Four years of R&D investment exceeding 3.2 billion! Muxi Co., Ltd. expects revenue to double by 2025, with the first-ever reduction in losses.

Ask AI · How do high R&D spending at MiXie Co., Ltd. catalyze a shift to profitability?

Source of this article: Time Weekly | Author: Guan Yue, Han Xun

Image source: TuChong

On the evening of March 26, MiXie Co., Ltd.-U (688802.SH) released its 2025 annual report, which is also its first annual report since listing on the STAR Market.

The annual report shows that in 2025, MiXie Co., Ltd. achieved revenue of RMB 1.644 billion, up 121.26% year over year; it recorded a net profit attributable to shareholders of RMB -789 million, narrowing by 43.97% compared with RMB -1.409 billion in the same period last year. This is the first time since the company’s establishment that the loss narrowed.

Image source: Made by Time Weekly’s reporter

Does this mean MiXie Co., Ltd. is on the verge of a profitability turnaround? In response, on the morning of March 27, Time Weekly’s reporter placed a phone call to MiXie Co., Ltd., and sent an interview outline by email. As of the time of publication, no reply had been received.

Ding Shaojiang, Chief Analyst at GKURC Industry & Economic Think Tank, said in an interview with Time Weekly’s reporter on March 27 that MiXie Co., Ltd.’s first time of narrowing losses, combined with revenue doubling, indicates that it has crossed the “gap between technical breakthroughs” and “commercial-scale ramp-up.” Most likely, it has already passed the most difficult stage. If it maintains the current growth rate, the profitability turnaround is expected to appear within 2 to 3 years.

On March 27, MiXie Co., Ltd. opened lower and traded with volatility. By the close, it fell 1.27%, to RMB 598.14 per share, with a total market value dropping to about RMB 239.3 billion.

Cumulative R&D spending over four years exceeds RMB 3.2 billion

According to Tianyancha, MiXie Co., Ltd. was founded in September 2020, located in the Pudong New Area of Shanghai. On December 17, 2025, it was listed on the STAR Market of the SSE. Its main business is R&D, design, and sales of full-stack GPU products applied to artificial intelligence training and inference, general computing (including scientific computing), and graphics rendering. It also provides supporting software stacks and computing platforms around GPU chips.

Image source: Tianyancha

As a Fabless company, the annual report states that MiXie Co., Ltd. is “one of the few domestic companies that have system-level mastery of the R&D, design, and mass-production technologies for high-performance GPU chips and their underlying system software.”

Judging from the company’s performance trajectory, MiXie Co., Ltd.’s revenue growth in recent years has been truly “leapfrog” growth. According to the prospectus, the company’s revenue in 2022 was only RMB 426,400. In 2023 and 2024, it jumped to RMB 53.0212 million and RMB 743 million, respectively; in 2025, it further broke through RMB 1.6 billion. Over four years, its revenue scale grew by more than 3,854 times.

For the doubling growth in 2025 revenue, the annual report attributes it to “broad recognition and continued purchasing of the company’s products and services by downstream customers, resulting in a significant increase in shipment volume of the company’s GPU products.”

Comparing the annual report and prospectus data shows that at the end of Q1 2025, MiXie Co., Ltd.’s cumulative GPU product sales had just surpassed 25,000 units, whereas by the end of 2025 it exceeded 55,000 units. By product, the company’s training+inference integrated GPU boards and intelligent computing inference GPU boards sold 33,649 and 4,946 units in 2025, respectively—up 147.31% and 866.02% year over year.

Senior investment banking professional Wang Jiyue said in an interview with Time Weekly’s reporter on March 27 that revenue is the source of profit. MiXie Co., Ltd.’s revenue doubling “means the expansion of market scale and user acceptance and recognition. Higher revenue growth than peers means it has captured more market share, and competitiveness is improving.”

On the profitability side, although MiXie Co., Ltd. has not yet turned profitable, the signal of narrowing losses is particularly critical. From 2022 to 2025, its net profit attributable to shareholders was RMB -777 million, RMB -871 million, RMB -1.409 billion, and RMB -789 million, respectively. For the narrowing losses in 2025, the annual report states that it was “due to a significant year-over-year increase in operating income during the reporting period, and a reduction in the company’s share-based payment expenses compared with the same period last year.”

From the cost structure perspective, persistently high R&D spending has become the main source of losses in recent years. From 2022 to 2025, MiXie Co., Ltd.’s R&D expenditures were RMB 648 million, RMB 699 million, RMB 901 million, and RMB 1.027 billion, respectively. The cumulative R&D expenditure totaled RMB 3.274 billion, accounting for 151857.63%, 1317.63%, 121.24%, and 62.49% of total revenue, respectively.

