On September 11, 2026, Shanghai Enflame Technology Co., Ltd. (referred to as "Enflame Technology", stock code "688801.SH"), a domestic cloud Artificial Intelligence (AI) chip manufacturer, was officially listed on the STAR Market of the Shanghai Stock Exchange. The opening price was CNY 410 per share, surging 188.37% compared to the issue price, with a market capitalization of CNY 176.444 billion. As of press time, the intraday stock price of Enflame Technology reached a high of CNY 468 per share, with an increase of over 229%.
The issue price for Enflame Technology this time was CNY 142.18 per share, with an issue volume of 43.035173 million shares. Among them, the initial strategic placement volume was 8.607034 million shares, accounting for approximately 20% of the total issue volume. Calculated at the issue price, the issue market capitalization of Enflame Technology was approximately CNY 61.187 billion.
The total funds raised by Enflame Technology in this IPO amounted to CNY 6.119 billion, slightly higher than the originally planned CNY 6 billion, mainly used for the research and development and industrialization of the fifth-generation and sixth-generation AI chips.
Like other domestic AI chip peers, Enflame Technology also faces the common industry dilemma of "high investment and high losses". The prospectus shows that the company's cumulative revenue from 2023 to 2025 was approximately CNY 2.014 billion, but the cumulative net loss over the three years reached as high as CNY 4.339 billion. In the first half of 2026, revenue was CNY 1.12 billion, a year-on-year surge of 279.08%; net profit attributable to the parent company was CNY -603 million, a year-on-year change of -3.57%.
Enflame Technology expects to achieve profitability in 2026 or 2027, and the actual controllers, ZHAO LIDONG and ZHANG Yalin, have also made a commitment to "automatically extend the lock-up period in the event of non-profitability".
From the perspective of equity structure, Tencent is the largest shareholder of Enflame Technology. As of the date of signing the prospectus, Tencent held 77.266962 million shares of Enflame Technology, with an equity ratio of 19.9493%, which dropped to 17.9544% after the issuance. At the same time, Tencent is also the largest customer of Enflame Technology. In 2025, the proportion of Enflame Technology's sales revenue from Tencent even surged to 83.79%. The risk of highly relying on a single customer has also become one of the focuses of investors.
Notably, as of the date of signing the prospectus, Tencent and its concert party Suzhou Paiyi held a total of 78.462662 million shares of Enflame Technology, accounting for 20.2580% of its total share capital.
In addition, in the strategic placement of Enflame Technology, Tencent also strategically received an allocation of 1.747147 million shares through its subsidiary Qishan Investment, making it the institution with the largest allocation, accounting for 4.06% of the issue volume this time, with an allocation amount of approximately CNY 248 million. To date, since the Pre-A round of investment, Tencent has cumulatively invested over CNY 2.1 billion in Enflame Technology, acquiring a total of 80.209809 million shares of Enflame Technology.
Calculated at the issue price of CNY 142.18 per share, the valuation of Tencent's shareholding is approximately CNY 11.404 billion, with an unrealized profit of over CNY 9.3 billion. Calculated at today's opening price of CNY 410 per share, the valuation of Tencent's shareholding is approximately CNY 32.886 billion, with an unrealized profit of over CNY 30.7 billion.
I. Five Cloud AI Chips in 8 Years, Capturing 1.7% of the Domestic AI Accelerator Card Market
Founded in March 2018, Enflame Technology is one of the leading enterprises in the field of cloud AI chips in China, committed to becoming a "leading enterprise in general AI infrastructure". The company adheres to the technical route of original innovation and independent research and development, building core competitiveness and a moat for long-term sustainable development.
Over the past 8 years since its establishment, Enflame Technology has independently developed and iterated five cloud AI chips across four generations of architectures, building a complete product system covering AI chips, AI accelerator cards and modules, intelligent computing systems and clusters, and AI computing and programming software platforms.
In the field of core technologies, through years of accumulation, the company has formed a comprehensive and three-dimensional core technology system in three major categories: chips and hardware, software and programming platforms, and computing power cluster solutions:
1. In terms of underlying hardware, based on an independent instruction set, the company benchmarks against NVIDIA's Tensor Core accelerated computing units and NVLink inter-card interconnection technology, and has independently created the GCU-CARE accelerated computing unit and GCU-LARE inter-chip high-speed interconnection technology with an independent architecture. The corresponding architecture not only has programming flexibility but also deeply supports high-parallel accelerated computing for large AI models.
