To The Moon

Following the footsteps of CXMT, the "twin stars" of China's domestic memory chip industry are set to reunite on the STAR Market. On August 21, the Shanghai Stock Exchange formally accepted the IPO application from Yangtze Memory Technologies Co., Ltd., with CITIC Securities and CSC Financial serving as joint sponsors. The company plans to raise 33 billion yuan, marking the largest fundraising target since the STAR Market's inception.

From a 19.1 Billion Yuan Annual Loss to a 33.4 Billion Yuan Quarterly Profit

Founded in December 2016 and headquartered in Wuhan, Yangtze Memory is a semiconductor memory developer specializing in the design and manufacturing of 3D NAND flash memory as an IDM (Integrated Device Manufacturer), also offering complete memory solutions. According to its prospectus, the company experienced a dramatic financial turnaround after a difficult 2023. The net profit attributable to shareholders was -19.181 billion yuan in 2023, turned positive at 6.771 billion yuan in 2024, and surged to 14.211 billion yuan in 2025. Most notably, in the first quarter of 2026, the company recorded revenue of 47.042 billion yuan and a net profit attributable to shareholders of 33.379 billion yuan—approximately 2.35 times its full-year 2025 profit. The 33 billion yuan fundraising target also approaches the company's single-quarter profit figure.

29 Shareholders with No Controlling Stakeholder

Unlike CXMT, which was founded by renowned entrepreneur Zhu Yiming, Yangtze Memory is a state-led industrial project established by the National Integrated Circuit Industry Investment Fund (the "Big Fund") alongside Hubei and Wuhan state capital. It is not a private startup and has no traditional private founder. The company's first chairman was Zhao Weiguo, then-chairman of Tsinghua Unigroup, with Chen Nanxiang currently serving as chairman. The prospectus confirms that Yangtze Memory has neither a controlling shareholder nor an actual controller. Among its 29 pre-IPO shareholders, six hold stakes exceeding 5%: Hubei Changsheng Development (26.54%), Wuhan Xinfei Technology Industry Investment (25.35%), Big Fund Phase I (11.97%), Big Fund Phase II (11.38%), Wuhan Optics Valley Industry Investment (9.25%), and Hubei Guoxin Fund (5.90%). Together, these top six shareholders hold 90.39%, with the primary ultimate contributors being the Hubei SASAC, Wuhan SASAC, East Lake High-Tech Zone Administrative Committee, and the Big Fund—underscoring the dominance of state capital.

26 A-Share Companies Identified Through Three-Tier Penetration

According to data from Xiniu Data, a full equity penetration analysis of Yangtze Memory's 29 pre-IPO shareholders reveals that while none are themselves A-share listed entities, a three-tier penetration tracing identifies approximately 26 A-share listed companies with equity linkages to the company. This includes 109 limited partnership penetration records, with no direct listed shareholders.

Direct Investment: Five Major Banks' AIC Units Co-Invest

Similar to CXMT, Yangtze Memory has received direct investments from the asset investment subsidiaries (AICs) of China's five largest banks. Agricultural Bank of China (601288) through ABC Financial Asset Investment, China Construction Bank (601939) through CCB Financial Asset Investment, Bank of China (601988) through BOC Financial Asset Investment, Bank of Communications (601328) through BOCOM Financial Asset Investment, and ICBC (601398) through ICBC Financial Asset Investment each hold approximately 0.61% of pre-IPO shares, totaling about 3.05% collectively. Additionally, China Merchants Bank indirectly participates through CMB International's management of the Zhaoying Growth Fund (via a GP path), and Haitong Securities through its subsidiary Haitong Creative Capital's management of the CCTV Media Fund—both fund managers are unlisted but have A-share listed parent companies, forming another indirect route. The symbolic significance of this banking sector equity layout is substantial: for a capital-intensive semiconductor IDM historically reliant on bank loans, the major banking groups are not just creditors but now equity holders through their AIC arms. The simultaneous participation of all five major banks is exceptionally rare in China's semiconductor equity investment landscape.

Indirect Investment: 15 Companies via Fund LP Tier Penetration

Using Xiniu Data's MCP tools to query the LP information of 14 investment funds, indirect equity stakes were calculated by multiplying the fund's ownership percentage in Yangtze Memory by the LP's contribution ratio to the fund. Key findings include: Industrial Bank (601166) holds an indirect 1.5877% via Hubei Guoxin (through Industrial Trust's 26.91% LP stake); Yangyuan Beverage (603156), known for its "Six Walnuts" drinks, holds 0.9792% through Wenming Quanhong Fund (99.92% LP stake)—the largest indirect stake among listed company LPs; ICBC holds 0.6099% via Gongrong Jintou; China Mobile (600941) holds 0.6057% and 0.5576% through Big Fund Phase I and Phase II respectively; China Telecom (601728) holds 0.1700% and 0.0831%; China Unicom (600050) holds 0.1700% and 0.0558%; Dazhong Transportation (600611) holds 0.0533%; Guosen Securities (002736) holds 0.0299%; Haitong Securities (601211) holds 0.0269%; Sanan Optoelectronics (600703) holds 0.0120% and 0.0057%; and smaller stakes are held by New Guomai (600640), Shibei High-Tech (600604), Southern Media (601900), Arcvideo Technology (688039), and Oriental Pearl (600637). Notably, Yangyuan Beverage's nearly 100% holding of the Wenming Quanhong Fund means profits from "Six Walnuts" beverages have flowed into the world's third-largest NAND flash manufacturer.

Three Major Telecom Operators Enter Collectively

Penetration data reveals that China Mobile, China Telecom, and China Unicom all indirectly hold stakes in Yangtze Memory through Big Fund Phase I and Phase II. China Mobile Communications Group (parent) holds 5.06% of Big Fund Phase I, while its subsidiary Zhongyi Capital holds 4.90% of Big Fund Phase II, combining for approximately 1.16% indirect ownership. China Telecom and China Unicom similarly contribute through both group and subsidiary entities across the two fund phases, creating parallel investment paths. Additionally, China Telecom Group Investment Co., Ltd. directly serves as an LP in the CCTV Media Fund (10.77%), establishing a third independent penetration route.

Investment Landscape Overview

According to Xiniu Data, the penetration analysis of Yangtze Memory's 29 shareholders reveals a diverse range of investor types. The Big Fund (Phase I at 11.97% plus Phase II at 11.38%, totaling 23.35%) represents the largest institutional shareholder after state capital. State-owned and government funds include Hubei Changsheng (26.54%), Wuhan Optics Valley Industry Investment (9.25%), Yangtze River Industry Investment (2.53%), Hubei Guoxin (5.90%), and Shanghai State Capital Operation (0.18%), alongside Big Fund LPs such as the Ministry of Finance, China Development Bank Finance, China Tobacco, Wuhan Financial Control, Beijing E-Town, and Shanghai Guosheng. Bank AICs (Agricultural, Construction, Bank of China, Communications, and Industrial) each hold 0.61%, totaling 3.05%. The telecom operator group comprises China Mobile, China Telecom, and China Unicom, all indirectly invested via the Big Fund. Securities, trust, and banking entities include Haitong Securities Kaiyuan, Guosen Capital, Industrial International Trust, and CMB International. Professional investment funds include Wenming Quanhong (0.98%), CCTV Media Fund (0.15%), China Internet Investment Fund (0.12%), Zhaoying Growth (0.18%), and Gongrong Jintou (0.61%) among 14 funds. Xiniu Data has compiled a comprehensive "Yangtze Memory Listed Company Shareholder Penetration Report" based on its MCP and AI Agent tools.