Group 1: Supply Chain and Production - The company is the second largest independent storage device enterprise globally and the largest in China, which aids in securing stable supply of storage wafers through long-term agreements with major suppliers [2][3] - The company has established long-term supply agreements (LTA) and memorandums of understanding (MOU) with storage wafer manufacturers to ensure continuous supply [2] Group 2: Self-Developed Chip Applications - As of the end of Q3, the company has deployed over 100 million self-developed main control chips, utilizing advanced foundry processes and proprietary IP [3] - The self-developed main control chip is currently undergoing validation with multiple Tier 1 manufacturers, indicating potential for rapid growth in deployment scale [3] Group 3: Enterprise Storage Business - The enterprise storage products have been integrated into the supply chains of major internet companies, covering sectors such as telecommunications and server manufacturing [3] - According to IDC data, the company ranked third in total capacity for enterprise-grade SATA SSDs in China for the first half of 2025, and first among domestic brands [3] Group 4: UFS4.1 Product Development - The company is among a few globally capable of developing UFS4.1 products at the chip level, with its products outperforming competitors in terms of process, read/write speed, and stability [3] - The UFS4.1 products have gained recognition from major storage manufacturers and several Tier 1 clients, with acceleration in the introduction process [3]

Core Viewpoint - Shenzhen Jincun Technology Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, but its financial health raises concerns due to significant cash flow issues and high reliance on external funding [1][9]. Financial Performance - The company reported explosive revenue growth from 2022 to 2024, with revenues of 2.096 billion, 2.402 billion, and 3.714 billion respectively, and a net profit of 70.52 million, 74.34 million, and 136 million respectively [3]. - In the first half of 2025, the company achieved revenue of 2.060 billion, a year-on-year increase of 19.33%, with a net profit of 146 million, up 1.21% [3]. - Despite high revenues, the company faced negative cash flow from operating activities, totaling a net outflow of 1.179 billion, 2.30 billion, and 4.91 billion over the reporting periods, leading to a cumulative outflow of 1.161 billion [7][9]. Inventory and Receivables - As of June 30, 2025, inventory and accounts receivable accounted for 81.20% of current assets, indicating significant working capital being tied up [9]. - The company has struggled with inventory management, leading to substantial provisions for inventory impairment, which impacted net profits significantly [8]. Debt and Funding - The company has a high reliance on bank loans and shareholder contributions to meet liquidity needs, with bank loans and other borrowings reaching 1.381 billion, a staggering increase of 747.59% compared to the end of 2022 [9]. - Cash and cash equivalents stood at only 437 million, highlighting a significant funding gap [9]. Legal Issues - The company is currently involved in a lawsuit with Jiangbolong, claiming infringement of trade secrets, with a compensation demand of 132 million. The case is still under appeal [10].

Core Viewpoint - The company, Jiangbolong, focuses on self-developed main control chips to meet high-end product demands, having launched three main control chips for eMMC, SD cards, and automotive-grade USB products, with cumulative applications exceeding 30 million units [1] Group 1 - The company has successfully completed the first batch of tape-out for UFS self-developed main control chips [1] - The main control chips offer significant performance and power consumption advantages compared to similar market products [1] - The company aims to maintain and expand its leading position in various storage markets based on its main control chip technology [1] Group 2 - A significant increase in the application scale of self-developed main control chips is expected in 2025 [1] - The company will continue long-term cooperation with third-party main control chip manufacturers to enhance its product portfolio [1] - The collaboration aims to provide a more diverse range of storage solutions by leveraging the technological advantages of independent main control chip manufacturers [1]