Less than three years after its debut on Shanghai's STAR Market, Shenzhen BIWIN Storage Technology Co., Ltd. (BIWIN Storage) is now setting its sights on a dual primary listing in Hong Kong. The company recently submitted its IPO application to the Hong Kong Stock Exchange.
Founded in September 2010, BIWIN Storage specializes in the storage chip industry chain, offering products ranging from solid-state drives (SSDs) and embedded storage to mobile storage solutions and chip packaging/testing services. The company boasts a complete industrial layout from chip packaging to end-product manufacturing.
According to Frost & Sullivan research, BIWIN Storage stands as the world's only independent storage solution provider with wafer-level packaging capabilities. This technological edge has secured its position in the AI hardware supply chains of tech giants like Meta, Xiaomi, and Google, while also attracting investment from China's National Integrated Circuit Industry Investment Fund Phase II (known as the "Big Fund II").
The recent AI-driven storage chip shortage and price surge have particularly favored BIWIN Storage in capital markets. As of November 3, its market capitalization on the STAR Market reached RMB 62.7 billion, with shares skyrocketing nearly tenfold from their IPO price of RMB 13.99 to RMB 134.3.
However, this impressive stock performance masks profitability challenges. The company's net profits have shown significant volatility due to storage market cycles, raising questions about its Hong Kong listing prospects.
A Two-Generation Journey in Storage Founder Sun Rixin, an engineer who left his "iron rice bowl" job at the Ministry of Railways three decades ago to venture south to Shenzhen, has now passed the baton to his 37-year-old son Sun Chengsi.
Sun Rixin, a university graduate in the 1980s, was initially assigned to the First Survey and Design Institute of the Ministry of Railways under China's planned economy. In 1995, amid China's reform and opening-up wave, he established Shenzhen Taisheng Micro Technology Co., Ltd. with RMB 5 million in registered capital, initially focusing on computer component trading before transitioning to ODM manufacturing.
A pivotal moment came during the 2008 financial crisis when Sun Rixin made the counterintuitive decision to invest in his own packaging and testing facility. This move laid the foundation for BIWIN Storage's current integrated R&D and packaging/testing (ISM) business model.
The company officially launched its brand in 2011, incorporated as BIWIN Storage Technology in 2016, and successfully listed on the STAR Market in December 2022. The leadership transition saw Sun Chengsi emerge as the single largest shareholder with 24.74% voting rights as of October 20, 2025.
Sun Chengsi, an Oxford Brookes University graduate who joined the company in 2012, now serves as Executive Director and Chairman, overseeing strategic planning and major business decisions. Under his leadership, BIWIN Storage has significantly increased R&D investment, spending RMB 447 million in 2024 (up 79% YoY) with 1,054 R&D personnel accounting for 38.7% of total staff.
Integrated R&D and Packaging/Testing Meets Edge AI The 2008 crisis-era investment enabled BIWIN Storage to develop its distinctive ISM model, differentiating itself from both IDM giants like Samsung and Micron and fabless design houses. The company's capabilities span NAND and DRAM wafer conversion, including storage media analysis, controller chip design, firmware algorithm development, and advanced packaging/testing.
Notably, BIWIN Storage's ePOP (embedded package on package) solution, with ultra-thin dimensions of 8.0×9.5×0.7mm, has become a flagship product. The company claims to be one of few domestic manufacturers capable of mass-producing ePOP devices.
BIWIN Storage's client roster includes Meta, Google, Xiaomi, OPPO, Vivo, HP, Lenovo, Acer, Asus, BYD, and Changan. To strengthen its technological moat, the company is constructing a wafer-level advanced packaging/testing facility in Dongguan's Songshan Lake, expected to commence operations in 2026.
The company has also capitalized on the edge AI trend, with AI end-device segment revenue surging 294% YoY to over RMB 1 billion in 2024. As a key supplier for Meta's Ray-Ban smart glasses, BIWIN Storage projects over 500% YoY growth in AI glasses-related revenue for 2025.
Cyclical Challenges Persist Behind impressive client partnerships and technological capabilities lies significant financial volatility. While revenue grew at a 49.7% CAGR from RMB 2.986 billion in 2022 to RMB 6.695 billion in 2024, net profits swung wildly from RMB 71.2 million in 2022 to a RMB 631 million loss in 2023, before recovering to RMB 135 million in 2024.
This rollercoaster continued into 2025, with a RMB 241 million net loss in H1 following RMB 273 million profit in H1 2024. Gross margins mirrored this turbulence, plunging to -2.1% in 2023, rebounding to 25.3% in H1 2024, then collapsing to 8.9% in H1 2025.
The company attributes these swings to industry cycles—2023's downturn, 2024's AI-driven recovery, and Q1 2025's pricing pressure. Q3 2025 showed improvement with RMB 2.656 billion revenue (up 68.06% YoY) and RMB 256 million net profit (up 563.77% YoY), but sustainability remains uncertain.
Hong Kong Listing Rationale BIWIN Storage cites Hong Kong's international platform for accessing global capital and investors as key motivations for its secondary listing. The move follows a RMB 1.9 billion private placement in April 2025 for capacity expansion and advanced packaging development.
As of June 30, 2025, the company carried RMB 7.344 billion in total liabilities (63.6% debt ratio), with negative operating cash flows in three of the past four reporting periods. The Hong Kong listing aims to address funding needs for its capital-intensive operations and technological upgrades.
Market enthusiasm has pushed BIWIN Storage's valuation to 9.4x P/S and 465x static P/E (or 133x adjusted P/E) based on 2024 figures. While reflecting optimism about storage chip prospects, such multiples create potential downside risk if growth falters.