VeriSilicon's backlog is up 266% this year to RMB18.57 billion as its loss widened to RMB869 million
The Shanghai-listed AI-chip designer now carries an order pile that nearly tripled in nine months, and Wellington, UBS and Orbis spent three days asking whether it converts to profit. The company burns cash today and has named no conversion dates, so the CNY59.4 billion market cap is underwriting a timetable.
Vincent Jiangtwo-minute read
Three days of investor meetings, November 3 to 5, and the question from Wellington Management, UBS Asset Management and Orbis was the same: does VeriSilicon's+5.97% — VeriSilicon's, up 5.97 percent today order book ever become profit 1? The Shanghai-listed custom-chip designer (688521, CNY113 a share, CNY59.4 billion market cap at the disclosure) answered with a backlog and a timetable, but no conversion schedule 1.
The backlog nearly tripled since December
The order backlog stood at RMB18.569 billion at end-September, up 265.90% from end-2025 and 49.16% from end-Q2, and it has held at a high level for 12 straight quarters 1. The base it grew from was small: the backlog was a record RMB3.025 billion at end-Q2 2025 2.
Backlog has grown sixfold in fifteen months
Data
| Order backlog | |
|---|---|
| End-Q2 2025 | RMB3.03B |
| End-2025 | RMB5.08B |
| End-Q2 2026 | RMB12.45B |
| End-Sep 2026 | RMB18.57B |
First-half revenue rose 91.37% to CNY1.86 billion as AI computing demand lifted custom silicon and mass-production work 3. Q3 revenue hit a record CNY1.317 billion, up 28.16% quarter on quarter 1. The pull is Chinese AI-chip demand: US export limits on Nvidia's−5.72% — Nvidia, down 5.72 percent today chips keep tightening, and Washington's latest push for tougher restrictions followed the allegations around CEO Jensen Huang 4. Domestic AI builders, from Huawei to DeepSeek, are planning their own silicon instead 56. A custom-silicon designer is where those customers land.
The losses are widening as revenue grows
Nine-month revenue rose 41.08% to CNY3.18 billion, and the net loss widened to CNY869.25 million from CNY346.7 million a year earlier 7. Q3 alone lost CNY257.1 million 8. Nine-month R&D spend reached CNY1.407 billion, 44.25% of revenue 1.
The company runs asset-light, so the wafer capacity behind the backlog sits with foundry partners, and design orders take 9 to 12 months to convert while mass-production orders take 6 to 18 months once a fab slot is booked 1.
Revenue up 41%, net loss more than doubled
Revenue grew 41% in nine months, but the net loss more than doubled
- Revenue
- Net loss
Data
| Revenue | Net loss | |
|---|---|---|
| 9M 2025 | CNY2.26 | CNY0.35 |
| 9M 2026 | CNY3.18 | CNY0.87 |
Management guides to a 2026 EBITDA turn but discloses no conversion schedule
Adjusted R&D as a share of revenue fell about 8 points in Q3 from Q2, and about 18 points as a share of gross profit, which management attributes to scale, not cuts 1. On that base it guides to adjusted EBITDA turning positive in the second half of 2026 and adjusted net profit turning positive in 2027 1.
The record discloses no conversion split for Q4 or 2027 and no customer or business-line mix for the backlog 1. The board put up to CNY30 million of its own cash into a buyback for employee plans, small against the market cap 9. The stock closed at CNY117.35 on November 11, still down 14% this year 10. Watch Q4 revenue: if it steps up toward the backlog, the timetable holds; if it does not, the valuation rests on orders with no disclosed conversion dates 1.
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