Enflame Debuts on STAR Market, Valuation Tops $23.8B: what are the key facts?

Enflame Technology listed on the Shanghai STAR Market, closing its first day with a market cap of RMB 170.85 billion, ranking second among China's top five domestic GPU firms.

Enflame Debuts on STAR Market, Valuation Tops $23.8B: what are the key facts?

The company reported 2025 revenue of RMB 990 million and a net loss of RMB 1.164 billion, with R&D spending accounting for 114.63% of revenue.

Enflame Debuts on STAR Market, Valuation Tops $23.8B: what are the key facts?

Adopting a DSA architecture rather than the GPGPU route, Enflame is the only firm among the 'Five Dragons' to choose this path and holds the lowest gross margin.

Enflame Debuts on STAR Market, Valuation Tops $23.8B: what are the key facts?

Sales to Tencent-related entities rose to 83.79% of total revenue in 2025, indicating extreme customer concentration and pricing discrepancies.

Enflame Debuts on STAR Market, Valuation Tops $23.8B: what are the key facts?

The IPO price implied a static price-to-sales ratio of 61.8x, which surged past 170x post-listing, leading all peers in valuation multiples.

Physix Frontier · News Briefing Card (enbrief · Sep 12, 2026)

Enflame Debuts on STAR Market, Valuation Tops $23.8B

KEY FACTS

Enflame Technology listed on the Shanghai STAR Market, closing its first day with a market cap of RMB 170.85 billion, ranking second among China's top five domestic GPU firms.
The company reported 2025 revenue of RMB 990 million and a net loss of RMB 1.164 billion, with R&D spending accounting for 114.63% of revenue.
Adopting a DSA architecture rather than the GPGPU route, Enflame is the only firm among the 'Five Dragons' to choose this path and holds the lowest gross margin.
Sales to Tencent-related entities rose to 83.79% of total revenue in 2025, indicating extreme customer concentration and pricing discrepancies.
The IPO price implied a static price-to-sales ratio of 61.8x, which surged past 170x post-listing, leading all peers in valuation multiples.

KEY DATA

RMB 170.85 billionFirst-day closing market cap

RMB 990 million2025 operating revenue

-RMB 1.164 billion2025 net profit attributable to parent

83.79%Tencent-related sales share

PHYSIX OBSERVATION

Enflame's listing marks a shift for Chinese AI chipmakers from scarce primary-market assets to rational secondary-market pricing. Its high valuation implies an extreme front-loading of future profitability, yet low margins, heavy R&D costs, and a single-customer structure heavily reliant on Tencent pose significant risks. With all 'Five Dragons' now public, industry competition has pivoted from simple compute substitution to commercialization efficiency and ecosystem building; investors must beware of valuation corrections if earnings fail to meet expectations.

Source: enbrief original report ↗