecosystem has yet achieved absolute dominance. As more manufacturers launch AI chip products, market competition is becoming increasingly fierce. In the future, the company will focus on cutting-edge AI development, driving technological and product iteration to meet diverse needs of commercial clients, and seize the strategic opportunity as AI begins to penetrate various industries. The company will also intensify market expansion efforts to address industry risks.

As of the close on March 12, Cambrian’s stock price was 1,099 yuan, with a total market capitalization of 463.4 billion yuan.