High R&D spending has also led to a series of real-world outcomes. The annual report shows that MiXie Co., Ltd. “completed one-time tape-out and mass production of three flagship chips within five years, with performance on par with international benchmark products.” In addition, in July 2025, the company released its first Xiyun C600 series based on fully domestically manufactured processes at the World Artificial Intelligence Conference. It is expected to achieve mass production and sales in the first half of 2026, and “is expected to become the company’s next-generation main product.”

However, Wang Peng, an associate research fellow at the Chinese Academy of Social Sciences in Beijing, also pointed out in an interview with Time Weekly’s reporter on March 27 that MiXie Co., Ltd. still has gaps with international giants, concentrated in barriers built over long-term software ecosystem accumulation, as well as the refinement of extreme performance in high-end scenarios. “With the Xiyun C600 achieving a breakthrough in fully domestically manufactured processes, it accelerates the domestic self-sufficiency process for high-performance computing chips. Its mass-production schedule will directly affect MiXie Co., Ltd.’s near-term earnings elasticity.”

The road ahead for domestic chip companies is still long

Looking at the industry as a whole, domestic chip companies in 2025 seem to have generally achieved high growth.

Among peer companies that have already disclosed annual reports, Cambricon (688256.SH) delivered the strongest performance. In 2025, it achieved revenue of RMB 6.497 billion, up 453.21% year over year; it recorded net profit attributable to shareholders of RMB 2.059 billion, turning from loss to profit year over year. As a result, Cambricon officially removed the “-U” label for non-profitable companies, becoming the first “graduated” enterprise in the STAR Market growth segment.

Hygon Information (688041.SH) released a performance express report for 2025 showing that last year it achieved revenue of RMB 14.376 billion, up 56.91%; net profit attributable to shareholders was RMB 2.542 billion, up 31.66%.

Meanwhile, among companies with revenue scales similar to MiXie Co., Ltd., Moore Threads-U (688795.SH) had the fastest revenue growth rate. In 2025, it achieved revenue of RMB 1.506 billion, up 243.37%. For Jingjia Micro (300474.SZ), which engages in military electronics GPU, its 2025 revenue is expected to be between RMB 650 million and RMB 850 million, a year-over-year increase of approximately 39.38% to 82.27%. Major products include GPU chips from Loongson Technology (688047.SH). According to its 2025 performance express report announcement, its revenue was RMB 635 million, up 25.99% year over year.

In response, Zhang Guobin, a senior semiconductor expert and founder of the Electronic Innovation Network, said in an interview with Time Weekly’s reporter on March 27 that there are three main drivers of domestic chip companies’ high growth in 2025: first, the explosion in computing power demand—domestic large models such as DeepSeek have driven a surge in inference demand; second, policy support—against the backdrop of external restrictions, domestic AI chips are accelerating penetration in key industries such as telecom operators, finance, and the internet. In 2024, the domestic market shipment share of AI acceleration chips from China rose from 14% in 2023 to 30%; third, supply-chain security—four major cloud providers’ 2026 capital expenditures are expected to exceed $66 billion, up 62% year over year. Domestic chips are becoming an important option for diversified supply chains.

However, when compared with the profitability levels of international giants, the gross margin levels of domestic chip companies are still not particularly high.

Cambricon’s gross margin in 2025 was 55.15%, down 1.56 percentage points year over year. MiXie Co., Ltd. is slightly higher: its gross margin in 2025 was 56.51%, up 3.02 percentage points year over year. By contrast, Nvidia’s full-year GAAP gross margin for fiscal year 2026 is 71.1%, far higher than the first two. Among domestic GPU companies, Moore Threads-U is the closest to Nvidia: its 2025 interim report shows a gross margin of 69.14%.

Regarding this, Zhang Guobin analyzed that this results from multiple factors. From the product structure perspective, Nvidia’s data center business accounts for more than 90%, and it is mainly focused on high-end AI training and inference chips, with extremely high average selling prices and profit margins. Domestic GPU companies, meanwhile, currently mainly rely on mid- to low-end products, GPU boards, and cluster solutions, with limited exposure to high-end AI chips. In addition, Nvidia’s years of R&D investment have kept the marginal cost of its products low. “Moreover, the huge scale difference gives Nvidia absolute advantages in supply-chain bargaining and R&D amortization. Additionally, Nvidia’s dominant position in the AI training market gives it pricing power, while domestic chips often adopt low-price strategies to capture market share.”