Core Viewpoint - Zhejiang Liji Storage Technology Co., Ltd. (Liji Storage), a national-level specialized and innovative "little giant" enterprise in the memory chip design sector, has submitted a revised listing application to the Hong Kong Stock Exchange, marking the start of a new capital journey amid the dual trends of AI computing and the recovery of the storage chip market [1][4]. Company Overview - Liji Storage focuses on the design of DRAM memory chips, particularly 8GB DDR4 and earlier generations, which are widely used in consumer electronics, network communications, and automotive electronics [4]. - The company was established in March 2020 after acquiring Zental Japan, a Japanese memory chip design firm, which laid a solid technical foundation for Liji Storage [4]. - The company plans to relocate its registered office to Hangzhou by June 2025, reflecting its strategic consideration to leverage the innovation resources of the Yangtze River Delta [4]. Competitive Advantages - A stable supply chain and strong industry collaboration are key competitive advantages for Liji Storage, with Taiwan's Powerchip Semiconductor Manufacturing Corporation as its sole third-party foundry supplier [5]. - The partnership with Powerchip, which holds approximately 10.13% of Liji Storage's shares, enhances production stability and reduces supply chain risks [5]. Financial Performance - Liji Storage has shown steady growth, with total storage capacity increasing from 13.8 million GB in 2022 to 34.2 million GB in 2024, representing a compound annual growth rate (CAGR) of 57.4% [5]. - The company is expected to sell over 1 million storage chips in 2024, demonstrating strong market expansion capabilities [5]. - The gross margin has improved from -2.1% in 2022 to 10.2% in the first half of 2025, indicating enhanced profitability [8]. Market Position - According to Frost & Sullivan, Liji Storage ranks fourth among mainland Chinese companies in the niche DRAM market with a market share of 11.1%, and 11th globally with a market share of 0.8% [8]. Future Prospects - The updated listing application includes performance data for the first half of 2025, indicating the company's readiness for the capital market [8]. - The funds raised will primarily be used to expand high-bandwidth storage product development, procure wafer services, and enhance production testing capabilities [8]. - The storage chip market is expected to benefit from the growing demand for high-bandwidth and high-performance storage chips driven by AI applications, smart vehicles, and server markets [9].

Core Viewpoint - The company, Liji Storage, specializes in the design of DRAM memory chips, focusing on 8GB DDR4 and earlier generations, and has shown significant growth in sales and product capacity due to the development of storage chips and AI computing industries. Group 1: Company Overview - Liji Storage was founded in March 2020 after acquiring Zental Japan, a Japanese memory chip design company [3] - The company is closely related to Taiwan's chip manufacturer, Liji Electronics, which is its sole third-party foundry supplier [3] - Liji Storage was recognized as a national-level "specialized and innovative" small giant enterprise in 2024 [3] Group 2: Sales and Financial Performance - The total storage capacity sold by Liji Storage increased from 13.8 million GB in 2022 to 34.2 million GB in 2024, with over 1 million memory chips sold in 2024 [3] - Revenue for Liji Storage in 2022, 2023, 2024, and the first half of 2025 was approximately RMB 610 million, RMB 580 million, RMB 646 million, and RMB 412 million respectively [12] - The net profit for the same periods was -RMB 139 million, -RMB 245 million, -RMB 110 million, and -RMB 50 million [12] Group 3: Market Position and Product Focus - Liji Storage ranks 4th in China and 11th globally in market share, with a latest gross margin of 10.2% [5] - The global integrated circuit market is projected to reach RMB 3.81 trillion in 2024, with the memory chip market accounting for approximately RMB 1.19 trillion [5] - DRAM holds a dominant position in the memory chip market, with a market size of RMB 697.9 billion in 2024, representing 58.7% of the memory chip market [5] Group 4: Research and Development - Liji Storage has R&D centers in China and Japan, employing experts with extensive experience in DRAM design and management [15] - The company holds 80 patents, including 71 in China and 9 in Japan, focusing on technologies such as 8GB DDR4 and high-bandwidth memory [15][16] Group 5: Customer and Supplier Concentration - Liji Storage's revenue from its top five customers accounted for approximately 64.0%, 66.8%, 52.0%, and 51.0% of total revenue in the respective years [18] - The company has a high supplier concentration, with the top five suppliers accounting for about 97.0%, 88.6%, 76.2%, and 77.5% of total procurement in the respective years [20]