CXMT revenue rises 873.64% to 150.31 billion yuan in first half
Key Facts
Chinese company CXMT said revenue reached 150.31 billion yuan in the first half of 2026, up 873.64% year on year, while net profit attributable to shareholders was 77.61 billion yuan. The results marked a shift from a loss of 2.33 billion yuan in the same period a year earlier to profitability. Revenue exceeded the upper end of the company’s pre-IPO forecast by about 25%, after that forecast put first-half revenue at between 110 billion and 120 billion yuan. Profit also came in above the expected range of 50 billion to 57 billion yuan. The figures reflect an expansion of its memory business as the sector faces strong demand and a global supply shortage.
CXMT attributed the revenue surge to tight global DRAM memory supplies and higher prices, as well as expanded production and an improved product mix as output of newer products such as DDR5 increased. The company said rising demand for memory products from the artificial intelligence sector contributed to the profit surge. First-quarter 2026 results show this trend accelerating: revenue reached 50.8 billion yuan, an annual increase of more than 700%, according to the Associated Press. The agency linked this to demand driven by the rapid rise of AI applications, amid a global shortage of memory chips. But revenue growth driven by the DRAM market does not mean advanced HBM3E memory has already become a major source of income.
Separately from its DRAM results, Reuters reported on October 28 that CXMT expects to begin limited HBM3E production within the next two months. Sources familiar with the matter told the agency that manufacturing yields remain weak, limiting the company’s ability to turn the production start into large commercial volumes. This challenge creates a gap between a product entering production and the ability to supply it on a wide scale. The Information reported on August 31 that the company had begun producing HBM3E in small quantities and planned to expand production in 2027. That differs from the later Reuters report, which puts the start of limited production within the next two months, while the 2027 expansion remains a plan cited in the earlier report.
On September 20, CXMT announced that its G5 fifth-generation DRAM platform had entered mass production, saying the number of dies per wafer was at least 50% higher than on the previous platform when normalized to 8Gb density. It also unveiled two LPDDR5X products built on the platform, each with a capacity of 24Gb per die, and said both had entered mass production. The announcement reinforces the picture of the company expanding its conventional and newer memory products, but it concerns the DRAM platform and LPDDR5X products. It does not establish that HBM3E has entered mass production; the timing of limited production of that memory was reported separately by Reuters. The distinction between the products remains important in assessing the breadth of CXMT’s portfolio and its ability to meet demand.
The company’s surge is also reflected in the market: CXMT shares rose 466% on their first day of trading in Shanghai, according to the Associated Press. The performance comes as markets watch whether the company can continue to benefit from the memory shortage and higher prices. CXMT, meanwhile, warned that additional trade restrictions could disrupt its supply chain and harm production and commercial operations. The company said the global shortage of DRAM products could continue in the second half of 2026. These risks tie its business outlook to the persistence of demand and the availability of supplies, while limited HBM3E production remains an anticipated development within the next two months.