On 11 September, Enflame listed on the STAR Market, jumping 179.22 per cent on debut to a RMB 170.8 billion market cap. With Moorc and Muxi on the STAR Market and Biren in Hong Kong, China’s GPU “four dragons” have all reached public markets, worth about RMB 613.2 billion combined. It is a milestone for domestic compute, but the fine print is sharper: Moorc has fallen more than 60 per cent from its high, and none of the four is profitable on a deductible basis despite fast revenue.
Enflame is the deep-binding extreme: Tencent is both top shareholder and top customer, its stake rising from 37.77 to 83.79 per cent as gross margin fell from 40.78 to 31.78 per cent. H1 revenue was RMB 1.12 billion, up 279 per cent, net loss RMB 632 million, but contract liabilities hit RMB 6.665 billion, up 18.26 times, as Tencent pre-pays to lock capacity. Muxi keeps the lowest top-five concentration at about 61 per cent; H1 revenue RMB 1.324 billion, gross 57.2 per cent, net RMB 612 million including one-offs, still deductible-negative but Q2 deductible-positive, with a lock-up extension bet if 2026 to 2028 miss targets.
Moorc is the largest by revenue at RMB 1.736 billion, gross margin falling from 69.14 to 56.95 per cent as a RMB 660 million Qual-A cluster order took nearly 70 per cent of a quarter; chip margin stays near 70 per cent. Deductible loss was RMB 151 million and operating cash fell RMB 2.169 billion, yet its RMB 8 billion IPO left about RMB 5.6 billion on hand. Biren grew revenue 1,997 per cent to RMB 1.236 billion with a RMB 377 million loss and gross margin up 10.8 points to 42.7 per cent, holding cloud-training chips with inventory RMB 1.21 billion and prepayments up 230 per cent.
The bigger shift is substitution already done. Nvidia’s China AI-chip share fell from about 95 per cent in 2022 to about 8 per cent in 2026; Huang Renxun admitted handing the market to Huawei. Domestic AI accelerators passed 60 per cent share, with Ascend at 50 to 62 per cent. Morgan Stanley sees Ascend at 62 per cent and Cambricon at 14 per cent, a CR4 of 86 per cent. The four dragons now fight the remaining slice against Huawei, T-Head and Kunlunxin.
Editor’s note: This is an adapted translation of the original Sohu IT report. It has been trimmed and restructured for readability for an international business audience.
Translated and adapted from Sohu IT (https://www.sohu.com/a/1076242224_116132).