Shanghai Enflame Technology Co., Ltd. (stock code: 688801), a domestic GPU chipmaker, is slated to debut on the STAR Market tomorrow, pricing its shares at 142.18 yuan each. The company will offer 43.035 million shares, targeting total proceeds of 6.14 billion yuan from the initial public offering.

Strategic placement investors include China Securities Investment, the company's employee asset management plan, Shanghai Qishan Investment Co., Ltd., Shenzhen Waitan Technology Development Co., Ltd., Wuhan 1810 Enterprise Management Co., Ltd., Tongfu Microelectronics Co., Ltd., ZTE Corporation, Shanghai Xinzhi Times Enterprise Management Co., Ltd., Shanghai EDICHI Technology Service Co., Ltd., and the National Council for Social Security Fund, collectively taking up 20% of the total offering. Among them, China Securities Investment subscribed for 122 million yuan, the employee asset management plan for 337 million yuan, Shanghai Qishan for 248 million yuan, and both Wuhan 1810 and Tongfu Microelectronics for 70 million yuan each. Tongfu Microelectronics and ZTE each subscribed for 80 million yuan, Shanghai Xinzhi Times and Shanghai EDICHI each invested 73.13 million yuan, while the National Council for Social Security Fund contributed 70 million yuan.

According to the prospectus, Enflame Technology posted revenues of 300 million yuan, 722 million yuan, and 990 million yuan for 2023, 2024, and 2025, respectively. Net losses for the same periods stood at 1.665 billion yuan, 1.51 billion yuan, and 1.164 billion yuan, with non-GAAP net losses of 1.567 billion yuan, 1.5 billion yuan, and 1.197 billion yuan.

In the first half of 2026, the company generated revenue of 1.12 billion yuan, a 279% surge from 300 million yuan in the prior-year period. Net loss widened slightly to 630 million yuan from 610 million yuan a year earlier, while non-GAAP net loss came in at 634 million yuan versus 624 million yuan previously. For the second quarter of 2026, revenue jumped 200.5% year-over-year to 830 million yuan, with net loss narrowing 35% to 188 million yuan from 289 million yuan in the same quarter last year.

Looking ahead, Enflame Technology forecasts revenue of 2.3 billion to 3 billion yuan for the first nine months of 2026, marking a 325.78% to 455.36% increase from 540 million yuan a year earlier. The projected net loss is expected to range from 700 million to 860 million yuan, improving from an 888 million yuan loss in the prior-year period.

Tencent (TENCENT) stands as the company's largest shareholder. During the reporting periods, combined direct sales and corresponding AVAP model revenue from Tencent Technology (Shenzhen) reached 100 million yuan, 270 million yuan, and 830 million yuan, accounting for 33.34%, 37.77%, and 83.79% of total revenue, respectively.

Enflame Technology marks another domestic GPU firm to go public. Since its inception, the company has secured multiple funding rounds, cumulatively raising more than 5 billion yuan. Notably, it received 340 million yuan in a Pre-A round led by Tencent in July 2018, followed by 300 million yuan led by Redpoint Ventures in May 2019, and a 700 million yuan Series B led by Walden International in May 2020. A 1.8 billion yuan Series C round closed in January 2021 with CITIC Industrial Fund, CICC Capital, and Primavera Capital as lead investors, followed by a Series C+ round backed by the National Integrated Circuit Industry Investment Fund in 2022. In September 2023, the company raised 2 billion yuan in a Series D round led by Guofang Innovation.

Post-IPO, ZHAO LIDONG and Zhang Yalin each hold a 7.6197% stake, followed by Enflame Huizhi at 7.3607% and Enflame Chongying at 1.3153%. Tencent Technology retains a 16.9569% ownership position, with the Phase II Fund holding 3.6736%, Guofang Jinpu at 3.01%, Walden Phase II at 2.6016%, Dalian Yuntai at 1.7185%, Beijing Enflame Qing at 1.5075%, and Walden Phase III at 1.5066%. Other shareholders include Shanghai Industrial Investment at 1.2611%, Meitu Technology at 1.1121%, Yangzhou Guojun at 1.0586%, Huai'an Tierong at 1.0065%, Redpoint Ventures at 0.9280%, Derun Jinchi at 0.8657%, Guotou Juli at 0.8408%, with CICC Gongying and Qilu Xiamen each at 0.7872%, and smaller stakes held by various other investors.