Listing on the STAR Market Today

Shanghai Enflame Technology Co. (ticker: 688801) listed on the Shanghai Stock Exchange's STAR Market on September 11, 2026.

According to the listing prospectus, the company issued 43,035,173 shares, all newly created, with no transfer of existing shares. The offering was priced at 142.18 yuan per share, bringing total shares outstanding to 430,351,728. At that price, the company's post-offering market value comes to roughly 61.187 billion yuan. Official listing announcement

Freely tradable shares at the outset total 17,900,325, or about 4.16% of shares outstanding after the offering. CITIC Securities acted as sponsor and joint lead underwriter, with Guotai Haitong Securities and GF Securities also serving as joint lead underwriters.

Multiple Trading Risks in the Early Days of Listing

The announcement notes that STAR Market debutants face no daily price limits for their first five trading days, after which a 20% limit applies. Investors should be aware of the potential for sharp price swings early on.

With relatively few shares in free float at the start, Enflame may also face liquidity constraints. STAR Market stocks are eligible for margin trading and short selling from their first day, which can amplify price volatility and bring market, margin-call and liquidity risks.

Still Unprofitable, Valued on Price-to-Sales

Because Enflame is not yet profitable, the offering did not use the price-to-earnings ratio as its primary valuation benchmark, relying instead on price-to-sales.

As of August 28, 2026, the trailing one-month average static P/E for the software and information technology services sector, to which the company belongs, stood at 70.30 times. Enflame's offer price implies a diluted static price-to-sales ratio of 61.80 times for 2025, below the 93.51-times average for comparable listed peers. The offering documents also warn that the share price could fall and cause investor losses. Offering announcement data

Revenue Growing Fast, but Losses Persist Year After Year

The listing prospectus describes Enflame as a fabless company focused on designing and selling cloud AI chips, outsourcing wafer manufacturing, packaging and testing to external foundries and service providers.

Around its in-house cloud AI chips, the company has built a product line spanning AI accelerator cards and modules, AI computing systems and clusters, and TopsRider, its AI computing and programming software platform. During the reporting period, accelerator cards and modules made up 76.22% of core business revenue.

Revenue rose steadily from 301 million yuan in 2023 to 722 million yuan in 2024 and 990 million yuan in 2025. Over the same three years, net losses attributable to shareholders excluding non-recurring items came to 1.567 billion, 1.503 billion and 1.197 billion yuan.

As of the end of 2025, accumulated unrecovered losses on a consolidated basis stood at 4.441 billion yuan. The company attributes the sustained losses to heavy R&D spending on cloud AI chips, with revenue and gross profit not yet large enough to cover operating expenses, most of which are research costs.

Related-Party Sales to Tencent Climb to 83.79%

Customer concentration is another significant risk for Enflame.

Between 2023 and 2025, direct sales to Tencent Technology (Shenzhen) plus the corresponding revenue under the AVAP model accounted for 33.34%, 37.77% and 83.79% of annual revenue. Tencent is both a major shareholder in Enflame and its largest customer.

The listing documents show the two companies have worked together since 2019 on chip product adaptation, software optimization and business-scenario validation. Enflame's products have been deployed at scale in some of Tencent's AI operations, but any change in Tencent's purchasing volumes, partnership terms or business needs could weigh heavily on Enflame's results.

Profitability Expected in 2026 or 2027

Enflame expects it could turn a consolidated profit in 2026 or 2027, provided order volumes, product deliveries and gross margins reach the necessary levels. Whether it hits that timeline depends on revenue performance, product gross margins, supply chain costs and R&D spending.

As one of China's domestic cloud AI chip makers, Enflame's STAR Market listing gives it capital for further chip development, product iteration and commercialization. Until it can sustain profits, though, the company still has to contend with heavy R&D spending, concentrated customers, a small free float and swings in market valuation.