100 The dilemma of domestic CPUs Major shareholders cashed out 5.2 billion, profits plummeted by 736

Mondo Finance Updated on 2024-03-07

Perhaps in the field of computer CPUs, everyone is most familiar with Intel and AMD, but in fact, there are many domestic CPUs in China, such as Huawei Kunpeng, Feiteng, Shenwei, Loongson, Zhaoxin, Haiguang and so on.

Among them, Loongson should be 100% domestic among all domestic CPUs, because since 2022, all newly developed CPUs have used 100% self-developed LoongArch instruction set.

And because it is 100% self-developed loongarch, Loongson has been favored by many confidential units, after all, information security is one of the most important security.

Especially after Loongson launched the 3A6000 series, indicating that its performance has reached the level of 10th generation core, which can replace the CPU of Intel and AMD to a certain extent.

However, with the release of Loongson's 2023 report, we found that in 2023, Loongson's life is still not very good, and its performance is in trouble.

According to the data, Loongson Zhongke's net loss attributable to the parent company in 2023 will be 32.9 billion yuan, turning from profit to loss, a decrease of 736 compared with 202235%, and the profit in 2022 is 51.75 million yuan.

In fact, in the four years of 2019, 2020, 2021, and 2022, Loongson's profits were all positive, respectively 19.3 billion yuan, 07.2 billion yuan, 23.7 billion yuan, 05.2 billion yuan, and in 2023, it will turn from profit to loss, with a loss of 3300 million yuan.

Why did it fall so badly? In fact, in one sentence, that is, CPU sales are not good, after all, Loongson's revenue, integrated circuits account for 9972%, whether the CPU sells well or not determines the performance of Loongson.

Why is it not selling well? There are many reasons for this, 2023 is supposed to be a downturn in the chip industry, with declining demand, high inventory, and everyone fighting the best war, like Intel and AMD's performance is not very good, and Loongson is naturally not performing well.

In addition, in terms of ecology, Loongson can only use the Linux ecology due to its self-developed Loongarch, and it is not 100% compatible, so it also affects the sales of CPUs.

However, with the launch of the Loongson 3A6000 series, coupled with the 3C6000 on the server, etc., starting from this generation of CPU, the performance of Loongson has been greatly improved, and it is estimated that more orders will be received next, and the performance should improve.

In addition, it is worth mentioning that last year, several major shareholders of Loongson continued to cash out 518.1 billion, which is estimated to have more or less affected the sales of Loongson, after all, this kind of behavior makes people question that the major shareholders are not very optimistic about the company, otherwise, why are you doing so much, what do you think?

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