Shanghai, Jan 26, 2026, 08:47 (GMT+8) — Premarket
Loongson Technology Corp. Ltd. Class A shares are set to open Monday in Shanghai following the chip designer’s 2025 forecast, which projects increased revenue and a smaller loss.
This update is significant as one of the rare fresh insights on demand and pricing for domestically designed processors, just as investors pile into China’s semiconductor firms. It also comes following a sharp rally that pushed the stock to levels ripe for profit-taking.
Loongson’s forecast is preliminary and unaudited. That said, it sets up the key question for traders: will the company’s recovery continue once markets open, or was last week’s jump the peak?
The stock ended Friday at 193 yuan, slipping 0.2% after a volatile week. It hit a high of 203.05 yuan on Thursday, marking roughly a 33% jump from the previous week’s close, according to daily data from Investing.com. (Investing)
In a Jan. 24 filing, Loongson projected 2025 revenue around 635 million yuan, marking a roughly 26% increase from last year. The company also expects a net loss attributable to shareholders to narrow to about 449 million yuan, down from 2024. Excluding non-recurring items, the loss is forecast at roughly 503 million yuan.
The company linked the better results to a rebound in demand for certain “security application” products and a pickup in revenue from industrial-control chips. It also highlighted progress in bidding for office and industrial systems. Technical licensing boosted results as well, while gross margins improved. Write-downs — those accounting hits to profit from marking down receivables or inventory — dropped to roughly 165 million yuan. (CNStock Paper)
Loongson designs processor chips and related products for sectors like network security, office and business information systems, industrial control, and the internet of things, according to an FT profile. (FT Markets)
Investors are shifting focus from headline revenue growth to the mix—specifically, if licensing and higher-margin segments can keep driving results, and whether policy-driven procurement rebounds into consistent commercial orders. Opening volume will also be key, especially after the stock’s rapid climb.
But there’s a snag. The forecast hasn’t been audited, and the company is still operating at a loss. That leaves plenty of room for changes—and sentiment could sour if the final annual report reveals weaker margins, slower shipments, or bigger charges than these early figures suggest.
The upcoming key event is the company’s annual results, set for April 29 according to StockAnalysis.com. Traders will be watching Monday’s session closely to see if the stock can maintain last week’s gains ahead of that date. (StockAnalysis)
