Aug 27 – Loongson Technology released its H1 2025 earnings: Revenue rose 10.90% YoY to $348.6M, while net loss attributable to shareholders widened to $420M (vs. $340M in H1 2024).
As China’s only CPU firm with an independent instruction set (separate from X86 and ARM architectures), Loongson has core tech in self-developed CPUs and software ecosystems. Key positives emerged in H1:
- Optimized revenue structure: Chip product revenue hit $288.6M (+23.60% YoY). Among this, **industrial control chips surged 61.09% YoY to $124.6M** (nearing full-year 2024 levels), and information chips reached $164.3M (+5.01% YoY). Solution revenue fell 25.93% YoY to $59.4M due to reduced integrated machine business.
- Gross margin rebound: Overall gross margin rose 12.77 pts YoY to 42.44%. Industrial control chips led with 65.45% (+12.98 pts YoY), info chips hit 23.95% (+2.40 pts YoY), and solutions reached 45.20% (+21.78 pts YoY).
Growth drivers: Industrial chips benefited from recovering security application markets and new products; info chips relied on the cost-effectiveness of the 3A6000 model and a warmer e-government market. Net loss widened due to higher impairment losses, R&D expenses, and income taxes, plus lower inventory procurement and government subsidies (hitting operating cash flow).
H1 R&D investment reached $380M (109.32% of revenue), with 49.46% of its 643 R&D staff holding master’s degrees or above—laying the groundwork for innovation.
Though still in loss, Loongson’s improving revenue and gross margin signal potential.
ICgoodFind: We’ll keep tracking Loongson’s developments for the latest industry updates.
