Net profit of 3.841 billion yuan in the first 4 months! Hongxinyu (02681) added self-research to control the listing of Hong Kong stocks today

The Zhitong Finance App learned that on November 12, Hongxinyu (02681) was officially listed and traded on the main board of the Hong Kong Stock Exchange, with CITIC Construction Investment International as the sole sponsor.

According to public information, Hongxinyu now sold 14.717,200 H shares globally (before the over-allotment rights were exercised). The final sale price was HK$72.83 per share, with a total capital raised of about HK$1,072 million. After deducting estimated listing expenses, the net capital raised was approximately HK$994 million. Cornerstone investors such as Flourish, Pine Vigor, Communication International, Jiang Bolong Investment, and Gottfried have been introduced in this release.

Hongxinyu was founded in December 2018 and is headquartered in Futian, Shenzhen. It is one of the few independent memory manufacturers in China with independent master control chip design and development capabilities and commercialized applications. It is a national high-tech enterprise, a national-level specialized and innovative “little giant” enterprise, and a single champion enterprise in the Guangdong manufacturing industry.

Profitability continues to be realized, and the operating chassis is steadily consolidated

The listing documents show that Hongxinyu's profit trajectory continued to rise during the track record period. From 2023 to 2025, the company's revenue was 8.781 billion yuan, 8.718 billion yuan, and 11.238 billion yuan respectively; according to IFRS, net profit turned from a net loss of 117 million yuan in 2023 to a profit of 483 million yuan by 2024, and further increased to 1,364 billion yuan in 2025, an increase of 182.5% over the previous year.

Entering 2026, profit release is further accelerated. In the first four months, the company achieved revenue of 8,012 billion yuan, an increase of 185.7% over the previous year; net profit of 3.841 billion yuan, and gross margin increased to 62.0%; adjusted EBITDA (non-International Financial Reporting Standards Index) reached 4.683 billion yuan, which has exceeded 1,963 billion yuan for the whole of 2025.

There is also data to check the extent of the rise in profits. Among the factors that improved the company's gross margin in 2025, in addition to the increase in average sales price as supply and demand in the industry changed, the reduction in unit costs due to product portfolio optimization, economies of scale, and improved utilization of raw materials reflected improvements in the company's products and operational capacity. Changes on the cost side confirm this - from 2023 to 2025, the company's sales and distribution expense ratio stabilized at a low level of 0.5% to 0.6%.

In addition to improving profit indicators, changes in the customer structure further confirm the stability of the operating chassis. The revenue share of the top five customers in the company's total revenue fell from 59.4% in 2023 to 46.6% in 2025, and further declined to 40.8% in the first four months of 2026; the share of the largest customers fell to 15.6% from a high of 33.4% in 2024. Revenue growth coincided with a decline in customer concentration. The company's revenue dependency on a single customer declined markedly, and the profit base became more stable as the customer base expanded.

R&D investment continues to increase, and self-developed main control drives the commercialization of products

While profits are improving, Hongxinyu continues to invest resources in R&D. From 2023 to 2025, the company invested 283 million yuan, 392 million yuan, and 493 million yuan respectively, for a total of about 1,168 million yuan over three years; the first four months of 2026 were about 200 million yuan, an increase of 31.9% over the previous year, totaling about 1,368 million yuan for three years and four months. According to Frost & Sullivan data, the amount and proportion of the company's R&D expenses are higher than the average for the storage products industry.

Continued investment and sedimentation has become a solid technical foundation. As of April 30, 2026, of the company's 1,387 employees, there were 867 R&D personnel, accounting for 62.5%; the company holds 416 domestic and foreign authorized patents, including 320 invention patents, and was recognized as the “Guangdong High Performance Memory Control Chip Engineering Technology Research Center” in 2022. Relying on its Shenzhen headquarters, the company has also set up R&D centers in Hefei, Shanghai, Hangzhou, and Xiamen to form a nationwide R&D network.

The key to transforming R&D into product competitiveness is to develop a self-developed main control chip. The master control and firmware together determine the read/write performance, power consumption, and reliability of the storage product. As of the last practical date, in addition to the models that have already been mass-produced, the company also has 8 autonomous control chips at various stages such as sample delivery, streaming, and front-end and back-end design, covering UFS, eMMC, USB and PCIe SSDs, forming a continuous R&D pattern.

Focusing on the R&D of main control chips, the company adheres to an asset-light, fabric-free model of operation, and mainly outsources wafer processing, packaging and testing to third party manufacturers, thus concentrating resources on core capabilities such as main control chip design, firmware algorithms, test system development, and storage medium characteristics analysis.

The accumulation of this core capability is continuously being transformed into product and client implementation results. Currently, the company's products cover the five major categories of embedded storage, solid state drives, DRAM, mobile storage and storage particles. They are widely used in smart phones, tablets, personal computers, smart imaging devices, and in-vehicle central control scenarios. They have entered the supply chain of leading consumer electronics brands such as Xiaomi, Audio, OPPO and Vivo - in 2021, the Xiaomi supply chain in 2022, and the vivo supply chain in 2024.

Fund-raising focuses on core links and accelerates the expansion of high-value-added scenarios

The industry space is opening up. According to Frost & Sullivan data, the total amount of global data will be close to 200ZB in 2025, and the global storage product market will reach 289 billion US dollars. It is expected to grow to 723.8 billion US dollars in 2030. With the accelerated implementation of artificial intelligence applications, storage vendors with self-developed master control capabilities and full-stack technology are more likely to transform industry opportunities into sustainable business results.

The net capital raised this time is mainly intended to be invested in the development and commercialization of storage products, development and iteration of main control chips, improvement of internal wafer inspection and main control chip verification and testing capabilities, and supplementary operating capital. Among them, independent development and iteration of main control chips is a top priority. These investments will also open up market space with higher added value for the company.

Relying on the consumer market's accumulated understanding of demand, product development and commercialization experience, Hongxinyu is expanding to high value-added application scenarios such as enterprise level and vehicle specification level. As the application of self-developed master control deepens in its own products, the company is expected to gain more room for optimization between performance, power consumption and cost. In the future, Hongxinyu will continue to deepen independent R&D and iteration of main control chips, deepen the enterprise-level and automotive-level market layout, and continue to consolidate the leading independent memory market position in China.