To The Moon

The final piece of the puzzle for China's so-called "GPU Four Dragons" is falling into place within the capital markets. On June 15, the Shanghai Stock Exchange's listing review committee approved the application of Shanghai Suiyuan Technology Co., Ltd. (Suiyuan Tech) for an IPO on the STAR Market. This follows the successful listings of Moore Threads, MetaX, and Biren Technology, making Suiyuan the last of the four domestic GPU design leaders to go public.

Suiyuan's journey to this point took nearly five months from its initial application acceptance on January 22, 2026, involving two rounds of regulatory inquiries. The company aims to raise 6 billion yuan through the offering. The proceeds are earmarked for the research, development, and industrialization of its fifth and sixth-generation AI chip series, alongside an advanced artificial intelligence software-hardware co-innovation project.

The Pioneer's Delayed Arrival

Founded in March 2018, Suiyuan Tech is the oldest among the four domestic GPU contenders. The company was co-founded by two AMD veterans. CEO Zhao Lidong, a Tsinghua University graduate, spent nearly seven years at AMD's U.S. headquarters, rising to senior director roles. Co-founder Zhang Yalin also came from AMD's Shanghai R&D center, bringing over 25 years of integrated circuit design experience. They named their venture "Suiyuan," meaning "a single spark can start a prairie fire."

Despite its early start, Suiyuan is the last to reach the public market. Moore Threads and MetaX went public on the STAR Market in December 2025, each boasting a market capitalization close to 300 billion yuan. Biren Technology listed on the Hong Kong Stock Exchange in January 2026, with a market cap exceeding 130 billion Hong Kong dollars. Suiyuan's path was more complex, involving a change in its listing sponsor from China International Capital Corporation to CITIC Securities in November 2025 before submitting its STAR Market application less than three months later.

Rapid Revenue Growth Amid Narrowing Losses

Financial documents reveal Suiyuan's revenue surged from 301 million yuan in 2023 to 990 million yuan in 2025, representing a compound annual growth rate of 81.5%. Over the same period, net losses were 1.665 billion yuan, 1.510 billion yuan, and 1.164 billion yuan, respectively, indicating a consistent trend of narrowing annual deficits. Cumulative losses over the three years exceeded 4.3 billion yuan.

Notably, the company forecasts revenue for the first half of 2026 to reach between 1.06 billion and 1.15 billion yuan, surpassing the full-year 2025 figure and representing year-over-year growth of 258.68% to 289.13%. Suiyuan estimates it could achieve a break-even point on a consolidated basis within 2026.

An industry analyst noted that the revenue growth and shrinking losses align with STAR Market expectations for pre-profit tech firms. However, achieving break-even this year hinges on the mass production progress and client adoption of its fourth-generation L600 product.

According to the prospectus, while Suiyuan's AI chip products have progressed to the fourth generation, over 80% of its 2025 revenue still came from the third-generation S60 inference cards. Revenue from the fourth-generation L600 training-inference modules accounted for just 1%, as the product has completed initial tape-out but not yet entered large-scale mass production and delivery.

Tencent's Dual Role as Top Investor and Customer

A significant aspect of Suiyuan's profile is its deep capital and business ties with Tencent. Tencent Technology and its affiliates collectively hold a 20.26% stake in Suiyuan, making it the largest shareholder. Concurrently, Tencent was also the company's largest customer in each reporting period from 2023 to 2025. Sales to Tencent accounted for 33.34%, 37.77%, and 83.79% of total revenue in those years, respectively. In 2025, the top five customers contributed 96.89% of total revenue.

This dual role of "largest shareholder and primary customer" drew significant regulatory scrutiny during the review process, with inquiries focusing on the rationale for related-party sales and Suiyuan's ability to expand its non-affiliated customer base.

The analyst pointed out that while high customer concentration is a common industry characteristic at this stage, a dependency exceeding 80% on a single client is notably high. This situation presents both an opportunity and a potential risk, especially as Tencent itself is advancing its own AI chip development, codenamed "Zixiao."

In its responses, Suiyuan stated that given Tencent's position as a major domestic demand source for AI computing power, sales to Tencent are expected to remain a high proportion of its revenue for the foreseeable future. The company also disclosed progress in diversifying its clientele, noting small batch orders from an internet client "A," a framework contract with a leading telecom operator "D," and hardware testing completion with three other customers pending model adaptation.

Strategic Fundraising for Future Chips

The 6 billion yuan IPO fundraising is strategically allocated: 1.503 billion yuan for fifth-generation AI chip R&D and industrialization, 1.197 billion yuan for sixth-generation AI chip development, and 3.3 billion yuan for the advanced AI software-hardware co-innovation project.

Suiyuan emphasizes a "hardware + software" dual-drive strategy. Instead of following the CUDA ecosystem dominated by NVIDIA, the company has developed its own full-stack AI computing and programming software platform, "TopsRider." It has also created proprietary technologies like the GCU-CARE acceleration computing unit and GCU-LARE high-speed interconnect technology based on its own instruction set.

According to IDC data, the total shipment volume of AI accelerator cards in China reached approximately 4 million units in 2025. NVIDIA led with about 2.2 million units shipped, capturing around 55% of the market. Suiyuan Tech sold approximately 66,000 AI accelerator cards and modules that year, achieving a market share of about 1.7% and positioning it among the front-runners among domestic AI chip manufacturers.

Capital Fuels Domestic Computing Power Push

With Suiyuan's approval, the "GPU Four Dragons" are poised to be fully assembled in the capital markets. This collective milestone is seen as a significant signal of accelerating development within China's domestic AI chip industry.

A private equity investor focused on semiconductors commented that the concentrated IPOs of domestic GPU firms reflect strong capital market recognition of AI computing infrastructure. However, listing is just the first step. The critical factors determining long-term value will be whether these companies can build their own software moats outside of NVIDIA's CUDA ecosystem and successfully transition from single-client dependency to a diversified market presence.

The capital narrative for domestic GPUs continues to unfold. MetaX is still pursuing a listing in Hong Kong, and Biren Technology has progressed to the sixth phase of its A-share listing辅导备案. The story is far from over.