In December 2025, the domestic GPU sector will arrive at a pivotal moment in its quest for capitalization.

On December 15, Biren Technology received a Filing Notice (essentially a 'registration notice') from the China Securities Regulatory Commission (CSRC) concerning its overseas issuance and listing plans, with intentions to issue no more than 372.458 million ordinary shares. Just two days after, the company successfully cleared the Hong Kong Stock Exchange's hearing, making a final dash towards becoming the 'first GPU stock on the Hong Kong Stock Exchange.' This milestone not only signifies a major achievement for the six-year-old company in crossing into the capitalization arena but also fills a void in the AI computing core sector of the Hong Kong stock market, marking a pivotal move for the domestic GPU industry to vie for influence in the global computing power landscape.

As one of the 'Four Little Dragons of Domestic GPUs,' how has Biren Technology managed to break through the barriers to listing in Hong Kong? Beyond the glossy facade of accelerated capitalization, what deep-rooted challenges does the company urgently need to tackle?

The Bedrock of Biren Technology's IPO Confidence

The dual achievements in technology and commercialization form the core confidence underpinning Biren Technology's industry standing. According to the company's prospectus, in constructing technological barriers, Biren has established a dual moat of 'hardware + software,' setting a performance benchmark in the domestic high-end GPU sector. At the hardware level, Biren Technology is the first domestic company to commercialize Chiplet packaging technology. Its flagship chip, the BR100, leverages a 7nm process and 2.5D CoWoS packaging, achieving a 16-bit floating-point computing power exceeding 1000T, setting a global benchmark for similar products.

In terms of software ecosystems, the self-developed BIRENSUPA platform is compatible with the CUDA ecosystem and mainstream AI frameworks, catering to domestic large models like Tongyi Qianwen and addressing customer migration cost hurdles. Additionally, Biren leads the development of standards for heterogeneous mixed-training in intelligent computing clusters, bridging industry technical gaps.

Sustained high-intensity R&D investment is a linchpin for technological breakthroughs. According to the prospectus, from 2022 to the first half of 2025, the company's cumulative R&D investment surpassed 3.3 billion yuan, with R&D expenses accounting for 79.1% of total operating expenditures in the first half of 2025, far outpacing the industry average. The strength of the R&D team underscores top-tier industry standards, with 657 R&D personnel, or 83% of the total workforce. Core members include senior experts such as AMD's former vice president and Qualcomm's former chief architect for Snapdragon GPUs, averaging nearly 30 years of industry experience, providing talent support for technological iteration and product innovation.

The accelerated commercialization process has steadily transformed technological advantages into market competitiveness. The company's revenue has skyrocketed, jumping from 500,000 yuan in 2022 to 62 million yuan in 2023 and further soaring to 337 million yuan in 2024, with a compound annual growth rate exceeding 2,500%. Revenue reached 58.9 million yuan in the first half of 2025. During the same period, the high-end Bilei™ 166 series achieved mass production, completing a product structure upgrade. The next-generation flagship chip, the Bilei™ 20X series, is also on track, with commercialization expected in 2026, forming a virtuous cycle of product iteration.

In market expansion, Biren Technology has successfully penetrated core sectors such as telecommunications and fintech, deploying thousand-card-scale intelligent computing clusters for China Mobile and China Telecom. It became the first domestic company to implement heterogeneous chip mixed-training technology across four or more chip types, effectively addressing the 'computing power island' challenge and establishing differentiated market advantages.

The dual empowerment of capital recognition and team experience has cemented the foundation for Biren Technology's capitalization process. Founder Zhang Wen's extensive experience in the integrated circuit industry and capital markets has enabled the company to establish efficient financing channels. To date, according to Sina Finance data, the company has raised over 5 billion yuan in cumulative financing, with leading institutions such as Hillhouse Capital and China Merchants Capital, along with several government-backed funds, participating, forming a diversified capital support system.

The explosive growth of the AI computing power industry and precise policy support have further amplified the company's development advantages. Data from the China Academy of Information and Communications Technology shows that China's intelligent computing chip market will reach $50.4 billion in 2025, with the GPGPU market growing to $40.9 billion, offering vast market potential. Meanwhile, the 'East Data, West Computing' project and the policy requirement that domestic GPUs account for no less than 30% of procurement in key sectors provide Biren Technology with certainty in growth space, becoming a significant plus in its IPO process.

Hidden Concerns: Profitability, Competition, and Supply Chain Under Triple Pressure

Despite the smooth progress of capitalization, Biren Technology's long-term development still faces multiple deep-seated challenges, with profitability dilemmas, intensifying competition, and supply chain risks constituting three major constraints on its growth.

