- Second listing push comes as China DRAM sector enters capacity-driven upcycle
- Niche memory chip maker posts rapid revenue growth but remains cash-flow negative
Zhejiang Zentel Memory Technology (浙江力积存储) filed for a Hong Kong initial public offering on May 29, marking its second attempt to list after an earlier application lapsed in 2025, according to its exchange filing.
China International Capital Corporation is the sole sponsor.
Founded in 2020 and based in Jinhua, Zhejiang Province, the fabless memory chip designer focuses on niche DRAM markets.
The company’s business traces back to its controlling shareholder Ying Wei’s acquisition of Japan-based storage chip designer Zentel Japan, through which it inherited a full DRAM product development pathway spanning SDR to DDR4 generations.
By 2025 revenue, Zhejiang Zentel Storage ranked 12th globally among niche DRAM players and fourth among China’s fabless semiconductor companies.
The DRAM frenzy
The filing came one day after leading domestic DRAM producer Changxin Memory Technologies (CXMT, 长鑫科技) cleared a key listing hurdle in Shanghai.
CXMT’s planned 29.5 billion yuan fundraising would be the second-largest IPO in the STAR Market’s history, behind SMIC’s 53.23 billion yuan listing in 2020, with market expectations placing its market value in the 2 trillion to 3 trillion yuan range.
CXMT’s shift toward DDR5 and high-end AI memory, together with a broader industry upcycle, is reshaping supply-demand dynamics in lower-tier DRAM segments.
This momentum creates both competitive pressure and potential substitution opportunities for niche suppliers such as Zentel.
Profitable now, but cash flow still negative
Revenue rose from 580 million yuan in 2023 to 1.105 billion yuan in 2025, a compound annual growth rate of 38.5%, with 2025 growth accelerating 70.9% year-on-year.
Net losses narrowed from 244 million yuan to 10.54 million yuan over the period, while adjusted net profit turned positive in 2025 at 26.09 million yuan. Operating cash flow, however, remained negative for three consecutive years.
The company’s revenue structure is shifting, with memory chip sales declining as a share while memory module revenue expanded to 40.1% in the first half of 2025. That segment has faced continued gross margin pressure.
Zentel operates a fabless model and relies primarily on Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC) for wafer fabrication, with its top five suppliers accounting for more than 70% of procurement.
IPO proceeds are expected to fund R&D upgrades, capacity expansion, global sales network development and working capital needs.
