The fabless memory chip supplier XTX Technology Inc., based in Shenzhen, has submitted a new listing application to the Hong Kong Stock Exchange on July 10, 2026, marking its second attempt for a Main Board IPO, with GF Securities and CITIC Securities acting as joint sponsors.

The company reported a significant financial turnaround for the year 2025, with revenue reaching nearly RMB 519 million and net profit of approximately RMB 27 million, shifting from a loss to profitability.

The first quarter of 2026 saw even stronger performance, with revenue surging about 77.4% year-on-year to RMB 224 million and net profit hitting around RMB 76 million, while the gross profit margin rose to above 55%.

Company Profile and Market Position

XTX Technology Inc. is a leading fabless memory chip supplier in China, focusing on code-storage flash memory chips for 12 years and aiming to become a top global general-purpose chip design firm.

Its core products cover code-storage flash memory chips from 1Mbit to 8Gbit capacity, including NOR Flash, SLC NAND Flash, and MCP products, and it has expanded into analog chips and MCU products to form a "Storage+" portfolio.

These products are widely used in eight key sectors: network communications, AI communications, consumer electronics, smart home, IoT, industrial/medical, automotive electronics, and computing/peripheral devices.

In the 2025 global fabless code-storage flash memory chip market, the company ranked fifth with a 1.3% share.

Specifically, it ranked fourth globally among fabless suppliers for SLC NAND Flash revenue with a 2.4% share, and fifth for NOR Flash revenue with a 0.7% share.

Customer Base and Sales Model

Its clientele includes top global firms such as five major communications equipment manufacturers, three leading OLED display makers, and three major home appliance producers, utilizing a sales model primarily based on distribution with direct sales as a supplement.

In 2025, revenue from the top five customers accounted for 39.7% of the total, with the largest single customer contributing 15.3%.

Financial Performance Overview

For the three years ended December 31, 2025, and the first three months of 2025 and 2026, revenue was approximately RMB 663 million, RMB 442 million, RMB 519 million, RMB 126 million, and RMB 224 million, respectively, with the Q1 2026 figure showing a 77.40% year-on-year increase.

Gross profit for these periods was about RMB 103 million, RMB 62 million, RMB 118 million, RMB 18 million, and RMB 125 million, with Q1 2026 soaring 586.61% year-on-year.

Net profit/loss was approximately RMB -14 million, RMB -37 million, RMB 27 million, RMB -3 million, and RMB 76 million, indicating a substantial return to profitability in Q1 2026.

Gross margin stood at 15.49%, 13.99%, 22.77%, 14.37%, and 55.63% for the respective periods.

Net margin was -2.12%, -8.40%, 5.24%, -2.14%, and 33.86%.

As of the end of March 2026, the company held cash of about RMB 149 million, with operating cash flow for 2025 around RMB 55 million.

Industry Peers and IPO Comparables

Listed industry peers for comparison include GigaDevice (HK: 3986), Shanghai Fudan Microelectronics (HK: 1385), and Sg Micro Corp (HK: 3661).

Corporate Governance and Shareholding Structure

The board consists of eight directors: three executive, two non-executive, and three independent non-executive directors.

Prior to the proposed Hong Kong listing, Mr. Long Dongqing, Mr. Wang Bin, and Mr. Ai Kanglin entered into a concert party agreement on February 18, 2022.

Mr. Long also controls four employee shareholding platforms and Shenzhen Xinhongtong, where he holds a 99% interest in the general partner.

Collectively, these entities control approximately 62.3% of the company's voting rights, forming the controlling shareholder group.

Funding History and Valuation

The company underwent multiple funding rounds before the IPO attempt. In a November 2025 equity transfer, its post-money valuation was approximately RMB 1.65 billion.

Advisory Team Composition

The IPO advisory team comprises seven firms in total, including two sponsors whose performance on nearly ten past sponsorship projects has been average.

There are two law firms involved, with overall project performance considered moderate. Historically, the advisory team's track record is viewed as ordinary.