When the time comes, one must act decisively.
As ChangXin Memory Technologies continued its strong post-IPO performance, with its market value surging, GIGADEVICE hit the daily limit down, with its stock price halving. As chairman of both companies, Zhu Yiming faced two starkly contrasting scenarios.
On one side, ChangXin Memory Technologies was thriving, while on the other, GIGADEVICE was experiencing a relentless decline in stock price. This created a situation of extreme divergence, with one company flourishing and the other struggling. Consequently, Zhu Yiming took urgent action to stabilize GIGADEVICE, issuing multiple announcements. He proposed that the listed company use 1 billion to 2 billion yuan of its own or borrowed funds to repurchase shares on the secondary market, all of which would be cancelled. He also committed to not reducing his personal shareholding over the next 12 months and planned to increase his holdings by at least 1 billion yuan of his own or borrowed funds during the period from December 13, 2026, to July 29, 2027.
However, what drew more market attention than Zhu Yiming's market-stabilizing moves was his earlier massive cash-out. Just over a month ago, Zhu Yiming had precisely reduced his holdings at a high stock price of GIGADEVICE, cashing out 4.4 billion yuan. This sparked controversy.
The same chairman, two companies, two different fates. The capital market is left not only with sighs but also with many questions.
Locking in Profits: Zhu Yiming Cashes Out 4.4 Billion
Recently, an announcement from GIGADEVICE regarding shareholder reduction of holdings drew market attention. The announcement showed that during the period from May 6 to June 12, 2026, Zhu Yiming, chairman and actual controller of GIGADEVICE, reduced his holdings by a total of 11.1106 million shares through centralized竞价 and block trades, cashing out a total of approximately 4.4 billion yuan. After the reduction, Zhu Yiming's personal shareholding ratio fell from 6.53% to 4.94%, dropping below 5%. Together with his concerted action party, Hong Kong Yingfude Co., Ltd., they held 6.80% of the shares.
Furthermore, the announcement disclosed that Zhu Yiming's reduction plan could be traced back to April of this year. On April 8, GIGADEVICE disclosed a plan for shareholder reduction of shares, with Zhu Yiming planning to reduce his holdings by a maximum of 11.21 million shares, or about 1.60% of the company's total shares, during the period from April 30 to July 29, 2026.
From the actual execution, Zhu Yiming completed most of the operation in just over a month. Market analysts generally believe that Zhu Yiming's timing for this reduction was extremely precise. On May 6, the first day of Zhu Yiming's reduction, the storage sector collectively surged, and GIGADEVICE hit the daily limit up. On May 20, the storage chip concept continued to strengthen, with GIGADEVICE stock price approaching the daily limit up, setting a new historical high. During the 11 trading days from May 11 to 25, the stock price accumulated a gain of over 50%. The most intensive period of Zhu Yiming's reduction also occurred exactly during this phase. In just 11 trading days, Zhu Yiming cumulative reduced his holdings by 6.3299 million shares, or 0.90% of the company's total shares. During this period, the stock price of GIGADEVICE surged by 54%, with an average price of 406.38 yuan per share, allowing Zhu Yiming to cash out approximately 2.572 billion yuan. After this reduction, the combined shareholding ratio of Zhu Yiming and his concerted action party dropped from 7.90% to 7.00%. After completing the concentrated reduction, Zhu Yiming continued with minor reductions until all were completed by June 12, cashing out a total of about 4.4 billion yuan in two phases.
After the reduction was fully completed, the stock price did not stop. On June 29, GIGADEVICE hit a historical high of 846.66 yuan, with its total market value once approaching 600 billion yuan. Although Zhu Yiming did not sell at the absolute peak, the reduction price range of 339.44 yuan to 538.90 yuan had already significantly realized the valuation gains from the first half of the market rally. In other words, Zhu Yiming's reduction spanned the entire process of GIGADEVICE stock price increase, and almost every time it coincided with relative highs in the stock price.
Behind the stock price surge lies the full outbreak of the storage chip "super cycle." In the first half of 2026, contract prices for DRAM and NAND flash memory rose significantly for two consecutive quarters. In the first quarter, global general DRAM contract prices surged by 90% to 95% sequentially, and in the second quarter, they rose by another 58% to 63%. GIGADEVICE's own performance also confirmed this cyclical boom. On July 10, GIGADEVICE disclosed a semi-annual performance pre-increase announcement. The data showed that GIGADEVICE expected to achieve operating revenue of approximately 11.5 billion yuan in the first half of the year, a year-on-year increase of 177%, and net profit attributable to the parent company of about 6.9 billion yuan, a year-on-year explosion of 1099%.
