"Birentech, the 'first GPU stock in Hong Kong,' has set its IPO price range and is expected to be listed for trading on January 2 next year."

Amid fierce competition with its peers, Biren Technology, known as one of the “Four Little Dragons of Domestic GPUs,” has taken a key step toward its goal of becoming the “first Hong Kong-listed GPU stock.”

On December 22, according to an announcement submitted by Biren Technology to the Hong Kong Stock Exchange, the company plans to globally issue 247,692,800 H shares, with an offering price range set at HK$17.00 to HK$19.60 per share. Calculated at the upper limit of the offer price and without exercising the over-allotment option, the IPO could raise up to approximately HK$4.855 billion.

The announcement shows that Biren Technology's stock code is "6082", and its H shares are expected to officially start trading on the main board of the Hong Kong Stock Exchange on January 2 next year. This IPO comes at a critical stage in the company's early commercialization, with revenue experiencing explosive growth, but ongoing significant losses also bring uncertainty to its future development. The injection of funds is crucial for the company to advance next-generation product development and compete for market share against industry giants.

The listing of Biren Technology is not only an important milestone for its own development, but also provides an important window to observe the indigenous Chinese AI computing power industry. As another company among the “Four Little Dragons of Domestic GPUs” to enter the public market, its valuation and market performance will offer benchmarks for other companies in the same track and reflect investor confidence in the prospects of China's semiconductor self-sufficiency.

The market generally refers to Biren Technology, Moore Threads, Muxi, and Enflame Technology as the “Four Little Dragons of Domestic GPUs.” Among them, Moore Threads and Muxi have already gone public, while Enflame Technology is still in the IPO counseling phase.

IPO Details: Board Lot Entrance Fee HK$3,959.54

According to the global offering structure in the prospectus, 95% of the shares offered will be for international placement, and 5% for public offering in Hong Kong (subject to reallocation).

For ordinary investors, each board lot is 200 shares. Based on the fee schedule disclosed in the prospectus, at the maximum offer price of HK$19.60 per share, plus 1.0% brokerage commission, 0.0027% SFC trading fee, and other charges, the board lot entrance fee is approximately HK$3,959.54.

Fundraising mainly for next-generation chips, holding over RMB 2 billion in potential orders

According to the prospectus, the funds raised by Biren Technology in this IPO will mainly be used to strengthen its core competitiveness. The company specifically states that the funds will be used for “continuous investment in independently developed core technology,” “further development and optimization of our solutions,” and “improving commercialization capability,” with a focus on advancing development of next-generation chips such as BR20X and BR30X.

The core of Biren Technology's business is “developing General Purpose Graphics Processing Unit (‘GPGPU’) chips and intelligent computing solutions based on GPGPU, providing the fundamental computing power needed by artificial intelligence.” The company supports AI model training and inference by integrating self-developed hardware with its proprietary software platform BIRENSUPA.

Although the company is still in the early stages of commercialization, it has already built a certain business foundation. The prospectus discloses that as of the latest practicable date, Biren Technology “has 24 outstanding binding orders with a total value of about RMB 821.8 million.” In addition, the company “has entered into five framework sales agreements and 24 sales contracts with a total value of about RMB 1,240.7 million,” providing some support for future revenue growth.

• Backlog Orders: As of the latest practicable date, the company has 24 outstanding binding orders totaling approximately RMB 822 million.
• Framework Agreements: The company has entered into five framework sales agreements and 24 sales contracts with a total value of RMB 1.241 billion.

The two items combined represent potential revenue reserves exceeding RMB 2 billion, mainly concentrated in the field of intelligent computing solutions. Clients include leading enterprises in telecommunications, AI data centers, and the internet industry.

Rapid revenue growth accompanied by continuous losses

Financial data indicates that Biren Technology’s commercialization process is accelerating, but the road to profitability remains long.

According to the prospectus, since 2023 when the company’s “Intelligent Computing Solutions” began generating revenue, its revenue has soared. Revenues for 2022, 2023, and 2024 were RMB 499,000, RMB 62.03 million, and RMB 337 million respectively. In the first half of 2025, the company achieved revenue of RMB 58.903 million, a year-on-year increase of 49.9%.

However, the high growth is accompanied by continued significant losses. During the above reporting periods, the company's net losses reached RMB 1.474 billion, RMB 1.744 billion, and RMB 1.538 billion respectively. The net loss further expanded to RMB 1.601 billion in the first half of 2025. According to The Paper, the accumulated net loss from 2022 to June 2025 has exceeded RMB 6.3 billion.

The main reason for the enormous losses is the high cost of R&D. The prospectus shows that R&D expenses for 2022 to 2024 and the first half of 2025 were RMB 1.018 billion, RMB 886 million, RMB 827 million, and RMB 572 million respectively, accounting for more than 70% of total operating expenses in each period.

Meanwhile, the company’s gross profit margin fluctuates significantly, at 100%, 76.4%, 53.2%, and 31.9% for the relevant periods. The company explains in the prospectus that this fluctuation is “mainly due to changes in the sales product mix driven by specific customer requirements,” and points out that early-stage gross profit margins may not be indicative of future levels as business scales up.

Intense market competition, highly concentrated market structure

The intelligent computing chip market where Biren Technology is situated is one filled with both opportunities and challenges.

On one hand, the market has enormous growth potential. The prospectus, citing data from CIC Consulting, forecasts that the market share of Chinese enterprise intelligent computing chips will “grow from about 20% in 2024 to about 60% in 2029.”

On the other hand, the market is highly concentrated. The prospectus notes, “In 2024, based on revenue generated in China, the top two participants together accounted for 94.4% of the market share,” leaving very limited space for other players.

In addition to fierce market competition, geopolitical risks are key factors investors cannot ignore. In the “Risk Factors” section of the prospectus, it is clearly disclosed: “Since October 17, 2023, BIS has placed certain entities of our group on the Entity List, restricting their ability to purchase or otherwise acquire certain goods, software, and technology.”

Backed by top investors, initially planned for STAR Market listing

Before entering Hong Kong stocks, Biren Technology was already a star in the capital market, backed by strong capital forces.

According to The Paper, the company has completed several rounds of financing since its establishment, totaling more than RMB 9 billion. Its shareholders include well-known investment institutions such as Qiming Venture Partners, IDG Capital, Hillhouse Ventures, Country Garden Venture Capital, Sky9 Capital, as well as industry giants like Ping An and New World, and multiple state-owned capital platforms.

It’s worth noting that Biren Technology’s initial listing destination was the STAR Market (Science and Technology Innovation Board) on the Shanghai Stock Exchange. According to the prospectus, the company signed a counseling agreement for STAR Market listing in September 2024. Explaining its ultimate choice of Hong Kong, the company says: “Considering that the Hong Kong Stock Exchange offers access to capital and a diversified investor base, Biren Technology decided in 2025 to pursue an IPO in Hong Kong.”

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