Produced by | Company Research Office

Recently, the Shenzhen Stock Exchange has released an updated prospectus for Yunbao Intelligence. This chip company, which is striving to become the "pioneer domestic DPU stock", is aiming to raise RMB 3.035 billion.

In the first half of 2026, Yunbao Intelligence's revenue soared to RMB 940 million, roughly 2.5 times its total revenue for the entire year of 2025. The company anticipates a year-on-year revenue increase of 908% to 977% for the first three quarters of this year.

However, this remarkable growth is shadowed by persistent losses and a highly concentrated customer base.

From 2023 to 2025, Yunbao Intelligence accumulated losses amounting to RMB 2.466 billion. In the first half of 2026, Tencent, its largest end customer, directly and indirectly accounted for 97.86% of its revenue.

From RMB 170,000 to RMB 940 million, Yunbao Intelligence has demonstrated that its DPU products can achieve large-scale delivery. Yet, as revenue skyrockets, the critical question remains: when will the company be able to reduce its heavy reliance on capital and a single major customer, while establishing a more stable profitability and customer structure?

Entrepreneurship at 54: Betting on the "Third Chip" for Data Centers

Founded in August 2020, Yunbao Intelligence is not the first entrepreneurial endeavor for founder Xiao Qiyang.

Xiao Qiyang earned his Ph.D. in Electrical Engineering from Stanford University at the age of 24 and subsequently taught at a U.S. university. In 2002, he left academia to co-found network processor company RMI in Silicon Valley. After RMI merged with NetLogic in 2009, Xiao served as President and General Manager of NetLogic's Asia-Pacific region. In 2011, Broadcom acquired NetLogic for $3.7 billion in cash, after which Xiao joined Broadcom to oversee processor and wireless infrastructure businesses.

In 2020, at the age of 54, Xiao returned to Shenzhen to embark on another venture, this time focusing on DPU.

In data centers, CPUs handle general-purpose computing, while GPUs manage large-scale parallel computing. However, tasks such as networking, storage, security, and virtualization also consume significant CPU resources. The role of DPU is to offload these infrastructure tasks from the CPU.

If the CPU is the "brain" and the GPU is the "muscle," then the DPU can be likened to the "blood vessels and nerves" of the data center.

In 2020, NVIDIA completed its acquisition of high-speed network chip manufacturer Mellanox and subsequently integrated products like BlueField with the DPU concept. In 2021, NVIDIA further proposed a "CPU + GPU + DPU" three-chip strategy, positioning DPU at the core of data center chips.

Currently, the company has developed two main product lines: the Yunxiao series of full-featured DPUs and the Fengchi series of AI DPUs, along with a matching DDK software framework.

From its inception, Yunbao Intelligence did not start with low-end products but directly targeted 400Gbps high-performance DPUs. In the second half of 2023, Yunbao Intelligence's first DPU chip, Yunxiao 1.0, was successfully taped out and entered mass production in the second half of 2024.

Yunxiao 1.0 integrates 64 self-developed RISC-V microprocessors and 16 Arm V9 architecture Neoverse N2 performance cores, supporting up to 400Gbps network bandwidth. According to the prospectus, Yunxiao 1.0 has achieved the same level as BlueField-3 in terms of processor performance, network bandwidth, and programmability. The company claims that the generational gap with leading international advanced products has narrowed to just one generation.

Following Yunxiao 1.0, Yunbao Intelligence began extending its product line further into AI data center networking. The Fengchi 2.0 AI DPU has completed tape-out and entered the customer mass production ramp-up phase, also supporting up to 400Gbps. It primarily targets the backend networks of AI computing clusters and competes with NVIDIA's ConnectX-7.

Meanwhile, the company's next-generation products have entered the R&D stage. Among them, Yunxiao 2.0 and Fengchi 2.5 will increase network bandwidth to 800Gbps, with subsequent Fengchi 3.0 further evolving to 1.6Tbps.

From Yunxiao 1.0's 400Gbps to the next generation's 800Gbps and even 1.6Tbps, Yunbao Intelligence has effectively established a continuously iterating product roadmap.

However, for a chip startup, successful tape-out is just the first step; what truly matters is whether it can pass customer validation and achieve large-scale shipments.

Yunbao Intelligence's financial statements began to change significantly from the moment Yunxiao 1.0 entered mass production.

Revenue Grows 5,000-Fold in Two and a Half Years, But Profitability Turning Point Yet to Arrive

Yunbao Intelligence's revenue growth curve has been exceptionally steep.

In 2023, the company's operating revenue was only RMB 173,200; it grew to RMB 36.3557 million in 2024; further reaching RMB 370 million in 2025, representing a year-on-year increase of 917.46%. In the first half of 2026, revenue surged to RMB 940 million, with half-year revenue approximately 2.5 times the full-year revenue for 2025.

Behind this revenue explosion is the formal entry of DPU products into large-scale delivery. In 2024, DPU sales reached 5,396 units, increasing to 54,000 units in 2025, and further to 63,900 units in the first half of 2026. As of the prospectus update, cumulative sales have exceeded 130,000 units.

