Core Viewpoint - Shenzhen Jincun Technology Co., Ltd. has submitted its prospectus to the Hong Kong Stock Exchange, aiming to raise capital to alleviate cash flow pressures and support its growth in the embedded storage market [1][10]. Company Overview - Jincun Technology, established in 2016, is a leading independent manufacturer of embedded storage products, focusing on the research, design, production, and sales of various storage solutions [3][4]. - The company's product offerings include DRAM-based products (DDR, LPDDR), NAND Flash-based products (eMMC, UFS), and multi-chip package (MCP) embedded storage products, as well as solid-state drives and memory modules [3]. Market Position - Jincun Technology ranks second among independent storage manufacturers globally, holding a 1.6% market share in the embedded storage market, which is projected to grow significantly due to increasing demand driven by AI technology [5][8]. - The global semiconductor storage market is expected to reach 13.8 billion units by 2024, with a compound annual growth rate (CAGR) of 7.1% projected from 2024 to 2029 [5]. Financial Performance - The company reported revenues of RMB 2.096 billion, RMB 2.402 billion, and RMB 3.714 billion for the years 2022, 2023, and 2024, respectively, with net profits showing volatility [8][9]. - In the first half of 2025, Jincun Technology achieved revenue of RMB 2.060 billion, a year-on-year increase of 19.33%, while net profit decreased by 6.2% [8]. Cash Flow Situation - The company has experienced negative cash flow from operating activities, with net outflows of RMB 1.79 billion, RMB 2.29 billion, and RMB 4.90 billion from 2022 to 2024, indicating a worsening trend [10][11]. - The cash flow issues are attributed to the cyclical nature of the storage industry, high supplier concentration, and challenges in managing working capital [10]. Shareholder Structure - Prior to the IPO, the controlling shareholder, Wen Jianwei, holds approximately 54.98% of Jincun Technology's shares [7].