By HU Zhenming

Chinese leading AI chip maker Cambricon has seen its shares soar nearly 70 percent since 2023, although the company made a net loss of 1.17 billion yuan last year, 41.4 percent more than the year 2021.?

According to Cambricon’s financial report, the company’s revenue last year was 729 million yuan (US$105.64 million), which only grew by 1 percent year on year. Yet its net loss widened to 1.17 billion yuan. The company said it although the market environment last year was not ideal due to the pandemic, Cambricon still made progress in chip designing and marketing expansion, as it recorded an increase in revenue.?

Cambricon attributed the loss to the increasing R&D expenses and impairment of assets. The complex artificial intelligence chip it is developing requires continuous funding and is yet to turn a profit, the company said.

Meanwhile, the Nasdaq-like STAR Board has approved Cambricon's plan raise to 1.6 billion yuan through private placement. The company will use the funds raised to boost its chip research. But Cambricon also warned worse loss in 2023 due to the uncertainty of the research and external business environment.