CIMG Inc. (NASDAQ: IMG) announced that its Beijing‑based subsidiary, Xinmiao Shidai Technology Development Co., Ltd., has been shortlisted as a supplier candidate for Guangzhou Bank’s 2025 server procurement program. The shortlist includes a benchmark bid of approximately $15.95 million, tax‑inclusive, for CPU servers, hard disks and solid‑state drives manufactured by Inspur Group Co., Ltd. The two‑year framework agreement, signed on December 10, 2025, allows Xinmiao Shidai to supply equipment to Guangzhou Bank on a demand‑driven basis, with the bank retaining the right to award the final contract through its procurement process.
CIMG’s Q3 2025 revenue fell 83.2% year‑over‑year to $61,578, and the company posted a net loss of $1.07 million. With a market capitalization of roughly $22 million and only $370,000 in revenue over the prior twelve months, a potential $15.95 million contract represents a substantial upside that could materially improve the company’s cash position and profitability. The deal is therefore a critical opportunity for a company that has struggled to generate consistent revenue.
Strategically, the shortlist positions CIMG’s computing‑power distribution arm within China’s AI infrastructure market, complementing a recent $106.5 million contract with another major Chinese bank. The company’s diversified portfolio—spanning digital health, sales development, and cryptocurrency‑focused initiatives—suggests a broader push to capture high‑growth segments. A reverse stock split of 20‑for‑1, effective December 5, 2025, was also announced, indicating management’s intent to strengthen the share price and meet listing requirements.
While the shortlist is a positive development, it does not guarantee a final contract. Guangzhou Bank will award the definitive agreement through its demand‑driven procurement process, which may involve additional price inquiries or competitive bids. No market reaction data or analyst commentary was available at the time of the announcement, so the immediate financial impact remains uncertain.
The announcement underscores CIMG’s ongoing efforts to secure large‑scale infrastructure contracts amid a challenging financial environment. If the final contract is awarded, it could provide a much-needed revenue boost and help stabilize the company’s balance sheet, but the outcome will depend on Guangzhou Bank’s procurement decisions and competitive dynamics.
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