Core Viewpoint - The IPO process of Wallan Technology marks a significant milestone in the domestic GPU industry, filling a gap in the Hong Kong market and enhancing the company's position in the global computing power competition [2][11]. Group 1: Company Overview - Wallan Technology has received approval for an overseas IPO, aiming to issue up to 372.458 million shares, and has successfully passed the Hong Kong Stock Exchange hearing [2]. - The company is recognized as one of the "Four Little Dragons" in the domestic GPU sector, leveraging both technological and commercial breakthroughs to establish a strong market presence [2][11]. Group 2: Technological Strengths - Wallan Technology has built a dual moat of "hardware + software," becoming a performance benchmark in the high-end GPU field, with its flagship chip BR100 achieving over 1000T floating-point computing power [2][4]. - The company has developed the BIRENSUPA platform, which is compatible with the CUDA ecosystem and mainstream AI frameworks, addressing customer migration costs and promoting industry standards [3][4]. Group 3: Financial Performance - The company has seen explosive revenue growth, with revenues increasing from 500,000 yuan in 2022 to 62 million yuan in 2023, and projected to reach 337 million yuan in 2024, reflecting a compound annual growth rate of over 2500% [5]. - As of the first half of 2025, the company reported revenues of 58.9 million yuan, with significant product upgrades and the next-generation flagship chip expected to be commercialized by 2026 [5]. Group 4: Market Expansion - Wallan Technology has successfully penetrated key sectors such as telecommunications and fintech, deploying large-scale intelligent computing clusters with major operators [5][6]. - The company has established a diversified capital support system, raising over 5 billion yuan with backing from leading investment firms and government funds [5]. Group 5: Industry Context - The AI computing industry is projected to grow significantly, with the Chinese intelligent computing chip market expected to reach 50.4 billion USD by 2025, and the GPGPU market projected to grow to 40.9 billion USD [6]. - Policies promoting domestic GPU procurement and initiatives like the "East Data West Computing" project provide a favorable growth environment for Wallan Technology [6]. Group 6: Challenges Ahead - Despite the successful IPO process, Wallan Technology faces challenges including ongoing losses, competitive pressures, and supply chain risks, with cumulative losses exceeding 6.3 billion yuan as of the first half of 2025 [7][8]. - The company is heavily reliant on TSMC's CoWoS packaging technology, which poses a risk to its production capacity, and efforts to localize this technology are still in progress [8]. Group 7: Competitive Landscape - The competitive landscape is intensifying, with NVIDIA holding a dominant 97.6% market share in the global GPGPU market, making it difficult for Wallan Technology to compete on technology alone [8][11]. - The competition within the domestic market is also fierce, with companies like Huawei and Moer Thread rapidly expanding their market presence [8]. Group 8: Future Outlook - The competition logic in the GPU industry is shifting from purely technical parameters to a focus on software ecosystem maturity, customer retention, and scene adaptability [11]. - Wallan Technology must balance R&D investment with profitability to gain long-term recognition in the capital market, emphasizing the need for cost control and market penetration [12].

Core Viewpoint - Wallan Technology is set to launch its IPO on the Hong Kong Stock Exchange, aiming to become the first publicly listed company focused on high-end General-Purpose Graphics Processing Units (GPGPU) in the market [1] Group 1: Technology and Product Capabilities - Wallan Technology has a clear technical roadmap, focusing on cloud-based intelligent computing with a continuously evolving GPGPU architecture [3] - The company has achieved mass production of two chip models, BR106 and BR110, and introduced the high-performance BR166 product using Chiplet technology, significantly enhancing computing power and memory bandwidth [3] - Wallan's self-developed BIRENSUPA platform is compatible with mainstream deep learning frameworks, reducing customer migration costs, and has received industry recognition for its performance in MLPerf Inference 2.1 tests [3] Group 2: Commercialization and Revenue Growth - Although currently in a loss phase, Wallan Technology has shown a clear revenue growth trend, with revenues increasing from approximately 500,000 yuan in 2022 to 62 million yuan in 2023, and projected to reach 337 million yuan in 2024 [3] - As of mid-2025, the company reported approximately 82.2 million yuan in unfulfilled orders, along with framework sales agreements and contracts totaling 1.241 billion yuan, providing revenue visibility for the next 1-2 years [4] Group 3: Investor Confidence and IPO Structure - The IPO has attracted 23 cornerstone investors, including notable institutions, with a total subscription ratio of about 64%, indicating strong institutional confidence in Wallan's technology and long-term prospects [4] - The company has implemented a 15% over-allotment option (green shoe mechanism) to stabilize stock prices post-IPO, reducing the risk of share price decline [4] Group 4: Market Environment - The technology sector in the Hong Kong stock market is currently valued at historical lows, with significant net inflows from southbound funds exceeding 138 billion HKD this year, indicating ample liquidity [5] - Wallan Technology is positioned as a rare asset in the Hong Kong market, especially in the context of high valuations for GPU companies in the A-share market [5] Conclusion - Wallan Technology's IPO marks a significant entry of domestic high-end GPU companies into the international capital market, supported by its technological accumulation, product delivery capabilities, and clear iteration roadmap, making it a noteworthy consideration for investors focused on hard technology sectors, particularly in semiconductors and AI computing [6]

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 - Wallan Technology, a leading domestic GPU company, has initiated its listing process in Hong Kong, marking a significant step towards capitalizing its development and filling a gap in the AI computing sector in the Hong Kong market [2][5]. Company Overview - Founded in 2019, Wallan Technology has evolved from obscurity to a key player in the capital market, providing general intelligent computing solutions with its self-developed Bili™ series GPUs [3]. - The company's products are deployed across critical industries such as AI data centers, telecommunications, fintech, energy, and public utilities, supporting large model training and inference services [3][4]. - Wallan's Bili™ series GPUs utilize 7nm process technology and innovative Chiplet technology, achieving a leading global level of computing density with a single chip capable of reaching 10 PFLOPS [3]. Financial and Market Position - Wallan Technology has raised over 5 billion yuan in funding, with a pre-listing valuation of 14 billion yuan in 2025 [4]. - The funds raised from the IPO will primarily be used for next-generation chip development, production scale expansion, and global market outreach [5]. Industry Context - The listing of Wallan Technology is timely, coinciding with a surge in demand for AI computing power and technological transformation in the industry [6]. - The global AI acceleration chip market for data centers is expected to grow rapidly, creating a multi-billion dollar market opportunity [8]. - The demand for computing power is expanding beyond internet giants to traditional sectors like finance, manufacturing, and energy, as well as emerging fields such as edge computing and intelligent driving [8]. Challenges and Competitive Landscape - Despite its promising outlook, Wallan Technology faces significant challenges, including rapid technological iterations and intense competition from global giants like NVIDIA and AMD [9][10]. - The company is currently operating at a loss, with projected revenues of approximately 400 million yuan in 2024, and high R&D expenditures pose ongoing cash flow challenges [10]. - Supply chain security risks are heightened due to geopolitical factors, as Wallan Technology relies on international foundries for high-end GPU production [10]. Strategic Importance - Wallan Technology's role extends beyond its own growth, contributing to the construction of a domestic computing ecosystem and addressing the urgent need for self-sufficiency in AI computing power [5][11]. - The company's advancements in technology and its push for a heterogeneous mixed training standard are pivotal in overcoming challenges in the AI computing landscape [5].