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Physix Frontier · News Briefing Card (TMTPost · Aug 30, 2026)

Iluvatar CoreX: Revenue Surges, But Core Business Still Loses

KEY FACTS

  • Revenue for the first half of 2026 reached RMB 946 million, a year-on-year increase of 191.6%.
  • Adjusted net profit stood at RMB 246 million, primarily driven by RMB 760 million in unrealized equity gains.
  • Excluding investment income, the company suffered an actual operating loss of approximately RMB 654 million.
  • Inference chip revenue rose to 69.2% of the total mix, while gross margin declined to 17.2%.

KEY DATA

RMB 946MH1 Revenue
RMB 760MEquity Investment Gains
17.2%Adjusted Gross Margin
52,000 unitsCumulative Chips Delivered

PHYSIX OBSERVATION

Iluvatar CoreX’s 'profitability' is a financial illusion masking a core contradiction: low-margin inference chips cannot cover high R&D and inventory costs. This reflects the domestic GPU industry’s shift from hype to brutal commercialization validation. Mid-tier players lacking pricing power or technical moats remain dependent on non-recurring items, even with AI Agent tailwinds; self-sustaining cash flow remains the ultimate survival test.

Source: TMTPost report