力积存储 Files Hong Kong IPO Amid 2022-2024 Losses

力积存储科技股份有限公司, a prominent memory chip design company and AI storage solution provider, has filed an application with the Hong Kong Stock Exchange for an initial public offering (IPO). The company, which specializes in memory chips and AI storage solutions, is one of the few in China with a complete range of memory products, from SDR (Single Data Rate) to DDR4 (Fourth Generation Double Data Rate Synchronous Dynamic Random Access Memory).

The company's product range includes various generations of DRAM (Dynamic Random Access Memory) types, which are widely used in consumer electronics, network communications, automotive electronics, energy, and industrial control systems. Despite its broad application, the company has reported losses from 2022 to 2024. The revenue for these years was 6.1 billion yuan, 5.8 billion yuan, and 6.46 billion yuan respectively, with corresponding losses of 1.39 billion yuan, 2.44 billion yuan, and 1.09 billion yuan. The primary reasons for these losses include the company's focus on expanding its market share and business scale rather than short-term profits, as well as the significant fluctuations in the prices of core raw materials, primarily wafers, used in the production of memory chips. The global semiconductor industry experienced a shortage of wafers in 2022, leading to a surge in prices and directly impacting the company's profitability.

力积存储 was established in 2020, with one of its controlling shareholders, recognizing the potential of DRAM, acquiring the shares of Zentel Japan. Zentel Japan, registered in Japan in 2003, has developed a series of memory products ranging from 110 nanometers to 25 nanometers and is now a wholly-owned subsidiary of 力积存储. The company's chairman, is also involved in several other investment firms, highlighting the strategic backing and expertise behind 力积存储's operations.

力积存储 is actively developing a series of AI storage solutions to address the storage bottlenecks in data-intensive AI applications. These solutions are designed for AI applications and advanced packaging technologies, including the silicon interlayer. The funds raised from the Hong Kong IPO are intended to expand the company's high-bandwidth storage product and memory product research and development teams, as well as enhance its production capabilities.

力积存储's decision to go public in Hong Kong is a strategic move to leverage the region's robust financial markets and attract global investors. The company's expertise in memory chip design and AI storage solutions positions it well to meet the increasing demand for high-performance storage solutions across various industries. The global semiconductor industry is experiencing rapid growth, driven by the increasing adoption of AI and machine learning technologies. 力积存储's focus on AI storage solutions is particularly noteworthy, as it addresses the need for efficient and scalable storage systems that can handle the vast amounts of data generated by AI applications. By leveraging its expertise in memory chip design, 力积存储 aims to provide innovative storage solutions that can support the development of next-generation AI technologies.

The company's decision to list on the Hong Kong Stock Exchange is also a testament to its confidence in the region's financial markets and regulatory environment. Hong Kong's status as a global financial hub and its well-established regulatory framework make it an attractive destination for companies seeking to raise capital and expand their global footprint. By listing in Hong Kong, 力积存储 can tap into a diverse pool of investors and gain access to the region's extensive network of financial institutions and service providers.