Core Viewpoint - Zhejiang Lijichun Storage Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, focusing on the niche DRAM market, which is experiencing significant cyclical fluctuations and growth opportunities driven by AI and HBM demand [1][2]. Company Overview - Lijichun Storage was established in 2020 and primarily focuses on the niche DRAM market after acquiring a majority stake in Zentel Japan [1]. - The company’s main products include memory chips, memory modules, KGD wafers, and AI computing solutions, applicable in various sectors such as consumer electronics, network communication, automotive electronics, and industrial control systems [3]. Market Dynamics - The global DRAM market is the second largest segment in the integrated circuit market, with a market size of 462.4 billion yuan in 2020, growing to 612.4 billion yuan in 2021, but declining to 365.4 billion yuan in 2023 due to inventory accumulation and weak demand [1]. - The market is expected to rebound to 697.9 billion yuan in 2024, driven by increased server demand and recovery in consumer electronics [1]. Financial Performance - Lijichun Storage reported revenues of 610 million yuan, 580 million yuan, and 646 million yuan for 2022, 2023, and 2024, respectively, with net losses of 139 million yuan, 244 million yuan, and 109 million yuan during the same years [5]. - The company’s gross margin improved from -2.1% in 2022 to 9.3% in 2024, indicating a positive trend in profitability [6]. R&D and Product Development - The company is developing a range of AI computing solutions, including high-bandwidth 3D stacked memory chips, aimed at addressing storage bottlenecks in data-intensive AI applications [4]. - R&D expenditures were 74 million yuan, 77 million yuan, and 96 million yuan for 2022, 2023, and 2024, representing 12.1%, 13.3%, and 14.8% of total revenue, respectively [6]. Competitive Landscape - The niche DRAM market is characterized by process upgrades and product differentiation as key competitive factors [7]. - Lijichun Storage has signed a cooperation agreement with its wafer foundry to develop memory products based on 19nm and below processes, which is expected to enhance its competitive edge in the domestic market [7].