Higold Group to Launch 40 Million Share Offering in Shenzhen IPO

Higold Group is set to offer 40 million shares in a Shenzhen IPO. Guotai Junan Securities Co., Ltd, a securities company, provides various financial services including investment banking, securities investment, brokerage, and asset management.

Higold Group, a prominent player in the tech industry, is set to offer 40 million shares in its initial public offering (IPO) on the Shenzhen Stock Exchange. The company, known for its innovative solutions in the tech sector, aims to raise substantial funds to support its growth and expansion plans. Guotai Junan Securities Co., Ltd., a leading securities company, is facilitating the IPO process, offering a range of financial services including investment banking, securities investment, brokerage, and asset management.

Higold Group has been a key beneficiary of China's push for domestic chip independence. The company's focus on developing high-performance graphics processing units (GPUs) aligns with the government's strategic objectives to reduce reliance on foreign technology. The company's recent IPO filing on the A-share market highlights its ambitious plans to capture a significant share of the growing domestic GPU market, which is expected to grow tenfold by 2029 [1].

Despite its youth and mounting losses, Higold Group has shown impressive growth in revenue. In 2024, the company generated 438 million yuan, a substantial increase from 124 million yuan in 2023 and 46 million yuan in 2022. However, the company has also reported significant losses, with a combined loss of 5 billion yuan over the last three years. These losses are primarily attributed to the high costs of GPU development, with the company spending 3.8 billion yuan on research and development in the last three years alone [1].

Higold Group's IPO comes at a time when the Chinese tech sector is experiencing increased scrutiny due to U.S. sanctions. The company faced restrictions in 2023, similar to those imposed on Huawei, which barred it from manufacturing its products in partnership with leading foundries like TSMC. Despite these challenges, Higold Group has managed to secure funding from major investors, including HongShan, Sequoia China, Shenzhen Capital Group, Tencent, and ByteDance [1].

The company's prospects are promising, with a growing market for data center and AI applications. Higold Group's focus on developing advanced GPUs for data centers positions it well to capitalize on the expected growth in the Chinese GPU market. The company's ability to navigate regulatory challenges and secure funding will be critical to its success in the competitive tech landscape.

Higold Group's IPO is a significant event in the Chinese tech sector, reflecting the country's commitment to fostering domestic innovation and reducing reliance on foreign technology. Investors looking to participate in the IPO should carefully consider the company's financials, market prospects, and the potential risks associated with the tech sector. The IPO is expected to attract substantial interest from state-run investors, reflecting the government's desire to channel limited IPO funds to high-priority areas.

References:
[1] https://www.benzinga.com/markets/asia/25/07/46273311/moore-threads-seeks-ipo-amid-chinas-drive-for-chip-independence