Making 50 billion in half a year, Changxin Technology's comeback from a "money shredder" to a "money printer"

A quarterly profit of 24.7 billion yuan, half-year profit approaching 57 billion yuan—this chip company, once years of heavy losses and mocked by the market as a “cash shredder,” is now staging the most astonishing profit turnaround in China’s tech history.

On May 17, Changxin Technology updated its IPO prospectus on the STAR Market, and a set of numbers shook the entire capital market: in the first quarter of 2026, the company’s revenue was 50.8 billion yuan, a year-on-year surge of 719%; net profit attributable to the parent after deducting non-recurring gains and losses was 26.34 billion yuan, up 1993.41% year-on-year; the company expects revenue in the first half of this year to be between 110 billion and 120 billion yuan, a year-on-year increase of 612.53% to 677.31%; net profit attributable to the parent is projected to be between 50 billion and 57 billion yuan, a year-on-year growth of 2244% to 2544%.

Just how outrageous is this report card? A quick comparison will make it clear.

Among non-financial A-share companies, only China National Petroleum Corporation, China Mobile, and China National Offshore Oil Corporation had annual net profits exceeding 100 billion yuan in 2025; Kweichou Moutai exceeded 80 billion yuan, CATL exceeded 70 billion yuan; the sixth-ranked State Power Investment Corporation only had 52.9 billion yuan. Meanwhile, Changxin Technology, with just half a year’s net profit attributable to the parent, has already reached the same level as State Power Investment, ranking among the top six non-financial A-share companies.

Even more astonishing, if this data is linearly extrapolated, Changxin Technology’s net profit in 2026 is expected to surpass 100 billion yuan. As a result, this chip company’s annual profitability is now approaching the scale of former state-owned oil giants.

However, just over a year ago, this company was a veritable “cash shredder.”

The former abyss of losses: burning 36.6 billion over three years

Looking at Changxin Technology’s publicly available financial data: in 2023, a loss of 16.34 billion yuan; in 2024, a loss of 8B yuan; as of December 31, 2025, total accumulated losses reached 36.65 billion yuan. Over the past decade, Changxin Technology has almost poured every penny raised into this bottomless pit of chip manufacturing.

Now, how did this “cash shredder” transform in less than half a year into a “money printer” earning nearly 4 billion yuan daily?

The answer lies in two keywords: AI and chip shortage.

The epic super cycle: AI is “devouring” memory

The world is experiencing an epic cycle in storage chips.

The root of this super cycle is the “violent consumption” of memory by AI large models.

Every model inference essentially involves massive data fetching between GPUs and memory. A single AI server’s demand for DRAM is 8 to 10 times that of traditional servers. As global cloud providers and AI computing infrastructure accelerate their construction, demand for DRAM is experiencing structural explosive growth.

At the same time, the three major camps—Samsung, SK Hynix, and Micron—are shifting large amounts of advanced capacity toward higher-margin HBM (High Bandwidth Memory), severely squeezing production lines for general-purpose chips like DDR4 and DDR5.

This extreme mismatch of supply and demand has driven DRAM prices to historic highs.

TrendForce data shows that in the first quarter of 2026, contract prices for DRAM increased by 93% to 98% quarter-on-quarter; in the second quarter, the increase is expected to remain at 58% to 63%. According to the National Development and Reform Commission’s Price Monitoring Center, as of January 2026, mainstream DRAM prices have hit their highest level since 2016. All capacity of Samsung, SK Hynix, and Micron for 2026 has been announced for sale.

Industry forecasts suggest this memory cycle could last until 2030, with a supply gap exceeding 20%.

Optimal volume and price: Changxin Technology hits the right node

In this epic storage super cycle, Changxin Technology not only caught the wave but also maximized industry benefits through years of strategic planning.

Founded in 2016, Changxin Technology is currently the only IDM enterprise in mainland China that has truly achieved large-scale DRAM mass production—covering design, manufacturing, and packaging/testing independently. The company owns three 12-inch wafer fabs in Beijing and Hefei, with capacity utilization rising to 94.63% in 2025.

On the product side, Changxin has completed comprehensive upgrades from DDR4 to DDR5, from LPDDR4X to LPDDR5/5X. Continuous promotion of high-end products has directly amplified profit elasticity driven by price increases.

In terms of market share, according to Omdia data, based on DRAM sales in Q4 2025, Changxin’s global market share has increased to 7.67%, ranking fourth worldwide and first in China. From 3.97% in Q2 2025 to 7.67% in Q4, just half a year, its market contribution has nearly doubled.

The result: volume and price rise together, leading to explosive profits.

Zhu Yiming’s decade-long gamble: no profit, no salary

Changxin’s journey to today is inseparable from a key figure: Chairman Zhu Yiming.

As the founder of GigaDevice, Zhu Yiming made an incomprehensible decision in 2016—abandoning the steady path of chip design companies, he took a gamble in Hefei, founding Changxin Technology and betting on domestic DRAM.

How difficult was this path? DRAM is the most fiercely competitive chip category globally, with Samsung, SK Hynix, and Micron controlling over 90% of the market. New entrants have almost no survival space. Even more daunting, DRAM manufacturing is extremely capital-intensive; a 12-inch wafer fab often requires hundreds of millions of dollars in investment. For a long time, Changxin was basically pouring money into a bottomless pit.

Zhu Yiming made a vow: before Changxin turns profitable, he would not take a salary or bonus.

This promise has been exceeded.

Valuation controversy: 1 trillion or 2 trillion?

With such explosive performance, how much is Changxin Technology really worth?

According to the current IPO plan, Changxin intends to raise 29.5 billion yuan on the STAR Market, with a post-issue total share capital of no less than 10%, implying a valuation of about 8B yuan. This IPO’s fundraising of 29.5 billion yuan is also the highest in STAR Market history (SMIC’s 2020 plan was to raise 2.07 billion yuan, but it was oversubscribed to 400M yuan).

Market expectations currently estimate Changxin’s valuation at around 1 trillion in the short term, and about 2 trillion in the long term. Based on a net profit attributable to the parent of 8B yuan in 2026, the relative valuation supports a market cap exceeding 1 trillion.

Of course, disputes also exist.

The cyclical nature of DRAM is an unavoidable historical pattern—last year, Changxin was still heavily loss-making; this year, it’s booming. Once the super cycle ends and prices fall, performance could shrink significantly at any time.

But some argue that the core logic of this cycle has shifted from “short-term consumer electronics peak” to “AI structural demand,” with sustainability far exceeding previous cycles. Additionally, Changxin’s status as the domestic DRAM “lone wolf” carries a scarcity premium that cannot be ignored in pricing.

A textbook-level financial turnaround

From a cumulative loss of 36.6 billion yuan to earning 50 billion yuan in half a year, Changxin Technology has completed a textbook-level financial turnaround in less than half a year.

Behind this turnaround lies ten years of capital investment, technological accumulation, and strategic perseverance. Zhu Yiming and the Changxin team are betting not only on an industry cycle but also on China’s quest to secure a position in the global DRAM landscape.

Earning nearly 4 billion yuan daily is both a gift of the market’s timing and a reward for a decade of hardening.

When Changxin Technology’s IPO finally rings the bell, the answer it gives to the capital market may be more convincing than any research report.

Risk warning and disclaimer

Market risks exist; investments should be cautious. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions herein are suitable for their particular circumstances. Invest accordingly at their own risk.