2. At the software platform level, instead of following the CUDA ecosystem led by NVIDIA, the company independently developed "TopsRider", a full-stack AI computing and programming software platform including drivers, compilation languages and compilers, operator libraries, and toolchains, to link the company's hardware with AI applications. This greatly reduces the programming development difficulty and migration costs of mainstream AI models based on the company's hardware, enabling the company's hardware products to better release performance in application scenarios.
3. In terms of computing power clusters, the company's thousand-card and ten-thousand-card intelligent computing center projects have already generated revenue during the reporting period. Currently, the company has jointly developed super-node solutions with customers and jointly built ten-thousand-card high-speed interconnected clusters with commercial value.
In terms of ecosystem construction, benefiting from years of deep cooperation with major Internet companies in software and hardware customization, multiple generations of the company's products have been commercially deployed on a large scale in a wide range of Internet AI scenarios, continuously providing AI computing power support for national-level Internet applications based on traditional AI models to large AI models. The company's continuous iterative development capabilities and product competitiveness have been tested and recognized by the market, and it is gradually achieving the key leap from a "technical product closed loop" to a "commercial value closed loop". In addition, the company is also giving full play to its own advantages and building an ecosystem with a wider range of downstream partners. In addition to participating in the intelligent computing center projects of the national "Eastern Data and Western Computing" hub nodes, the company is actively deepening cooperation with domestic network operators and exploring business opportunities in multiple vertical industries, providing inclusive computing power support for AI empowering thousands of industries. Furthermore, to achieve sustainable development, Enflame Technology attaches great importance to long-term strategic cooperation with partners across the entire industry chain, such as EDA/IP, wafer manufacturing, packaging and testing, and system components, to ensure stable product development and supply delivery.
From the perspective of the market landscape, the global cloud AI chip industry currently presents a competitive landscape dominated by NVIDIA's AI chips with GPGPU (General-Purpose computing on Graphics Processing Units) architecture. According to CIC Consulting, calculated by revenue, NVIDIA's AI accelerator cards accounted for approximately 76% of the market share in 2024.
However, given the growing demand for large AI model inference, computing power products with non-GPGPU architecture featuring higher efficiency, larger data throughput, and lower power consumption have begun to be deployed at an accelerated pace. In November 2025, Google released the highly comprehensive Gemini 3 large model, which was trained by Google using its self-developed TPU (non-GPGPU architecture), breaking NVIDIA's absolute monopoly in the field of large AI model training. In the future, as major Internet companies such as Google, Amazon, Meta, and Microsoft mass-produce self-developed cloud AI chip products (all with non-GPGPU architecture) and Google's TPU products are gradually sold externally, NVIDIA's monopoly in the global market is expected to be challenged.
The domestic cloud AI chip industry is in its early stage of development. International manufacturer NVIDIA holds the main share of the Chinese market, but Chinese local enterprises are continuously breaking through technical barriers and occupying a certain market share. Chinese local cloud AI chip manufacturers include non-GPGPU architecture manufacturers represented by HiSilicon (Huawei), Cambricon, and Enflame Technology, and GPGPU architecture manufacturers represented by Moore Threads, Muxi Semiconductor, Iluvatar CoreX, and Biren Technology.
According to IDC data and Enflame Technology's sales volume, the overall shipment scale of AI accelerator cards in China exceeded 2.7 million units in 2024, among which NVIDIA held approximately 70% of the market share with about 1.9 million units shipped; in 2025, the overall shipment scale of AI accelerator cards in China was about 4 million units, among which NVIDIA held approximately 55% of the market share with about 2.2 million units shipped.
Among them, Enflame Technology's sales volume of AI accelerator cards and modules reached 38,800 units in 2024, corresponding to a market share of approximately 1.4% in China's AI accelerator card market; in 2025, the sales volume of accelerator cards and modules reached 66,000 units, corresponding to a market share of approximately 1.7%, ranking among the top of other domestic AI chip manufacturers.
In the future, there is a certain degree of uncertainty in NVIDIA's sales in the domestic market, and it is a highly probable trend that the proportion of shipments from domestic AI chip manufacturers in the Chinese market will continue to increase.
