Physix Frontier · News Briefing Card (TMTPost · Sep 11, 2026)

Enflame Debuts on STAR Market, Valued at $23.8B

KEY FACTS

Enflame Technology listed on the STAR Market with a first-day closing market cap of 170.85 billion yuan, ranking second among China's 'Five Little Dragons' of domestic GPUs.
The company reported 990 million yuan in revenue for 2025 but posted a net loss of 1.164 billion yuan, with R&D spending accounting for 114.63% of revenue.
Adopting a DSA architecture instead of the GPGPU route, Enflame is the only firm among the five to choose this path and has 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 to over 170x post-listing, leading the valuation multiples.

KEY DATA

170.85 billion yuanFirst-Day Closing Market Cap

990 million yuan2025 Operating Revenue

-1.164 billion yuan2025 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 burn, and reliance on a single dominant customer (Tencent) pose significant risks. With all 'Five Little Dragons' now public, industry competition has moved beyond simple compute substitution to commercial efficiency and ecosystem building; investors should be wary of valuation corrections if performance fails to meet expectations.

Source: TMTPost report