Leading domestic custom chip company VeriSilicon: Full-year loss expected to narrow by 25% year-on-year, revenue up 36%, AI computing power drives orders to double | Earnings Report Highlights

Benefiting from record-breaking quarterly new orders and the gradual emergence of economies of scale, China’s leading custom chip company VeriSilicon’s 2025 results show a trend of “revenue growth and narrowing losses.”

According to the annual performance forecast released by the company on January 23, revenue in 2025 is expected to reach 3.153 billion yuan, a substantial year-on-year increase of 35.81%; net loss is 449 million yuan, narrowing by 25.29% compared to the previous year. While revenue scale is rapidly expanding, overall profitability is gradually improving.

Key highlights are as follows:

Financial Performance: 2025 revenue is 3.153 billion yuan, up 35.81% year-over-year; net loss is 449 million yuan, a 25.29% narrowing year-over-year; non-recurring net loss is 627 million yuan, narrowed by only 2.49%Order Boom: Total new orders for the year reached 5.96 billion yuan, a 103% year-on-year increase; Q4 single-quarter new signed orders of 2.711 billion yuan set a record high; year-end orders in hand were 5.075 billion yuanBusiness Structure: Mass production business revenue grew by 74%, becoming the biggest highlight; AI computing power-related orders account for over 73%; data processing revenue accounted for 34%

Cost Pressure: R&D investment was 1.351 billion yuan, accounting for 43% of revenue; operating expenses were 1.639 billion yuan, of which R&D accounted for 80%

Structurally, net loss attributable to shareholders narrowed by 152 million yuan year-on-year, however, net loss after deducting non-recurring profit and loss was 627 million yuan, narrowing by just 2.49% year-on-year.

The performance improvement was mainly driven by robust annual revenue growth, consecutive record-breaking quarterly new orders, and high levels of orders in hand for nine straight quarters. Meanwhile, although the company continues its high-intensity R&D investment, rapid revenue growth has led to a significant decline in the ratio of R&D expenses to revenue, and economies of scale are starting to emerge.

Record-high Single-quarter New Orders; Proportion of R&D Investment Dropped Sharply

The core driver for the company’s performance lies in its explosive growth in new signed orders, setting historical record highs for three consecutive quarters, revealing strong market demand and customer recognition.

The amounts of new orders signed in the second, third, and fourth quarters of 2025 were 1.182 billion yuan, 1.593 billion yuan, and 2.711 billion yuan respectively, with a quarter-on-quarter increase of 70.17% in Q4.

Total new orders signed for the full year reached 5.96 billion yuan, more than twice that of 2024, up 103.41% year-over-year. Of this, orders related to AI computing power accounted for over 73%; those in the data processing sector accounted for more than 50%.

By the end of 2025, the company’s orders in hand totaled 5.075 billion yuan, maintaining high levels for nine consecutive quarters and growing by 54.45% compared to the end of Q3. Notably, mass production business orders have exceeded 3 billion yuan, laying a solid foundation for continued profitability improvement driven by economies of scale. Additionally, over 80% of orders in hand are expected to be converted within the next year, nearly 60% of which are from data processing applications.

In 2025, the company's total operating expenses are expected to be about 1.639 billion yuan, of which about 80% is R&D expenses. During the reporting period, overall R&D investment reached 1.351 billion yuan, while maintaining high investment intensity, thanks to significant revenue growth, the ratio of R&D expenses to revenue decreased by about 11 percentage points year-on-year to 43%, reflecting the early release of economies of scale.

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