II. Revenue Triples in Three Years, Cumulative Losses Exceed CNY 4.3 Billion
In 2023, 2024, and 2025 (hereinafter referred to as "each period of the reporting period"), Enflame Technology's operating revenues were CNY 301.1874 million, CNY 722.3874 million, and CNY 990.16 million respectively, with a cumulative revenue of approximately CNY 2.014 billion; net profits were CNY -1,664.5908 million, CNY -1,510.3158 million, and CNY -1,163.881 million respectively, with a cumulative net loss of approximately CNY 4.339 billion; net profits after deducting non-recurring gains and losses were CNY -1,566.6854 million, CNY -1,502.6938 million, and CNY -1,197.2611 million respectively, with a cumulative net loss after deducting non-recurring gains and losses of approximately CNY 4.267 billion, and profitability has not yet been achieved. As of the end of 2025, the company's accumulated deficit on a consolidated basis reached CNY 4.441 billion.
Enflame Technology's main business revenue increased from CNY 292.0938 million in 2023 to CNY 986.3011 million in 2025, with a compound growth rate of 83.76% during the period.
Enflame Technology has not yet achieved profitability during the reporting period, mainly due to the following reasons:
1) In terms of cloud AI chip hardware, advanced wafer manufacturing and packaging and testing processes are required to rapidly iterate products on a yearly basis; in terms of software, it is necessary to build and continuously improve the AI computing and programming software platform to ensure deep support for continuously iterating mainstream large AI models; at the same time, joint research and development with supply chain partners is also needed to ensure supply chain stability. The aforementioned factors have led to huge R&D investments;
2) Facing the demands of major Internet companies, the company needs to jointly verify and refine multiple generations of products, continuously adapt and optimize software to meet business scenario requirements, and achieve a match between product solutions and customers' commercial value before gradually deploying them in large volumes.
During the reporting period, the company's revenue scale has not been fully released, which cannot cover rigid R&D investments, constraining the company's short-term profitability. As of the end of 2025, the company's accumulated deficits on a consolidated and parent company basis were CNY -4,440.7665 million and CNY -2,001.402 million respectively. If the company continues to incur losses, it may have an adverse impact on the company's operations and development, and the company will also be unable to distribute dividends to investors.
Enflame Technology also disclosed the audited performance data for the first half of 2026: operating revenue was CNY 1.12 billion, a year-on-year surge of 279.08%; net profit and net profit attributable to the parent company were both approximately CNY -632 million, with year-on-year changes of -3.57%.
Enflame Technology stated that at the end of June 2026, based on the order demands of downstream customers, the company prepaid upstream suppliers' capacity through advance receipts from customers and bank borrowings to ensure the delivery of customer orders, resulting in a significant year-on-year increase in the company's total assets and liabilities compared to the end of 2025. At the same time, since the company had not yet achieved profitability from January to June 2026, the accumulated deficit further increased, and the shareholders' equity at the end of the period decreased year-on-year compared to the end of 2025.
Enflame Technology also forecasts that from January to September 2026, operating revenue will be approximately CNY 2.3 billion to CNY 3 billion, a year-on-year surge of 325.78% to 455.36%; net profit and net profit attributable to the parent company are both expected to be CNY -860 million to CNY -700 million, with year-on-year changes indicating a narrowing of losses by 3.13% to 21.15%.
Enflame Technology explained that, based on the realized performance from January to June 2026, and comprehensively considering factors such as signed orders on hand and the pace of product delivery, the company expects a significant year-on-year increase in operating revenue from January to September 2026. Due to the company maintaining R&D intensity, and at the same time being affected by taxes and surcharges generated from advance receipts from customers and accrued interest expenses, the year-on-year growth rate of net profit attributable to the parent company is lower than the expected year-on-year growth rate of operating revenue in the same period.
In the foreseeable future, Enflame Technology stated that the company can maintain good going-concern capabilities. On the premise that Enflame Technology's production and operations are not significantly affected by force majeure factors such as the international trade environment, and considering factors such as orders on hand, product delivery pace, employee cost budget, and R&D planning, it is expected to achieve profitability on a consolidated statement in 2026 or 2027. The timing of when the company can achieve profitability is mainly affected by the operating revenue achievement rate in 2026 and the gross profit margin level in 2026.
