ChangXin Memory (长鑫科技) founder pledges 768 million shares to employees as IPO nears on Shanghai sci‑tech board

Founder pledge and long lock‑up

ChangXin Memory Technologies (长鑫科技集团股份有限公司, commonly 长鑫科技) has disclosed in its Sci‑Tech Innovation Board (科创板) IPO prospectus that founder and chairman Zhu Yiming (朱一明) will allocate 768 million of his shares to company employees within 10 years after listing, the filing shows. It has been reported that Zhu holds 1.598 billion shares in total — roughly 2.6561% of the company — with portions held indirectly via several entities. He has also reportedly agreed to a 10‑year post‑listing lock‑up on his holdings, followed by a further 10 years during which annual sell‑downs will be capped at 20% per year, creating an effective 20‑year horizon for any significant divestment.

Why hand such a large block to employees? The move is framed as a long‑term incentive to retain and reward technical staff as the firm scales DRAM production. It also signals commitment to management continuity ahead of what promises to be one of China’s largest semiconductor listings in recent years.

Financials, IPO size and use of proceeds

It has been reported that ChangXin posted revenues of RMB 50.8 billion (508 亿元) in January–March 2026, with net profit around RMB 33.0 billion (330.11 亿元) and adjusted net profit attributable to the parent of roughly RMB 26.3 billion (263.41 亿元). The company reportedly forecasts H1 2026 revenues of RMB 110–120 billion and net profit attributable to owners of RMB 50–57 billion — eye‑popping year‑on‑year increases by the company’s account. The prospectus states the IPO aims to raise about RMB 29.5 billion (295 亿元) to fund wafer manufacturing upgrades, DRAM technology projects and forward‑looking R&D.

These figures come from company filings and media reports; investors will be watching both the audit details and demand at pricing.

Strategic and geopolitical context

ChangXin’s rise comes amid intensified global scrutiny of semiconductor supply chains. For Western readers: DRAM (dynamic random‑access memory) is a foundational component for servers, PCs and AI hardware. China’s push to build domestic DRAM capacity has accelerated after years of export controls and broader tech decoupling driven by U.S. and allied trade policies. That context helps explain Beijing’s tolerance for long employee incentives and extended founder lock‑ups — policy priorities favor supply‑chain resilience and talent stability.

It has been reported that the Shanghai Stock Exchange’s listing committee is scheduled to review ChangXin’s IPO on May 27. If approved, the deal will be a landmark test of investor appetite for large, homegrown memory plays as Beijing seeks to reduce dependence on foreign suppliers.