ChangXin Technology posts 874% revenue surge as AI memory demand soars

ChangXin Technology reported H1 revenue of 150.3 billion yuan, up 874% from a year earlier, swinging to a net profit of 77.6 billion yuan from a 2.3 billion yuan loss.

The turnaround was driven by capacity expansion, higher DRAM prices and rising domestic substitution demand, the company said in its H1 earnings report. CXMT, the largest Chinese producer of DRAM chips, listed on the Shanghai Stock Exchange in a debut that lifted its valuation to $484 billion.

Adjusted net profit reached 78.8 billion yuan, above the attributable figure, with a weighted average return on equity of 81.06%. Operating cash flow totaled 131.2 billion yuan, roughly matching net profit, and basic earnings per share came in at 1.29 yuan versus a loss of 0.04 yuan a year earlier.

Total assets rose 39% to 468.1 billion yuan at the end of June, while net assets attributable to shareholders more than doubled to 134.7 billion yuan, helped by profit accumulation and capital-raising. The company counts the National Integrated Circuit Industry Investment Fund II, Alibaba Cloud and GigaDevice among its top shareholders, with Hefei Qinghui Jidian holding 21.67% as the largest and Hefei Changxin Integrated Circuit at 11.71%.

The results land as an AI-driven memory shortage pushes DRAM prices higher and strains supply for consumer electronics. CXMT's shares surged 466% on their Shanghai debut, making it the most valuable China-listed company, as device makers from Apple to Microsoft seek alternatives to the dominant trio of Samsung, SK Hynix and Micron, which control most of the global memory market.

The swing to profit signals CXMT is scaling output to challenge the three memory giants, with domestic substitution demand providing a base for further capacity expansion. Investors will watch whether the company can sustain margins as it ramps production and as US lawmakers pressure Apple to avoid Chinese-made memory chips, a dispute that could shape CXMT's access to Western customers.

This article is for informational purposes only and does not constitute investment advice.