Enflame Tech received approval for its initial public offering on the Shanghai Stock Exchange's STAR Market on the afternoon of June 15, according to the exchange's website. The Shanghai-based company plans to raise 6 billion yuan through the offering, making it the fifth domestic AI chip manufacturer to enter capital markets following Moore Threads, Muxi, Biren Technology, and Iluvatar CoreX. The approval follows a sustained trend of Chinese AI accelerator firms seeking public listings amid growing demand for domestic computing infrastructure, with Muxi and Moore Threads listing on the STAR Market in December last year and Biren and Iluvatar listing on the Hong Kong Stock Exchange in January 2026.
Enflame Tech Receives STAR Market IPO Approval
The Shanghai Stock Exchange listing committee confirmed that Enflame Tech meets issuance conditions, listing requirements, and information disclosure standards. The company plans to issue no fewer than 43.035173 million shares and no more than 68.349980 million shares, representing between 10.00% and 15.00% of total share capital after issuance.
Founded in March 2018 and headquartered in Shanghai, Enflame Tech has developed four generations of architecture across five cloud-based AI chip models. The company's product portfolio includes AI chips, AI accelerator cards and modules, intelligent computing systems and clusters, and AI computing and programming software platforms.
As of the prospectus signing date, actual controllers ZHAO LIDONG and Zhang Yalin directly hold 17.9287% of company equity and indirectly control 10.2070% through employee shareholding platforms Enflame Huizhi and Enflame Chongying, totaling 28.1357% control. Tencent Technology and its concert party Suzhou Paiyi collectively hold 20.2580% of shares, ranking as the second-largest shareholder group after the two founders.
Inference Products Account for 80% of Revenue
During the reporting period, over 80% of Enflame Tech's AI accelerator card and module revenue came from inference products, according to the prospectus. Comparable domestic companies derive over 50% of their AI accelerator revenue from training or integrated training-inference products primarily used in customer inference scenarios. This product structure difference results in Enflame Tech's lower unit prices and gross margins for AI accelerator cards compared to domestic peers.
The company's fourth-generation product L600 is an integrated training-inference acceleration module. As of the prospectus signing date, the product has completed tape-out but has not achieved large-scale mass production and delivery. Enflame Tech stated it has collaborated with customers on AI large model training application development based on the fourth-generation product, but widespread deployment has not occurred. Failure to achieve planned large-scale production and delivery of the fourth-generation product would adversely affect the company's product deployment in AI large model training scenarios and delivery pace of supernode intelligent computing system products, further impacting profitability and sustainable operations.
Company Reports Losses with 80% Revenue from Tencent
From 2023 to 2025, Enflame Tech recorded operating revenues of 301.2 million yuan, 722 million yuan, and 990 million yuan respectively, with net losses after deducting non-recurring gains and losses of 1.567 billion yuan, 1.503 billion yuan, and 1.197 billion yuan respectively.
During each reporting period, the company's combined direct sales to Tencent Technology (Shenzhen) and corresponding AVAP model sales totaled 100.4202 million yuan, 272.8250 million yuan, and 829.6520 million yuan, representing 33.34%, 37.77%, and 83.79% of operating revenue respectively.
Tencent ranks as both Enflame Tech's largest customer and a significant shareholder. The prospectus notes that direct sales and AVAP model sales to Tencent Technology (Shenzhen) constitute related-party transactions. When calculated by end customer, Tencent was the company's largest customer in each reporting period, with related-party sales amounts continuing to grow and revenue concentration remaining high.
Enflame Tech and Tencent began cooperation in 2019, jointly investing substantial resources in business scenario adaptation optimization, AI model performance tuning, and supporting software stack improvement. Over seven years, the collaboration progressed from single-scenario small-scale verification to multi-scenario large-scale verification and then to normalized batch cooperation. Enflame Tech products have achieved large-scale deployment across numerous Tencent AI business scenarios, forming a deep cooperative relationship with sustained growth in related-party sales during the reporting period.
The company stated that given Tencent's position as a major domestic AI computing power demander, it expects the high proportion of Tencent sales to continue for a period.
Enflame Tech Allocates 6 Billion Yuan to Fifth and Sixth Generation Chips
The fundraising will be directed toward fifth-generation AI chip series products and sixth-generation AI chip series products, representing expansion and iterative upgrades of the existing product portfolio, according to the announcement.
FAQ
What did Enflame Tech announce on June 15?
Enflame Tech received approval for its initial public offering on the Shanghai Stock Exchange's STAR Market on the afternoon of June 15. The company plans to raise 6 billion yuan and issue shares representing between 10.00% and 15.00% of total share capital after issuance.
What percentage of Enflame Tech's revenue comes from Tencent?
From 2023 to 2025, Enflame Tech's combined direct sales and AVAP model sales to Tencent represented 33.34%, 37.77%, and 83.79% of operating revenue respectively. In 2025, revenue from Tencent reached 829.6520 million yuan out of total operating revenue of 990 million yuan.
How will Enflame Tech use the 6 billion yuan fundraising?
The fundraising will be directed toward fifth-generation AI chip series products and sixth-generation AI chip series products, representing expansion and iterative upgrades of the existing product portfolio.
