Investment Rating - The report assigns a rating of 5.7 out of 10 for the IPO of the company, suggesting a recommendation for subscription based on the potential growth in AI computing demand and the company's strong technological barriers and order reserves [16]. Core Insights - The company focuses on general-purpose graphics processing unit (GPGPU) chips and intelligent computing solutions, which are critical for AI model training and inference, positioning itself as a key player in the AI infrastructure market [1]. - The company has achieved significant revenue growth, with projected revenues of RMB 3.37 billion in 2024 and RMB 589 million in the first half of 2025, supported by a strong order backlog totaling RMB 20.63 billion [2][5]. - The Chinese intelligent computing chip market is expected to reach USD 50.4 billion by 2025, indicating substantial growth potential for the company, which aims to capture approximately 0.2% of the market share [3][9]. Company Overview - The company has developed a complete solution comprising hardware systems and software platforms, including PCIe cards, OAM modules, and servers, which enhance energy efficiency in data centers [2]. - The company is the first in China to adopt 2.5D chip packaging technology for dual AI computing bare chips, showcasing its advanced technological capabilities [1][4]. - The company holds a robust patent portfolio with 613 patents granted and 972 pending, indicating strong technical reserves [4]. Industry Status and Prospects - The market is characterized by a concentration of leading players, with the top two companies holding 94.4% of the market share, providing a unique competitive space for the company [3]. - The domestic competition in the intelligent computing chip sector is expected to grow, with local companies projected to increase their market share from 20% in 2024 to 60% by 2029, benefiting the company as a local core enterprise [9]. Advantages and Opportunities - The company has a strong technical barrier and iterative capability, with a high proportion of R&D personnel (83%) and significant investment in R&D, exceeding 70% of total operating expenses from 2022 to 2024 [4]. - The company has a solid order reserve, with 24 unfulfilled binding orders valued at RMB 822 million and additional sales agreements worth RMB 1.241 billion, indicating strong revenue certainty for the future [5]. Commercialization Progress - The company has begun generating revenue from its intelligent computing solutions in 2023, with a steady increase in customer quality, moving from small trial customers to leading enterprises in the ICT and data center sectors [2][5]. - The company operates under a fabless model, focusing on core design and solution integration, allowing for flexible supply chain responses to customer needs [5].

Core Viewpoint - The recent listings of domestic GPU companies, including Moore Threads and Muxi Co., have generated significant market excitement, while Birran Technology is set to become the first domestic GPU stock on the Hong Kong Stock Exchange, despite substantial losses in the AI chip industry [1][2]. Group 1: Company Overview - Birran Technology, founded in 2019, is a provider of general intelligent computing solutions and has recently passed the Hong Kong Stock Exchange hearing [2][3]. - The company has accumulated over 4 billion yuan in revenue from 2022 to the first half of 2025, but has also incurred losses of 60 billion yuan during the same period [1][2]. - The company’s core technology team has backgrounds from Nvidia, HiSilicon, and AMD, enhancing its competitive edge in the market [5][6]. Group 2: Financial Performance - Birran Technology's revenue from 2022 to 2025 is projected to be 49,900 yuan, 62.03 million yuan, 337 million yuan, and 590 million yuan, respectively, with corresponding losses of 14.74 billion yuan, 17.44 billion yuan, 15.38 billion yuan, and 16.01 billion yuan [3][4]. - The total losses over three and a half years amount to 63.57 billion yuan, attributed mainly to non-cash changes in redemption liabilities [3][4]. - The company’s gross margin is expected to decline from 100% in 2022 to 31.9% in the first half of 2025, indicating increasing pressure from competition and potential pricing wars [8]. Group 3: Market Dynamics - The AI chip industry is experiencing a surge in demand for computing power, with the domestic intelligent computing chip market projected to reach 50.4 billion USD by 2025, where Birran Technology anticipates capturing approximately 0.2% market share [2][3]. - The market is highly concentrated, with Nvidia and HiSilicon expected to hold 94.4% of the market share in 2024 [2]. - Despite significant losses, the capital market remains optimistic, as evidenced by the soaring valuations of Moore Threads and Muxi Co. after their listings [4].

Core Viewpoint - Shanghai Birun Technology Co., Ltd. has officially passed the Hong Kong Stock Exchange hearing, aiming to become the "first GPU stock" in Hong Kong, focusing on self-developed GPGPU chips and intelligent computing solutions [1] Group 1: Business Performance - Birun Technology achieved significant revenue growth from 62.03 million to 336.8 million from 2023 to 2024, with a strong order backlog of over 1.2407 billion as of December 15, 2025 [1] - The company has commercialized specialized technology products since August 2022, with intelligent computing solutions contributing to revenue starting in 2023 [1] Group 2: Technological Innovation - Birun Technology has developed a GPGPU architecture tailored for large-scale AI workloads, implementing a "1+1+N+X" platform strategy, and has created the BR110 and upgraded BR166 chips [2] - The company ranks first among Chinese GPGPU firms with 1,158 patent applications and has a 100% authorization rate for 388 granted patents [2] Group 3: Market Position and Ecosystem - The management team includes top scientists and experienced business professionals, with the founder having over 10 years of experience in AI and hardware technology [3] - Birun Technology has established deep collaborations with major telecom operators and has served nine Fortune China 500 companies, five of which are also on the Fortune Global 500 list [3] Group 4: Industry Outlook - The Chinese intelligent computing chip market is expected to reach $50.4 billion by 2025, with the GPGPU market projected to hit $40.9 billion [4] - The Hong Kong stock market has been a leading platform for fundraising since 2025, providing strong capital support for technology companies [4]