The pressure on the profitability front is most pronounced, with persistent losses and fluctuating gross margins being key factors restricting the enhancement of corporate value. As of the first half of 2025, the company's cumulative losses exceeded 6.3 billion yuan, with a single-period loss of 1.6 billion yuan. Although the adjusted net loss margin has narrowed, the pressure to turn a profit in the short term remains immense. The gross margin dropped from 100% in 2022 to 31.9% in the first half of 2025, a fluctuation worthy of vigilance. The core reasons lie in rising costs during mass production, compounded by intensifying industry price competition, continuously squeezing profit margins.

The white-hot market competition has further intensified pressure on the company's development, with Biren Technology facing a situation of being squeezed from both domestic and international fronts. According to Sina Finance, in the international market, NVIDIA monopolizes 97.6% of the global GPGPU market share, with technological barriers built by the CUDA ecosystem difficult to breach in the short term, and its technological iteration speed consistently leading. The domestic competition is equally fierce, with Huawei Ascend rapidly expanding through its ecosystem advantages. Moore Threads has already completed its listing, and MetaX reported revenue of 743 million yuan in 2024, significantly higher than Biren Technology's 337 million yuan. The gap between leading companies is gradually widening, and industry internal competition is intensifying.

Supply chain and compliance risks have become core hidden dangers looming over the company. According to SEMI data, affected by the U.S. 'Entity List,' Biren Technology's high-end chip production is highly dependent on TSMC's CoWoS packaging process. However, the global production capacity of this process is expected to be less than 1 million wafers in 2025, directly restricting the company's high-end chip production capacity. Although the company has collaborated with JCET to develop 2.5D packaging technology, planning to achieve domestic substitution in the packaging process by 2026, it still cannot shake off its reliance on the international supply chain in the short term.

Additionally, the valuation pressure in the Hong Kong stock market cannot be overlooked, with recent high breakage rates of tech IPOs and market liquidity and sentiment fluctuations potentially affecting post-listing performance. Moreover, the current situation of customer concentration among state-owned operators and information technology innovation sectors increases the difficulty of market diversification, with this single customer structure further posing potential impacts on revenue stability.

The New Competitive Logic in the GPU Capitalization Era

Biren Technology's IPO process is not only a capitalization breakthrough for the company itself but also marks the formal entry of the domestic GPU industry into a new stage of capitalization competition, with profound changes occurring in the industry's competitive logic.

The core of competition has shifted from a single technical parameter comparison to a comprehensive contest of software ecosystem maturity, customer retention ability, and scenario adaptation depth. The capital market's valuation logic for GPU companies has gradually become rational, no longer blindly believing in computing power parameters but placing greater emphasis on technological landing capabilities and the sustainability of ecosystem construction. For Biren Technology, how to continuously optimize the toolchain system, narrow the gap with NVIDIA's CUDA ecosystem, and enhance customer stickiness and scenario adaptation breadth has become a core factor determining its long-term valuation.

The competition dimension has upgraded from a single product competition to a contest of full industry chain collaborative capabilities. The large-scale application of Chiplet technology and continuous iteration of heterogeneous mixed-training capabilities have become key to building differentiated advantages for companies. Meanwhile, the degree of supply chain autonomy directly determines a company's risk resilience and long-term development resilience in global competition, with the progress of domestic substitution in core links such as packaging and EDA tools becoming important variables in industry competition.

The reconstruction of the profitability logic is imminent. The capital market's tolerance for losses in hard technology companies is gradually decreasing, with a shift from a 'heavy R&D, high burn' model to a 'balanced R&D investment and profit realization' development model becoming an industry consensus. Biren Technology needs to continuously optimize its cost control system during the process of large-scale commercialization, improve gross margin levels, and steadily narrow loss margins while moving toward profitability to gain long-term recognition from the capital market. This requires the company to balance technological innovation with commercialization efficiency, finding the optimal balance point between high-end product layout and large-scale market penetration.

As a potential pioneer in the Hong Kong GPU sector, Biren Technology's listing will not only bring financing opportunities to accelerate R&D and commercialization but also inject capital vitality into the domestic computing power industry chain, driving technological iteration and ecosystem upgrades across the industry.

In the future, whether Biren Technology can achieve a dynamic balance between technological iteration and commercialization efficiency, R&D investment and profit realization, and international competition and supply chain autonomy will not only determine its valuation performance in the capital market but also profoundly impact the global competitiveness landscape of the domestic GPU industry.

Against the backdrop where computing power has become a core productive force, Biren Technology's capitalization journey represents both an exploration by domestic chip companies to break through in both technological and capital dimensions and an important footnote in China's autonomous rise in the computing power industry. The comprehensive breakthrough of the domestic GPU industry still requires sustained efforts in multiple dimensions such as technological innovation, ecosystem construction, and supply chain autonomy to secure a place in the global computing power landscape.