CIMG Inc. (NASDAQ: IMG) announced that its wholly‑owned subsidiary, Zhongyan Shangyue Technology Co., Ltd., has signed a $106.5 million computing‑power equipment sale contract with a major commercial bank in China. The agreement, which includes tax, is expected to generate a steady stream of revenue for the company’s computing‑power distribution business and marks a significant expansion of CIMG’s footprint in China’s AI infrastructure market.
The contract comes at a time when CIMG’s financial performance has been under pressure. In its most recent Q3 2025 earnings report, the company posted revenue of $61.6 million, down 83% from $366.9 million in Q3 2024, and a net loss of $1.07 million versus a $1.44 million loss a year earlier. Operating margins have been negative, reflecting high operating costs and a shift away from the company’s traditional digital‑health and specialty‑coffee businesses. The new deal therefore represents a potential turning point in the company’s revenue mix and cash‑flow profile.
China’s AI infrastructure market is expanding rapidly, with IDC reporting a 122.4% year‑on‑year growth in the first half of 2025 and forecasts that the market could reach RMB 150 billion by 2029. By securing a large contract with a leading bank, CIMG positions itself to capture a share of this high‑growth segment, which is expected to drive demand for high‑performance computing equipment and related services. The deal’s value is comparable to the company’s largest single customer contracts in prior periods, suggesting a meaningful contribution to top‑line growth.
The contract is subject to the purchaser’s inspection and acceptance of the equipment, a standard clause that introduces a modest execution risk. However, the company’s management has indicated that it has a robust delivery and support capability, and the bank’s credit profile reduces the likelihood of a default. If the equipment is accepted, the company expects the transaction to generate a predictable cash‑flow stream that could help offset the recent decline in operating income and support future capital expenditures in the AI space.
Investors reacted positively to the announcement, with analysts noting that the deal could help CIMG diversify its revenue base and improve its cash‑flow profile. The contract’s timing and size are seen as a strategic win that may mitigate the company’s recent financial headwinds and signal confidence in its ability to win large, high‑margin contracts in the AI infrastructure market.
The company has not issued a forward guidance update following the announcement, but management has emphasized its focus on cost discipline and strategic investments in high‑return verticals. The deal is expected to strengthen CIMG’s balance sheet and provide a foundation for pursuing additional contracts in China and beyond, potentially reshaping the company’s long‑term growth trajectory.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.