Enflame Technology Wins Approval for RMB 6 Billion Chinese IPO Despite Tencent Revenue Concentration
China's CSRC approved Enflame Technology's STAR Market initial public offering on July 9, clearing the final regulatory hurdle for the company to raise RMB 6 billion ($830 million). The transaction reached sign-off in under six months from an application submitted on Jan. 22.
An updated prospectus showed Tencent accounted for 83.79% of Enflame's 2025 revenue, a share that rose from 71.84% in the first three quarters, while giving the tech firm a 20.26% equity stake. Proceeds will finance the development of fifth- and sixth-generation AI chips rather than scaling current production, offsetting capital needs against cumulative losses exceeding RMB 4 billion.
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@poezhao0605Enflame Technology cleared its final regulatory hurdle on July 9. China's CSRC approved its STAR Market IPO at RMB 6bn ($830M). One number from the updated prospectus: Tencent accounted for 83.79% of Enflame's 2025 revenue. Tencent also hol
@poezhao0605I analyzed Enflame's IPO filing in January, when Tencent's revenue share stood at 71.84% for the first three quarters of 2025. The full-year figure came in at 83.79%. The dependency deepened in exactly the direction my analysis anticipated.
@poezhao0605The approval speed tells its own story. From application (January 22) to CSRC sign-off (July 9): under six months, for a company with cumulative losses exceeding RMB 4bn and near-total single-customer concentration. IPO proceeds go toward 5