Summary of Key Points
Jiangbolong is a storage chip company that started from Huaqiangbei, founded by a pair of grassroots siblings from Jiangxi. Amid the storage boom driven by the AI revolution, the company's performance and stock price have skyrocketed (earning 42.91 million RMB per day and increasing sixfold in one year), prompting them to make another attempt at listing on the Hong Kong Stock Exchange (HKSE). While the industry is in a period of frenzy, there are also concerns about the potential peak of the cycle and the company's reliance on overseas supply chains.
I. The Rise of the Grassroots Siblings: From a Small Counter in Huaqiangbei to the Second Largest Company in the World
Jiangbolong's story is a classic example of "ordinary people achieving great things." In 1996, Cai Huabo, who had just graduated from high school, moved to Shenzhen to work in electronics sales. At the age of 23, he and his twin sister, Cai Lijiang, pooled their money to start a company, initially making a profit by reselling storage chips. However, in 2002, they faced a major setback when they stocked up on the wrong type of Japanese chips, nearly causing a financial crisis. Fortunately, the sudden popularity of Apple's iPod made the old chips valuable again, allowing them to survive. This experience taught them that simply reselling was not enough; they needed to develop their own technology.
Later, they shifted to research and development, launching the enterprise-grade brand FORESEE in 2011 and securing major clients such as the State Grid and BYD. In 2017, they acquired Lexar, a consumer electronics brand owned by Micron, which was then three times larger than Jiangbolong in revenue, thus entering both the corporate and consumer markets. Today, Jiangbolong has become the world's second-largest independent storage manufacturer, rising from its humble beginnings in Huaqiangbei to a leader in the industry.
II. Explosive Performance: Earning 42.91 Million RMB per Day, Stock Price Rising Sixfold
The current storage cycle is truly unprecedented! In the first quarter of 2026, prices for certain storage chips increased by tenfold year-on-year. Jiangbolong's financial results were astonishing:
- Revenue in Q1 2026: 9.9 billion RMB, a 133% increase year-on-year; net profit: 3.86 billion RMB, 2.7 times the annual total of the previous year, averaging a daily profit of 4.291 million RMB (equivalent to buying a luxury apartment in a first-tier city).
- The stock price has also skyrocketed: from 70 RMB a year ago to over 500 RMB, a sixfold increase, with a market value approaching 220 billion RMB. The founding siblings own 42% of the company, worth over 90 billion RMB; early investors, including the National Development Fund, made a profit of more than 11 billion RMB.
III. Financing at the Best Time: Precise Timing for the Second HKSE Listing Attempt
Jiangbolong has chosen the perfect moment to apply for listing on the HKSE—the industry cycle is at its peak, with both performance and valuation at their highest levels. In the past month alone, four other storage companies, including Baiwei Storage and Beijing Junzheng, have also submitted applications. The reason is simple: the market is hot, and they can get a good price for their shares. For example, Dapu Micro's stock price increased by 350% on its first day of trading and by 15 times within two months; Changxin Technology's valuation has been estimated at 2 trillion RMB even before it went public. Jiangbolong aims to take advantage of this "golden window" to raise additional funds for expansion.
IV. Concerns Beneath the Frenzy: When Will the Cycle Peak? and What About Dependence on Overseas Supply Chains?
Despite the excitement, there are hidden risks:
1. Cycle Peak Risk: The storage industry is cyclical—demand increases, prices rise, companies expand production, leading to oversupply and price drops every few years. After the peak in 2021, the industry faced a downturn in 2023, resulting in a loss of 800 million RMB for Jiangbolong. How long will the AI-driven demand last? Optimists argue that AI represents a structural revolution with exponential growth; however, skeptics warn that current high prices may encourage Samsung and SK Hynix to increase production, potentially leading to oversupply by 2027 and price declines. Moreover, the rate of price increases has already slowed in Q2 2026, indicating that a turning point might be near.
2. Overreliance on Overseas Supply Chains: Jiangbolong is a contract manufacturer that relies on overseas suppliers for core chips, such as Samsung and Micron. If these suppliers raise prices or experience supply disruptions, it will be at a disadvantage. Much of Jiangbolong's profits during this cycle came from price increases by its upstream partners; if they become problematic, it could have serious consequences.
In Conclusion
Jiangbolong has risen from grassroots beginnings to become an industry leader by capitalizing on the storage cycle. While they are seeking to expand further through financing at this peak, their continued success will depend on the trajectory of the cycle and breakthroughs in the supply chain. For everyone, this story is both inspiring and a reminder: in cyclical industries, it's important not to overlook potential risks during periods of boom.