In half a year, earning 50 billion, Changxin Technology's turnaround from "money shredder" to "money printer."

Original Author: Xu Chao

A quarterly profit of 24.7 billion, and a half-year profit nearing 57 billion - this chip company, once known for years of heavy losses and whimsically nicknamed the "money shredder" by the market, is staging the most astonishing profit turnaround in the history of Chinese technology.

On May 17, Changxin Technology updated its IPO prospectus for the Science and Technology Innovation Board, with a set of numbers that shook the entire capital market: in the first quarter of 2026, the company reported revenue of 50.8 billion, a year-on-year increase of 719%; net profit attributable to the parent company was 26.34 billion, a year-on-year increase of 1993.41%; the company expects revenue for the first half of this year to be between 110 billion to 120 billion, a year-on-year increase of 612.53% to 677.31%; and net profit attributable to the parent company is estimated to be between 50 billion and 57 billion, a year-on-year increase of 2244% to 2544%.

How outrageous is this report card? A horizontal comparison makes it clear.

Among non-financial enterprises in A-shares, in 2025, only three companies - PetroChina, China Mobile, and CNOOC - had net profits exceeding 100 billion; Guizhou Moutai exceeded 80 billion, and CATL exceeded 70 billion; the sixth-ranked China Energy Group achieved only 52.9 billion. Changxin Technology, with just half a year of net profit attributable to the parent company, has already matched the profit of China Energy Group, entering the ranks of the top six non-financial companies in A-shares.

Even more astonishing is that if this data is linearly extrapolated, Changxin Technology's net profit in 2026 is expected to exceed 100 billion. As a result, this chip company’s annual profitability is catching up with the profit scale of those former state-owned oil enterprises.

However, just over a year ago, this company was indeed a real “money shredder.”

Once in the Abyss of Loss: 36.6 Billion Burned in Three Years

Looking over the historical financial data of Changxin Technology: a loss of 16.34 billion in 2023, a loss of 7.145 billion in 2024, and as of December 31, 2025, total losses reaching 36.65 billion. Over the past decade, Changxin Technology has poured almost every penny raised into the bottomless pit of chip manufacturing.

Now, how did this “money shredder” transform into a “money printer” earning nearly 400 million a day in less than six months?

The answer lies in two key words: AI and chip shortage.

Epic Super Cycle: AI is "Devouring" Memory

The world is experiencing an epic storage chip cycle.

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

Every model inference is essentially a massive data fetching operation between GPUs and memory. The demand for DRAM from a single AI server is 8 to 10 times that of traditional servers. With the accelerating infrastructure build-out of global cloud vendors and AI computing facilities, the demand for DRAM is leading to a structural explosion.

At the same time, the three major players - Samsung, SK Hynix, and Micron - are redirecting a large amount of advanced capacity toward more profitable HBM (high bandwidth memory), severely squeezing the production line resources for general-purpose chips like DDR4 and DDR5.

The extreme mismatch between supply and demand has driven DRAM prices to historic peaks.

According to TrendForce, the contract prices of DRAM in the first quarter of 2026 are expected to increase by 93% to 98% quarter-on-quarter; the second quarter is still expected to maintain an increase of 58% to 63%. The price monitoring center of the National Development and Reform Commission shows that as of January 2026, the prices of mainstream DRAM products have reached the highest level since 2016. The total production capacity of Samsung, SK Hynix, and Micron has been announced to be sold in 2026.

Industry institutions predict that this round of memory demand is expected to last until 2030, with a supply gap exceeding 20%.

Optimal Quantity and Price: Changxin Technology is at the Junction

In the epic storage super cycle, Changxin Technology not only caught the wind but also maximized the industry dividend through its years of strategic layout.

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

On the product side, Changxin Technology has completed a comprehensive upgrade from DDR4 to DDR5, and from LPDDR4X to LPDDR5/5X. The continuous promotion of high-end products has amplified the profit elasticity brought by the price increase.

In terms of market share, according to Omdia data, based on the DRAM sales revenue in the fourth quarter of 2025, Changxin Technology's global market share has risen to 7.67%, ranking fourth in the world and first in China. From 3.97% in the second quarter of 2025 to 7.67% in the fourth quarter, the market contribution nearly doubled in just half a year.

The result is: a simultaneous rise in quantity and price, leading to a profit explosion.

Zhu Yiming's Decade Gamble: No Salary Until Profitability

Changxin Technology's journey to today cannot be separated from a key figure: Chairman Zhu Yiming.

As the founder of GalaxyCore, Zhu Yiming made an incomprehensible decision in 2016 - he abandoned the stable route of a chip design company, going all-in to establish Changxin Technology in Hefei, betting on domestic DRAM.

How difficult is this path? DRAM is the most fiercely competitive chip category globally, with Samsung, SK Hynix, and Micron collectively holding over 90% market share, leaving almost no space for new entrants. Even more critically, DRAM manufacturing is extremely capital-intensive; a 12-inch wafer fab can require an investment of hundreds of millions of dollars. For a long time, Changxin was almost just spending money to "fill the pit."

Zhu Yiming made a solemn commitment at that time: he would not take a penny in salary or bonuses until Changxin became profitable.

This promise has been overwhelmingly fulfilled.

Valuation Debate: One Trillion or Two Trillion?

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

According to the current IPO plan, Changxin Technology intends to raise 29.5 billion on the Science and Technology Innovation Board, with a post-issuance total share capital of no less than 10%, implying a valuation of about 295 billion. This IPO is also the highest in the history of the Science and Technology Innovation Board (SMIC planned to raise 20.7 billion in 2020 but exceeded the target to 53.2 billion).

Currently, the market's valuation expectation for Changxin Technology is about 1 trillion in the short term and about 2 trillion in the long term. If the net profit attributable to the parent company reaches 100 billion by the end of 2026, based on relative valuation estimates, a market value exceeding 1 trillion is well supported.

Of course, controversies also exist.

The cyclical nature of DRAM is an unavoidable historical law - Changxin Technology remained in heavy losses last year and is now thriving; once the super cycle ends and prices fall, performance may shrink significantly at any time.

However, some argue that the core logic of this cycle has shifted from "short-term peak season for consumer electronics" to "structural demand for AI," with sustainability far exceeding the past. Furthermore, the scarcity premium of Changxin Technology as the "only seedling" of domestic DRAM is also a factor that cannot be overlooked in pricing.

Textbook-Level Financial Turnaround

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

But behind the turnaround lies a decade of capital investment, technological accumulation, and strategic adherence. What Zhu Yiming and the Changxin team are betting on is not only an industry cycle but also China's quest for a place in the global DRAM landscape.

The achievement of earning nearly 400 million a day is a gift from the wind, as well as a return on ten years of hard work.

When Changxin Technology finally rings the bell for its IPO, the answer it provides to the capital market may be more convincing than any research report.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。