IPO News | Memory manufacturer Hongxinyu launches IPO, plans to list on November 12; minimum lot subscription amount is HKD 8,373.6

Futu News, October 30: $HOSIN ELEC (02681.HK)$ Announcement released: IPO subscription period from October 30 to November 9. The company plans a global offering of approximately 14.7172 million shares and expects to list on November 12.

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Company Overview

Hongxinyu is a memory manufacturer. According to Frost & Sullivan, the company held a 0.6% market share by revenue in the global storage products market in 2025, ranking 12th among all global memory manufacturers. Leveraging its existing customer network, the company will continue to expand application scenarios for its storage products in the AI era and connect with more customers.

The company has built a platform covering four core technologies, including controller chip design and development, firmware algorithm development, test system development, and storage media characteristic analysis. The company provides storage products through this platform. Its storage products mainly include embedded storage, solid-state drives (SSDs), DRAM, and mobile storage.

Financial Overview

In 2023 and 2024, Hongxinyu's revenue remained relatively stable at RMB 8,780.7 million and RMB 8,718.4 million, respectively, increasing by 28.9% to RMB 11,237.6 million in 2025. The company's gross profit increased significantly from RMB 417.2 million in 2023 to RMB 1,399.6 million in 2024, and further increased by 74.8% to RMB 2,446.4 million in 2025.

Source: Prospectus

Use of Proceeds

Regarding the use of proceeds, Hongxinyu estimates that the net proceeds from the global offering will be approximately HK$1.054 billion (assuming the over-allotment option is not exercised, calculated based on the mid-point of the offer price range of HK$77.60 per share). According to the prospectus, Hongxinyu intends to allocate the funds raised from the global offering for the following purposes:

Approximately 40% is expected to be used for the development and commercialization of storage products; approximately 35% for the research and development and iteration of controller chips; approximately 15% to enhance the company's internal wafer-level testing capabilities as well as controller chip verification, validation, and quality management testing capabilities; and approximately 10% for working capital and general corporate purposes.