NewTimeSpace丨XTX Technology, a Global Top 10 Code-Type Flash Memory Chip Company, Files for Hong Kong IPO

XTX Technology Inc. (hereinafter referred to as "XTX Technology") recently submitted its prospectus to the Hong Kong Stock Exchange, seeking a listing on the Main Board with GF Securities and CITIC Securities as joint sponsors.

NewTimeSpace Research Institute learned that XTX Technology previously submitted an IPO application to the ChiNext Board of Shenzhen Stock Exchange on April 28, 2022, and passed the review on November 18, 2022, but ultimately withdrew its A-share listing application at the end of 2023.

Image source: Prospectus

Global Top 10 Code-Type Flash Memory Chip Enterprise Serving Over 2,000 End Customers

Public information shows that XTX Technology was founded in 2014. The company primarily focuses on the R&D, design, and sales of code-type flash memory chips, while also deploying analog chips and MCU products to form a diversified product portfolio.

The prospectus reveals that XTX Technology's core products cover code-type flash memory chips including NOR Flash, SLC NAND Flash, and MCP, with capacity ranging from 1Mbit to 8Gbit, widely used in high-growth fields such as network communications, AI communications, consumer electronics, smart home, and automotive electronics.

As of September 30, 2025, the company has served over 2,300 end customers, with its sales network covering China, South Korea, Japan, Germany, and other countries and regions.

According to CIC, XTX Technology is one of the few domestic manufacturers with the most comprehensive code-type flash memory chip product coverage in the industry, and also one of the few domestic manufacturers that can simultaneously meet customers' demands for both NOR Flash and SLC NAND Flash products.

By 2024 code-type flash memory chip revenue, XTX Technology ranked sixth among all fabless companies globally with a 3.7% market share. By 2024 SLC NAND Flash revenue, it ranked fourth globally with a 6.6% market share. By 2024 NOR Flash revenue, it ranked fifth globally with a 2.3% market share.

Revenue Volatility Evident, Profit Turnaround Achieved in 2025

In recent years, XTX Technology's performance has fluctuated due to downstream demand volatility and semiconductor cycles.

The prospectus shows that the company's revenue was RMB 663 million, RMB 442 million, and RMB 379 million in 2023, 2024, and the first nine months of 2025, respectively. Net profit was -RMB 14.026 million, -RMB 37.136 million, and RMB 8.418 million for the corresponding periods. Gross margins were 15.5%, 14%, and 18.8%, respectively.

XTX Technology stated in the prospectus that the decline in revenue and profit in 2024 was mainly due to temporary operational lags during the initial industry recovery period, leading to decreased sales volumes of NOR and SLC NAND products, as well as strategic pricing adjustments implemented by the company during the early stages of the industry recovery cycle.

In 2025, the industry upswing cycle and the reliability of its product portfolio drove subsequent increases in average selling prices, gross margins recovered, and the company turned profitable.

In terms of revenue structure, XTX Technology's revenue mainly comes from NOR, SLC NAND, and MCP products. In the first nine months of 2025, these products accounted for 33.8%, 52.3%, and 7.7% of revenue, respectively, while revenue from analog IC and MCU accounted for 6.2%.

During the reporting periods, the company's R&D expenses were RMB 85.2 million, RMB 65.9 million, and RMB 33.3 million, representing 12.9%, 14.9%, and 8.8% of total revenue, respectively. Purchases from the top five suppliers accounted for 75.4%, 82.1%, and 83.2% of total procurement, indicating high supplier concentration.

As of the end of September 2025, the company held cash and cash equivalents of RMB 99.282 million.

Industry Scale Continues Growing; IPO Proceeds to Build Diversified Product Portfolio

CIC's report indicates that code-type flash memory chips are mainly divided into two categories: NOR Flash and SLC NAND Flash. NOR Flash is typically used for storing and rapidly reading small-to-medium capacity code, and for applications requiring high reliability such as 5G base stations and automotive electronics. SLC NAND Flash is typically used for storing and rapidly erasing large-capacity code.

By revenue, the global NOR Flash and SLC NAND Flash markets grew from US$1.9 billion and US$1.7 billion in 2020 to US$2.8 billion and US$2.1 billion in 2024, respectively, and are expected to reach US$4.4 billion and US$3.9 billion by 2030, representing compound annual growth rates of 8.1% and 10.4%, respectively, from 2024 to 2030.

Pre-IPO, founder Long Dongqing directly holds 34.94% of shares, and entities controlled by him hold approximately 10.32%, totaling 45.26%. Additionally, Wang Bin, Ai Kanglin, and Long Dongqing are acting-in-concert parties, holding approximately 6.47% and 3.24%, respectively. The aforementioned shareholders collectively hold approximately 62.38%, making them the controlling shareholders.

XTX Technology stated in the prospectus that the IPO proceeds will be used to drive product iteration and build a diversified product portfolio through continuous R&D and innovation; to enhance operational capabilities over the next five years; for strategic investments and acquisitions over the next five years; and for working capital and general corporate purposes.

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