New Stock News | Xin Tianxia submits application to Hong Kong Stock Exchange, becoming one of the few domestic manufacturers in the industry to have the most comprehensive coverage of code-type flash memory chip products.

According to the disclosure by the Hong Kong Stock Exchange on January 9, Xintianxia Technology Co., Ltd. (referred to as Xintianxia) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with GF SEC and CITIC SEC as its joint sponsors. According to the prospectus, based on information provided by Zhushi Consultancy, Xintianxia is one of the few domestic manufacturers in the industry that has the most comprehensive coverage of code-type flash memory chip products and is one of the few domestic manufacturers that can meet the demand for both NOR Flash and SLC NAND Flash products for its customers. Company Profile The prospectus shows that Xintianxia focuses on the research and development, design, and sales of code-type flash memory chips. Code-type flash memory chips are mainly designed for storing code during the startup and operation of storage systems, requiring high stability and reliability in such scenarios. Xintianxia provides customers with code-type flash memory chips ranging from 1Mbit to 8Gbit in width under a Fabless model. To enhance its product portfolio, Xintianxia also provides analog chips and MCUs. According to information provided by Zhushi Consultancy, based on revenue generated in 2024: Code-type Flash Memory Chips: Xintianxia ranks sixth among all fabless companies in the world; SLC NAND Flash: Xintianxia ranks fourth among all fabless companies in the world; NOR Flash: Xintianxia ranks fifth among all fabless companies in the world. Xintianxia's products are widely used in various fields, such as network communication, AI communication, consumer electronics, smart homes, Internet of Things, industrial medical applications, automotive electronic products, and computers and peripherals. The table below shows Xintianxia's key achievements: Financial Information Revenue For the nine months ended September 30 in 2023, 2024, and 2025, the company's revenue was approximately RMB 663 million, RMB 442 million, and RMB 379 million respectively. Annual/Period (Loss) Profit For the nine months ended September 30 in 2023, 2024, and 2025, the annual/period (loss) profit was approximately a loss of RMB 14.026 million, a loss of RMB 37.136 million, and a profit of RMB 8.418 million respectively. Gross Margin For the nine months ended September 30 in 2023, 2024, and 2025, the gross margin was 15.5%, 14.0%, and 18.8% respectively. Industry Overview The flash memory chip industry has a certain cyclical nature, usually with a cycle of three to four years, resulting in short-term market volatility. Due to the impact of the COVID-19 pandemic, flash memory chip companies are facing shortages in raw materials supply, coupled with a global economic downturn, leading to a decrease in the global flash memory chip market size from USD 585 billion in 2020 to USD 409 billion in 2023 in terms of revenue. With economic recovery, the global flash memory chip market size is expected to reach a turning point in 2024, with the market currently in a phase of rapid recovery. The global flash memory chip market size is estimated to increase to USD 684 billion in 2024, with a year-on-year growth of 67.0%. Additionally, the maturity and widespread application of AI technology has become a key driver in the flash memory chip industry market, which is expected to drive continuous market size growth. The global flash memory chip market size is expected to reach USD 888 billion in 2030, with a compound annual growth rate of 4.5% from 2024 to 2030. In this context, the accelerated penetration of AI technology into edge devices brings strong market momentum for code-type flash memory chips, which are key components for improving the real-time performance and reliability of local code storage and execution. Therefore, the overall market share of code-type flash memory chips within the flash memory chip market continues to increase, from 6.1% in 2020 to 7.2% in 2024, and is expected to reach 9.3% by 2030. Code-type flash memory chips are mainly divided into NOR Flash and SLC NAND Flash. NOR Flash is typically used for storing and quickly reading small to medium capacity codes, as well as applications with high reliability requirements such as 5G base stations and automotive electronics; SLC NAND Flash is usually used for storing large capacity codes and fast erase operations. In terms of revenue, the global market sizes for NOR Flash and SLC NAND Flash increased from USD 1.9 billion and USD 1.7 billion in 2020 to USD 2.8 billion and USD 2.1 billion in 2024 respectively, and are expected to grow to USD 4.4 billion and USD 3.9 billion by 2030, with compound annual growth rates of 8.1% and 10.4% from 2024 to 2030. Board of Directors Information The board of directors consists of eight directors, including three executive directors, two non-executive directors, and three independent non-executive directors. The board of directors is responsible for and has the general power to manage and operate the company's business. Equity Structure As of the actual practicable date, Mr. Long Dongqing, Mr. Wang Bin, and Mr. Ai Kanglin respectively own approximately 34.9%, 6.5%, and 3.2% of the company's equity; Long Xintianxia One, Long Xintianxia Two, Long Xintianxia Three, and Long Xintianxia Four respectively own approximately 6.6%, 1.5%, 1.2%, and 1.0% of the equity, with Mr. Long serving as the managing partner of these partnerships; and Shenzhen Xingang Tong owns approximately 7.4%, and its managing partner, Leap Ahead Yuan (Shanghai) Enterprise Management Co., Ltd., is 99.0% owned by Mr. Long. On February 18, 2022, Mr. Long, Mr. Wang, and Mr. Ai entered into a joint action agreement, agreeing to take joint action on decisions regarding the company's business operations and corporate governance before voting at shareholder meetings. Therefore, following the completion of the [compilation] (assuming it is not exercised), Mr. Long, Mr. Wang, Mr. Ai, Long Xintianxia One, Long Xintianxia Two, Long Xintianxia Three, Long Xintianxia Four, and Shenzhen Xingang Tong will collectively have the right to exercise approximately 62.4% of the voting rights at the company's shareholder meeting, making them the controlling shareholder group of the company according to the listing rules. Intermediary Team Joint Sponsors: GF Securities (Hong Kong) Co., Ltd., CITIC Securities (Hong Kong) Co., Ltd. Company Legal Advisors: Chen and Li Law Firm, JunZeJun Law Firm Joint Sponsors Legal Advisors: King & Wood Mallesons Auditors and Reporting Accountants: Deloitte Touche Tohmatsu Industry Consultants: Zhushi Industry Consulting Co., Ltd. Compliance Consultant: Hong Bo Capital Limited