Chinese AI server maker xFusion Digital Technologies cleared a key Shenzhen Stock Exchange review for its planned US$1.2 billion listing on the ChiNext growth board. The exchange’s listing committee said the company met requirements for share issuance, listing, and disclosure. xFusion plans to raise CN¥8 billion in the proposed IPO.
Review questions
The committee asked xFusion to explain its gross margin trend and whether it could sustain growth in operating performance. It cited changes in computing capacity demand and capital spending by downstream customers. It also identified technology, net operating cash flow, and customer and supplier concentration as areas of focus.
Company background
xFusion makes computing infrastructure, including AI servers. It filed its IPO prospectus in May. CITIC Securities is the sponsor for the proposed listing.
Risk disclosure
The committee also asked whether xFusion had adequately disclosed the related risks. The filing said there were no further matters for xFusion to address. The review decision was dated November 12.
The proposed IPO remains a plan rather than a completed listing. The exchange review is one step in the listing process. The filing did not disclose a final listing date.
Read more: reuters.com