The actual controllers of Enflame Technology, ZHAO LIDONG and ZHANG Yalin, and their concert parties Suiyuan Huizhi and Suiyuan Chongying have issued commitments to extend the lock-up period in the event of non-profitability or performance decline: during the three years of 2027, 2028, and 2029 after the company's listing, if the company fails to achieve profitability in that year, or if the net profit for that year declines by more than 50% compared to the year before listing, it will trigger an automatic extension of the stock lock-up period by 12 months. For example, if triggered in 2027, it will be extended by 12 months; if triggered in 2028, it will be extended by another 12 months (cumulative 24 months); if continuously triggered in 2029, it will be extended by another 12 months (cumulative 36 months).
III. Rapid Increase in Inventory and Accounts Receivable Scale
From 2022 to 2025, due to business expansion and strategic stockpiling, the inventory scale of Enflame Technology increased year by year. The book balances of inventory during the reporting period were CNY 310.7028 million, CNY 261.429 million, CNY 979.3923 million, and CNY 1,074.2783 million respectively. Considering the rapid technological iteration of cloud AI chips, the company prudently made provisions for inventory depreciation losses based on sales expectations for each period during the reporting period. During the reporting period, the amounts of inventory depreciation losses were CNY 33.1701 million, CNY 127.7516 million, CNY 30.2783 million, and CNY 31.6062 million respectively.
If there are significant adverse changes in the external market environment, intensified industry competition, the company's product iteration speed falls behind peers, or product oversupply leads to a drop in unit price, the net realizable value of the company's inventory may significantly decrease, and the company may face an increase in inventory depreciation losses, thereby affecting operating performance. On the other hand, if the company cannot effectively broaden sales channels and optimize inventory management in the future, leading to large-scale inventory backlog, it may have an adverse impact on the company's working capital turnover.
At the same time, from 2022 to 2025, with the business expansion of Enflame Technology, the scale of accounts receivable increased year by year. The book balances of accounts receivable at the end of each period were CNY 82.6581 million, CNY 247.4324 million, CNY 517.9658 million, and CNY 290.483 million respectively. The company made provisions for bad debts on accounts receivable according to the different credit risk characteristics of customers, and the provision ratios for bad debts on accounts receivable at the end of each period were 1.01%, 6.45%, 8.73%, and 24.76% respectively.
Among them, at the end of 2025, the overdue ratio of the company's accounts receivable reached 82.96%. Due to the long collection cycle of some intelligent computing center project customers, the provision ratio for bad debts rose to 24.76%, far exceeding that of comparable companies in the same industry.
As of the date of signing this prospectus, some accounts receivable at the end of the reporting period have not yet been collected. If the financial status of the corresponding customers deteriorates or the payment progress falls short of expectations, the relevant accounts receivable may face the risk of being unable to be fully recovered.
IV. Top Five Customers Account for Over 90% of Revenue, Tencent's Share Rises to 83.79%
From 2023 to 2025, the proportion of Enflame Technology's sales to the top five customers to the current operating revenue was 96.50%, 92.60%, and 96.89% respectively, showing a high concentration, which is similar to the situation of comparable companies. The main reasons are the large amount of a single contract for customers of the company's intelligent computing system and cluster business, and the large-scale deployment of the company's products in the AI application scenarios of Internet customers.
Among them, the proportion of sales to Tencent Technology (Shenzhen) (including direct sales and AVAP model sales) was 33.34%, 37.77%, and 83.79% respectively. At the same time, Tencent Technology (Shenzhen) is also a shareholder of Enflame Technology.
In addition, during the reporting period, Enflame Technology also sold to server manufacturers such as Customer A, Customer D, and Customer J designated by Tencent Technology (Shenzhen) through the AVAP model.
Enflame Technology and Tencent started business cooperation in 2019. During this period, they went through stages from small-scale verification in a single scenario to large-scale verification in multiple scenarios, and then to deep strategic cooperation. Through continuous integration of multiple generations of products and long-term software optimization and adaptation, a stable cooperative relationship has been formed. The Internet industry is the main demand side for domestic AI computing power, and the company expects that the situation of a high proportion of sales to Tencent will continue for a certain period in the future.
Enflame Technology stated that if the expansion of new customers falls short of expectations in the future, or Tencent's procurement strategy undergoes significant changes, or the cooperative relationship between the two parties is replaced by other suppliers, it may lead to Tencent reducing the procurement of the company's products, thereby having an adverse impact on the company's business development and operating performance.
