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].