On May 17, ChangXin Technology Group Co., Ltd. updated its prospectus for the Science and Technology Innovation Board.

The latest prospectus reveals that in the first quarter of 2026, ChangXin Technology's operating revenue surged by 719.13% year-on-year, turning profitable with a net profit attributable to the parent company's owners of 247.62 billion yuan. This translates to a daily profit of approximately 2.75 billion yuan for the quarter.

The company attributed the performance growth to sustained global demand for computing power and capacity adjustments by major global manufacturers, leading to a supply shortage of DRAM (Dynamic Random Access Memory) products. Prices have shown a significant upward trend since the second half of 2025. Concurrently, the company's production and sales scale continued to grow, and its product structure was continuously optimized.

The rise of ChangXin Technology originated from Hefei's "Project 506," marking the successful first move in the city's decade-long strategic bet on the integrated circuit industry.

ChangXin Technology is projected to achieve a net profit exceeding 500 billion yuan in the first half of 2026.

After experiencing a deep downturn in the first half of 2023, the DRAM industry recovered rapidly in the second half of 2023, with market prices generally rebounding in 2024. In 2025, driven by factors including rapid growth in global computing demand and capacity adjustments by major manufacturers, global DRAM products were in short supply, leading to a sharp price increase trend.

With the industry recovery, ChangXin Technology benefited from both volume and price increases for its products, coupled with continuous optimization of its product mix. This led to a significant narrowing of its losses, and profitability was achieved in 2025, driven by the rapid price increases in the DRAM market.

Notably, ChangXin Technology's profitability inflection point arrived earlier than expected. In a prospectus disclosed in December 2025, the company anticipated achieving profitability in 2026 or 2027, but this goal was reached ahead of schedule in 2025.

Previously, ChangXin Technology had sustained continuous losses. By the end of 2025, the company had accumulated losses of 366.5 billion yuan. However, its performance rebounded sharply in 2026, with net profit attributable to the parent company's owners reaching 247.62 billion yuan in the first quarter alone, significantly offsetting historical losses.

Based on current operating conditions and the market environment, ChangXin Technology also forecasts that its operating revenue for the first half of 2026 will reach between 1.1 trillion and 1.2 trillion yuan, representing a year-on-year increase of 612.53% to 677.31%. Net profit attributable to the parent company's owners is projected to be between 500 billion and 570 billion yuan, a year-on-year surge of 2244.03% to 2544.19%.

The core driver behind ChangXin Technology successfully crossing the breakeven point is a significant leap in gross margin.

Although its gross margin in 2023 and 2024 was far below the industry average, ChangXin Technology surpassed the average comprehensive gross margin of comparable listed companies in 2025.

The company explained that in the first half of 2025, as the scale effect continued to materialize, its gross margin for the main business before inventory write-downs turned positive. Furthermore, benefiting from the rapid price increase in the DRAM market in the second half of the year, the full-year gross margin for 2025 achieved substantial improvement.

Industry insiders also point out that the Hefei industrial cluster, combined with the substitution of domestic equipment, has enabled ChangXin Technology's unit costs to be 20% to 30% lower than those of South Korean manufacturers, giving it a significant advantage in price competition.

Hefei's Decade-Long Strategic Bet

Rewinding a decade, DRAM accounted for nearly a quarter of the global semiconductor market, but this market was long monopolized by three giants: Samsung, SK Hynix, and Micron. Chinese companies were absent in this field.

On May 6, 2016, a strategic discussion between Zhu Yiming, Chairman of GigaDevice, and leaders of Hefei city gave birth to the domestic DRAM breakthrough plan codenamed "Project 506."

That same year, Hefei Industry Investment Group cooperated with Beijing-based GigaDevice to initiate the dynamic memory chip base of ChangXin Integrated Circuit Co., Ltd., the largest industrial project in Anhui province with a total investment of 150 billion yuan.

In the first phase, with a total investment of 18 billion yuan, Hefei Industry Investment Group contributed 14.4 billion yuan, accounting for 80%.

This "high-stakes bet" soon yielded returns. In September 2019, ChangXin's 12-inch wafer fab commenced production, and its 8GB DDR4 product was unveiled, achieving a breakthrough from zero to one for mainland China's DRAM enterprises. In June 2020, the mainland's first independently produced memory module using its memory particles was launched.

Every breakthrough by ChangXin Technology was accompanied by massive losses, yet the Hefei government persisted in its support. The depth of Hefei's state-owned capital involvement is evident from ChangXin's shareholding structure: the largest shareholder, Hefei Qinghui Jidian, holds 21.67%, and the second-largest shareholder, ChangXin Jicheng, holds 11.71%, both ultimately controlled by the Hefei SASAC. Additionally, Hefei Jixin and Anhui Provincial Investment Group hold 8.37% and 7.91% stakes, respectively.

Chip manufacturing is not only capital-intensive but also an industry extremely dependent on upstream and downstream collaboration. To ensure ChangXin's operation, Hefei also strategically "filled the chain": leveraging ChangXin's leading role, several upstream and downstream industrial projects settled in Hefei, forming a complete integrated circuit industry chain layout from materials and design to manufacturing, packaging, and testing.

Especially in the packaging and testing segment, Hefei integrated it with its advantageous industries like new displays, automobiles, and storage, focusing on developing packaging and testing for display driver chips, automotive electronic chips, and memory chips. On the other hand, it introduced leading enterprises to gain an early foothold in advanced packaging.

Research by Guoyuan Securities indicates that in 2012, Hefei's integrated circuit industry had only about 20 enterprises with an output value of less than 10 billion yuan. By 2022, the number of enterprises had expanded nearly twentyfold to over 400, with an output value reaching 475 billion yuan. The cluster now includes leading companies such as Nexchip, Tongfu Microelectronics, Huicheng, ChangXin Storage, Hensergy, and Qizhi Technology.

In 2025, Hefei further proposed the goal of "building a world-class integrated circuit and new display industry cluster," aiming for the industrial scale to exceed 3000 billion yuan.

The birth and growth of ChangXin represent not only the breakthrough of domestic DRAM from zero to one but also a microcosm of Hefei, leveraging the confidence of an entire city, reshaping the global semiconductor industry landscape.