Enflame Technology, One of China’s ‘Four Emerging GPU Companies,’ Surges 179% on Mainland Listing Debut

[Financial News] Enflame Technology, known as one of the ‘four emerging GPU companies’ in China’s graphics processing unit (GPU) manufacturing industry, saw its share price rise 179% on the first day of its mainland listing on the 11th (local time).
According to Chinese portal Baidu, Enflame Technology shares rose as high as 475 yuan in early trading on the SSE STAR Market’s first trading day, up 234% from the IPO price of 142.18 yuan. The stock later gave up some of its gains and closed at 397 yuan, up 179.22%.
Based on the closing price, the company’s market capitalization stood at 170.9 billion yuan, or approximately 3.42 trillion won.
Enflame Technology’s listing comes as Chinese companies seek to raise capital through the stock market amid China’s drive for semiconductor self-reliance and strength.
Through the initial public offering (IPO), the company issued 43.04 million new shares and raised 6.12 billion yuan, or approximately 1.2 trillion won. Its resulting valuation was 61.2 billion yuan, or approximately 12 trillion won.
Chinese media group Enflame Technology, Moore Threads, Biren Technology, and MetaX together as the ‘four emerging GPU companies.’ Adding Illuvatar CoreX, they sometimes refer to the group as China’s ‘five emerging AI-chip companies.’ Enflame Technology was the last of the five to list on the stock market.
The share prices of the companies that listed earlier among the four emerging GPU companies have fallen sharply since their listings. Moore Threads’ stock has dropped more than 60% from its peak.
Enflame Technology’s appeal lies in its position as a leading cloud AI-chip manufacturer in China. Tencent Holdings is also a major shareholder and customer, holding a 17.95% stake in Enflame Technology. Tencent accounted for 83.79% of Enflame Technology’s total revenue last year.
However, although Enflame Technology’s net loss narrowed from 1.51 billion yuan in 2024, or approximately 302.2 billion won, to 1.16 billion yuan last year, or approximately 232.2 billion won, the company remains in the red. It is also expected to post a loss of up to 860 million yuan, or approximately 172.1 billion won, in the first three quarters of this year.
Enflame Technology expects to reach break-even this year or next year.

[email protected] International Affairs Specialist Lee Seok-woo Reporter