Biwin Storage Technology (SH:688525) Xin Lang Cai Jing·2025-12-09 09:04Core Viewpoint - The company, Baiwei Storage, is preparing to enter the Hong Kong capital market, with its controlling shareholder, Sun Chengsi, facing the expiration of a concerted action agreement that is not set to be renewed, potentially affecting his control over the company. Group 1: Company Background and Ownership Structure - Baiwei Storage was founded in September 2010 by Sun Rixin, who established a packaging and testing factory a year prior. Sun Chengsi, his son, took over as vice president in 2012 and became chairman by December 2022 when the company was listed on the Shanghai Stock Exchange [1][2][3]. - The ownership structure includes Sun Chengsi holding 17.65% directly, with family members and employee stock platforms collectively holding 7.09%, making him the actual controller with a total control ratio of 24.74% [4][26]. Group 2: Financial Performance and Growth - Baiwei Storage's revenue has shown significant growth, with figures of CNY 2.986 billion, CNY 3.591 billion, and CNY 6.695 billion for the years 2022, 2023, and 2024 respectively, and a projected revenue of CNY 3.912 billion for the first half of 2025, reflecting a 13.7% year-on-year increase [11][34]. - The company's revenue sources are primarily from smart mobile and AI emerging sectors, contributing 58.8%, 32.9%, 55.4%, and 43% of total revenue across the years, while PC and enterprise storage contributed 22.7%, 49.2%, 30.5%, and 34.9% [12][34]. Group 3: Sales Channels and Customer Dynamics - Direct sales revenue has increased significantly, with figures of CNY 6.87 billion, CNY 15.25 billion, CNY 32.46 billion, and CNY 17.63 billion over the respective periods, while distribution remains the primary sales channel [12][35]. - The top five customers contributed 39.6%, 32.3%, 46.7%, and 47.3% of revenue, with the largest customer contributing 10.4%, 8.9%, 17.2%, and 12.6% [13][36]. Group 4: Cost Structure and Profitability - Baiwei Storage's gross margin has fluctuated, with rates of 12.8%, -2.1%, 17.3%, and 8.9% across the periods analyzed. The gross margins for specific business lines also showed significant variability [16][39]. - Research and development expenses are the largest cost component, amounting to CNY 1.26 billion, CNY 2.5 billion, CNY 4.47 billion, and CNY 2.73 billion, with employee salaries constituting a significant portion of these costs [18][39].