Leading domestic RISC-V chip manufacturer ESWIN Computing (01256) launches IPO, with Yitang Shenghai Fund, Hefei Construction Investment, and other cornerstone investors subscribing to HK$1.161 billion in offered shares.

ESWIN Computing (01256) is conducting its IPO subscription from September 28, 2026 to October 6, 2026. The company plans to offer approximately 1.57 billion H shares globally, with Hong Kong public offering accounting for 10% (subject to reallocation) and international offering accounting for 90% (subject to reallocation and depending on whether the offer size adjustment option is exercised), plus a 15% offer size adjustment option. The price per share is set at HK$1.48-1.59. The board lot size is 2,000 shares, and the H shares are expected to commence trading on the Stock Exchange at 9:00 a.m. on Friday, October 9, 2026. In addition, the company has entered into cornerstone investment agreements with Yitang Shenghai Fund, Hefei Construction Investment, Haiyao Industrial, Qizhong International, GBAHIL (Mega Prime and Poly Platinum), CITIC Asset Management Hong Kong, Delin Resources, Orix, and Grit No.1 Equity Fund. The cornerstone investors have agreed, subject to certain conditions, to subscribe for HK$1.161 billion worth of offering shares at the offer price. Assuming the offer size adjustment option is not exercised and the offer price is HK$1.54 per offering share, the net proceeds from the global offering are expected to be approximately HK$2.2673 billion. Approximately 35.0% is expected to be used to strengthen chip products by developing new and/or iterating existing chip products; approximately 30.0% is expected to be used to enhance software and hardware technology platform capabilities by investing in the hardware and software capabilities of the RISAA platform, improving the open, flexible, and interoperable R&D system; approximately 15.0% is expected to be used for potential strategic acquisitions to expand technological capabilities and product portfolio, thereby enhancing global competitiveness; approximately 10.0% is expected to be used to build and expand the marketing network and further promote the construction of the RISC-V ecosystem; and approximately 10.0% is expected to be used for working capital and general corporate purposes. It is reported that the company is a chip product provider based on the RISC-V architecture in China. RISC-V is a new generation of reduced instruction set computing (RISC) architecture, designed with the principles of being open-source, modular, extensible, and energy-efficient. The company uses RISC-V as its foundational computing architecture and focuses on the R&D and design of chips, chipsets and/or boards and related core software, outsourcing integrated circuit manufacturing, packaging, and testing to third-party service providers. As of March 31, 2026, the company has successfully launched more than 150 software-hardware integrated products to the market. During the track record period, the company served 220 customers globally, including several of the world's top companies. According to Frost & Sullivan, based on 2025 revenue, the company is China's largest domestic smart terminal human-machine interaction chip product provider. As of March 31, 2026, the company has accumulated more than 620 IP modules, more than 20 series of RISC-V cores, and more than 1,740 patent applications related to its products. For 2023-2025, the company achieved revenue of approximately RMB 1.752 billion, RMB 2.025 billion, and RMB 2.431 billion, respectively, with gross profit of approximately RMB 270 million, RMB 358 million, and RMB 453 million, respectively, and adjusted net losses of approximately RMB 1.705 billion, RMB 1.44 billion, and RMB 1.161 billion, respectively. In the first quarter of 2026, the company achieved revenue of approximately RMB 494 million, gross profit of RMB 73.361 million, and adjusted net loss of approximately RMB 287 million. Revenue increased during the track record period, primarily due to the combined impact of the company implementing a "price-for-volume" market strategy to gain more market share, driven by macroeconomic factors and dynamic market conditions, and the development and launch of various newly mass-produced products. Net losses were incurred during the track record period, primarily attributable to the following reasons: (i) R&D requires substantial upfront investment; (ii) economies of scale have not yet been fully realized; (iii) market dynamics cause fluctuations in financial performance; and (iv) changes in cost of sales and operating expenses.