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Chinese chipmaker Yuanjie’s profit surges on AI demand
Shaanxi-based laser chip maker Yuanjie Semiconductor Technology said first-quarter net profit rose 1,153% year on year to 179 million yuan (US$26.2 million).
Revenue climbed 321% to 355 million yuan (US$52 million) in the three months ended March 31.
The growth was driven by surging demand for computing power amid the AI boom and the country’s push for tech self-reliance
Yuanjie listed in Shanghai in 2022 and its shares have risen about elevenfold over the past year to 1,418 yuan (US$210), giving it a market value of 121.8 billion yuan (US$17.8 billion).
The move made Yuanjie the second company on the Star Market to trade above 1,000 yuan (US$150) after Cambricon Technologies and pushed it past Kweichow Moutai as China’s priciest stock.
🔗 Source: South China Morning Post
🧠 Food for thought
Implications, context, and why it matters.
Profit growth is racing ahead of sales
- Yuanjie Semiconductor posted a 1,153% rise in first-quarter net profit, far above its 321% revenue gain. That gap suggests profit improved from more than a jump in sales volume 1.
- The result also hints at healthier margins, as higher-margin products added more to earnings than to top-line growth 1.
Investors are backing China’s tech names
- Yuanjie’s stock has climbed about elevenfold over the past year. At 1,418 yuan (US$210) a share, it moved past liquor maker Kweichow Moutai as China’s most expensive stock 1.
- That rerating suggests investors are putting more money into domestically listed tech groups in strategic fields such as semiconductors, which they see as tied to the country’s future growth 1.
- The jump also made the Shanghai Stock Exchange’s STAR Market, a Nasdaq-style board for science and technology companies, home to a second stock above 1,000 yuan (US$150) after AI chip designer Cambricon Technologies. That adds to its place as a venue for domestic tech firms 1.
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