BIREN TECH, the first GPU stock in Hong Kong, has set the IPO price range and is expected to be listed for trading on January 2 next year

In the fierce competition with peers, BIREN TECH, known as one of the "Four Little Dragons of Domestic GPUs," has taken a key step towards becoming the "first stock of GPUs in Hong Kong."

On December 22, according to the announcement submitted by BIREN TECH to the Hong Kong Stock Exchange, the company plans to globally issue 247,692,800 H shares, with an issue price range set at HKD 17.00 to HKD 19.60 per share. If calculated at the upper limit of the issue price and without exercising the over-allotment option, this IPO could raise approximately HKD 4.855 billion.

The announcement shows that BIREN TECH'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 commercialization, with explosive revenue growth, but ongoing massive losses also bring uncertainty to its future development. The injection of raised funds is crucial for the company to advance the research and development of next-generation products and compete for market share in a market dominated by a few giants.

The listing of BIREN TECH is not only an important milestone in its own development but also provides an important window for observing China's domestic AI computing power industry. As another company among the "Four Little Dragons of Domestic GPUs" going public, its valuation and market performance will serve as a reference for other companies in the same field and reflect investors' confidence in the prospects of China's semiconductor independence.

The market generally views BIREN TECH, Moore Threads, MuXi Co., Ltd., and Suiruan Technology as the "Four Little Dragons of Domestic GPUs." Among them, Moore Threads and MuXi Co., Ltd. have already gone public, while Suiruan Technology is still in the IPO counseling stage.

Issuance Details: Entry Fee of HKD 3,959.54

According to the global offering structure in the prospectus, 95% of the shares being offered are for international sale, and 5% are for public offering in Hong Kong (which may be reallocated).

For ordinary investors, the trading unit is 200 shares. According to the fee schedule disclosed in the prospectus, if calculated at the upper limit of the issue price of HKD 19.60, plus a 1.0% brokerage commission, 0.0027% Securities and Futures Commission transaction levy, and other fees, the entry fee per lot is approximately HKD 3,959.54.

Fundraising Focus on Next-Generation Chips, Holding Over 2 Billion Potential Orders

According to the prospectus, the funds raised from this IPO will mainly be used to enhance BIREN TECH's core competitiveness. The company clearly states that the funds will be used for "continuous investment in independently developed core technologies," "further development and optimization of our solutions," and "enhancing our commercialization capabilities," with a focus on advancing the development of next-generation chips such as BR20X and BR30X.

The core of BIREN TECH's business is "developing general-purpose graphics processing unit (GPGPU) chips and GPGPU-based intelligent computing solutions to provide the necessary foundational computing power for artificial intelligence." The company supports the training and inference of AI models by integrating self-developed hardware with the proprietary software platform BIRENSUPA.

Although the company is still in the early stages of commercialization, it has accumulated a certain business foundation. The prospectus reveals that as of the last practical date, BIREN TECH "has 24 outstanding binding orders with a total value of approximately RMB 821.8 million." In addition, the company has "entered into five framework sales agreements and 24 sales contracts, with a total value of approximately RMB 1,240.7 million," which provides some support for future revenue growth.

• Backlog: As of the last practical date, the company has 24 outstanding binding orders with a total value of approximately RMB 822 million.

• Framework Agreements: The company has entered into five framework sales agreements and 24 sales contracts, with a total value of approximately RMB 1,241 million.

The above two items combined represent a potential revenue reserve of over RMB 2 billion, primarily concentrated in the field of intelligent computing solutions, with clients covering leading companies in the telecommunications, AI data center, and internet industries.

High Revenue Growth Amid Continuous Losses

Financial data shows that BIREN TECH's commercialization process is accelerating, but the path to profitability remains long.

According to the prospectus, the company's revenue has grown rapidly since its "intelligent computing solutions" began generating income in 2023. The 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, behind the high growth is a continuous massive loss. During the aforementioned reporting period, the company's net losses reached RMB 1.474 billion, RMB 1.744 billion, and RMB 1.538 billion, respectively. In the first half of 2025, the net loss further expanded to RMB 1.601 billion. According to The Paper, from 2022 to June 2025, the company's cumulative net loss has exceeded RMB 6.3 billion.

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

At the same time, the company's gross profit margin fluctuated significantly, being 100%, 76.4%, 53.2%, and 31.9% during the same period. The company explained in the prospectus that the changes in gross profit margin are mainly "due to changes in the sales product mix driven by specific customer demands," and pointed out that as the business scales up, the gross profit margin in the early stages may not necessarily indicate future levels

Intense Market Competition, Highly Concentrated Competitive Landscape

The intelligent computing chip market where BIREN TECH operates is a track filled with both opportunities and challenges.

On one hand, the market has enormous growth potential. The prospectus cites data from ZhiShi Consulting, stating that the market share of intelligent computing chips from Chinese enterprises is expected to "grow from approximately 20% in 2024 to about 60% in 2029."

On the other hand, the competitive landscape is highly concentrated. The prospectus points out that "by 2024, the top two participants will collectively account for 94.4% of the market share based on revenue generated in the Chinese market," leaving very limited space for other participants.

In addition to fierce market competition, geopolitical risks are a key factor that investors cannot ignore. The prospectus explicitly discloses in the "Risk Factors" section: "As of October 17, 2023, the BIS has placed several entities of our group on the Entity List, restricting their ability to purchase or otherwise acquire certain goods, software, and technology."

Backed by Star Capital, Initially Planned to List on the Sci-Tech Innovation Board

Before listing on the Hong Kong stock market, BIREN TECH was already a star enterprise in the capital market, backed by strong capital forces.

According to The Paper, the company has completed several rounds of financing since its establishment, with a total amount exceeding 9 billion RMB. Its shareholder list includes many well-known domestic and foreign investment institutions such as Qiming Venture Partners, IDG Capital, Hillhouse Capital, Country Garden Ventures, Sky9 Capital, as well as industrial capital like Ping An Insurance and New World, along with several state-owned capital platforms.

It is noteworthy that BIREN TECH's initial destination for listing was the A-share Sci-Tech Innovation Board. The prospectus reveals that the company signed a counseling agreement for the Sci-Tech Innovation Board listing in September 2024. The explanation for ultimately choosing Hong Kong is: "Considering that the Hong Kong Stock Exchange can provide a platform for raising capital and attracting diversified investors, BIREN TECH decided to go public in Hong Kong in 2025."