Chinese AI computing chip leading enterprise Hanwuji recently disclosed a report showing that the company experienced another loss in performance in 2024, with an accumulated loss of over 5.4 billion Chinese yuan over 8 years. Prior to this, the inclusion of Chinese AI giant companies into the Entity List by the US government for the first time triggered drastic fluctuations in Chinese technology stocks, leading to significant market value shrinkage for behemoths like Hanwuji.
On the evening of April 18th, Hanwuji released its 2024 annual report and first-quarter performance report for 2025. The report revealed that in the first quarter of this year, Hanwuji achieved a net profit attributable to shareholders of the listed company of 355 million yuan, compared to a loss of 227 million yuan in the same period last year.
Hanwuji also announced on the same day that in 2024, it incurred a net loss of 452 million yuan attributable to shareholders of the listed company, compared to a net loss of 848 million yuan in the same period the previous year.
Just before Hanwuji’s recent performance release, the US Department of Commerce issued two final rules on January 15th, amending the Export Administration Regulations to include 25 Chinese companies on the Entity List, involving artificial intelligence, semiconductors, quantum technology, and other high-tech fields.
This marked the first time the US included Chinese AI giant companies in the export control scope, including companies like Zhifu and Suanneng. Those on the list will face strict licensing requirements when importing US technology, equipment, and items.
The day after the new rules were announced on January 16th, Chinese technology stocks took a heavy blow. The total market value of the three major technology giants Hanwuji, ZTE, and SMIC evaporated by over 68 billion yuan in a single day. Hanwuji’s stock price fell by over 8% at one point during the trading day.
Just a month prior, US Commerce Secretary Howard Lutnick stated that the Trump administration was seeking the help of companies and allies to prevent the Chinese Communist Party from obtaining American chips. He emphasized that Chinese AI companies were illegally using US chips and accused some enterprises of reselling chips to Chinese companies for profit.
Established in 2016, Hanwuji focuses on the research and development of artificial intelligence chip products. Prior to its IPO, the four-year-old Hanwuji completed seven rounds of financing, with investors including iFlytek, Yuanhe Origin, Alibaba, Lenovo Capital, and CICC.
As the top company on the Hurun Research Institute’s “2024 Hurun China Top 50 AI Enterprises” list, Hanwuji held a valuation of 238 billion yuan, securing a leading position in the AI chip sector. Its technological accumulation and market expansion capabilities in the AI computing chip market allowed it to seize opportunities in the wave of domestic substitution. However, its history of ongoing losses and high valuation have also sparked market controversy.
On July 20, 2020, Hanwuji reached a peak stock price of 295 yuan on its first day of listing. However, the stock performance of Hanwuji post-listing has resembled a roller coaster ride.
According to financial data from 2017 to 2024, Hanwuji incurred losses of 381 million yuan, 41 million yuan, 1.179 billion yuan, 435 million yuan, 825 million yuan, 1.256 billion yuan, 848 million yuan, and 452 million yuan respectively, accumulating a total loss of 5.417 billion yuan over 8 years. At one point, Hanwuji was listed among the top ten loss-making companies on the Science and Technology Innovation Board.
Due to worsening losses, Hanwuji’s cash flow has been tight. The financial report shows that as of the end of the first three quarters of 2024, Hanwuji’s cash and cash equivalents balance was 958 million yuan.