CXMT shipment of memory chips trails only that of Samsung, SK Hynix and Micron

CXMT, formerly ChangXin Memory Technologies Corporation, reported its first financials since going public.

CXMT, the Chinese memory-chip producer, on Friday reported its first financials as a public company that showed that how much it is benefiting from the surge in artificial-intelligence services lifting prices.

In a statement to the Shanghai stock exchange, CXMT (CN:688825) said it swung to a first-half profit of 77.6 billion yuan after sales jumped 874% to 150.3 billion yuan ($22.4 billion).

According to an English translation of its results, CXMT said its performance was primarily driven by rapid global demand growth for AI computing power, and capacity allocation shifts among major global memory makers. Global supply of dynamic random access memory (DRAM) experienced severe shortages, leading to substantial price increases and significant gross margin expansion across CXMT's main product lines, the company said.

CXMT is the number-four provider of memory chips by shipments and revenue, trailing only Samsung Electronics (KR:005930), SK Hynix (SKHY) and Micron Technology (MU).

CXMT, whose customers include Alibaba Cloud, ByteDance, Tencent, Lenovo and Xiaomi, said the inclusion on a U.S. Defense Department list of Chinese military customers so far is "manageable" but noted it could cause supply-chain risks in the future.

According to FactSet, CXMT's market cap is $588 billion, roughly half that of Micron.

CXMT's Shanghai-listed stock has rallied about 20% since the end of its first day of trading on July 27, according to FactSet data, while Micron shares have gained 3.9%.

-Steve Goldstein