(Yicai) Oct. 30 -- Chinese artificial intelligence chipmaker Cambricon Technologies has narrowed its net loss in the third quarter of the year but saw a sharp decline in revenue for the second straight quarter because of adjustments to its sales strategy to prioritize service to customers with higher gross margins and better credit.

Net loss shrank over 18 percent to CNY263 million (USD35.9 million) in the three months ended Sept. 30 from a year earlier, the Beijing-based company announced on Oct. 27. Revenue plunged 66 percent to CNY31.3 million (USD4.3 million) in the period.

Cambricon invested CNY235 million in research and development in the third quarter, down 30 percent from the same period last year, the firm added.

In the first three quarters of the year, Cambricon saw its net loss narrow over 14 percent to CNY808 million and revenue fall 45 percent to CNY146 million from a year earlier. The company’s R&D investment dropped 26 percent to CNY717 million in the period.

Several Cambricon’s shareholders have reduced their stakes in the chipmaker since the beginning of this year.

SDIC Shanghai Scientific and Technological Achievement Transformation Venture capital Fund sold 7.4 million shares of Cambricon, equal to 1.85 percent of the total equity, for CNY1.5 billion (USD206.5 million) between March 23 and June 29.

Suzhou Industrial Park Paleozoic Venture Capital sold 4.3 million shares of Cambricon for CNY361 million between Nov. 15, last year, and March 14, this year, and nearly 6 million shares for CNY1.1 billion between March 23 and Aug. 24.

The Nanjing and Hubei province branches of China Merchants Bank sold 3.1 million and 1.5 million shares of Cambricon for CNY388 million and CNY191 million, respectively, between Feb. 9 and June 7.

Cambricon [SHA: 688256] was trading down 0.4 percent at CNY108.68 (USD14.96) as of 10.20 a.m. in Shanghai today. The stock has plunged in the second half of the year and is down over 56 percent from last year’s highest-ever closing price of CNY249.50.

Editor: Futura Costaglione