上市捷报丨沙利文助力深圳宏芯宇电子股份有限公司成功赴港上市（2681.HK）

Frost & Sullivan

Frost & Sullivan China

On November 12, 2026, Frost & Sullivan China successfully listed on the main board of the Hong Kong Stock Exchange. The company is a memory manufacturer that develops, manufactures, and sells storage products using its technical platform covering main control chip design and development, firmware algorithm development, test system development, and storage medium characteristic analysis. Its product portfolio covers embedded storage, solid-state drives, DRAM, mobile storage, and storage chips. Frost & Sullivan (hereafter referred to as 'Sullivan') provided exclusive industry advisory services for the listing of Shenzhen Hongxinyu Electronic Co., Ltd., and hereby extend our warm congratulations on its successful listing.

During the process of going public in Hong Kong, Sullivan primarily performed the following tasks: helping the issuer accurately and objectively understand its position in the target market, leveraging objective market data to identify, support, and highlight the issuer’s competitive advantages, assisting the issuer, investment banks, and other intermediaries in drafting relevant sections of the prospectus (such as Overview, Competitive Advantages and Strategy, Industry Overview, Business, etc.), aiding the issuer in communicating with the Exchange and investors, helping investors quickly grasp the market ecosystem and competitive landscape, and assisting the issuer in responding to various industry-related questions from the Exchange.

Sullivan has always been a leader in assisting companies in going public in Hong Kong. According to LiveReport Big Data (statistical data as of September 30, 2026), during the statistical period from January to September 2026 and over the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 76 (market share: 66%), 111 (market share: 68%), and 223 (market share: 69%) Hong Kong stock IPOs, ranking first in number and boasting extensive industry experience, as well as communication expertise with regulatory authorities, exchanges, investment and financing institutions, and related entities.

PART/1

Investment Highlights

The company has developed the ability to develop storage products that integrate software and hardware, leveraging its technical platform covering main control chips, firmware algorithms, test systems, and storage medium characteristic analysis.
The company has a diversified product portfolio, with embedded storage at its core, covering solid-state drives, DRAM, mobile storage, and storage chips, meeting the storage needs of various end devices.
The company has accumulated customer and product experience in consumer applications and has entered the Tier 1 supplier supply chain of automotive manufacturers, enabling mass production of storage products for enterprise-level applications.
The company operates on a light-asset, waferless model, relying on a global supply chain to focus resources on research and development, product development, and core technology capacity building.
The company has a customer ecosystem covering leading industry enterprises, enabling technical requirement alignment and joint verification with customers, and an experienced management team driving business growth.

The company continues to invest in underlying technology research and development. The research and development expenses for 2023, 2024, and 2025 were RMB 2.826 billion, RMB 3.922 billion, and RMB 4.932 billion, respectively; as of April 30, 2026, the number of research and development personnel exceeded 60.0% of the total workforce. The company holds 416 authorized patents at home and abroad, including 320 invention patents. Apart from the main control chips that have entered the mass production stage, as of the last practical date in the prospectus, the company also has eight self-designed main control chip models in different stages, such as sample submission, wafer fabrication, backend design, or front-end design.

According to the Sullivan report, based on 2025 revenue, the company ranks 12th among all global memory manufacturers and holds a market share of approximately 0.6% in the global storage product market.

PART/2

Global Semiconductor Industry Market Overview

The development of AI has led to continuous increases in the demand for data generation, storage, and invocation. According to the Sullivan report, the total amount of data generated globally in 2025 was nearly 200ZB. Storage serves to store, manage, and schedule the massive amounts of data required for AI training; its capacity, throughput, and reliability directly affect data supply efficiency and, together with computing power and data transmission capabilities, support AI applications.

From the end-user perspective, the popularization of consumer devices such as AI smartphones and AI personal computers, as well as the development of intelligent driving and intelligent cockpit technologies, have driven the expansion of storage product capacity and performance upgrades. From the cloud perspective, large-scale data centers and cloud servers require stable data storage support for model training, corporate digitalization, and massive data processing, thereby driving the growth in the demand for high-performance enterprise-level storage.

The development of artificial intelligence, consumer electronics, automotive electronics, and enterprise digitalization continues to drive the expansion of the semiconductor market. According to Frost & Sullivan's report, the global semiconductor market size, measured in revenue, increased from RMB 3,586.7 billion in 2021 to RMB 4,837.0 billion in 2025, with a compound annual growth rate of 7.8%; it is expected to increase from RMB 5,424.1 billion in 2026 to RMB 7,725.1 billion in 2030, with a compound annual growth rate of 9.2%.

