Xintianxia Reapplies for Hong Kong IPO, Q1 Net Profit Nearly Triple 2025 Full-Year

Xintianxia reapplied to the Hong Kong Stock Exchange on July 9, 2026, jointly sponsored by GF Securities and CITIC Securities. In Q1 2026, revenue was RMB 224 million, up 77.4% YoY; net profit was RMB 75.9 million, 278.8% of 2025 full-year net profit (RMB 27.2 million); gross margin surged from 14.4% to 55.6%. The performance explosion was mainly due to SLC NAND Flash ASP rising 2.35x YoY (from RMB 3.89 to RMB 13.04 per unit), while sales volume dropped 34%. The company increased wafer procurement by 45.5% in 2023 at the industry trough, building low-cost inventory that became a profit engine. However, inventory is high at RMB 424 million, with 330 days turnover, and cumulative inventory write-downs of RMB 81.7 million. R&D spending fell from RMB 85.2 million in 2023 to RMB 47.3 million in 2025, with R&D staff cut from 126 to 76.