Biwin Storage Technology Co., Ltd. (688525.SH), a leading storage manufacturer, is encountering another round of patent lawsuits from competitors during a crucial period of its Hong Kong IPO process.
The company recently announced that it received a summons from the Nanjing Intermediate People's Court in Jiangsu Province. EMTIER Storage Technology (Shenzhen) Co., Ltd. has filed two patent infringement lawsuits seeking total compensation of 50 million yuan.
This marks the second legal action initiated by EMTIER since September 2025. Biwin Storage submitted its listing application to the Hong Kong Stock Exchange in October 2025 and is currently in a critical phase of its IPO process.
Notably, both lawsuits appear connected to A-share listed company Longsys. EMTIER is partially indirectly owned by Longsys. Previously, a wholly-owned subsidiary of Longsys had also sued Biwin Storage for patent infringement but subsequently withdrew the case.
Compared to Longsys, Biwin Storage has historically invested less in research and development but is now accelerating its efforts. In 2025, the company increased both its R&D personnel and expenditure by over 40% year-on-year, while adding 117 new domestic and international patents.
The market response to these legal developments has been muted. Biwin Storage's stock price experienced a slight decline on April 9 but surged on April 10, with the company's current market capitalization standing at 113.7 billion yuan.
The legal disputes occur against the backdrop of intensifying competition in the storage industry. Both companies are pursuing Hong Kong listings, with Longsys having submitted its application in March 2025, though its application materials have since expired without renewal.
Biwin Storage maintains that the lawsuits will not affect its supply capabilities to customers. The company emphasized its adherence to FRAND principles during patent licensing negotiations and expressed confidence that the litigation will not significantly impact its current or future profitability.
However, industry analysts note that intellectual property disputes are increasingly scrutinized during capital market reviews, particularly when involving core technologies. The outcome of these cases could potentially affect the company's valuation and investor confidence.
Founded in 2010, Biwin Storage has demonstrated rapid growth despite being established 11 years later than Longsys. The company has developed competitive advantages in wearable technology, with products adopted by major international companies including Meta, Google, Alibaba, Xiaomi, and others.
Biwin Storage reported explosive revenue growth, surpassing 100 billion yuan for the first time in 2025 with net profit increasing by 429.07% year-on-year. The company attributed this performance to industry recovery and successful expansion into global markets, particularly in AI-related storage products.
The company significantly boosted its R&D investment from 250 million yuan in 2023 to 632 million yuan in 2025, while expanding its research team from 683 to 1,262 personnel. By the end of 2025, Biwin Storage held 521 patents, including 217 invention patents.
In comparison, Longsys held 613 patents as of June 2025, including 232 invention patents. Despite the ongoing litigation, Biwin Storage's stock performance remained strong, rising 6.15% on April 10.
The ultimate impact of these patent disputes on Biwin Storage's Hong Kong IPO and the company's competitive position in the increasingly crowded storage market remains to be seen as the industry shifts focus from channel and price competition to technological innovation.
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