In terms of product structure, according to the Sullivan report, integrated circuits accounted for 87.3% of the global semiconductor market in 2025; among integrated circuit products, memory chips accounted for 30.2%. Memory chips, which serve as an essential foundation for data storage and access in electronic devices, hold a significant position in the semiconductor industry.

Source: Frost & Sullivan

PART/3

Global Storage Product Industry Market Overview

Storage products are hardware components that enable temporary or permanent data storage and access, primarily including embedded storage, solid-state drives, DRAM, and mobile storage. As a key carrier for data storage and processing, storage products are widely used in consumer electronics, enterprise servers, and automotive electronics, providing data storage and access support for artificial intelligence training, inference, and end-use applications.

Embedded storage includes eMMC, UFS, eMCP, uMCP, and ePOP, suitable for smartphones, tablets, and wearable devices; solid-state drives mainly include SATA and PCIe products, serving scenarios such as personal computers and servers. DRAM products cover DDR modules, LPDDR, and HBM, while mobile storage includes USB drives, memory cards, and portable solid-state drives. Different products vary in integration, bandwidth, latency, power consumption, and portability.

Source: Frost & Sullivan, publicly available information

Different application scenarios endow storage products with distinct values. Embedded storage such as eMMC and UFS in consumer terminals supports data storage and rapid loading, while high-integration products like ePOP are suitable for space-constrained devices such as smartwatches and AI glasses. Vehicle-grade embedded storage must ensure data security and stable operation in complex environments, supporting intelligent cockpit and intelligent driving; enterprise-level storage, through high capacity, high bandwidth, and low latency, meets the data access needs of cloud computing, big data analytics, and other services.

The storage product industry chain mainly includes upstream storage wafers and master control chips design and manufacturing, midstream memory manufacturers, and downstream end-use applications. Midstream manufacturers transform upstream resources into storage products that meet the requirements of different scenarios through the coordination of the master control chip, firmware algorithms, storage media, and packaging testing.

Source: Frost & Sullivan

According to Frost & Sullivan's report, the global storage product market size increased from $212.5 billion in 2021 to $289.0 billion in 2025, with a compound annual growth rate of 8.0%. Driven by growing demand for artificial intelligence and supply structure adjustments, the market is expected to increase from $377.5 billion in 2026 to $723.8 billion in 2030, with a compound annual growth rate of 17.7%.

From the perspective of application scenarios, consumer-grade applications were the largest category in the global storage product market in 2025, with a market size of $74.8 billion. With the recovery of consumer electronics demand and the development of on-end AI applications, this market size is expected to increase from $115.3 billion in 2026 to $230.1 billion in 2030, with a compound annual growth rate of 18.8%. The development of AI phones, AI desktops, and intelligent imaging devices continues to raise the demands for storage capacity, transfer bandwidth, and power efficiency.

The market size of enterprise-grade storage products reached $86.0 billion in 2025 and is expected to increase from $104.2 billion in 2026 to $196.1 billion in 2030, with a compound annual growth rate of 17.1%. The development of cloud computing, data centers, and AI training and inference drives the demand for high-throughput, low-latency, and high-reliability storage products.

The market size of vehicle-grade storage products increased from $24.7 billion in 2021 to $61.0 billion in 2025, with a compound annual growth rate of 24.8%; it is expected to further increase from $87.7 billion in 2026 to $179.5 billion in 2030, with a compound annual growth rate of 19.6%. As intelligent driving and intelligent cockpit functions grow, the volume of vehicle-based data continues to expand, and storage products must meet requirements for capacity, real-time response, and reliability.

Source: Frost & Sullivan

In terms of product type, the embedded storage market size increased from $45.6 billion in 2021 to $64.3 billion in 2025, with a compound annual growth rate of 8.9%; it is expected to increase from $86.6 billion in 2026 to $164.1 billion in 2030, with a compound annual growth rate of 17.3%. The demand for high-integration storage in smart cars and industrial IoT terminals supports the continued development of embedded storage.

The solid-state drive market size increased from $49.0 billion in 2021 to $60.3 billion in 2025, with a compound annual growth rate of 5.3%; it is expected to increase from $77.1 billion in 2026 to $124.5 billion in 2030, with a compound annual growth rate of 12.7%. The market size of DRAM reached $139.4 billion in 2025 and is expected to have a compound annual growth rate of 19.9% from 2026 to 2030. Different product types exhibit differentiated growth driven by terminal upgrades and high-performance computing demands.

