CXMT: H1 Net Profit Hits RMB 77.6 Billion!

According to ChangXin Memory Technologies (CXMT), China’s leading DRAM manufacturer, the company reported a sharp improvement in financial performance for the first half of 2026, driven by strong AI computing demand and a global shortage of DRAM products.

CXMT reported operating revenue of RMB 150.31 billion in the first half of 2026, up 873.64% year over year. Net profit attributable to shareholders reached RMB 77.605 billion, compared with a net loss of RMB 2.332 billion in the same period last year. The results also surpassed the company’s full-year performance in 2025.

Based on CXMT’s previously released first-quarter results, the company generated approximately RMB 99.51 billion in revenue in the second quarter, representing sequential growth of about 95.9%. Net profit attributable to shareholders reached RMB 52.843 billion, up approximately 113% from the previous quarter, highlighting the company’s rapid growth momentum.

CXMT attributed its strong first-half performance primarily to the rapid expansion of global computing demand and capacity adjustments by major DRAM manufacturers. These factors have contributed to a global shortage of DRAM products and a substantial increase in DRAM prices, significantly boosting the gross profit generated from CXMT’s core DRAM products.

The company’s gross margin also increased substantially. CXMT reported a gross margin of 84.84% for its main business during the first half of 2026, significantly higher than the level recorded during the same period last year.

Cash flow also improved considerably. Net cash generated from operating activities reached RMB 131.16 billion during the first half, representing a year-over-year increase of 2,985.64%. The strong operating cash flow indicates that CXMT’s improved profitability was accompanied by significant cash generation.

According to Omdia, the global DRAM market is expected to grow from approximately $150.5 billion in 2025 to $763.8 billion by 2030, representing a compound annual growth rate (CAGR) of 38.39%. Based on market revenue, Samsung Electronics, SK hynix and Micron Technology accounted for 33.96%, 34.48% and 23.41% of the global DRAM market, respectively, in 2025. Together, the three companies controlled more than 90% of the global DRAM market.

Meanwhile, CXMT has been steadily expanding its position among the world’s major DRAM manufacturers. Based on shipment volume and sales, the company has become China’s largest DRAM manufacturer and the world’s fourth-largest DRAM producer.

During the reporting period, CXMT continued to operate under an integrated device manufacturer (IDM) model. The company has completed mass-production iterations from its first- through fourth-generation process technology platforms, while its fifth-generation platform is undergoing customer qualification.

On the product side, CXMT has expanded its DRAM portfolio from LPDDR4X to DDR5, LPDDR5/LPDDR5X and LPDDR6. Its LPDDR6 products can achieve peak data rates of up to 12,800 Mbps and support chip capacities of up to 16GB. The company has begun providing samples to key customers for validation and is accelerating preparations for mass production.

As of the end of the reporting period, CXMT held 4,484 domestic patents, including 3,744 invention patents, as well as 3,400 overseas patents. The company had 7,491 R&D employees, accounting for 33.42% of its total workforce, underscoring its continued investment in DRAM process and product development.

Looking ahead to the second half of 2026, CXMT expects the global DRAM supply shortage to continue. The company said it will closely monitor external factors, including macroeconomic fluctuations and geopolitical developments, while focusing on its full-year growth targets, the expansion of new application markets, the implementation of key projects and deeper industry-academia-research collaboration.

CXMT also plans to further improve operational efficiency, accelerate product upgrades, strengthen its long-term technology and business strategy, and expand open and collaborative innovation. Through these efforts, the company aims to strengthen its core competitiveness and further increase its influence in the global DRAM market.