V. Top Five Suppliers Account for Over 60%, Achieving Independent and Controllable Full Industry Chain
Enflame Technology adopts a Fabless business model and needs to rely on industry chain partners such as wafer foundries, memory IDM manufacturers, packaging and testing factories, and EDA and IP providers to complete product R&D and delivery. During the reporting period, the company had a limited number of optional supply entities in key links such as some materials, R&D design tools, and wafer manufacturing, and there were cases of procurement from overseas suppliers.
The prospectus shows that during the reporting period, the proportion of procurement from the top five suppliers of Enflame Technology has gradually increased to 62.27%, but there is no case where the procurement proportion from a single supplier exceeds 50% of the total procurement amount. There is also no associated relationship between the company and the top five suppliers.
Notably, between February 2021 and March 2025, Enflame Technology signed a series of strategic cooperation agreements, technology development contracts, etc., with Supplier Q. According to the agreement, the intellectual property rights of new technological achievements jointly generated by the cooperation of both parties shall, in principle, be jointly owned by both parties.
In actual operation, some jointly owned patents did not previously register the issuer as a co-owner, mainly to simplify application procedures and improve application efficiency, with one party submitting the application individually. On March 20, 2025, both parties signed a "Supplementary Agreement", agreeing to complete the registration change procedures within 180 days from the date of signing the agreement.
Enflame Technology emphasized that the relevant jointly owned patents do not involve the issuer's core high-performance chip and hardware design, AI computing software and programming platform technologies, and AI computing power cluster technologies, and do not constitute the issuer's core technologies.
In terms of supply chain security, after years of strategic layout and deep cultivation, Enflame Technology has achieved large-scale implementation in the diversity, extensiveness, and guarantee of the supply chain, and has obtained multi-level, multi-combination, and multi-scheme guarantees in manufacturing, packaging, testing, and various system components, laying a solid foundation for continuously improving commercial value, profitability goals, and sustainable development. On the Enflame S60 product line, it has obtained full capacity guarantee from a cost-effective supply chain, which can meet the needs of commercial customers for large-scale scenario implementation and ultimate cost-effectiveness.
In terms of localization, Enflame Technology has further integrated the industrial development of "local design + local manufacturing + local packaging and testing + local EDA/IP + local models + local applications", achieving independent and controllable full industry chain from R&D to application. Through deep strategic cooperation with leading local manufacturers, the company has obtained continuous capacity guarantee, laying a future foundation for polishing process maturity and realizing commercial value. By comprehensively connecting with multiple local packaging enterprises, it has improved the level of domestic advanced packaging, broken through the limits of heterogeneous integration, and solved key technical problems from different dimensions of manufacturing and packaging.
However, Enflame Technology also pointed out that although the company continues to promote the diversified layout of the supply chain, forming a stable supply capacity often requires long-term collaborative R&D in the industry chain, and the relevant links still need to be improved in terms of process maturity and large-scale delivery capacity.
Given the continuous changes and unpredictability of international trade friction, if adverse changes occur in the external supply chain, affecting the supply rhythm, delivery conditions, or cooperation stability of key links in the company's supply chain, and if the company is difficult to complete equivalent substitution or adjustment arrangements in the short term, it may bring significant adverse impacts on the company's product R&D and sales.
VI. R&D Personnel Account for 76.73%, Cumulative R&D Investment Reaches CNY 3.676 Billion
As of December 31, 2025, Enflame Technology had 838 employees (a slight decrease from 860 as of September 30, 2025), among which there were 643 R&D personnel (a slight decrease from 658 as of September 30, 2025), and the proportion of R&D personnel was 76.73%.
From 2023 to 2025, the company's R&D investments were approximately CNY 1.229 billion, CNY 1.312 billion, and CNY 1.135 billion respectively, and the proportion of R&D expenses to operating revenue was 408.01%, 181.66%, and 114.63% respectively. The cumulative R&D investment over the three years was CNY 3.676 billion.
As of the end of 2025, all patents owned by the company and its subsidiaries were domestic patents, totaling 339, including 313 invention patents, 22 utility model patents, and 4 design patents.
VII. Actual Controllers are ZHAO LIDONG and ZHANG Yalin, Tencent Holds 19.9493% of Shares
As of the date of signing this prospectus, the company has a total of 102 shareholders, and the equity structure is relatively dispersed. Among them, Tencent Technology holds 19.9493% of Enflame Technology's shares, making it the largest shareholder. Moreover, Tencent Technology and its concert party Suzhou Paiyi hold a total of 20.2580% of Enflame Technology's shares.
