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Published：May 16, 16:00Last updated：May 18, 16:00

Changxin Technology's Stunning 719% Profit Surge

China.org
May. 16, 2026 16:00
Changxin Technology reported a 719.13% year-on-year revenue increase in Q1, driven by soaring DRAM prices and optimized product mix. Net profit reached 33 billion yuan, with gross margins expanding significantly. The company's科创板 IPO application highlights its recovery from industry downturns and strategic positioning in the global memory market. Analysts attribute the growth to robust demand for high-performance chips in AI and computing applications.
Summarized
8News
4Media
Nikkei Asia
May. 18, 2026 04:49
China's CXMT reported a 1,688% profit surge in Q1 2026 due to a global memory chip shortage. Revenue also skyrocketed by 719%, fueled by the AI boom. The company plans to list on the STAR Market, supporting Beijing's chip localization push.
China.org
May. 18, 2026 16:00
ChangXin Technology, after nearly a decade of losses totaling 36.65 billion yuan, has turned a profit in Q1 2026, with revenues surging over sevenfold to 50.8 billion yuan and net profits reaching 33.01 billion yuan. Hefei's state-owned assets, holding a 37% stake, are expected to reap significant returns if the company successfully lists on the STAR Market. The company's success is attributed to global demand for DRAM products and optimized production.

China's leading DRAM manufacturer Changxin Technology (CXMT) has reported a staggering 719% year-on-year revenue increase in Q1 2026, marking a dramatic turnaround from years of losses. The company's net profit reached 33 billion yuan ($4.5 billion), with gross margins expanding significantly due to soaring global memory chip prices and optimized product mix. This performance positions CXMT as a key player in Beijing's semiconductor localization strategy.

📈 Financial Breakthrough

Changxin reversed a 36.65 billion yuan loss streak with Q1 profits surpassing 33 billion yuan, ranking eighth in A-share profitability. The company anticipates H1 net profit between 50-57 billion yuan, fueled by AI-related memory demand. Revenue projections for the first half reach 110-120 billion yuan ($17.62 billion), showcasing sevenfold growth from previous years China.org+2.

💻 Market Dynamics

The turnaround stems from three key factors:

  1. Global DRAM price increases (up 40% year-to-date)
  2. Strategic focus on high-performance computing chips
  3. Stockpiling by tech giants for AI data centers
    CXMT now controls 12% of the global DRAM market, with products increasingly used in AI applications China.org+2.

🚀 Future Prospects

Changxin plans a 29.5 billion yuan IPO on Shanghai's STAR Market to fund technological upgrades. Hefei's state-owned assets (37% stake) stand to gain substantially from the listing. The company aims to capitalize on:

  • Continued AI boom
  • Government-supported chip localization
  • Expanding production capacity
    Analysts project CXMT could capture 18% of global DRAM market by 2027 Reuters+2.
DRAM chipsSTAR Market IPOAI-driven demandChangxin TechnologyHefei state-owned assets

topic.regionalNarratives

China
China
Coverage focuses on financial performance metrics and market positioning of the domestic semiconductor firm.
United Kingdom
United Kingdom
Reporting emphasizes quantitative market projections and pricing trends in semiconductor commodities.
United States
United States
Discussion centers on corporate growth indicators and capital market preparations.
Japan
Japan
Outlets frame the event around global supply chain constraints and technological sector developments.

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China.org
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Changxin Technology's Stunning 719% Profit Surge | KoalaNews