Four leading domestic GPU manufacturers are preparing for simultaneous IPO launches, with one major loss-making giant seeking to raise 6 billion RMB despite reporting a 5.4 billion RMB deficit.

To open with some positive market data: year-to-date in 2026, 102 new stocks have been listed on the A-share market, with none breaking issue price on their first day. Last year’s full-year tally saw 116 IPOs, also recording zero first-day break-evens. The Beijing Stock Exchange (BSE) delivered even stronger results, with last year’s IPOs posting an average first-day gain of 368% and an average profit of 4,650 RMB per winning lot.

Next week (August 31 to September 4), three additional offerings will enter the subscription window. One represents the final piece of the puzzle among China’s domestic GPU “Four Little Dragons,” having consumed 5.45 billion RMB over eight years while seeking to raise 6 billion RMB, with Tencent as its largest shareholder. The other is equally striking: a biotech firm that has yet to commercialize a single drug but is pursuing a STAR Market listing based entirely on its development pipeline.

The key parameters for next week’s IPOs are as follows:

• Baimaike (920268): August 31 (Monday), BSE | Issue Price: 17.10 RMB | PE Ratio: 14.99x | Maximum Subscription: 474,200 shares | Core Business: Surgical sutures and peptide pharmaceutical equipment

• Enflame Technology (787801): September 2 (Wednesday), STAR Market | Issue Price: TBD | PE Ratio: TBD | Maximum Subscription: 6,500 shares | Core Business: Cloud AI chips (domestic GPUs)

• Xinnuowei (787837): September 3 (Thursday), STAR Market | Issue Price: TBD | PE Ratio: TBD | Maximum Subscription: 10,000 shares | Core Business: Innovative drugs (anti-tumor and anti-infection)

Please note that the issue prices for Enflame Technology and Xinnuowei will be finalized following the bookbuilding process. Monitor the pricing announcements next Tuesday and Wednesday closely to avoid being caught off guard by unexpected valuations on the subscription date.

Calling Baimaike a “hidden champion” is accurate. Its core business is surgical sutures—the threads used to close surgical incisions. While the sector lacks glamour, it generated 171 million RMB in revenue from sutures in 2025, representing 80% of total income, with a gross margin of 83%. Furthermore, its absorbable barbed sutures have successfully broken foreign monopolies, giving its domestic substitution thesis strong structural support.

Valuation provides additional margin of safety. At an issue PE ratio of 14.99x, it trades at roughly a 47% discount to the industry average of 28.18x. With 2025 net profit attributable to shareholders at 70.81 million RMB, the company combines a small market capitalization, low valuation, and stable earnings. Under BSE rules, one standard lot consists of 100 shares, meaning a single lot costs just 1,710 RMB. Even if the first-day pop underperforms hotter issues, downside risk is minimal. This is a classic “thick safety cushion” offering.

Enflame Technology ranks alongside Moore Threads, MetaX, and Biren Technology as one of China’s domestic GPU “Four Little Dragons.” With the first three already public, Enflame’s listing completes the quartet in the A-share market. Founded in 2018, the company specializes in cloud AI chips. It has independently developed four chip architectures and five distinct silicon designs, delivering a full-stack portfolio that spans AI chips, acceleration cards, intelligent computing clusters, and software platforms.

Financially, net profit excluding non-recurring items recorded losses of 1.567 billion RMB in 2023, 1.503 billion RMB in 2024, and 1.197 billion RMB in 2025. Yet capital markets remain highly receptive. AI chips are unequivocally the most critical infrastructure sector today. With Nvidia’s H100 GPUs commanding tens of thousands of dollars per unit and facing severe supply constraints, the domestic substitution opportunity is vast.

Enflame has carved out a differentiated path by focusing primarily on inference workloads. Over 80% of its revenue from AI acceleration cards comes from inference products, compared to roughly 50% for domestic peers. While training chips demand heavier capital expenditure and face stiffer competition, inference applications tend to commercialize faster and generate revenue sooner.

