On the evening of December 12, Moore Threads issued an announcement stating that the company will use some of its idle raised funds for cash management, with a planned use of no more than 7.5 billion yuan, valid for a period of 12 months. Within the aforementioned limit and period, the funds can be used on a rolling basis. The announcement has attracted attention.
According to the announcement, the investment aims to improve the efficiency of the use of raised funds, rationally utilize some idle raised funds, and conduct cash management to improve the efficiency of fund utilization, without affecting the construction and implementation of the investment projects funded by the raised funds, the plan for the use of raised funds, and ensuring the safety of the raised funds.
Investment types include, but are not limited to, principal-protected products with high security and liquidity, such as negotiated deposits, call deposits, time deposits, structured deposits, large-denomination certificates of deposit, and income certificates.
Regarding the source of funds for this cash management, Moore Threads stated that it is the proceeds from its initial public offering of shares. The company raised approximately RMB 8 billion in this offering, and after deducting issuance expenses, the net proceeds were RMB 7.58 billion.
As previously planned, Moore Threads intended to raise RMB 8 billion, which would be invested in the following projects: RMB 2.51 billion for the research and development of Moore Threads' next-generation independently controllable AI training and push integrated chip; RMB 2.502 billion for the research and development of Moore Threads' next-generation independently controllable graphics chip; RMB 1.982 billion for the research and development of Moore Threads' next-generation independently controllable AI SoC chip; and RMB 1.006 billion for supplementing working capital.
Moore Threads stated that the use of a portion of the raised funds for cash management is conducted in accordance with relevant national laws and regulations, ensuring that it does not affect the company's investment progress and effectively controlling investment risks. The company's use of a portion of the raised funds for cash management will not affect the company's daily operations and the normal progress of the raised fund investment projects. At the same time, it can improve the efficiency of the use of raised funds, make reasonable use of a portion of the raised funds, increase the company's cash asset returns, and obtain more returns for the company and its shareholders.
Investment risks
Regarding investment risks, Moore Threads cautioned that although the company will invest in investment products with high security, good liquidity, and principal protection, the financial market is significantly affected by the macroeconomy. The company will intervene appropriately and in a timely manner based on economic conditions and changes in the financial market, but the possibility of market fluctuations affecting this investment cannot be ruled out.
The announcement quickly attracted the attention of investors.
In response, a representative from Moore Threads stated, "The company previously clearly disclosed its project plan for the raised funds. The 7.5 billion yuan raised has a phased and clearly defined use plan for R&D, technology upgrades, and other purposes, and will be strictly implemented according to the established investment project plan. The project implementation period is three years, and fund expenditures will be disbursed in stages according to the project progress. Because the projects are invested in stages, at this stage, in order to improve the efficiency of the use of raised funds, while ensuring the smooth implementation of the investment projects, not affecting the original funding arrangements, and ensuring the safety of the raised funds, the company currently intends to conduct cash management on some of the raised funds that are not temporarily idle, in order to reasonably improve the return on funds, which is in the best interests of the company and all shareholders."
At the same time, the aforementioned representative also stated that the 7.5 billion yuan under consideration is the upper limit of the cash management limit, not the actual amount of cash management. The actual amount of cash managed will be significantly less than the upper limit. Furthermore, as the fundraising projects progress and the amount of previously invested self-owned funds is replaced, the scale of idle funds will decrease accordingly, and the cash management limit will dynamically decline.
The spokesperson explicitly stated that the company will continue to increase R&D investment to accelerate product iteration, overcome core technological barriers, and build an independent and controllable technology and product system. Cash management will not affect the normal implementation of fundraising projects or the normal development of the company's main business.
Previously, Moore Threads debuted on the A-share market on December 5th. As the "first domestic GPU stock," its stock price surged 468.78% on its first day of trading, reaching a high of 688 yuan per share, a gain of over 502%. As of December 11th, the company's closing price was 723.49% higher than the issue price.
On December 11th, Moore Threads issued a special stock trading risk warning announcement, stating that the company's stock price increase was significant, far exceeding the gains of related indices such as the STAR Market Composite Index and the STAR Market 50 Index. Stock prices may experience a short-term decline following a rapid rise, and investors participating in trading may face significant risks.
The prospectus shows that Moore Thread's revenue has continued to grow in recent years, climbing from RMB 46 million in 2022 to RMB 438 million in 2024, a compound annual growth rate of 208.44%. In the first three quarters of this year, Moore Thread achieved revenue of RMB 785 million, a year-on-year increase of 181.99%.
However, due to significant R&D investment, Moore Thread has consistently incurred losses. From 2022 to 2024 and the first three quarters of 2025, the company's net losses were RMB 1.894 billion, RMB 1.703 billion, RMB 1.618 billion, and RMB 724 million, respectively, totaling RMB 5.939 billion over three years and nine months. Moore Thread expects to achieve consolidated profitability as early as 2027.
Source: Semiconductor Industry Summary
