CIMG Inc. announced the signing of computing power equipment sales contracts totaling approximately $2 million
Rhea-AI Summary
CIMG (Nasdaq: IMG) announced that its subsidiary Beijing Xinmiao Shidai Technology Development signed five sales contracts for computing power hardware executed between December 2025 and January 2026, with a total contract value of approximately $2 million including taxes.
The contracts cover computing servers and power electronic components for cloud service providers and industrial enterprises and are expected to contribute to the company's 2026 operating results as it expands in computing power infrastructure and scenario-based solutions.
Positive
- Signed five sales contracts executed Dec 2025–Jan 2026
- Total contract value of approximately $2 million including taxes
- Product mix includes computing servers and power electronic components
- Contracts target cloud service providers and industrial enterprise customers
Negative
- Contracts total ~$2 million, a limited near-term revenue pool compared with larger industry deals
- Customer list appears concentrated among a few counterparties named in the announcement
News Market Reaction
On the day this news was published, IMG declined 14.47%, reflecting a significant negative market reaction. Argus tracked a trough of -31.2% from its starting point during tracking. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $12M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
IMG fell 9.14% while peers showed mixed, generally smaller moves: one up modestly, several down and one flat. No peers appeared in the momentum scanner, suggesting the move was stock-specific rather than a coordinated sector shift.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 29 | Sales contract | Positive | -5.6% | Subsidiary signed ~<b>$2.59M</b> wood chip sales contract to stabilize supply chain. |
| Jan 20 | Brand award | Positive | -7.1% | Huo Mao baijiu brand received 2025 China New Consumption Craftsmanship Heritage Award. |
| Jan 05 | Computing entry | Positive | +1.7% | Announced entry into computing power industry with ~<b>$124M</b> initial contracts. |
| Dec 29 | Capital actions | Negative | -7.6% | Shareholders approved higher authorized shares and unit offering for up to <b>$850M</b>. |
| Dec 22 | Supplier shortlist | Positive | -9.2% | Subsidiary shortlisted for Guangzhou Bank procurement, benchmark bid ~<b>$15.95M</b>. |
Recent positive operational or contract news has often coincided with negative price reactions, while potentially dilutive or structural actions saw declines that aligned with their more cautious tone.
Over the past few months, IMG has issued multiple contract and corporate updates. Computing power contracts totaling approximately $124 million and a Bank of Guangzhou benchmark bid of about $15.95 million underscored a strategic push into computing infrastructure, yet several such announcements were followed by share price declines. Shareholder approval to increase authorized shares to 2,000,000,000 and authorize up to $850,000,000 in unit offerings highlighted significant capital-raising flexibility. Against this backdrop, the new ~$2 million computing hardware contracts extend the same strategic direction, but arrive after repeated market skepticism toward prior news.
Market Pulse Summary
The stock dropped -14.5% in the session following this news. A negative reaction despite new contracts fits a pattern where positive commercial news, including prior deals totaling about $124 million, often met with skepticism. Investors have been contending with reverse split actions, large authorized share increases, and Nasdaq compliance risks disclosed in recent filings. Trading near the 52-week low and far below the $5.31 200-day moving average suggests sentiment was fragile, so even incremental progress like today’s ~$2 million contracts may not have offset broader concerns.
Key Terms
computing power technical
computing servers technical
power electronic components technical
cloud service providers technical
large-scale models technical
artificial intelligence technical
scenario-based computing power solutions technical
equipment installation and debugging technical
AI-generated analysis. Not financial advice.
The products covered by these contracts include two main categories, computing servers and power electronic components, and are intended for customers such as cloud service providers and industrial enterprises. These contracts reflect the Company's continued expansion in the core hardware segment of the computing power infrastructure industry and are expected to contribute to the Company's financial performance and operating results in 2026.
Alice Wang, Chairperson of the Board and Chief Executive Officer of CIMG Inc., stated, "With the industrial deployment of large-scale models and the deepening of the
"Currently, the Company is focused on developing 'scenario-based computing power solutions.' To address the varying technical needs and budget constraints of different clients, the Company provides end-to-end services, including hardware configuration, equipment installation and debugging, optimization and after-sales support, aimed at addressing compatibility issues in traditional computing power procurement. The Company expects to continue expanding its business in the computing power facility services sector, leveraging innovative business models to capture opportunities arising from the global AI industry development," added Alice Wang.
About CIMG
CIMG is a business group specializing in digital health and sales development, with a cryptocurrency-focused strategy. The Company leverages AI and cryptocurrencies (such as Bitcoin and stablecoins) to drive business growth, helping clients maximize user growth and enhance brand management value. The Company's current client portfolio includes brands such as Kangduoyuan, Maca-Noni, Qianmao, Huomao, and Coco-mango.
Forward-Looking Statements
This press release contains information about the Company's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks related to the execution, timing, and realization of supply and sales contracts, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary for its operations, and its ability to protect its intellectual property. The Company encourages you to review other factors that may affect its future results in its Annual Reports, Quarterly Reports, registration statements, and other filings with the Securities and Exchange Commission.
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SOURCE CIMG Inc.