Revenue growth has been equally pronounced. From 2023 to 2025, main business revenue grew at a compound annual rate of 83.76%. For the first three quarters of 2026, the company forecasts revenue between 2.3 billion and 3.0 billion RMB, representing year-over-year growth of 325% to 455%. With losses narrowing, revenue accelerating, and the sector riding a powerful tailwind, these factors explain why the company has spent 5.45 billion RMB over eight years, is raising 6 billion RMB, and continues to attract heavy institutional interest.

From a subscription perspective, a STAR Market standard lot requires 500 shares. Although the issue price remains unset, referencing the industry PE of 70.30x and the 6 billion RMB fundraising target, the price will likely be elevated, pushing the cost per lot into the tens of thousands of RMB. However, given the current zero-break-env environment and sustained AI infrastructure enthusiasm, this remains the most compelling target for maximum subscription next week.

Naturally, whether to hold or trade post-listing is a separate question. High-valuation, high-loss equities typically experience significant volatility after going public. Subscribing is advisable, but chasing highs should be approached with extreme caution.

Thursday’s offering, Xinnuowei, is a Suzhou-based innovative drug developer that qualified for the STAR Market under Listing Standard No. 5, which permits unprofitable companies to list. In practical terms, the firm currently has zero commercially launched drugs and relies entirely on its R&D pipeline and external financing. Over nine years, it has accumulated losses of 1.449 billion RMB, sustained through successive funding rounds from prominent investors including Tencent, Zhengxin Valley, and CDH Investments.

Its development pipeline includes:

• One New Drug Application (NDA) stage: Injection of Yaxinfu, designed to treat multidrug-resistant bacterial infections. The filing has been submitted, with regulatory approval expected later this year.

• Three Phase III clinical trials: XNW5004 (for lymphoma, granted breakthrough therapy designation), XNW2701, and others.

A notable highlight is a strategic collaboration with Japan’s Astellas Pharma. The potential transaction value exceeds $2 billion USD. Securing backing from a multinational pharmaceutical giant signals genuine pipeline strength.

That said, the innovative drug sector is notoriously unforgiving. Clinical failures, regulatory delays, or competitive race-to-market dynamics can rapidly erode pipeline value. With its lead product slated for approval only this year, commercial execution remains untested.

On the subscription front, Xinnuowei’s issue price is also pending. Referencing an industry PE of 28.20x, innovative drug IPOs in A-shares have historically attracted speculative interest but carry extreme volatility. Investors with STAR Market eligibility may subscribe, but should avoid blind optimism simply because the word “innovative drug” appears in the prospectus.

First, all three offerings are viable candidates. The year-to-date zero-break-env record is backed by actual market data. As long as you meet the respective eligibility requirements—500,000 RMB in securities assets plus two years of trading experience for both the BSE and STAR Market—maximizing your subscription quota is the optimal approach.

Second, prioritize Enflame Technology. Not necessarily because it will deliver the highest returns, but due to its unmatched narrative appeal, sector momentum, and scarcity. The completion of the “Four Little Dragons” lineup carries inherent media and retail attention, ensuring heightened pre-listing visibility.

Third, manage your capital efficiently. The Monday-Wednesday-Thursday schedule staggers the subscriptions, avoiding direct cash-flow conflicts. However, since Enflame and Xinnuowei pricing is still pending, higher-than-expected valuations could result in substantial settlement amounts. Maintain adequate liquidity in your account.

Fourth, distinguish between subscription and secondary-market trading. The analysis above applies strictly to the application phase. Decisions on whether to buy or chase post-listing are entirely separate. Particularly for high-valuation, unprofitable names like Enflame and Xinnuowei, expect sharp price swings after debut. If you win an allocation, consider taking profits on the first day of trading; if you miss out, resist the urge to chase at inflated prices.

The foregoing constitutes a summary of IPO information and personal market commentary, and does not constitute investment advice. IPO allocations are subject to uncertainty, and post-listing prices carry volatility risk. A historical record of zero break-evens does not guarantee future performance. Investors should make independent decisions aligned with their personal risk tolerance.

Among next week’s three IPOs, which one captures your interest? Share your thoughts in the comments. If you found this analysis useful, please like, save, and follow. I will continue tracking IPO developments and share new subscription opportunities as they arise. Wishing everyone a successful allocation next week.