AI server maker xFusion clears ChiNext IPO review, seeks 8 billion yuan
Edited and reviewed by AI Ping Editorial Team
3-line summary
- Shenzhen’s listing committee cleared the proposed offering on November 12.
- xFusion plans to put 2.03 billion yuan into a Zhengzhou server factory and research center.
- Registration with China’s securities regulator remains pending, with price and listing date still open.
The Shenzhen Stock Exchange’s listing review committee cleared Chinese AI server maker xFusion for a proposed ChiNext listing on November 12, finding that it met requirements for issuance, listing and disclosure. xFusion is seeking 8 billion yuan in its initial public offering. The company plans to put about a quarter of the proceeds into its own server manufacturing facilities and a research center in Zhengzhou, Henan province.
The next decision for investors following the offering is registration by the China Securities Regulatory Commission. The hearing-stage prospectus proposes issuing roughly 97.8 million to 220.1 million new mainland-listed A shares, accounting for 10% to 20% of the company after the issuance. It leaves the offer price, subscription date and first day of trading open.
A factory to assemble and test servers in Zhengzhou
xFusion estimates four years to build the production facility in the Zhengzhou Airport Economy Zone and two years for a separate research center. The pair would cost about 2.2 billion yuan, with 2.03 billion yuan from the offering and the balance from company funds. Those are construction periods. The filing leaves customer delivery dates unspecified.
xFusion says it relied mainly on contract factories from 2023 through 2025 and began making some hardware on its own lines this year. The Zhengzhou facility would assemble servers and key components, automate testing and integrate liquid cooling. The company’s current catalog lists the air-cooled FusionServer G8550 V8 for model training and inference. At an October trade show in the United States, it displayed a separate line of liquid-cooled racks.
The proposed offering puts 4.08 billion yuan, its largest allocation, toward developing new general-purpose and AI computing equipment and bringing it to market. A separate 890 million yuan would fund research into AI computing and power delivery. Another 1 billion yuan would go to working capital, the money available to pay day-to-day bills such as inventory and parts. The company may pay some project costs from its own funds before the offering, then use part of the proceeds to reimburse that spending.
Suppliers get paid before some customers pay
At the hearing, the committee asked how long xFusion could sustain its growth and what was driving its gross margin. It asked the company to account for changing demand for computing capacity, customers’ capital spending, its technology and its operating cash flow. The committee also asked sponsor CITIC Securities for its assessment of the risks the company had disclosed.
Audited statements and the prospectus show 37.29 billion yuan in first-half 2026 revenue and 2.11 billion yuan in profit attributable to shareholders of the parent. The company’s operations used 15.68 billion yuan in cash over the same six months. Auditors put the gross carrying amount of inventory, excluding contract fulfillment costs, at 35.57 billion yuan at the end of June, up from 21.13 billion yuan at the end of 2025. xFusion said it built up inventory to keep deliveries on schedule. Its key component suppliers expect payment relatively quickly, and some customers take longer to settle their bills. The cash flow reconciliation records increases in both inventory and operating receivables.
The five biggest customers supplied 50.81% of first-half revenue, and the group includes internet companies and telecom operators. The five biggest suppliers of production materials accounted for 64.92% of spending on those materials. The prospectus flags a slowdown in orders from major customers and changes in the cost or delivery of parts from key suppliers as risks to the business.
The committee listed no follow-up requirements in its published decision. Under the regulator’s published procedure, the exchange sends its assessment and the company’s filing to the securities commission, which decides whether to register the offering. CITIC Securities is also the lead underwriter on the proposed deal, whose shares would all come from new issuance.
Sources
- 11월 12일 상장심사위원회 결과 · November 12 listing committee decision — Shenzhen Stock Exchange
- 상장심사용 증권신고서 · Hearing-stage prospectus — xFusion / Shenzhen Stock Exchange
- 5월 제출 증권신고서 · May application prospectus — xFusion / CNINFO
- 주식 발행·상장 등록 절차 · IPO registration procedure — China Securities Regulatory Commission
- 2026년 상반기까지 감사 재무제표 · Audited statements through June 2026 — Ernst & Young Hua Ming / Shenzhen Stock Exchange
- 대형 모델 학습·추론용 공랭식 서버 · Air-cooled server for model training and inference — xFusion
- 10월 수랭식 랙 공개 · October liquid-cooled rack demonstration — xFusion
