Muxi Co. (stock code 688802.SH) says it expects revenue of 1.6–1.7 billion yuan for 2025, a jump of roughly 115–129% from the prior year, while forecasting a net loss attributable to shareholders of 650–798 million yuan. The company frames the improvement as a result of stronger market traction for its high‑performance GPUs, deeper integration of artificial intelligence into customer workflows, and a tighter cost profile.
Management credits the performance uplift to a deliberate "1+6+X" growth strategy that has broadened sales and strengthened relationships with downstream customers, leading to what it describes as sustained procurement of its products and services. The company also highlights a reduction in share‑based compensation expenses as a meaningful non‑operational factor that narrowed the hole in its bottom line.
The figures illustrate a familiar pattern in China’s AI hardware ecosystem: rapid top‑line growth driven by demand for AI acceleration, paired with ongoing losses as firms chase scale, software ecosystems and market share. For Muxi the result is a noticeably smaller loss than the 1.409 billion yuan shortfall recorded in the previous year, but not yet a return to profitability.
For investors and industry watchers, the forecast is a mixed signal. The revenue trajectory suggests genuine commercial momentum in the domestic high‑performance GPU market, where local suppliers are attempting to replace foreign components amid geopolitical frictions and an explosion of AI workloads. At the same time, sizable net losses underscore the capital intensity of the business: building silicon, software stacks and customer integrations remains expensive.
Risks to Muxi’s path to profitability include competition from both domestic rivals and established international GPU suppliers, pressure on margins as companies discount to win enterprise contracts, and potential supply‑chain limits for advanced manufacturing capacity. Cost improvements such as lower share‑based pay can be helpful in the near term but may not substitute for sustained gross‑margin recovery driven by product mix and pricing power.
The company’s narrative highlights an important dynamic in China’s semiconductor strategy: homegrown GPU suppliers can grow fast when AI demand is strong, but scaling up to consistently profitable operations requires control of production, software ecosystems and long‑term enterprise relationships. Muxi’s results will therefore be watched not just for its own balance sheet, but as a barometer of how well China’s AI hardware suppliers can convert demand into durable profits.