[News] YMTC Eyes Record RMB 33B STAR Market IPO Fundraising; 1Q26 NAND Gross Margin Surges to 78.73%
Following CXMT’s IPO, Yangtze Memory Technologies (YMTC) has also had its STAR Market IPO application accepted. According to 21jingji, YMTC plans to raise RMB 33 billion. Of the proceeds, RMB 20.8 billion will be invested in upgrading its mass-production lines to optimize existing manufacturing processes and improve chip yields and production capacity, while another RMB 12.2 billion will be earmarked for advanced technology R&D and other projects.
The planned fundraising amount disclosed in YMTC’s prospectus exceeds CXMT’s RMB 29.5 billion and SMIC’s RMB 20 billion, making it the largest proposed fundraising in STAR Market history, as STAR Market Daily notes.
As noted by TechNews, preliminary figures in YMTC’s latest prospectus point to a strong financial turnaround. After turning profitable for the first time in 2024, the company generated RMB 47.04 billion in revenue in 1Q26, with net profit reaching RMB 33.38 billion.
The sharp earnings growth has been fueled by the current memory chip price upcycle. As noted by CHINAFUND, YMTC’s prospectus shows that its overall gross margin rose from 32.49% in 2024 to 35.30% in 2025, before surging to 76.77% in 1Q26. Its NAND Flash gross margin reached 78.73% in the quarter. As noted by National Business Daily, YMTC’s average NAND Flash selling price rose 172.72% in 1Q26 from the 2025 full-year average, while memory chip ASPs surged 218.00%.
However, YMTC’s product mix remains focused primarily on consumer NAND, while major rivals such as SK hynix and Samsung are more concentrated on higher-value products. YMTC therefore still has significant room to improve in areas including sales revenue and product positioning, 21jingji adds.
State-Backed Ownership and a Potential RMB 3 Trillion Valuation
The filing also details YMTC’s ownership structure, with state-backed industry funds and local development entities holding most of its shares. As noted by TechNews, Hubei Changsheng is the largest shareholder with a 26.54% stake, followed by Xinfei Technology at 25.35%. China’s National Integrated Circuit Industry Investment Fund, or the Big Fund, holds 11.97% through its first-phase fund and 1.38% through its second-phase fund, with the remainder held by smaller strategic investors and employee shareholding platforms.
CXMT is currently the largest A-share listed company by market capitalization, with a total market value approaching RMB 4 trillion. As noted by 21jingji, YMTC, whose STAR Market IPO application is currently under review, is estimated to reach a market capitalization of around RMB 3 trillion after listing. This would put the two Chinese memory giants at a combined market value of roughly RMB 7 trillion.
Read more
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- [News] YMTC Reportedly Invests in SOI Micro, Backing an Alternative Chipmaking Approach Without EUV
(Photo credit: YMTC)
