Centec Networks Plans Up to RMB4.805 Billion Private Placement for Chip R&D
Centec Networks, a Shanghai-listed Ethernet switch chip designer, announced a private placement plan on September 1 to raise up to RMB4.805 billion for chip research and working capital. The amount is about 2.4 times its 2023 IPO net proceeds of RMB2.004 billion. The company, which has no controlling shareholder, reported widening net losses from 2023 to 2025 and a loss of RMB17.57 million in the first half of 2026.
On the evening of September 1, Centec Networks released a plan to issue A-shares to specific investors for the 2026 fiscal year, aiming to raise no more than RMB4.805 billion in total proceeds. This amount is approximately 2.4 times the net proceeds of RMB2.004 billion from its initial public offering in 2023. The company listed on the STAR Market in September 2023 and primarily engages in the research, development, design, and sale of Ethernet switching chips and related products. It currently has no controlling shareholder or actual controller.
From 2023 to 2025, Centec Networks reported operating revenue of approximately RMB1.037 billion, RMB1.082 billion, and RMB1.151 billion, respectively. Net losses for the same period were approximately RMB19.53 million, RMB68.26 million, and RMB150 million. In the first half of 2026, the company recorded a net loss of RMB17.57 million. Research and development expenses for 2023 through 2025 were approximately RMB314 million, RMB428 million, and RMB679 million, respectively.
As of June 30, 2026, Centec Networks held approximately RMB836 million in cash and cash equivalents and RMB60 million in trading financial assets, with almost no interest-bearing debt. At the time of its IPO in September 2023, the company raised net proceeds of about RMB2.004 billion, including over RMB1 billion in excess funds. On this basis, the company increased the investment scale of the "New Generation Network Switching Chip R&D and Mass Production Project" to RMB600 million and raised the investment in the "Routing and Switching Converged Network Chip R&D Project" to RMB350 million.
The two major IPO-funded projects had previously faced delays. In August 2024, the company postponed the expected usable status date of the "New Generation Network Switching Chip R&D and Mass Production Project" from November 2024 to June 2025, and that of the "Routing and Switching Converged Network Chip R&D Project" from November 2024 to November 2025. In October 2025, the company further postponed the latter project's expected usable status date from November 2025 to November 2026.
The net proceeds from this private placement are planned to be invested in three projects: RMB3.181 billion for the "Next-Generation High-Performance Switching Chip R&D and Industrialization Project," RMB824 million for the "Next-Generation Interconnect Software, Hardware, and Protocol Research Project," and RMB800 million for working capital replenishment.
In terms of share price, based on adjusted prices, Centec Networks' stock hit a low of RMB27.04 in February 2024 and a high of RMB458.88 in July 2026, representing a maximum increase of nearly 16 times. As of the close on September 3, 2026, the company's shares traded at RMB347.01, giving it a market capitalization of approximately RMB142.3 billion and a price-to-book ratio of 63.22 times.