Source: Frost & Sullivan

PART/4

Market Overview of China's Storage Products Industry

Driven by downstream demand and digital transformation, the Chinese mainland has become a key market for global storage products. According to Frost & Sullivan's report, the market size of China's storage products will increase from $83.7 billion in 2021 to $136.5 billion in 2025, with a compound annual growth rate of 13.0%; it is projected to increase from $183.7 billion in 2026 to $396.4 billion in 2030, with a compound annual growth rate of 21.2%.

Source: Frost & Sullivan

PART/5

Outlook on Downstream Applications and Demand for Storage Products

In terms of consumer applications, AI capabilities are gradually entering smartphones, personal computers, and wearable devices. According to the report, global AI smartphone shipments are expected to increase from 354.2 million units in 2026 to 1,181.2 million units in 2030, with a compound annual growth rate of 35.1%; AI personal computer shipments are expected to increase from 140.9 million units to 280.3 million units, with a compound annual growth rate of 18.8%. During the same period, AI glasses shipments are expected to increase from 11.4 million units to 68.8 million units, with a compound annual growth rate of 56.7%. The expansion of terminal AI applications further demands miniaturization, low power consumption, and high performance storage.

In terms of enterprise and automotive applications, global AI server shipments are expected to increase from 3.1 million units in 2026 to 6.5 million units in 2030, with a compound annual growth rate of 20.9%; L2 and above intelligent vehicles shipments are expected to increase from 18.1 million units to 41.6 million units, with a compound annual growth rate of 23.1%. The growth in servers and intelligent vehicles, along with the enhancement of storage capacity per device, collectively drive related storage demand.

Source: Frost & Sullivan

PART/6

Core Values and Technical Evolution of the Master Control Chip for Storage Products

The master control chip is the core logic unit of storage products, responsible for coordinating data interaction between the host and storage medium, enabling read/write scheduling, storage unit management, and protocol conversion. Through mechanisms such as logical mapping, wear balance, and error management, the master control chip compensates for the physical limitations of NAND Flash in lifespan and error rate, ensuring the stable operation of storage products. The master control chip primarily includes embedded storage master control chips, solid-state drive master control chips, and mobile storage master control chips.

In AI scenarios, high throughput and low latency are critical performance requirements for storage products. The master control chip improves the data transmission path, reduces congestion and latency, and enhances overall throughput by optimizing internal algorithms and data read/write scheduling, thereby meeting the needs of AI applications for access to massive data and rapid response.

In terms of interface upgrades, embedded storage is evolving from eMMC to UFS, and solid-state drives are evolving from SATA to high-speed PCIe, enabling the master control chip to increase data transmission bandwidth. In terms of algorithms and architecture, advanced error correction algorithms, in coordination with hardware and firmware, enhance the reliability and efficiency of data processing. In terms of process, the master control chip achieves a balance among performance, power consumption, area, and cost through process optimization, enabling it to adapt to artificial intelligence and high-performance computing scenarios.

PART/7

Drivers of the Storage Products Industry

Digital Transformation and Data Growth. The widespread application of cloud computing, big data, and the Internet of Things enables the expansion of data scale in consumer and enterprise scenarios, placing higher demands on storage capacity, performance, and reliability—forming the basis for the market growth in storage products.

Expansion of Emerging Application Scenarios. Applications such as artificial intelligence and intelligent driving generate diverse storage needs. AI training and inference require high-bandwidth, low-latency storage products; intelligent driving and intelligent cockpit demand higher reliability and real-time performance of in-vehicle storage; the development of terminals such as AI phones, AI desktops, and AI glasses further expands the application scope of storage products.

Technological Innovation Unlocks Market Demand. 3D NAND stacking technology enhances storage density, while upgrades to the master control chip algorithm and architecture improve read/write efficiency; high-speed interfaces such as PCIe and UFS reduce transmission latency. The synergistic progress of storage media and master control technology helps break through performance and capacity bottlenecks and expands the application range of storage products through cost optimization.

Data Security and Green Development Requirements. Data security demands drive storage products to strengthen encryption, security firmware, access control, and reliable backup capabilities; the requirements for energy-saving and green development increase the importance of low-power chips and energy-efficient architectures, promoting the adoption of secure and more energy-efficient storage products.

PART/8

Trends in the Storage Products Industry

Synergistic Improvement in Performance, Capacity, and Efficiency. As the complexity of AI models and terminal applications increases, storage products must balance power consumption, size, and cost on the basis of higher capacity and faster data access speeds. Enhanced storage media density and low-power design will jointly drive product upgrades, adapting to data centers and space- and energy-limited smart terminals.

