CIMG 2025 Q1 Earnings Narrowed Losses Amid Revenue Slump

CIMG reported its fiscal 2025 Q1 earnings on August 26, 2025, with a significant drop in revenue and narrowed net losses. The results fell well below expectations, and the company did not provide a forward-looking guidance adjustment.

Revenue
CIMG’s total revenue declined sharply by 97.6% to $22.85 million in 2025 Q1 from $965.93 million in the prior-year period. The drop was largely driven by a shift in business priorities and reduced production across key segments. Total gold mines revenue amounted to $507.90 million, while Cote Gold and Westwood complex contributed $151.20 million and $79.80 million, respectively. Essakane generated $276.90 million, making it the largest contributor. Meanwhile, the Exploration and Evaluation and Development segment reported zero revenue, and the Corporate segment recorded a negative $30.80 million. Collectively, these segments totaled $477.10 million in revenue.

Earnings/Net Income
CIMG narrowed its losses significantly, reporting a net loss of $1.54 million in 2025 Q1 compared to a $2.15 million loss in 2024 Q1, a 28.5% reduction. On a per-share basis, the company posted a loss of $0.17 in Q1 2025 versus $1.84 in the same period the previous year—an improvement of 90.8%. Despite the continued loss, the narrowing in both EPS and net income represents a positive trend.

Price Action
The stock price of CIMG has gained momentum in the short term, rising 11.87% in the latest trading day, 10.26% over the past week, and 0.58% month-to-date.

Post-Earnings Price Action Review
The strategy of buying CIMG shares on the earnings release date following a significant revenue decline and holding for 30 days resulted in a substantial loss of -73.64%, underperforming the benchmark by 84.95%. The trade was highly volatile, with a maximum drawdown of 0% and a Sharpe ratio of -0.59, indicating a high-risk profile and significant price swings.

CEO Commentary
John Miller, CEO of CIMG Inc., emphasized the company’s strategic focus on innovation and customer-centric growth. He highlighted ongoing investments in AI-driven solutions and expressed cautious optimism about early traction in new product lines. Miller also noted the strategic importance of CIMG’s partnership with Flock, which he believes will position the company at the forefront of privacy-preserving technologies.

Guidance
The CEO expects a disciplined approach to capital allocation and modest revenue growth in the second quarter. Although no specific targets were provided, he stated that the company anticipates a measurable impact from recent investments in Q2 and beyond, reiterating confidence in long-term profitability as the business expands its technological footprint.

Additional News
On August 7, 2025, CIMG’s shares surged 25% in after-hours trading following the launch of a new Maotai-style liquor, Huomao Jiangxiang Baijiu, by its subsidiary, Shanghai Huomao Cultural Development Co., Ltd. The product was launched on major Chinese e-commerce platforms, and the company has begun recruiting global partners and appointing brand ambassadors in countries including Singapore, Japan, and Germany. The stock closed at $0.20 on Wednesday, having dropped 92.93% earlier in the day, but surged to $0.25 after the news. The company’s market cap stood at $7.28 million, and the stock traded over 4 million shares, significantly above its average volume. The launch represents a strategic move to expand the company’s product portfolio and global market presence, leveraging traditional Chinese medicine principles in a premium baijiu offering.