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Following circulating rumors suggesting that the Chinese leader in AI chip manufacturing has provided a revenue outlook for this year that falls significantly short of market expectations, the company dismissed these claims, emphasizing that only official disclosures should be relied upon.
The company stated that the rumors are false, responding to an inquiry from an investor. They emphasized, “All relevant information should be based on the company’s official announcements.”
Speculation indicated that a recent small meeting revealed the company anticipates revenues of around 20 billion yuan (approximately $2.9 billion) this year, considerably lower than earlier projections of between 30 billion to 50 billion yuan.
These rumors caused its stock to fall sharply, closing 9.2% lower at 1,128 yuan (about $162.38) on the Shanghai Stock Exchange. The shares have declined about 29% since reaching a peak last August.
On January 30th, the firm announced that it expects to report a net profit between 1.9 billion and 2.2 billion yuan (roughly $273.8 million to $316.7 million) last year. This marks the company’s first profitable year since it was founded in 2016. Revenue reportedly increased by 411% to 496%, reaching between 6 billion and 7 billion yuan from the previous year.
The company attributed its growth last year to the rising demand for computing power within the AI industry, which allowed it to expand its market share through competitive products and proactive AI application integration. This effort boosted revenue and overall operational performance, enabling the company to turn a profit.
However, performance slowed starting in the third quarter of last year, with net profit declining by 17% to 567 million yuan ($81.7 million) from the previous quarter, and revenue decreasing by 2% to 1.7 billion yuan.
For the fourth quarter, the company anticipates net profit to have decreased between 4% and 57%, ranging from 245 million to 545 million yuan, compared to the previous quarter. Revenue during this period is expected to be between 1.4 billion and 2.4 billion yuan, reflecting a decline of 19% or an increase of up to 38%.
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