Products Are Evolving Toward Scenario-Based and Customized Designs. Consumer, enterprise, and in-vehicle applications have different requirements for products: consumer terminals focus on integration and power consumption, enterprise applications emphasize data throughput and reliability, and in-vehicle applications prioritize stable operation and real-time response. Manufacturers need to develop more targeted storage products in consideration of the interfaces, compatibility, and validation requirements of various terminals.

Software and Hardware Synergy and System Capabilities Are Growing In Importance. As storage media density and application complexity increase, single hardware performance cannot meet all requirements. The synergy between the master control chip, firmware algorithm, testing system, and analysis of storage media characteristics helps enhance product reliability, shorten the adaptation cycle, and accelerate commercialization. Security firmware, data protection, and low-power design will also be key directions for product upgrades.

PART/9

Cyclical Patterns and Price Changes in the Storage Products Industry

The storage products industry exhibits clear cyclical patterns, influenced by supply and demand relationships, capacity changes, and technological iteration. From 2020 to 2022, growing demand for remote work, online learning, and cloud services, combined with limited upstream supply, drove the industry into an upward cycle; from 2022 to 2023, slowing terminal demand, downstream customer inventory reduction, and the release of previously added capacity created a downward phase. In 2024, gradually normalizing inventory levels and supply management support enabled a preliminary recovery in the market, but terminal demand remained moderate, resulting in an uneven recovery throughout the year.

In the second half of 2025, especially starting from the fourth quarter, the incremental demand from AI servers, AI desktops, AI phones, and intelligent vehicles, interacting with storage original manufacturers' allocation of wafer and packaging resources to high-value products such as HBM and high-end DDR5, will drive the industry into a more pronounced upward cycle. The supply of mature storage products is also affected by the reallocation of resources, leading to a tightened supply-demand balance.

DRAM and NAND Flash wafers are key upstream inputs for storage products; their price changes affect manufacturers' procurement costs and transmit to downstream product prices. According to the index provided in the prospectus, both have been gradually rising since the third quarter of 2025 and have significantly increased from the fourth quarter of 2025 to the first four months of 2026, with the DRAM index showing a more pronounced rise. The extent and timing of price transmission for different products vary.

Source: CFM, Frost & Sullivan

Looking ahead, according to Frost & Sullivan’s analysis in the prospectus, the ongoing demand for AI and server-related applications, along with limited short-term capacity adjustment capabilities, are expected to support sustained upward trends in storage product prices in 2027 and 2028; as downstream customers gradually adjust their purchase volumes and inventory levels, the rate of price increases is expected to slow.

PART/10

Challenges Faced by the Storage Product Industry Market

Demand and price fluctuations. The industry cycle can affect customer purchasing, product pricing, and profitability. Weak demand and declining prices during the downturn may put pressure on sales and profits; manufacturers need to maintain coordination among purchasing, inventory, and delivery arrangements and promptly respond to downstream customers' demand adjustments.

Upstream supply and cost constraints. Independent memory manufacturers rely on external wafer supplies and have relatively limited direct control over upstream capacity and supply allocation. During tight supply or structural capacity reallocation, fluctuations in wafer supply and purchase costs may increase, placing higher demands on supply chain stability and resource coordination capabilities.

Continued research and development and product validation requirements. Rapid evolution of downstream applications requires manufacturers to continuously enhance master control technology, interface bandwidth, read/write performance, power efficiency, reliability, and security, while reducing development, validation, and customer certification cycles. Manufacturers must continuously invest in research and development and testing capabilities to adapt to different application needs such as consumer, enterprise, and automotive levels.

PART/11

Barriers to Entry into the Storage Product Industry Market

Technical barriers. The development of storage products involves multiple aspects such as master control chips, firmware algorithms, storage medium adaptation, and system integration, requiring long-term technical expertise. Software-硬件 co-design and architecture optimization, as well as performance validation under various application scenarios, make it difficult for new entrants to establish complete research and development and product capabilities in the short term.

Supply chain barriers. Upstream storage wafer supplies are concentrated; midstream product development requires the close coordination of master control chips, firmware, and storage particles, and the packaging and testing processes rely on specialized equipment and quality systems. Stable raw material supply, production coordination, and delivery capabilities require long-term resource investment and accumulated cooperative relationships.

Customer retention barriers. Storage products directly affect the reliability and user experience of end devices; changing suppliers typically requires comprehensive testing and verification, which may increase the product launch time and quality risks. A mature supplier’s accumulated brand trust, technical services, and stable supply capabilities help maintain long-term customer relationships.

