VeriSilicon Holdings achieved revenue of 836 million yuan in the first quarter, representing a year-on-year increase of 114.47%. Revenue from its one-stop chip customization business surged by 145.90% year-on-year, with mass production-related revenue recording an astonishing growth of 219.93%. As of April 29, 2026, the total value of new orders secured within the year has risen to 8.24 billion yuan, of which AI computing power-related orders accounted for a staggering 91.37%. Compared to the previously disclosed figure of 4.516 billion yuan on April 21, this marks another significant breakthrough within just a few days.
VeriSilicon achieved revenue of 836 million yuan in the first quarter, representing a year-on-year increase of 114.47%, with growth that has caught the market's attention. The core driver of this explosive growth came from the robust performance of volume production business — revenue from one-stop chip customization services surged by 145.90% year-on-year, with volume production business revenue recording an astonishing increase of 219.93%.
From the perspective of order levels, this earnings report reveals even more encouraging signals. As of April 29, 2026, the company’s newly signed orders for the year have climbed to 8.24 billion yuan, with AI computing power-related orders accounting for as high as 91.37%. Compared with the disclosed figure of 4.516 billion yuan on April 21, there has been another leap forward in just a few days, reflecting the strong surge in demand for downstream AI infrastructure.
However, behind the rapid growth lies an expanding loss. During the reporting period, the company's net loss attributable to shareholders reached 341 million yuan, widening further from a loss of 220 million yuan in the same period last year, with basic loss per share at -0.65 yuan. The main source of the losses was the continued heavy investment in R&D — quarterly R&D expenditure reached 485 million yuan, up 53.38% year-on-year, still accounting for a high proportion of 58.04% of total revenue.
Volume production business becomes the core engine of growth, with large AI orders being continuously secured.
The primary driver of this quarter’s revenue explosion was the volume production business. The company achieved revenue of 467 million yuan from volume production, a year-on-year increase of 219.93%, contributing over half of the total revenue.
During the reporting period, the company shipped 109 chip models under its own design service projects, generating revenue. Additionally, 50 existing design projects are awaiting mass production, indicating ample potential for future conversion.
In terms of chip design services, revenue reached 193 million yuan, marking a year-on-year increase of 57.60%, with ongoing deepening of advanced process node projects: revenue contribution from the 28nm and below process nodes accounted for 97.05%, while 14nm and below accounted for 62.29%, and 7nm and below made up 37.92%.
By the end of the reporting period, the number of ongoing chip design projects reached 99, an increase of 10 compared to the same period last year. Projects using 7nm and below nodes accounted for 26.26%, demonstrating the company’s accelerated penetration into advanced process technologies.
Regarding semiconductor IP licensing business, royalty income amounted to 143 million yuan, a year-on-year increase of 52.97%; license fee income reached 32 million yuan, up 19.26% year-on-year. Three core IPs — graphics processor (GPU) IP, neural network processor (NPU) IP, and video processor IP — collectively contributed approximately 70% of the IP business revenue, forming the cornerstone of the company’s technological moat.
Backlog orders have remained at a high level for ten consecutive quarters, with steady mass production conversions laying the foundation for profitability expectations.
As of the end of the reporting period, the company's backlog orders amounted to RMB 5.133 billion, a slight increase from RMB 5.075 billion at the end of 2025. This figure has remained at a high level for ten consecutive quarters, reflecting the company's sustained advantages in customer stickiness and business visibility.
In terms of order structure, the quality is equally impressive:
Orders for volume production services exceeded RMB 3 billion. Due to the relatively fixed team size and low marginal costs, these services have significant scalability advantages. Continuous conversion of these orders will directly enhance profitability.
It is estimated that over 90% of the orders will be converted within one year, providing ample assurance for short-term revenue. More than 56% of the orders are in the data processing application domain, primarily from cloud-side AI ASICs and IPs, precisely positioning the company in the AI computing infrastructure sector.
The explosive growth in new orders is particularly noteworthy.
As of April 29, 2026, the value of new orders signed during the year reached RMB 8.24 billion, with the majority being one-stop chip customization service orders. Orders related to AI computing power accounted for 91.37%. This figure serves as a crucial reference point compared to the scale of new orders signed throughout 2025, indicating a substantial increase in revenue certainty for the next several quarters.
Gross margin under pressure, high R&D investment reinforces technological barriers
Although the absolute amount of gross profit increased by 77.34% year-over-year to RMB 270 million, the overall gross margin was 32.29%, a decrease of 6.76 percentage points compared to the same period last year. The company attributed this to changes in revenue composition—rapid expansion in the revenue from volume production services, which have relatively lower gross margins, lowered the overall gross margin level.
The company also explained: although the gross margin of volume production services is lower than that of IP licensing services, the incremental labor and management costs required are minimal. As such, most of the gross profit can directly contribute to net profit. Therefore, the overall gross margin is not the sole dimension for assessing the company’s profitability.
In terms of R&D investment, cumulative R&D expenditure for the quarter reached RMB 485 million, representing a year-over-year increase of 53.38% and accounting for 58.04% of total revenue, a decrease of 23.12 percentage points year-over-year. This is a positive signal, indicating that the rapid expansion of revenue scale has begun to dilute R&D intensity, with the leverage effect of R&D starting to manifest.
Total period expenses amounted to 593 million yuan, of which approximately 75% were R&D expenses, reflecting the company's strategic determination to 'build core competitive barriers through R&D investment.'
Cash Flow and Balance Sheet: Short-term Pressure from M&A Expansion
At the cash flow level, net operating cash outflow for this quarter was 308 million yuan, while net investment cash outflow was 513 million yuan, primarily due to the completion of an acquisition transaction involving a non-controlling interest during the reporting period. The related acquisition payment amounted to approximately 883 million yuan in cash. As a result, the balance of cash and cash equivalents at the end of the period decreased by approximately 765 million yuan from the beginning of the year to 1.242 billion yuan, while trading financial assets were reduced from 924 million yuan to 526 million yuan, tightening the company's liquidity position.
On the balance sheet, goodwill increased sharply from 178 million yuan at the beginning of the year to 629 million yuan, while intangible assets rose from 562 million yuan to 898 million yuan, both attributable to the acquisition. The company noted that the fair value assessment of identifiable assets and liabilities of the acquired entity has not been completed, and any subsequent adjustments will be applied retrospectively as of the acquisition date. Total assets slightly increased to 7.816 billion yuan, while attributable equity to parent company shareholders fell to 3.147 billion yuan due to accumulated losses.
Contract liabilities (i.e., advance receipts) surged significantly from 1.258 billion yuan at the beginning of the year to 1.760 billion yuan, demonstrating that customers are accelerating prepayments to secure capacity with Xin Yuan Co., Ltd. This is strong evidence of sustained high demand for AI computing power and provides robust backing for revenue conversion over the next few quarters.
