Chinese memory chipmaker CXMT (ChangXin Memory Technologies) posted a first-quarter sales growth rate of more than 700%, driven by rising demand for artificial intelligence (AI).
According to Chinese outlet Hongxing News on the 18th, CXMT, which is preparing for an initial public offering (IPO), said in a prospectus released the previous day that first-quarter sales came to 50.8 billion yuan (about 11.1 trillion won), up 719.13% from a year earlier. First-quarter net profit (net profit attributable to the parent company) was 24.762 billion yuan (about 5.4 trillion won), up 1,688.3% from a year earlier.
Net profit attributable to the parent company refers to the portion of consolidated net income that ultimately belongs to the parent company's shareholders. CXMT's first-quarter sales and net profit surpassed all listings on the STAR Market, including SMIC (Semiconductor Manufacturing International Corp.), China's largest foundry (contract chipmaker).
CXMT's first-quarter net profit ranks 13th across all A-shares (common shares issued in yuan by Chinese companies on the mainland). Last year's sales were 61.799 billion yuan (about 13.5 trillion won), up 155% from a year earlier. Last year's net profit was 1.875 billion yuan (about 412.5 billion won), marking the first annual turnaround to the black from a loss of 7.87 billion yuan (about 1.7 trillion won) in 2024.
For the first half, CXMT guided sales of 110 billion–120 billion yuan (about 24.2 trillion–26.4 trillion won), up 612.53%–677.31% from a year earlier, and projected net profit of 50 billion–57 billion yuan (about 11 trillion–12.5 trillion won), up 2,244%–2,544%. CXMT said, "Since the second half of last year, semiconductor prices have continued to rise, rapidly lifting gross margin and other indicators, and we returned to profit last year."
CXMT is operating three 12-inch DRAM wafer fabs in Beijing and Hefei, Anhui province. According to market researcher Omdia, CXMT's market share by DRAM sales in the fourth quarter last year was 7.67%. CXMT ranks No. 1 in China and No. 4 globally in production capacity, shipments, and revenue.