Policy and regulatory barriers. Different markets require information security certification and local adaptation, and international technology export controls may limit access to advanced equipment and technologies. New entrants must possess corresponding compliance capabilities and bear the ongoing adaptation and certification costs.

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Frost & Sullivan has extensive research experience in the TMT industry and has assisted well-known companies in successfully entering the capital market. Successful listing cases include: Denglin Technology (9917.HK), XinDe Semiconductor (7672.HK), Transphonics Holdings (2636.HK), YueXin Semiconductor (301660.SZ), YisiWei Computing (1256.HK), HongFuCheng (301716.SZ), BenMoTech (6731.HK), NaZhen Technology (9856.HK), XingHuan Technology (6727.HK), YouDi Robot (3231.HK), Beijing JunZheng (3223.HK), ChaoChun YingShi (301717.SZ), JingHe Integration (2249.HK), LiXun Precision (2475.HK), SanHuan Group (6951.HK), DingTai GaoKe (1377.HK), PuYuan JingDian (0537.HK), Basic Semiconductor (9971.HK), RuiWei Technology (7656.HK), AnKe Innovation (0668.HK), ShengHong Technology (2476.HK), ChangGuang ChenXin (3277.HK),QunNuo Technology (0068.HK),Fourier Semiconductor (3625.HK),HuYan Robot (1021.HK), JieShiView (6636.HK), Kaileshi (2729.HK), FeiShuXinInnovation (3355.HK),Eston (2715.HK),FuWai Electromechanical (2692.HK)、Meige Intelligence (3268.HK)、YulueSai (2649.HK), Longqi Technology (9611.HK), HauWei Group (0501.HK), MagaXin Innovation (3986.HK), TianShuaiXin (9903.HK), ZhiPuHuaZhang (2513.HK),Wuyi Vision (6651.HK),XunCe Technology (3317.HK),WoAn Robot (6600.HK),Excellence RuXin (2687.HK),NaXinWei (2676.HK),TianYu Semiconductor (2658.HK),GIBO (NASDAQ: GIBO),LeMo Technology (2539.HK),QuanShuPi (2685.HK),MingLue Technology (2718.HK),Cambridge Technology (6166.HK),Dipu Technology (1384.HK),GuangHeTong (0638.HK),YunJi Technology (2670.HK),TianYue Advanced (2631.HK)、YimuTian (YMT:NASDAQ),News: Xuzhong Communication (2597.HK),Fengtao Technology (1304.HK),Lanshi Technology (6613.HK),Julong (NASDAQ: JLHL),Xiangjiang Electric (2619.HK),Lianzhang Portal (LZMH:NASDAQ),Jiayou (GMHS.NASDAQ), YiPin Weike (EPWK:NASDAQ)Sikan Technology (688583.SH),Yinlifu (INLF.NASDAQ),Innosaike (2577.HK),Midea Group (0300.HK),TianjuDihe (2479.HK),YunGongChang (2512.HK),Youbo Holdings (8529.HK), Maifuoshi (2556.HK), Zibao Technology (ZBAO.US), Luokeshi (LGCL.NASDAQ), Youbixuan (9880.HK), Beikewei (2149.HK), Will Co., Ltd., Conglian Technology (ICG.NASDAQ), Xiaoi Robot (AIXI.US), Jinshan Cloud Holdings (3896.HK), Haojin Technology (2440.HK), Xuanwuyun Technology (2392.HK), Huituan Tongda (9878.HK), Chuangxinqi Zhi (2121.HK), Shangtang Technology (0020.HK), Qinhuai Data (CD.NASDAQ), Mingyuan Cloud (0909.HK), Chuangshi Group (1849.HK), Weimeng Group (2013.HK), Wankai Lian (1762.HK), Yaxin Technology (1675.HK), Gangya Holdings (1723.HK), Aurora Mobile (JG.NASDAQ), Jiaguan Holdings (8606.HK), Qiyi Technology (1739.HK), Weixin Jinke (2003.HK), Huifu Tianxia (1806.HK), Atlinks (8043.HK), Zioncom (8287.HK), ISP Global (8487.HK), Vobile (3738.HK), Aibei Technology (2708.HK), iClick (ICLK.NASDAQ), Shengye Capital (6069.HK), Anling International (8410.HK), Anke System (8353.HK), Junmeng International (8062.HK), Feisida (8342.HK), Future Data (8229.HK) and Yashi Backup (8290.HK), etc.