Shares of Gigadevice Semiconductor Inc. (SHSE: 603986) closed at a limit-up price of 705.09 yuan today, with a total market capitalization reaching 494.8 billion yuan. The stock has surged 230% since its H-share listing and is up more than tenfold from its 2024 low. The position held by investor Ge Weidong and his family represents one of the market's most compelling long-term case studies, having been held since 2018, endured a 70% drawdown without selling a single share, and now generating paper profits estimated at the 13-billion-yuan level following today's surge.
Current Family Holdings
According to the latest disclosures from the first quarter of 2026, the family's holdings are as follows. Ge Weidong personally holds 16.2616 million shares, representing a 2.32% stake. This reflects a reduction of 765,000 shares from the 17.0267 million shares reported in the 2025 annual report. His spouse, Wang Ping, holds 7.5732 million shares, or a 1.08% stake. This position was newly established in the fourth quarter of 2025 and saw a minor increase of 16,500 shares in Q1 2026. In total, the family holds approximately 23.83 million shares.
Notably, Wang Ping's initial purchase in Q4 2025 was executed at what was then considered a high price, with an average cost above 214 yuan per share, involving over 300 million yuan. While this move was initially viewed by the market as buying at a peak, the current price of 705 yuan means that even this "expensive" entry point has more than doubled in value.
Calculating the Unrealized Gains
The family's total investment is estimated at approximately 3.68 billion yuan, with a weighted average cost per share between 140 and 150 yuan. This cost basis rises to over 160 yuan if Wang Ping's higher-cost purchases are given greater weight. The cost breakdown includes an initial 2018 position established around 70 yuan per share for 2.52 million shares, a 2019 private placement at 75.47 yuan for 5.035 million shares, a 2020 private placement at 203.78 yuan for 7.36 million shares, and Wang Ping's 2025 Q4 purchase of 1.45 million shares above 214 yuan.
At today's closing price, the family's holdings are valued at approximately 16.8 billion yuan. This translates to an estimated paper profit of about 13.1 billion yuan, representing a gain of 3.5 to 4.6 times the initial investment, depending on the exact cost basis used. Breaking it down by account, Ge Weidong's personal holding of 16.26 million shares is worth around 11.47 billion yuan, with a paper profit of approximately 9.1 billion yuan based on a 145-yuan cost. Wang Ping's 7.57 million shares are valued at about 5.34 billion yuan, yielding a paper profit of roughly 3.9 billion yuan.
The Rollercoaster Ride of the Investment
The staggering 13.1-billion-yuan paper profit is only part of the story. The true test was enduring the volatility over the past eight years. The family's paper profits plummeted from around 5.5 billion yuan to as low as 1.3 billion yuan during the downturn from 2021 to 2024. Most investors would have exited, yet Ge Weidong held firm and even directed Wang Ping to add to the position in Q4 2025. The 2020 private placement at 203.78 yuan, heavily criticized at the time as a "peak purchase," was underwater for three years but now stands at a 3.46x multiple.
Catalysts Behind Today's Surge
Today's limit-up for Gigadevice is not an isolated event but connects to several positive drivers. First, the memory chip cycle is in an upward phase, with the company reporting 2025 revenue growth of 25% and net profit attributable to shareholders surging 49%, driven by volume and price increases for both Nor Flash and DRAM. Second, the H-share listing provides a dual-platform structure, with the H-shares also rising 7.42% today to close at HKD 1,006, resulting in an A/H premium of 23.8%. Third, automotive-grade and MCU products are scaling rapidly, with automotive Flash shipments exceeding 300 million units and analog chip revenue soaring 400%. Finally, broader semiconductor sector strength, with the sector index up 5.01% today, is fueled by dual catalysts of price hikes from Taiwan Semiconductor Manufacturing Company and in the memory market. As the domestic leader in Nor Flash and a top MCU player, Gigadevice is positioned to benefit from both trends.
A Key Detail to Note
A significant detail from the Q1 2026 report is that Ge Weidong reduced his position by 765,000 shares, while Wang Ping made a small addition of 16,500 shares. At the current valuation of 16.8 billion yuan, the family appears to be adopting a strategy of "trimming older holdings while maintaining newer ones." This suggests the veteran long-term investor is beginning to recover capital, a signal arguably more noteworthy than the profit figure itself.
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