Core Viewpoint - The company, Birran Technology, is preparing for an IPO in Hong Kong, showcasing its growth over the past five years, with significant revenue increases and a focus on the AI chip market in China [1]. Financial Performance - Revenue increased from 620,000 RMB in 2023 to 3.37 billion RMB in 2024, with unfulfilled orders totaling 8.22 billion RMB and framework agreements worth 12.41 billion RMB [1]. - The company reported a net loss of 1.474 billion RMB in 2022, 1.744 billion RMB in 2023, and 1.538 billion RMB in 2024, with an estimated loss of around 1.6 billion RMB by mid-2025 [6][7]. - Gross profit for 2024 is projected at 1.79 billion RMB, with a gross margin of 53.2% [4]. Market Position - The Chinese AI chip market is dominated by Nvidia and Huawei, holding a combined market share of 94.4% in 2024, while domestic AI chip companies, including Birran Technology, hold less than 1% [1]. - Birran Technology's market share in the smart computing chip market and GPGPU market is 0.16% and 0.20%, respectively, in 2024 [1]. Product Development - The company has developed its first-generation GPGPU architecture and launched products such as BR106 and BR110, with BR106 being the primary sales driver [8][10]. - The BR166 chip, which offers double the performance of BR106, began mass production in 2024 [9][14]. - Future products include the BR20X series for cloud training and inference, expected to be commercialized by 2026, and BR30X and BR31X for future applications [15]. Customer Base and Sales Strategy - The company is optimizing its customer structure, focusing on specific industries, with revenue primarily from PCIe board sales [4]. - The number of customers increased from 4 in the first half of 2024 to 12 in the first half of 2025, with transaction numbers rising from 9 to 33 [4]. - The contribution from the largest customer decreased from 85.7% in 2023 to 33.3% by mid-2025, indicating a diversification of the customer base [6]. Research and Development - R&D expenditures were 1.018 billion RMB in 2022, 885 million RMB in 2023, and 826 million RMB in 2024, accounting for approximately 79.8%, 76.4%, and 73.7% of total operating expenses, respectively [7]. - The company has 24 binding orders valued at approximately 8.22 billion RMB and five framework sales agreements worth 12.41 billion RMB [7]. Strategic Partnerships - Birran Technology has formed strategic partnerships to enhance its AI infrastructure and has signed significant sales agreements, including a 3.68 billion RMB framework agreement [14][16]. - Collaborations aim to drive technological advancements and improve computing efficiency in AI applications [16].

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].