Yunbao Intelligence has crossed a critical threshold for chip startups, with products no longer停留在tape-out, validation, and sampling stages but beginning to enter real customer production environments and achieving large-scale commercial delivery.

According to Frost & Sullivan data, based on 2025 revenue and excluding self-developed products by cloud service providers, Yunbao Intelligence ranks first among domestic independent manufacturers in China's full-featured DPU market, with an overall market share of approximately 15.3%. However, the domestic DPU market is still dominated by overseas manufacturers, with NVIDIA and other overseas companies holding over 70% of China's DPU market segment.

On one hand, Yunbao Intelligence has become a leader among domestic DPU manufacturers; on the other hand, its commercialization is still in the early stages of domestic substitution.

While revenue has grown rapidly, the company has yet to escape losses.

From 2023 to 2025, Yunbao Intelligence's net profit attributable to the parent company was -RMB 667 million, -RMB 610 million, and -RMB 1.189 billion, respectively, with cumulative losses of RMB 2.466 billion over three years.

However, the significant expansion of losses in 2025 was not entirely due to worsening core business performance. The company recognized substantial share-based compensation expenses that year. Excluding non-recurring items, net profit from 2023 to 2025 was -RMB 673 million, -RMB 620 million, and -RMB 562 million, respectively, with losses narrowing consecutively. In the first half of 2026, non-recurring net profit further decreased to -RMB 222 million.

Yunbao Intelligence attributes its sustained losses to several factors: the low penetration rate of domestic DPUs, with products still in the customer adoption and market expansion phases; meanwhile, investments in chip R&D, tape-outs, and software ecosystem construction remain high over the long term. From 2023 to 2025, the company's cumulative R&D investment reached RMB 1.758 billion.

As revenue scales up, early high R&D investments are gradually being absorbed by a larger revenue base. As of the end of June 2026, the company's backlog reached RMB 494 million, with profitability expected as early as 2028.

For Yunbao Intelligence, the key observation is not the static figure of "RMB 2.4 billion in losses over three years" but whether rapid revenue growth can continuously dilute R&D, tape-out, and software ecosystem costs, ultimately achieving economies of scale.

Currently, non-recurring losses have begun to narrow, and a commercialization turning point is emerging; however, there is still a distance to truly proving the viability of its profit model.

Tencent Accounts for Nearly 98% of Revenue, Major Customer Dependency Remains to Be Addressed

Yunbao Intelligence's ability to rapidly achieve product mass production within four and a half years of its founding is inseparable from sustained capital investment.

From a seed round in December 2020 to pre-IPO, the company has completed nine rounds of financing, with its valuation rising to RMB 14.2 billion. Investors include industrial capital like Tencent, market-oriented institutions such as Sequoia China, Shenzhen Capital Group, and 5Y Capital, as well as Temasek, NIO Capital, SMIC Capital, and local state-owned asset platforms.

Pre-IPO, Tencent holds a 19.78% stake in Yunbao Intelligence through multiple entities, making it the largest shareholder; Xiao Qiyang and Zhang Xueli collectively control 29.81% of voting rights through direct shareholdings and employee stock ownership platforms.

Tencent's uniqueness lies in the fact that it brings more than just capital.

As a major cloud computing provider, Tencent simultaneously provided Yunbao with early application scenarios and large-scale orders, helping the company complete the commercialization journey from chip validation to customer adoption and mass production. However, this has also led to issues.

Based on end-customer statistics, in 2024, 2025, and the first half of 2026, Tencent directly and indirectly contributed 93.16%, 95.22%, and 97.86% of revenue, respectively. Despite Yunbao Intelligence's rapidly expanding revenue, the vast majority of incremental growth still comes from a single customer.

Customer concentration has also been reflected in bargaining power. In 2025, the company shifted more of its deliveries to Tencent from high-margin chips to DPU boards. Full-year DPU board sales reached 43,100 units, with gross margin declining from 46.29% to 24.38% due to Tencent's large-scale purchases and relatively lower prices, while the company's overall gross margin dropped from approximately 39.8% in 2024 to around 27.6% in 2025.

Tencent presents a dual nature for Yunbao Intelligence: in the early stages of entrepreneurship, it served as both an "investor + seed customer," providing capital, a real data center environment, and orders to accelerate product launches; however, as the company prepares to go public, investors are more concerned about whether Yunbao can expand its customer base and reduce single-customer risks.

For this IPO, Yunbao Intelligence plans to raise RMB 3.035 billion, with RMB 739 million allocated to R&D and industrialization of next-generation high-performance full-featured DPUs, RMB 1.122 billion for next-generation AI DPU R&D and industrialization, and RMB 1.174 billion for R&D of next-generation high-performance DPU core technologies. The company will continue to focus on technological iteration and product upgrades in the next phase.

For Yunbao Intelligence, what truly needs validation post-IPO is not just whether revenue can continue to grow rapidly but whether its revenue structure can change.

From RMB 170,000 to RMB 940 million, the company has proven that its products can achieve large-scale delivery; however, if Tencent continues to contribute over 90% of revenue in the future, no matter how high the growth, it will be difficult to fully dispel market concerns about customer dependency.

When the second and third largest customers truly scale up may be more important than next year's revenue growth rate.

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