On June 15, news emerged from the 37th review session of the 2026 Shanghai Stock Exchange Listing Review Committee: Shanghai Enflame Technology Co., Ltd. (hereinafter referred to as "Enflame Technology") successfully passed the review for its Initial Public Offering (IPO) application on the STAR Market.

This development signifies that, following Moore Threads, MetaX, and Biren Technology, the final piece of the "Four Little Dragons of Domestic GPUs" puzzle is about to be completed in the capital market.

(Image source: Official website of the Shanghai Stock Exchange)

From its application acceptance on January 22, 2026, to passing the review on June 15, Enflame Technology took nearly five months and underwent two rounds of inquiries before finally securing a place on the STAR Market.

According to the prospectus, the company aims to raise 6 billion yuan for the research and development (R&D) and industrialization of fifth- and sixth-generation AI chip series products, as well as for advanced AI software and hardware collaborative innovation projects.

"Early Start, Late Arrival"

Founded in March 2018, Enflame Technology is the most seasoned among the "Four Little Dragons of Domestic GPUs." Founder Zhao Lidong, a graduate of the Department of Electronic Engineering at Tsinghua University (EE Class 85), spent nearly seven years at AMD's U.S. headquarters, serving as Senior Director of the Computing Division and Product Engineering Department. Co-founder Zhang Yalin also hails from AMD's Shanghai R&D Center and boasts over 25 years of experience in integrated circuit (IC) design.

These two AMD veterans joined forces to establish a business in Zhangjiang, Shanghai, naming the company "Enflame," symbolizing "a single spark can start a prairie fire."

However, in the race to go public, Enflame Technology was the last to "cross the finish line." In December 2025, Moore Threads and MetaX successively listed on the STAR Market, each currently valued at nearly 300 billion yuan. In January 2026, Biren Technology listed on the Hong Kong Stock Exchange, with a market value exceeding 130 billion Hong Kong dollars.

In contrast, Enflame Technology's IPO journey has been more arduous. It initially filed for pre-IPO guidance in August 2024 with CICC as its initial tutoring institution. In November 2025, it switched to CITIC Securities and submitted its prospectus to the STAR Market less than three months later.

Revenue Triples in Three Years, Losses Continue to Narrow

According to the prospectus, from 2023 to 2025, Enflame Technology's operating revenue was 301 million yuan, 722 million yuan, and 990 million yuan, respectively, with a compound annual growth rate of 81.5%. During the same period, the company's net profit was -1.665 billion yuan, -1.510 billion yuan, and -1.164 billion yuan, respectively, with cumulative losses exceeding 4.3 billion yuan. However, the loss margin has been narrowing year by year.

(Image source: Company prospectus)

Notably, the company expects revenue in the first half of 2026 to reach 1.06 billion yuan to 1.15 billion yuan, surpassing the full-year revenue of 2025 and representing a year-on-year increase of 258.68% to 289.13%. Enflame Technology estimates in its prospectus that it will essentially achieve break-even on a consolidated basis in 2026.

"From a financial perspective, Enflame Technology's revenue growth and narrowing losses largely meet the expectations of the STAR Market for unprofitable tech companies," said a semiconductor industry analyst. "However, whether it can achieve break-even in 2026 depends on the mass production progress and customer expansion of its fourth-generation L600 product."

According to the prospectus, Enflame Technology's AI chip products have now iterated to the fourth generation, but over 80% of its 2025 revenue still came from the third-generation S60 inference cards, with the fourth-generation L600 training and inference module accounting for only 1% of revenue. Although the L600 has been taped out, it has not yet been mass-produced and delivered.

Tencent's Dual Role as "Shareholder + Customer" Draws Attention

Another major highlight of Enflame Technology is its deep capital and business ties with Tencent.

According to the prospectus, Tencent Technology and its affiliates collectively hold a 20.26% stake in Enflame Technology, making it the largest shareholder. Meanwhile, Tencent is also the company's largest customer in each reporting period. From 2023 to 2025, sales to Tencent accounted for 33.34%, 37.77%, and 83.79% of Enflame Technology's total revenue, respectively. In 2025, the company's top five customers accounted for 96.89% of its revenue.

Top Five Customers:

Top Ten Shareholders:

(Image source: Company prospectus)

This dual role of "major shareholder + largest customer" drew significant regulatory attention during the review process. Both rounds of inquiry letters focused on questioning the "reasonableness of related-party sales to Tencent" and the "ability to expand non-related-party customers."

"High customer concentration is a phased characteristic of the AI chip industry, but having a single customer account for over 80% is indeed high," the analyst noted. "Tencent is also developing its own AI chips ('Zixiao' chip), which presents both an opportunity and a potential risk for Enflame Technology."

In its response, Enflame Technology stated that given Tencent's role as a major domestic demander of AI computing power, it expects sales to Tencent to remain high for the foreseeable future. The company also disclosed that Internet customer A has placed small orders, leading operator D has signed a framework contract, and three customers have completed hardware testing and are awaiting model adaptation.

Raising 6 Billion Yuan to Bet on Next-Gen Chips

In this IPO, Enflame Technology plans to raise 6 billion yuan, with 1.503 billion yuan allocated to the R&D and industrialization of fifth-generation AI chip series products, 1.197 billion yuan for sixth-generation AI chip series products, and 3.3 billion yuan for advanced AI software and hardware collaborative innovation projects.

"The fundraising plan reflects the company's dual-wheel-driven strategy of 'hardware + software,'" Enflame Technology stated in its prospectus. Instead of following NVIDIA's dominant CUDA ecosystem, the company has developed its own full-stack AI computing and programming software platform, "Yusuan TopsRider," and has developed the GCU-CARE accelerated computing unit and GCU-LARE inter-chip high-speed interconnection technology based on its proprietary instruction set.

According to IDC data, in 2025, China's total AI accelerator card shipments reached approximately 4 million units, with NVIDIA accounting for about 55% of the market share with roughly 2.2 million units shipped. Enflame Technology sold 66,000 AI accelerator cards and modules that year, giving it a market share of about 1.7%, ranking among the top domestic AI chip manufacturers.

Capital Boosts Breakthroughs in Domestic Computing Power

With Enflame Technology's IPO approval, the "Four Little Dragons of Domestic GPUs" are expected to gather in the capital market. This marks not only a capital milestone for the four companies but also a significant signal for the accelerated development of China's domestic AI chip industry.

"The concentrated listing of domestic GPU companies reflects the capital market's strong recognition of AI computing power infrastructure," said a PE professional who has long focused on semiconductor investments. "However, listing is just the first step. Whether these companies can establish their own software moat outside NVIDIA's CUDA ecosystem and transition from single-customer dependency to a diversified market will be key to determining their long-term value."

Currently, MetaX is still pursuing an H-share listing, while Biren Technology's A-share listing tutoring registration report has progressed to its sixth phase. The capital story of domestic GPUs continues to unfold.

(This article does not constitute investment advice. The market carries risks; invest cautiously.)

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