Real estate companies with consecutive years of losses are experiencing explosive stock price increases due to "chip" concepts.

The most typical example is Jingtou Development (which has been losing money for three consecutive years since 2023, with net profit attributable to shareholders expanding from -659M yuan to -1.22B yuan. In March this year, it announced "clearing out" its main real estate business, then moved its registration from Ningbo to Beijing.
On the night of May 11, Jingtou Development issued a cross-industry acquisition plan: planning to acquire Xi'an Qixin Optoelectronics Technology Co., Ltd. with cash, which mainly manufactures optoelectronic devices and integrated circuit chips. But Qixin Optoelectronics was in a loss state in the first quarter of 2025 and 2026, and the acquisition plan has not been finalized; the equity ratio and transaction price are still under discussion.
As a result, Jingtou Development's stock price soared up to 388% within the year, making it the highest-gaining stock in the A-share real estate sector from the beginning of the year to date. On the night the acquisition plan was disclosed, the Shanghai Stock Exchange quickly issued an inquiry letter, asking the company to explain the necessity and reasonableness of acquiring a loss-making target, whether it constitutes a major asset restructuring, and whether the sharp short-term increase in stock price involves insider information leakage.
Another company, Hefei Urban Construction (up 247%, 4 trading halts in 5 days).
Breaking down the shareholding chain: Hefei Urban Construction subscribed 100 million yuan as an LP to participate in Guolian Venture Capital Fund (accounting for 3.03%), and Guolian Venture Capital further invested in Changxin Technology through the Chanchuang No.1 Fund (which holds 1.85%).
According to calculations, Hefei Urban Construction’s indirect stake in Changxin Technology is 0.0087%.
0.0087%, supporting nearly a 250% increase.
Hefei Urban Construction’s net profit attributable to shareholders in 2025 was -521 million yuan, down 820% year-on-year. In the first quarter of 2026, it continued to lose 24.89 million yuan, down 369% year-on-year. The company has publicly stated multiple times that "its stake in Changxin Technology is very small and does not significantly impact the company's performance," but the market completely ignores this.
Changxin Technology itself is indeed impressive. The prospectus updated on May 17 shows that in the first quarter of 2026, revenue reached 50.8 billion yuan, a year-on-year increase of 719%, and net profit attributable to shareholders was 24.76B yuan, earning nearly 300M yuan daily. But this is Changxin’s performance, not Hefei Urban Construction’s.
Industry professionals analyze that the market is speculating on the "local state-owned platform + industry leader" binding relationship, which is an asset revaluation expectation rather than an improvement in operational performance.
Real estate companies with main business losses are seeing their stock prices multiply because they are associated with chip concepts.
Concepts are running faster than actual performance; imagination is more valuable than the balance sheet.