Muxi Co., Ltd. plans to use no more than 2.9 billion yuan of idle funds for cash management: will not affect the normal progress of fundraising projects

On the evening of February 4th, domestic general-purpose GPU manufacturer Muxi Co., Ltd. (688802.SH) released an announcement titled “On the Implementation Cycle of Fundraising Projects and the Use of Part of Idle Raised Funds for Stage Cash Management.” Muxi Co., Ltd. stated that according to the company’s plans for the initial public offering and listing, the investment projects funded by the raised capital are planned to be invested over three to four years. Part of the raised funds will become temporarily idle before being invested in phases of the project. To optimize fund management and improve short-term financial returns, the company will scientifically and reasonably conduct phased cash management on idle raised funds not exceeding RMB 2.9 billion (including this amount), thereby increasing the efficiency of the use of raised funds without affecting the normal progress of the company’s fundraising projects.

Muxi Co., Ltd. emphasized that this cash management will strictly control risks in accordance with relevant regulations. Part of the idle raised funds will be used to purchase high-security, highly liquid cash management products that meet capital preservation requirements and have a term of no more than 12 months, which can be redeemed or withdrawn at any time according to the needs of the fundraising projects.

Muxi Co., Ltd. officially listed on the STAR Market on December 17, 2025, with a net raised amount of RMB 3,899.311 million.

According to the announcement, the company’s initial public offering projects and the use plan for the raised funds include the development and industrialization of new high-performance general-purpose GPUs, the development and industrialization of next-generation AI inference GPUs, and high-performance GPU technology research for frontier fields and emerging application scenarios.

Muxi’s product strategy is “one generation on sale, one generation in research, one generation pre-research.” The investment in the “new high-performance general-purpose GPU development and industrialization project” includes products C600 and C700, which will use RMB 841.017 million and RMB 1,618.1806 million of the raised funds, respectively.

Among them, the Xiyun C600 chip is based on independent intellectual property core GPU IP architecture, meeting the needs of generative AI training and inference. The core highlight of this product is the breakthrough in achieving a complete domestic supply chain from 0 to 1, marking a milestone for domestically produced high-performance GPUs. The Xiyun C600 was released in July 2025 and is expected to enter mass production in the first quarter of this year.

The integrated circuit industry features high investment and long R&D cycles. R&D and investment naturally involve “phase-specific expenditures”: equipment procurement, R&D iterations, wafer verification, and other stages correspond to different funding cycles and milestones. Conducting cash management under the premise of not changing the use of funds and ensuring fund safety and liquidity can reduce the opportunity cost of idle funds and ensure funds are returned as needed through matching terms. According to this announcement and previous disclosures, Muxi has clearly specified the R&D investment cycle, which is planned to be invested over three to four years.

Additionally, according to Muxi’s announcement, the amount of staged cash management for idle funds will not exceed RMB 2.9 billion (including this amount). As the funds are planned to be invested in the construction of fundraising projects, the amount of cash management will decrease accordingly.

Statistics show that in 2025, 19 companies listed on the STAR Market, most of which have issued related announcements on idle fund management, with upper limits generally in the range of 70%-80%. The upper limit for Muxi’s amount this time is also within this common range.

Senior Partner Li Yuling of Shanghai Hansheng Law Firm pointed out: “For large-scale fundraising projects with long construction cycles, it is compliant with relevant regulatory requirements for listed companies to plan the use of idle funds for cash management before actual project investment. It also helps improve the efficiency of fund utilization and protect shareholders’ interests. According to the company’s announcement, the cash management products to be purchased are low-risk varieties that meet capital preservation requirements and can be redeemed at any time, such as negotiated deposits, structured deposits, fixed-term deposits, notice deposits, and large-denomination certificates of deposit, which have high safety and good liquidity. Such arrangements do not change the predetermined use of raised funds and are a reasonable management and effective utilization of funds, in line with current regulatory requirements.”

Muxi’s main business focuses on artificial intelligence training and inference, general computing, graphics rendering, and scientific intelligence. The company specializes in full-stack GPU product development, design, and sales, providing supporting software stacks and computing platforms around GPU chips to empower various industries with high-performance computing power for AI.

As of February 4th, Muxi’s stock closed at RMB 505.00, down 1.71%, with a total market value of RMB 202 billion.