ZHAO LIDONG and ZHANG Yalin directly hold a total of 17.9287% of the company's equity, and indirectly control 10.2070% of the company's equity through two employee stock ownership platforms, Suiyuan Huizhi and Suiyuan Chongying. The two actual controllers jointly control 28.1357% of the company's equity. At the same time, the two clarified the concert party relationship and related arrangements for joint control of the company by signing the "Concert Party Agreement".
Obviously, the total shareholding ratio of Tencent and its concert parties is 7.8777% less than the equity jointly controlled by Enflame Technology's founders ZHAO LIDONG and ZHANG Yalin. Moreover, shareholders with a total voting right control ratio of over 3%, such as Tencent Technology, Phase II Fund, and Guofang Jinpu, have all issued "Commitments on Not Seeking Control of the Company". Therefore, ZHAO LIDONG and ZHANG Yalin are the actual controllers of Enflame Technology.
The prospectus shows that ZHAO LIDONG, a U.S. citizen with permanent residency in China, was born in 1966, holds a Bachelor's degree in Electronic Engineering from Tsinghua University (Class of 1985) and a Master's degree in Electrical and Computer Engineering from Utah State University in the U.S. Mr. ZHAO LIDONG has been working in chip design-related enterprises since January 1995, with over 30 years of industry experience to date. From January 1995 to June 2000, he served as Senior Manager of Chip Design at S3, Inc.; from August 2000 to December 2006, he served as Director of Chip Design at Juniper Networks; from March 2007 to October 2014, he successively served as Senior Director of the Computing Business Unit and Senior Director of the Product Engineering Department at AMD, responsible for CPU/APU product planning and the R&D of multiple related core IPs, and participated in the establishment of AMD China R&D Center; from December 2014 to November 2017, he successively served as President of RDA Microelectronics under Tsinghua Unigroup and Vice President of Tsinghua Unigroup.
In March 2018, Mr. ZHAO LIDONG co-founded Enflame Limited, and successively served as Chairman, CEO, and General Manager of the company. He has won the Oriental Talent Plan Entrepreneurship Project (Leading Entrepreneurial Talent) and the Haiju Talent Haiwang Cup Entrepreneurship Silver Gathering Award. Mr. ZHAO LIDONG currently serves as the Chairman, CEO, and Secretary of the Board of Directors of the company.
ZHANG Yalin, a Chinese citizen without permanent residency abroad, was born in 1978 and holds a Bachelor's degree in Electronics and Information Systems from Fudan University. Mr. ZHANG Yalin has been working in chip design-related enterprises since August 2000, with 25 years of industry experience to date. From August 2000 to November 2007, he successively served as Senior Manager, Director, and Supervisor of the Design Department at Shanghai Qima Digital Information Co., Ltd.; from December 2007 to November 2017, he successively served as Senior Chip Manager and Technical Director of the China R&D Center at AMD. As one of the main persons in charge of AMD's global chip R&D, he successfully led the development and mass production of multiple important products, including custom-developing the main chip for Microsoft's XBOX-ONE series and the converged chip APU successfully used in Subor Z+ gaming PCs, and participated in the establishment, development, and management of AMD Shanghai R&D Center's Converged Chip Department, AMD Beijing R&D Center, and AMD China Multimedia IP Department.
In March 2018, Mr. ZHANG Yalin co-founded Enflame Limited, and successively served as Director, COO, and General Manager of the company. He led the R&D team to complete the iteration and optimization of four generations of products over seven years and participated in the R&D work related to more than 60 patents of the company. In addition, Mr. ZHANG Yalin is an expert enjoying the special government allowance from the State Council, serves as a member of the Standing Committee of the Shanghai Association for Science and Technology, and has won honors such as the Shanghai Youth Science and Technology Outstanding Contribution Award and the Shanghai Oriental Talent Top Talent. Mr. ZHANG Yalin currently serves as the Director, COO, and General Manager of the company.
Worth mentioning, in addition to the shareholders mentioned above, well-known investment institutions and enterprises such as Wuyuefeng Capital, Shanghai Industrial Investment, Meitu Technology, SDIC Jueli, and Shanghai Science and Technology Innovation Investment are also shareholders of Enflame Technology.
