CIMG Inc. (NASDAQ: IMG) announced that it has signed a series of computing‑power contracts totaling $124 million in the fourth quarter of 2025. The agreements were executed through subsidiaries, including Zhongyan Shangyue Technology Co., Ltd., and cover the supply of high‑performance servers and NVIDIA graphics cards to a range of Chinese data‑center customers. The contracts include a $106.5 million sales agreement signed on December 15, 2025, two smaller contracts totaling $1.78 million signed on December 8, 2025, and a benchmark bid of $15.95 million with Bank of Guangzhou announced on December 22, 2025.
CIMG’s financial performance in the months leading up to the announcement has been challenging. Q3 2025 revenue fell 83.2% to $61,578, and the company reported a negative gross‑profit margin of –156.81%. The company’s legacy coffee co‑packing operations have been a drag, and its recent capital raise and reverse stock split have underscored the need for a new revenue engine. The $124 million in contracts therefore represents a potential turning point, offering a high‑margin revenue stream that could offset the company’s historical losses.
The contracts are significant because the computing‑power sector is a rapidly growing market driven by AI, big‑data analytics, and industrial digital transformation. If CIMG can deliver on these orders, the company could generate recurring revenue that is far more profitable than its legacy businesses. The contracts also validate the company’s strategy to deepen its roots in mainland China while expanding globally, as the customers are all Chinese data‑center operators.
Wenlong Tong, President, said the new contracts “support our strategic direction and demonstrate our team’s strong execution capability in translating cutting‑edge technology into commercial results.” Chairwoman and CEO Alice Wang added that the contracts “validate this new vertical as a potential growth driver for the Company” and that CIMG will “intensify focus on the computing‑power sector, accelerate business development, and thereby enhance the Company’s overall competitiveness and resilience.”
On the day of the announcement, CIMG’s stock closed 6.48% higher, reflecting investor optimism that the contracts could help the company sustain its liquidity needs and reverse its negative margin trend. The market reaction was driven by the size of the contracts relative to the company’s recent revenue, the high‑margin nature of the business, and the strategic shift away from a legacy business that has been underperforming.
The contracts are a positive step, but execution risk remains. CIMG must scale its supply chain, manage cost pressures, and deliver on the high‑performance hardware promises to realize the projected revenue. The company’s future outlook will depend on its ability to convert these contracts into profitable operations while navigating the competitive landscape of the computing‑power market.
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