Hongxinyu (02681) October 30-November 9 prospectus plans to sell 147.17,200 H shares globally to introduce cornerstone investors such as Flourish and Pine Vigor

According to the Zhitong Finance App, Hongxinyu (02681) will raise shares from October 30, 2026 to November 9, 2026, and plans to sell 147.17,200 H shares globally. Of these, Hong Kong public sales account for about 10%, international sales account for about 90%, and 15% over-allotment rights. The sale price is HK$72.29-82.9 per share, with 100 H shares per lot. It is expected that H shares will start trading on the Stock Exchange at 9:00 a.m. on November 12, 2026 (Thursday).

The Group is a memory manufacturer. According to Frost & Sullivan, in 2025, the Group had a 0.6% market share in terms of revenue in the entire global storage products market and ranked 12th among all global memory manufacturers. The Group has built a platform covering four core technologies, including (i) main control chip design and development, (ii) firmware algorithm development, (iii) test system development, and (iv) storage medium characteristic analysis. The Group provides storage products through this platform. The Group's storage products mainly include (i) embedded storage, (ii) solid state drives, (iii) DRAM, and (iv) mobile storage.

The Group has entered into a cornerstone investment agreement (each referred to as a cornerstone investment agreement, collectively referred to as a cornerstone investment agreement) with Flourish, Pine Vigor, Communication International, Jiang Bolong Investment, Gottfried, Xiongshi, and Mr. Chen Juncheng (each referred to as a cornerstone investor). Based on this, Cornerstone Investors have agreed, subject to certain conditions, to subscribe or induce their designated entities to subscribe for such number of shares to be purchased at the sale price (down to the nearest 100 H shares), for a total amount of approximately HK$452 million (excluding brokerage commissions, SFC transaction levies, CFC transaction levies, and SEHK transaction fees) (Cornerstone Placement).

Assuming that no right to adjust volume or over-allotment rights are exercised, that no additional shares are issued under the pre-initial public offering option plan, and that the offering price is HK$77.60 (i.e. the median of the offer price range as set out in this prospectus), the Group estimates that the Group will collect a net proceeds of HK$1,054 million after deducting the underwriting fees and commissions paid and the estimated issuance expenses of the Group in connection with the global offering. The Group intends to use the proceeds from the global sale for the following purposes: (1) Approximately 40.0% of the net proceeds are expected to be used for the development and commercialization of storage products. (2) The net proceeds are approximately 35.0%, which is expected to be used for the development and iteration of the main control chip. (3) The net proceeds are approximately 15.0%, which is expected to enhance the Group's internal wafer-level inspection and master control chip verification, confirmation and quality management testing capabilities. (4) The net proceeds are approximately 10.0%, which are expected to be used for operating capital and general corporate purposes.

The Group's revenue remained relatively stable in 2023 and 2024, at RMB 8.781 billion and RMB 8.718 billion respectively, and increased by 28.9% to RMB 11.238 billion in 2025. The Group's revenue increased by 185.7% from RMB 2,805 billion for the four months ended April 30, 2025 to RMB 8,012 billion for the same period in 2026. The Group's gross profit increased significantly from RMB 417 million in 2023 to RMB 1,399.6 billion in 2024, and further increased by 74.8% to RMB 2,446 billion in 2025. The Group's gross profit increased from RMB 387 million for the four months ended April 30, 2025 to RMB 4.969 billion for the same period in 2026.