In the announcement, GIGADEVICE clearly stated that the performance change stemmed from the supply shortage in the storage chip industry, leading to simultaneous increases in volume and price. However, besides industry prosperity and surging performance, the market generally believes that another reason for the surge in GIGADEVICE's stock price is ChangXin Memory Technologies. In the more than a year before ChangXin Memory Technologies went public, a large amount of funds regarded GIGADEVICE as a "shadow target" of ChangXin Memory Technologies, betting on the expected appreciation of its related equity. Overall, driven by multiple factors, GIGADEVICE did experience a capital feast of rapid stock price appreciation. And Zhu Yiming, relying on his precise judgment of the industry cycle and calm control over the reduction rhythm, successfully locked in 4.4 billion yuan in paper profits.
After Massive Cash-Out, Zhu Yiming Returns to Stabilize the Market
Released alongside the shareholder reduction announcement were three other announcements closely related to Zhu Yiming: a proposal from the chairman for the company to repurchase A-shares, a plan for shareholder increase in holdings, and an announcement from the controlling shareholder and actual controller voluntarily committing not to reduce their shareholding in the company for the next 12 months.
Specifically, Zhu Yiming put forward three measures. First, he proposed a company repurchase. Zhu Yiming proposed that the listed company use 1 billion to 2 billion yuan of its own or borrowed funds to repurchase A-shares on the secondary market. Second, he committed to not reducing his holdings. Zhu Yiming committed that for 12 months from July 29, 2026, he would not reduce his holdings in the company in any way. Third, he planned personal increases. Zhu Yiming planned to increase his holdings of the company's shares by at least 1 billion yuan of his own or borrowed funds during the period from December 13, 2026, to July 29, 2027.
The reason Zhu Yiming suddenly launched this "combination punch" was to "stabilize the market." On July 29, GIGADEVICE hit the daily limit down again during trading, eventually closing down 6.81% at 364.03 yuan. Looking at a longer timeline, this crash seemed to have been foreshadowed. On June 30, GIGADEVICE issued a risk warning announcement, clearly stating that the company's storage chip industry historically exhibits significant cyclical fluctuations, and that product prices are currently at historical highs, with the trend of continuous sharp increases being unsustainable.
A recent report from Morgan Stanley also pointed out that the AI-driven storage industry boom is approaching a turning point. Memory contract prices are expected to peak in the fourth quarter, and the momentum for storage manufacturers to raise earnings projections has significantly weakened, with the net earnings upgrade rate already falling from a peak of 92% to 77%. Data shows that from the stock price high of 846.66 yuan on June 29, GIGADEVICE has now fallen sharply by 58%, with the stock price halved and market value evaporating by over 300 billion yuan. On July 27, 28, and 29, the cumulative deviation of daily closing price declines exceeded 20%, constituting abnormal stock trading fluctuations. Consequently, GIGADEVICE issued an announcement regarding abnormal stock price trading fluctuations.
Regarding this crash, some views suggest it might also be closely related to the listing of ChangXin Memory Technologies. After ChangXin Memory Technologies officially went public, the "shadow stock" logic that had previously supported GIGADEVICE's valuation collapsed. The "shadow" became an independent "entity," and the shadow premium completely dissipated. In this context, it is reasonable for Zhu Yiming to launch a market-stabilizing combination punch. However, this stabilization plan sparked significant controversy after its announcement.
The controversy mainly stems from two aspects. The first is the numerical contrast between personal cash-out and company funding. Zhu Yiming had just completed a personal high-level cash-out, securing 4.4 billion yuan. Yet in the stabilization plan, the largest amount of funds came from the listed company, while his personal increase plan was only at least 1 billion yuan. The second is the time gap between the personal increase plan and the current market turmoil facing GIGADEVICE. According to regulations, directors, supervisors, senior management, and shareholders holding more than 5% of a listed company cannot buy shares within six months of selling them. Due to the earlier high-level cash-out, Zhu Yiming's personal increase plan would not start until after December 13, 2026, creating a nearly five-month gap from the current emergency of the stock price crash. This time misalignment undoubtedly fueled the spread of market skepticism.
Undoubtedly, GIGADEVICE is currently experiencing an extreme roller-coaster ride. Whether Zhu Yiming's stabilization plan can truly halt the stock price decline still awaits market testing.