Cxmt Corporation (688825.SH) made a high-profile debut on the STAR Market (科创板) on July 27th.
By midday, the company's share price had skyrocketed over 530% to 54.65 yuan, pushing its total market capitalisation beyond 3.6 trillion yuan. This valuation surpasses two times that of Kweichow Moutai Co.,Ltd. (600519.SH).
In just half a trading session, Cxmt's turnover exceeded 120 billion yuan, setting a new A-share record for single-day trading volume. It has become the first stock in A-share history to see a single-day turnover break the 100 billion yuan mark.
During Cxmt's IPO process, investor demand was exceptionally strong. The number of valid online subscription accounts reached approximately 9.43 million, a new record for the STAR Market. Valid online subscription shares totalled about 816.9 billion shares, while offline valid subscriptions hit roughly 1.24 trillion shares. The final online lottery rate for Cxmt's IPO was 0.47141739%, also a historic high for the STAR Market.
According to market reports, Cxmt shares opened at 49.5 yuan this morning. Investor Li Xin and Zhang Qian each profited 20,420 yuan from their new share allotments. Li Xin sold at the opening price, while Zhang Qian sold at 45.22 yuan.
Li Xin and Zhang Qian were among the fortunate. Although Cxmt issued a total of 6.688 billion new shares, with the final online distribution reaching 3.851 billion shares after a clawback and green shoe mechanism, the online lottery rate was only 0.4714%. This means an average of 212 subscription applications were needed to secure one lot of 500 shares.
Notably, the company's 14 directors, senior executives, core technical personnel, and their close relatives collectively hold 2.034 billion shares indirectly. Based on the closing price of 54.65 yuan per share, the total market value of these holdings is 111.179 billion yuan, with each individual's stake exceeding 100 million yuan.
Among them, Chairman Zhu Yiming and Director, President, and Core Technician Cao Kanyu hold shares valued at over 10 billion yuan, at 86.9 billion yuan and 11.596 billion yuan respectively. Zhu Yiming is also the founder of GigaDevice (兆易创新), where he holds a 5.13% stake.
An additional five executives have stakes valued at over 1 billion yuan each: Executive Vice President Zhu Wenju (2.915 billion yuan), Co-President Zhang Yu (2.765 billion yuan), Senior Vice President and CFO Huang Danyang (1.983 billion yuan), Senior Vice President and Core Technician Li Hongwen (1.523 billion yuan), and Vice President and Board Secretary Yuan Yuan (1.107 billion yuan).
As a key breakthrough in China's memory chip industry, Cxmt has undergone a prolonged period of heavy investment. Wafer manufacturing is a typical capital-intensive industry requiring continuous spending on R&D, production lines, and capacity expansion. This led to accumulated uncovered losses of 40.857 billion yuan by June 30 of the previous year.
However, as the memory industry enters an upcycle, Cxmt is beginning to demonstrate profitability. According to its prospectus, net losses from 2022 to 2024 were 9.171 billion yuan, 19.225 billion yuan, and 9.051 billion yuan respectively. Last year, the company turned around, posting a net profit of 7.144 billion yuan. Its earnings in the first quarter of this year have nearly erased losses accumulated over the past nine years.
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