xFusion Approved for ChiNext IPO on Shenzhen Stock Exchange, Plans to Raise 8 Billion Yuan
nashnova research
xFusion Digital Technologies, the AI server maker spun off from Huawei, has won Shenzhen Stock Exchange approval for a ChiNext IPO targeting RMB 8 billion (~$1.2 billion) via up to 220 million new shares; with revenue more than doubling in two years, the key question now is whether regulators at the CSRC will accept that the margin trajectory is sustainable.
What was approved — and what is still missing?
The Shenzhen Stock Exchange approved xFusion's ChiNext IPO on November 13, with CITIC Securities as sponsor. The plan: issue up to 220 million shares to raise RMB 8 billion (~$1.2 billion).
Approval ≠ listing. xFusion must still file a registration application with the China Securities Regulatory Commission (CSRC) and receive final clearance before it can set a timetable.
This means → the exchange gate is cleared, but the CSRC registration is the real final hurdle.
Where did this company come from — and why is it growing so fast?
xFusion was spun off from Huawei's x86 server business in 2021 and is headquartered in Zhengzhou.
Driven by surging demand for AI computing infrastructure, revenue grew from RMB 25.09 billion in 2023 to RMB 58.25 billion in 2025 — more than doubling in two years.
According to IDC, xFusion ranked second in China by server shipments last year and led the Chinese standard liquid-cooled server segment — servers cooled by liquid rather than fans — from 2022 through 2025.
What is the regulator worried about?
The exchange's listing committee pressed xFusion on gross-margin trends and the sustainability of its earnings growth.
Five areas drew scrutiny: shifts in computing demand, downstream customers' capital spending, the company's own technical capabilities, operating cash flow, and concentration risk among customers and suppliers.
In plain terms = the regulator wants to know one thing — whether the revenue doubling was carried by an industry tailwind or supported by the company's own staying power. The CSRC will ask the same question again at the registration stage.
How does this fit into China's broader AI supply-chain IPO wave?
xFusion is not an isolated case. Memory-chip maker CXMT completed a near-record RMB 66.6 billion listing this year, and Yangtze Memory (YMTC) is advancing a multi-billion-dollar IPO of its own.
This reflects a collective rush by China's AI supply chain toward the capital markets, with the IPO window closely tracking the AI computing demand cycle.
For xFusion, whether the CSRC accepts that its margin trajectory is sustainable remains the pivotal variable in the listing process.
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