Denglin Technology-P (09917) October 30-November 5 prospectus plans to sell 6.125 million H shares globally to introduce cornerstone investors such as Huayuan and the Chinese Foundation

According to the Zhitong Finance App, Denglin Technology-P (09917) will raise shares from October 30, 2026 to November 5, 2026. It plans to sell 6.125 million H shares globally, of which the Hong Kong public sale accounts for about 5%, international sales account for about 95%, and 15% over-allotment rights. The sale price is HK$231-288 per H share, with 25 H shares per lot. It is expected that H shares will be traded on the Stock Exchange at 9:00 a.m. on November 10, 2026 (Tuesday), Hong Kong time.

The Group is a general purpose graphics processor (GPGPU) provider that develops and sells GPGPU products to meet the AI computing needs of China's Qianxing Industry. The Group relies on the GPU+ (Minsky™) architecture, a self-developed in-house heterogeneous proprietary computing framework defined by software, with enterprise AI as the core target market and seeking to expand innovative fields such as the public cloud market and robotics. By providing energy-efficient, safe and reliable computing power platforms and scenario-based solutions, the Group is committed to becoming a solid partner in the Chinese industrial AI upgrade process. The AI GPGPU market for Chinese enterprises increased from RMB 1.9 billion in 2021 to RMB 11.8 billion in 2025, with a compound annual growth rate of 58.1%. According to Frost & Sullivan, the Group is the third-largest Chinese company in the AI GPGPU market in terms of revenue in 2025, with a 1.0% market share. This position stems from the Group's ability to accurately match the core AI needs of enterprises, including energy-efficient, cost-effective design, software compatibility, and precise customized hardware and services.

The Group and Huayuan, Jitian Investment Co., Ltd., China Foundation, ZGD Capital Investments Pte. Ltd., Everbright Finance Co., Ltd. (Cornerstone Investor) have entered into the Cornerstone Investment Agreement (Cornerstone Investment Agreement) as set out below, according to which Cornerstone Investors agree to subscribe or facilitate their designated entities (including, in the case of relevant Cornerstone investors, QDII to subscribe to the shares offered through Qualified Domestic Institutional Investors (QDII)) for a total amount of approximately HK$646 million (excluding brokerage commissions, SFC transaction levies, China Financial Services Exchange transaction levies, and SEHK exchange transaction fees), subject to certain conditions Number of shares offered (rounded down to maximum) A complete trading unit of close to 25 shares per lot) (cornerstone placement).

Based on the offering price of HK$259.50 per H share (that is, the median of the indicative offer price range set out in this prospectus), the total number of shares offered to be subscribed by Cornerstone investors will be 2.497 million shares, which is equivalent to approximately 40.66% of the offered shares proposed for sale under the global offering (assuming that the over-allotment rights are not exercised) and approximately 35.36% of the shares offered for sale under the global offering (assuming the number of overallotted shares is exercised).

Assuming that the offer price of each share offered is HK$259.50 (the median of the indicative offer price range as described in this prospectus), after deducting the underwriting commissions and estimated expenses paid or payable by the Group in connection with the global offering, and assuming that the over-allotment rights are not exercised, the Group is estimated to receive approximately HK$1.48 billion in net proceeds from the global offering. In line with the Group's strategy, the Group plans to use the net proceeds from the global sale for the following purposes: (1) Approximately 35% is expected to be used for iterative upgrades and commercialization of existing GPU product lines; (2) Approximately 25% is expected to be used for the development and commercialization of new product categories; (3) Approximately 20% is expected to be used to develop software tool chains for chip products; (4) Approximately 10% will be used to strengthen the Group's sales and marketing capabilities; (5) Approximately 10% will be used for working capital and other general corporate purposes.

The Group's business grew strongly during the record period. The Group's revenue increased from RMB 27.9 million in 2023 to RMB 82.6 million in 2024, and further increased to RMB 171 million in 2025, with a compound annual growth rate of 147.6%, and increased from RMB 5.8 million for the four months ended April 30, 2025 to RMB 200 million for the four months ended April 30, 2026. The Group's net loss was reduced from RMB 332 million in 2023 to RMB 297 million in 2024, further reduced to RMB 281 million in 2025, and reduced from RMB 108 million for the four months ended April 30, 2025 to RMB 16.5 million for the four months ended April 30, 2026, mainly due to increased sales of GPGPU products and changes in revenue structure, which was partly offset by increased administrative expenses and sales and distribution expenses.