(Yicai) Oct. 26 -- Chinese artificial intelligence chipmaker Cambricon Technologies has announced bumper third-quarter results, benefitting from the booming AI market and strong demand in China for homegrown chips.

Cambricon [SHA: 688256] closed up 3.84 percent at CNY968 (USD145.2) today. The Beijing-based company said that third-quarter revenue reached CNY3.531 billion (USD530 million), up 104.47 percent year on year, and net profit came in at CNY1.404 billion (USD210 million), up 147.74 percent. Both revenue and net profit hit all-time quarterly highs since Cambricon went public in 2020.

In the first three quarters, revenue reached CNY9.526 billion, up 106.76 percent year-on-year, and net profit was CNY3.715 billion, up 131.49 percent, the company also revealed in its announcement on Oct. 23.

Cambricon said the revenue growth was mainly driven by its continued market expansion, which has helped advance the practical deployment of AI applications.

The news was not all positive, as Cambricon’s net cash flow from operating activities in the third quarter was negative, at minus CNY83.68 million. Total liabilities also increased, reaching CNY7.236 billion at the end of September, up 56 percent from the end of June.

Cambricon said it was operating normally, adding that gross margins remain at a relatively high and stable level. It said the rapid growth in revenue scale has not diluted profitability, and performance is expected to keep growing. The firm also said it has set performance targets for three consecutive years from 2026 to 2028 and that cumulative revenue over the three-year period should be at least CNY100 billion.

Editor: Tom Litting