IPO News | AI drives the upward cycle of the storage industry, independent memory leader Hongxinyu accelerates its visit to the Hong Kong Stock Exchange

The Zhitong Finance App learned that AI is changing the storage industry's demand structure. From large model training to inference applications, from data centers to smart terminals, the demand for storage with larger capacity, faster read/write, and higher reliability continues to be released. The focus of market attention also extends from how much storage prices have increased to which companies can turn industry opportunities into product competitiveness and profit performance.

The upward trend in the industry was supported by more specific demand. According to a study released by TrendForce on September 21, 2026, major cloud service providers in North America raised their demand expectations for enterprise-grade SSDs. It is expected that orders in the fourth quarter are expected to exceed the high level of the third quarter, and support the continued rise in enterprise-grade SSD prices. As AI applications expand to scenarios such as data retrieval and caching, the sources of growth in storage demand are expanding.

In this context, Hongxinyu, a leading independent memory company in China, is promoting its listing in Hong Kong. Its focus is not only on the profit elasticity brought about by the upward trend in the industry, but also on asset-light operation, self-developed master control and module collaboration, and the accumulation of capabilities to expand from the consumer level to the enterprise level. As far as the market is concerned, this is a storage company that has both business performance support and technology and product upgrade paths.

Profit performance continues to improve, asset-light model unleashes operational flexibility

Benefiting from the upward trend of the industry and business development, Hongxinyu's performance grew strongly. According to the public application documents, according to IFRS, the company's net profit in 2025 was 1,364 billion yuan, an increase of about 182.5% over the previous year; net profit for the first four months of 2026 was 3.841 billion yuan. The net interest rate for the same period was 47.9%, up 43.5 percentage points from 4.4% in the same period in 2025.

The company is an asset-light independent memory manufacturer that mainly outsources wafer processing, packaging, and testing to third party wafer manufacturers and OSAT service providers, and takes a different operating path from some of its peers that invest in packaging and testing facilities on their own. An asset-light model helps reduce upfront capital expenses and fixed costs, and maintains flexibility in supplier selection, allowing more resources to focus on product definition, R&D, and quality management; however, supply chain delivery, inventory prices, and customer demand will still affect business performance.

Lengthening the period, Hongxinyu's profit changes are also worth paying attention to: the company recorded a net loss of about 117 million yuan in 2023, achieved net profit of about 483 million yuan in 2024, further increased to 1,364 million yuan in 2025, and the annual net interest rate increased from 5.5% in 2024 to 12.1%. This trajectory from loss to profit and continued profit growth shows the company's ability to release profits in the process of market recovery.

Main control chip and module collaborative research and development capabilities enter the product

Hongxinyu has built a platform covering four core technologies, including main control chip design and development, firmware algorithm development, test system development, and storage medium characteristics analysis. Based on this platform, it provides products such as embedded storage, solid-state drives, DRAM and mobile storage, targeting consumer, enterprise and automotive application scenarios. For NAND Flash-based storage products, the main control and firmware participate in data reading and writing, error correction, and lifetime management, and their value must ultimately be reflected through product performance, reliability, and customer verification.

This route began in the early days of the company's founding. Hongxinyu was founded in December 2018. According to official website records, the main control of the HG2319 USB 3.2 flash drive was launched in 2019 and mass-produced in 2020. Subsequently, the main control of the HG2283 PCIe Gen 3×4 SSD was launched in 2021 and mass-produced in 2022, and the main control layout gradually extended to more product types. Early technical cooperation and continuous independent research and development together form the background for capacity accumulation. From 2023 to 2025, the company spent about 283 million yuan, 392 million yuan and 493 million yuan respectively, for a total of about 1,168 million yuan over three years. Continued investment enables simultaneous iteration of master control, firmware, and product engineering. For customers, the potential value of this collaboration is that product requirements can be fed back more directly to chip and algorithm development, and R&D results can also be commercialized through storage products.

Consumer-level accumulation supports enterprise-level expansion of growth space to new scenarios

Judging from the product composition, embedded storage is Hongxinyu's core business. In the first four months of 2026, the business's revenue increased by about 307.6% year on year, accounting for 67.8% of the company's total revenue. The sales scale and average sales price both increased compared to the same period last year. DRAM, on the other hand, gradually grew into an important business, and its revenue share increased from 1.3% in 2023 to 24.8% in 2025; revenue for the first four months of 2026 increased 44.0% year-on-year, accounting for 13.6%.

Hongxinyu's accumulation in the first round of strategic development cycles has been reflected in consumer-level customer cooperation and product commercialization capabilities. The public application documents revealed that the company maintains cooperation with companies such as Xiaomi, Voice, OPPO, and vivo. Understanding customer needs, translating requirements into product characteristics, completing verification and batch delivery is an important foundation for the company to expand into new scenarios. As a result, enterprise-level expansion does not start from scratch, but continues to invest in existing master control, firmware, testing, and customer service experience.

The expansion of AI applications has also provided opportunities for Hongxinyu to enter more demanding storage scenarios. The company's public application documents revealed that mass production of storage products used in enterprise-level scenarios has begun. Expanding from consumer level to enterprise level is expected to broaden product application boundaries, but it is still necessary to meet stricter requirements for reliability, continuous performance, and customer certification; subsequent large-scale progress in enterprise-level business should be based on specific product verification and actual delivery.

According to Frost & Sullivan's forecasts quoted in the public application, the global storage products market is expected to grow from US$377.5 billion in 2026 to US$723.8 billion in 2030, with a CAGR of 17.7% during the period. This forecast provides an observation perspective on the long-term needs of the industry, and also brings room for development for manufacturers with technology and delivery capabilities, but it does not mean that storage prices, corporate profits, or capital market valuations will continue to rise unilaterally.

For Hongxinyu, going public in Hong Kong gives the market an opportunity to more fully understand its technical and operational accumulation. The industry boom provides opportunities. Asset-light operation and main control research and development form different business characteristics from simple module assembly, and the extension of consumer-level experience to enterprise-level applications has opened up a new direction of growth. What this independent memory leader is worth paying attention to is whether it can continue to transform its existing technology and customer base into product competitiveness and sustainable profitability.