CIMG Inc. (NASDAQ: IMG) announced that its wholly‑owned subsidiaries have signed two computing‑power sales contracts totaling $1,779,070, the first commercial wins for the company’s new computing‑power vertical launched in Q4 2025.
The contracts involve 64 high‑performance servers sold to Zhonghao Xinying (Hangzhou) Co., Ltd. and 145 NVIDIA graphics cards sold to Shanghai Yundeng Technology Co., Ltd. The deal value reflects a modest but meaningful revenue stream for a company that has struggled to generate positive earnings in recent quarters.
CIMG’s financials underscore the significance of the contracts. The company reported a net loss of $385,556 in Q2 2025 and a six‑month loss of $1.92 million as of March 31 2025. Fiscal 2024 losses reached $9.0 million, and trailing‑12‑month revenue stood at $0.37 million, a -40.3% growth rate. These figures illustrate the company’s historical challenges, making the new contracts a notable step toward revenue diversification.
The sales are part of CIMG’s broader strategy to shift from specialty coffee to digital health, AI, and computing‑power services. A partnership with Inspur Electronic Information Industry Co., Ltd. was signed on October 31 2025 to distribute Inspur products through offline channels, and CIMG has expanded its offline sales network and established dedicated teams in northern and southern China. The contracts validate this strategy and provide a foundation for recurring revenue in a high‑growth market driven by AI demand.
CEO Alice Wang said the new vertical “represents a promising endeavor initiated in the fourth quarter of 2025. We are encouraged by the early commercial traction, as evidenced by the recent sales contracts, which validate this new vertical as a potential growth driver for the company.” She also reiterated the company’s focus on deepening roots in mainland China while expanding globally. The company completed a 20‑for‑1 reverse stock split in early December, further aligning capital structure with its strategic shift.
Investors reacted positively to the announcement, citing the validation of CIMG’s new computing‑power vertical and the potential for recurring revenue in China’s rapidly expanding AI and digital‑transformation market.
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.