XTX Technology files for Hong Kong IPO after prices triple
XTX Technology Inc. filed for a Hong Kong IPO after reporting a 75.89 million yuan profit in Q1 this year, driven by a tripling in SLC NAND flash prices. Revenue rose 77.4% year-over-year to 224 million yuan, despite a 34.4% drop in sales volume due to wafer shortages. The company ranks fourth globally in its sector and faces risks from supply constraints and potential competition re-entry.
*this image is generated using AI for illustrative purposes only.
XTX Technology Inc. has filed an application to list on the Hong Kong Stock Exchange, aiming to capitalize on soaring demand for its memory chips that lifted the company into profitability in the first quarter of this year. The fabless code storage flash memory chip maker, previously targeting listings in Shanghai and Shenzhen, submitted its prospectus earlier this month with Citic Securities and GF Securities as joint underwriters. The move comes as the global AI boom drives significant price increases for SLC NAND flash, XTX's primary product.
The company reported a profit of 75.89 million yuan in the first quarter of this year, reversing a 2.7 million yuan net loss recorded in the same period a year earlier. This turnaround was fueled by a surge in the average selling price of SLC NAND flash, which more than tripled from 3.89 yuan per unit in 2025 to 13.04 yuan per unit this year. Despite a 34.4% year-over-year decline in sales volume to 11.5 million units due to tight semiconductor wafer supplies, revenue climbed 77.4% to 224 million yuan.
Financial Performance
XTX's financial results for the first quarter highlight the impact of rising chip prices on its bottom line. SLC NAND flash generated 149 million yuan in revenue, accounting for approximately two-thirds of the total and representing a 120% annual increase. The segment's gross profit surged more than 10-fold year-on-year to 101 million yuan, comprising 81% of the company's overall gross profit.
| Metric | Q1 This Year | Q1 Prior Year | Change |
|---|---|---|---|
| Total Revenue (million yuan) | 224 | - | Up 77.4% YoY |
| SLC NAND Revenue (million yuan) | 149 | - | Up 120% YoY |
| SLC NAND Gross Profit (million yuan) | 101 | - | Up >10-fold YoY |
| Net Profit (million yuan) | 75.89 | 2.7 (Loss) | Turned Profitable |
| Sales Volume (million units) | 11.5 | - | Down 34.4% YoY |
| Avg Selling Price (yuan/unit) | 13.04 | 3.89 | More than Tripled |
Market Dynamics and Risks
The global market for SLC NAND flash was valued at $5.1 billion in 2025 and is projected to reach $42.7 billion by 2030, growing at an average annual rate of 53%. This growth is driven by the adoption of AI in high-performance computing, server systems, and industrial equipment. However, the company faces risks including ongoing shortages of upstream wafers and the potential for international competitors like Micron Technology and Kioxia to refocus on the legacy SLC NAND segment, which could impact pricing power.
XTX ranks fourth globally among fabless makers of SLC NAND flash. The company was founded in April 2014 by Chairman Long Dongqing, who holds a 34.9% stake. Other major shareholders include Ningbo Hongshan Zhisheng with 9.6%. The board includes Pu Xun, a managing director at private equity firm HSG, formerly Sequoia China, as a non-executive director.
How will XTX Technology address the ongoing wafer supply shortages to support the projected market growth?
What strategies will the company employ if international competitors like Micron and Kioxia increase their focus on the SLC NAND segment?
How might the current surge in SLC NAND pricing affect XTX's long-term profit margins once market supply stabilizes?
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