One of Alibaba's concept stocks, Aojie Technology, clarified that the rumors that it has reached an in-depth strategic cooperation with Alibaba Group are untrue.

On the evening of February 25, Arcjet Technology (688220) issued an announcement on stock trading changes, in response to the rumors that Arcjet Technology and Alibaba Group have reached a deep strategic cooperation to customize ASIC chips for it, the company explained as follows

Since its establishment, Arcjet has focused on the R&D and technological innovation of various wireless communication chips with cellular baseband communication technology as the core. In the company's main business income over the years, the proportion of chip product sales business is the largest, and the proportion of chip customization business is relatively low. Up to now, the rumors that the company has reached a deep strategic cooperation with Alibaba Group are untrue, and the company has not provided any ASIC chip customization services to Alibaba Group.

It is worth mentioning that Aojie Technology has always been regarded by the market as an Ali chip company. According to the company's data, Alibaba (China) Network Technology Co., Ltd. is the largest shareholder of Aojie Technology, holding 15.43% of its shares, holding 64.5574 million shares, and holding a market value of nearly 6.35 billion yuan.

According to media reports, in August 2017, Ali invested US$66.8182 million in Aojie Technology, and in June 2018, Ali invested another US$14.7802 million, with a total investment of US$81.6 million, equivalent to more than 500 million yuan. This means that Ali has gained about 12 times the income on the investment in Aojie Technology.

Recently, Alibaba's good news has been frequent, and its performance in the capital market has also been relatively active, driving the rise of Alibaba's concept sector. From January 13 to February 25, Alibaba's concept sector has risen by 24.48%. From February 21st to February 25th, Aojie Technology continued to rise sharply, including a 20% daily limit on February 21, with a cumulative increase of 40.43%, and the stock price once exceeded 100 yuan.

Founded in 2015, Arcjet is a platform chip company that provides wireless communications and ultra-large-scale chips, with full-standard cellular baseband chips and multi-protocol non-cellular Internet of Things chip design and supply capabilities, and provides ultra-large-scale high-speed SoC chip customization and semiconductor IP licensing services, and its products are widely used in mobile phones, smart wearable devices, smart security, smart home and autonomous driving and other fields.

On the evening of the same day, Aojie Technology also released its 2024 performance report, achieving operating income of 3.386 billion yuan in 2024, a year-on-year increase of 30.23%; The net profit attributable to the parent company was a loss of 687 million yuan, an increase of 181 million yuan over the same period of last year, and the non-net profit attributable to the parent company was a loss of 692 million yuan, an increase of 34 million yuan over the same period of last year.

In the financial report, Aojie Technology said that in 2024, the company's chip products will continue to iterate, the product series will become richer, and at the same time, it will continue to increase market development efforts, especially in some segments of the cellular Internet of Things, and the chip sales will rise sharply, driving the company's overall operating income to achieve a substantial increase compared with the same period last year.

However, due to the significant year-on-year increase in share-based payment expenses due to equity incentives, coupled with the decrease in non-recurring income, the increase in various impairment provisions, the loss amount expanded compared with the same period last year.

First Shanghai Securities pointed out in the research report that the prosperity of AI applications has greatly increased the demand for customized chips, and the chip business of Aojie Technology is expected to fully benefit from this wave of AI application explosion. In the context of a new round of application innovation driven by AI, applications represented by smart cars, smart homes, and wearable devices will usher in a new round of prosperity, and Arcjet products may be expected to penetrate into all walks of life with the implementation of AI applications.