VIII. Plans to Raise CNY 6 Billion
The prospectus shows that the planned fundraising amount for Enflame Technology's STAR Market IPO this time is CNY 6 billion, mainly used for the R&D and industrialization projects of the fifth-generation and sixth-generation AI chip series products, as well as the advanced AI software and hardware collaborative innovation project, which will help the continuous iteration of the company's core products, further ensure supply chain stability, and lay the foundation for the realization of the company's operational strategic goals.
Enflame Technology stated that cloud AI chip R&D has a high threshold, a fast iteration pace, and requires continuous large-scale funding for both software and hardware. The company will use the funds raised from this listing for the R&D and industrialization of the fifth-generation and sixth-generation AI chip series products, benchmarking against the high-end product performance of international manufacturers, to ensure the long-term demand of China's AI industry for high-quality AI computing power. △ Enflame Technology Roadmap. From the Roadmap disclosed by Enflame Technology, its fifth-generation AI chip will be launched in 2027, and the sixth-generation AI chip will be launched in 2028.
IX. How Does It Compare with Industry Peers?
Since the second half of last year, domestic GPU/AI chip manufacturers have set off an IPO listing wave. Not only Moore Threads and Muxi Semiconductor listed on the STAR Market, but also Biren Technology and Iluvatar CoreX listed on the Hong Kong Stock Exchange.
These GPU/AI chip enterprises were also highly sought after by the capital market at the beginning of their listing. For example, Moore Threads and Muxi Semiconductor have successfully listed on the A-share STAR Market, raising CNY 7.997 billion and CNY 4.197 billion respectively. The stock prices of these two enterprises surged by 425.46% and 692.95% respectively on the first day of listing, and their market capitalizations once exceeded CNY 300 billion. Biren Technology, listed on the Hong Kong Stock Exchange, raised a total of HKD 5.583 billion, with its stock price surging by 118.78% on the first day of listing, and its market capitalization once exceeded HKD 100 billion; Iluvatar CoreX, also listed on the Hong Kong Stock Exchange, raised about HKD 3.7 billion, with its stock price rising by 8.44% on the first day of listing, and its market capitalization once approached HKD 50 billion.
However, from the perspective of performance, these GPU/AI chip manufacturers are still suffering from huge losses.
According to the comparison of financial indicators in 2025 between Enflame Technology and listed enterprises in the same industry disclosed by Enflame Technology, Enflame Technology is similar to Iluvatar CoreX in terms of revenue, net loss, and R&D investment, but its total assets at the end of the year are a little over CNY 600 million more. From the comparison of gross profit margin data, Enflame Technology's gross profit margin is relatively low, with the highest in 2025 being only 31.78%, far below the average of 57.75% for domestic AI chip manufacturers.
From the comparison of sales expense ratio, Enflame Technology's sales expense ratio in 2025 is also higher than that of most domestic AI chip listed companies and the industry average, only slightly lower than Iluvatar CoreX.
From the comparison of management expense ratio, Enflame Technology's management expense ratio has always been lower than that of domestic AI chip listed companies such as Moore Threads and Muxi Semiconductor and the industry average, but still higher than Cambricon, which has been listed for many years. In 2025, Enflame Technology's management expense ratio has been reduced to 17.71%, which is lower than the industry average.
From the comparison of R&D expense ratio, Enflame Technology, like other AI chip listed enterprises in the industry, is rapidly decreasing, and has dropped to 114.63% in 2025, but it is still higher than most AI chip listed enterprises and the industry average, only slightly lower than Biren Technology.
In terms of the planned IPO fundraising amount, Enflame Technology plans to raise CNY 6 billion, which is much higher than Muxi Semiconductor, Biren Technology, and Iluvatar CoreX, second only to Moore Threads' CNY 8 billion. From the perspective of the valuation after the last round of financing before the IPO, Enflame Technology is about CNY 18 billion, and Moore Threads is CNY 29.845 billion.
In terms of market capitalization, although Moore Threads' intraday market capitalization exceeded CNY 300 billion on the first day of listing, and once exceeded CNY 440 billion after a few trading days, its market capitalization has now fallen back to about CNY 170 billion. Similarly, Muxi Semiconductor's market capitalization also once exceeded CNY 350 billion after listing, and has now fallen back to less than CNY 200 billion. The current market capitalizations of Iluvatar CoreX and Biren Technology on the Hong Kong Stock Exchange are about HKD 86 billion and HKD 95 billion respectively. Enflame Technology's opening market capitalization today is CNY 176.4 billion.
Editor: Zhixinxun - Langkejian