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Enflame narrows third-quarter loss as AI-chip revenue jumps

By Reuters News

By Eduardo Baptista

Oct 30 (Reuters) - Chinese AI-chip designer Enflame Technology 688801.SS reported a narrower third-quarter loss as revenue nearly quintupled, underscoring rising demand for homegrown computing chips amid China's push to build its AI infrastructure with locally made technology.

  • Third-quarter revenue rose 395% from a year earlier to 1.21 billion yuan ($182 million). Net loss attributable to shareholders was 121.6 million yuan

  • The company spent 349.4 million yuan on research and development during the quarter, up 14.9% from a year earlier

  • For the first nine months, revenue rose 331.7% to 2.33 billion yuan, while its net loss narrowed to 754.0 million yuan from 887.8 million yuan a year earlier

  • Operating cash outflow totalled 2.02 billion yuan in the first nine months, compared with 769.6 million yuan a year earlier, as Enflame increased payments to raw-material suppliers

  • Enflame listed on Shanghai's STAR Market last month, raising about 6.12 billion yuan in its initial public offering. Chinese tech giant Tencent is its largest shareholder

  • Enflame is one of a group of Chinese AI-chip makers seeking to supply local alternatives as US export controls limit China's access to cutting-edge processors, even as demand for AI computing grows


($1 = 6.6552 Chinese yuan renminbi)

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