CIMG Inc. (NASDAQ: IMG) announced that its Beijing‑based subsidiary, Xinmiao Shidai Technology Development Co., Ltd., has signed five new contracts for computing‑power equipment with Chinese cloud service providers and industrial enterprises. The agreements, executed between December 2025 and January 2026, total approximately $2 million and cover servers and power‑electronic components, marking the company’s first tangible revenue win in its newly launched technology‑enabled platform.
The contracts are a key milestone in CIMG’s strategic pivot away from its legacy coffee co‑packing business. Management has positioned the company as a full‑service provider for AI data‑center customers, offering end‑to‑end hardware, installation, optimization, and after‑sales support. The $2 million deal, while modest compared to the company’s overall capital base, demonstrates early traction in a highly competitive market and provides a foundation for upsell opportunities as the hardware portfolio expands in China.
CIMG’s financials underscore the significance of the new contracts. In Q3 2025 the company reported revenue of only $0.06 million and has experienced a 40.3% decline in revenue over the past three years. Operating and net margins are negative at –2,220.91% and –1,801.88% respectively, and earnings per share stand at –$19.59. The $2 million in new contracts therefore represents a meaningful percentage of the company’s current revenue base and a step toward improving cash flow and profitability. The company also announced a larger $124 million computing‑power agreement in Q4 2025, indicating a broader push into the sector.
CEO Alice Wang emphasized that computing power has evolved from a basic resource into a strategic asset comparable to semiconductors and energy, driven by China’s “East Data West Computing” strategy. Wang said the company’s focus on scenario‑based solutions and end‑to‑end services is intended to support long‑term customer resources and strengthen competitive positioning. She also highlighted the company’s diversification into wood‑chip contracts, a “Huo Mao” brand, digital health, and cryptocurrency initiatives, reflecting a broader strategy to mitigate risk across multiple growth areas.
The contracts arrive amid China’s accelerated demand for high‑performance computing hardware, as the “East Data West Computing” initiative seeks to balance data processing and storage across regions. The new deals position CIMG to capture a share of the expanding AI and data‑center market, but the company faces significant headwinds, including intense competition, supply‑chain constraints, and ongoing Nasdaq compliance challenges. Despite these risks, the contracts signal early market acceptance of CIMG’s technology‑enabled platform and provide a platform for future sales and upsell opportunities in China.
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