SiliconFlow Files for Hong Kong IPO: China's Largest Independent Token Provider Sees Losses Widen to RMB 345 Million
Miles Bennett
SiliconFlow filed its Hong Kong listing application on June 30, ranked as China's largest independent token supplier by annual throughput; 2025 revenue rose to RMB 55.3 million, but losses widened to RMB 345 million and gross margin flipped to -24% — scale and losses are growing in lockstep.
What does this company actually sell?
SiliconFlow's core business is aggregating heterogeneous computing resources and converting them into standardized token supply — a token being the smallest unit a large language model processes, roughly "AI's unit of reading and writing."
In plain terms = it doesn't build its own models. It supplies the "utilities" — whoever needs to run a model, SiliconFlow provisions the compute and delivers the tokens.
Delivery comes in two forms: public cloud (pay-per-use) and on-premise deployment. As of April 2026, the platform supports over 170 models, has more than 10 million registered users and over 13,000 enterprise clients.
Revenue grew nearly a thousand-fold — why is it still losing money?
Revenue growth has been explosive: from RMB 6,000 in 2023 (only ~4 months of operations) to RMB 7.35 million in 2024, then RMB 55.3 million in 2025 — roughly a thousand-fold increase in two years.
Losses expanded faster: RMB 12.2 million → RMB 81.9 million → ~RMB 345 million over the same period. The 2025 loss is more than six times revenue.
This means → the company is in a classic "spend to scale" phase. Revenue is rising, but every token sold costs more than the price charged.
Gross margin flipped negative — where is the pressure?
The gross-margin trajectory is the sharpest signal: 83.3% in 2023 → 39.4% in 2024 → -24% in 2025, falling from high-margin straight through zero.
This means → for every RMB 1 of revenue in 2025, SiliconFlow lost RMB 0.24 on direct costs alone — before any operating expenses.
This reflects the competitive dynamics of the token-supply market: to grab users and share, SiliconFlow is actively undercutting on price and even selling below cost, trading losses for scale.
How big is this market — is it worth the cash burn?
The prospectus cites Frost & Sullivan data: China's total token throughput surged from roughly 142.5 trillion tokens in 2024 to roughly 2,426.3 trillion in 2025 — a 1,602.6% increase in one year.
By 2030, throughput is projected to reach approximately 53.2 quintillion tokens, implying a 2025–2030 CAGR of 638.3%.
In plain terms = this market is in its zero-to-one explosion phase, with the pie multiplying several times each year. SiliconFlow's logic is "secure a position now, worry about profit later."
What should Hong Kong investors watch most closely?
By 2025 token-call volume, SiliconFlow ranks fourth among all token suppliers in China with roughly 1.5% market share, and first among independent-ecosystem suppliers.
This means → it leads its niche, but its slice of the overall market is still very small, with larger platform players ahead.
The single most important variable for valuing this IPO: whether gross margin can turn positive as scale builds. If costs don't fall with volume, the "sell more, lose more" loop continues. Huatai International and Haitong International are joint sponsors.
Content is for reference only, not financial advice.