Performance Trough But Stock Price Hits New High: The "Contrast" of Storage Bull Stock Chengbang Shares in 2025

Just under a year after entering the consumer storage business, market demand shifted, leading to a significant expected increase.

In 2025, Chengbang Co., Ltd. (603316.SH) reached a new stock price high driven by the “storage chip” concept, but also experienced further performance decline due to ongoing losses in its original landscaping engineering business.

The 2025 annual report shows that in its first full year of semiconductor storage operations, Chengbang Co. achieved operating revenue of 504 million yuan, a 44.75% increase from the previous year; net profit attributable to the parent was a loss of nearly 120 million yuan, with the loss margin expanding by 20.23% year-over-year. According to Tonghuashun iFinD data, this marks Chengbang’s fourth consecutive year of losses, with the scale reaching a recent high.

Semiconductor storage accounts for nearly 70% of revenue, with product lines needing higher-end upgrades

From a business segment perspective, Chengbang mentioned that in 2025, the company adopted a strategy of moderately shrinking its ecological environment construction business while moderately expanding its semiconductor storage business.

In the same year, semiconductor storage revenue was 340 million yuan, a 207.88% increase year-over-year, accounting for 67.61% of the company’s total operating income, making it “the company’s main business.” This segment generated a net profit of 9.33 million yuan attributable to the parent.

Chengbang entered the semiconductor storage sector in 2024. In October of that year, Chengbang invested 58 million yuan to increase its stake in Dongguan Xincunchengbang Technology Co., Ltd. (hereinafter “Xincun Technology”) to 51.02%, officially entering the semiconductor storage track.

Xincun Technology has lived up to expectations; according to financial reports, its net profit grew from 933,800 yuan in 2024 to 18.28 million yuan in 2025, achieving exponential growth.

In recent years, benefiting from rapid development of downstream AI applications, storage demand has surged, making this sector a hot topic in capital markets. After Chengbang announced this news, its stock price also rose amid volatility. According to Tonghuashun iFinD data, the stock has increased by over 300% since the announcement, reaching a record high of 17.89 yuan per share on November 14, 2025.

Cross-industry entry has led the market to view Chengbang’s valuation through a “storage company filter,” making its business quality highly scrutinized.

It is disclosed that Xincun Technology’s main products are semiconductor memory, including solid-state drives, portable storage, embedded storage, etc. These products are widely used in consumer electronics, mobile smart devices, PCs, industrial terminals, data centers, smart vehicles, and mobile storage.

From this product positioning, Xincun Technology’s offerings focus on consumer-grade storage products with lower gross margins. Comparing performance with industry peers, one can also glimpse differences in product positioning. Rough estimates based on Xincun Technology’s 2025 performance indicators suggest a net profit margin of about 5.38%.

Beiwei Storage (688525.SH) disclosed that in 2025, it achieved total revenue of 11.296 billion yuan, a 68.72% increase; net profit attributable to the parent was 867 million yuan, a 437.56% increase. Based on this, its net profit margin is approximately 7.68%.

Looking ahead to 2026, storage chips are expected to further take off. Beiwei Storage’s information shows that in the first two months of 2026, revenue reached 4 billion to 4.5 billion yuan, a year-over-year increase of 340.00% to 395.00%; net profit attributable to the parent is projected to be 1.5 billion to 1.8 billion yuan, a year-over-year increase of 921.77% to 1086.13%.

The outlook for storage remains optimistic. A recent report from Southwest Securities pointed out that with AI large model technology iterating beyond expectations, global token consumption is exploding, driving massive data storage, processing, and retrieval needs, ushering in a super cycle for the storage industry.

Southwest Securities noted that after overcapacity and excessive capital expenditure in the last cycle, current expansion efforts are more cautious. High-end HBM storage chips face long cleanroom construction cycles and yield ramp-up difficulties, leading to tight supply in the short term. Under the backdrop of demand explosion and rigid supply, market forecasts from CFM Flash suggest that storage prices will continue to rise overall in 2026.

Chengbang is also actively seeking to increase product technological content and thresholds. In response to investor questions from September to October 2025, the company stated it is planning to invest in R&D of enterprise-level SSDs, industrial/automotive-grade embedded storage, and other high-tech storage chips, while gradually expanding its customer base in data centers, smart vehicles, and other frontier applications.

In August 2025, Chengbang disclosed a private placement plan to raise 129 million yuan for expanding embedded storage chip production and upgrading high-end SSDs.

In November, the company invested in Yixin Technology and jointly established Chengxin Intelligent (Hangzhou) Technology Co., Ltd., with Chengbang holding a 55% stake with a capital contribution of 5.5 million yuan.

Regarding this investment, Chengbang stated: “Based on Xincun Technology’s chip packaging and testing, storage module R&D and manufacturing, the company will leverage cooperation with Yixin Technology to integrate relevant resources, attempt to extend upstream in the industry chain to control chips, enterprise-level SSDs, and memory modules, broaden business channels and product matrix, and enhance the company’s technological level and R&D capabilities.”

Additionally, from a financial perspective, Chengbang’s major shareholder has seen frequent changes over the past year, especially in Q4. Tonghuashun iFinD data shows that three private equity products entered the top ten shareholders simultaneously in Q4, while two other private funds reduced holdings. By the end of 2025, five of the top ten shareholders are private equity products, with the other five being individuals.

Chengbang’s top ten shareholders as of the end of 2025, source: Tonghuashun iFinD

Storage sector’s boom cannot offset losses from landscaping business

Despite growth in the semiconductor storage segment, as mentioned in the annual report, the net profit from this part of the business is still insufficient to offset losses from the other major segment, ecological environment construction.

Chengbang’s annual report states that due to local government impacts from the downturn in the real estate sector and other factors, local fiscal funds are tight, leading some local governments to reduce municipal landscaping investments. Customer payment ability declined, causing project settlement delays and revenue decline.

In 2025, Chengbang’s ecological environment construction segment achieved revenue of 162 million yuan, down 31.17% year-over-year. The report also shows that new orders in this segment decreased by 72.85 million yuan, a 30.88% drop from the previous year.

The company explained that this performance decline was due to industry environment and strategic contraction, leading to lower revenue and gross profit in the segment; provisions for receivables and other assets impairments under accounting standards; and the impact of the loan market quotation rate (LPR) changes on PPP projects, which triggered investment return adjustments, increasing financial expenses; as well as a reduction in deferred tax assets, increasing tax expenses.

Detailed disclosures show that in 2025, the gross profit of Chengbang’s ecological environment construction segment was negative, approximately -10.61%. As of the end of 2025, the company still had total orders worth 270 million yuan, including 90.48 million yuan in signed contracts not yet started and 180 million yuan in ongoing projects not yet completed.

This loss trend in the segment clearly impacts Chengbang’s valuation. As previously mentioned, receivables impairments are a significant factor. A company representative told Caifu News that whether the company can turn losses around or reduce them will depend on collections, noting that in 2025, cash flow turned positive, with active collections in Q1, and the outlook remains positive.

It is also worth noting that some investors have proposed divesting the business on interactive platforms. Chengbang responded that: “The original environmental construction business will gradually shrink, and the company will further evaluate the feasibility of further contraction or divestment.”

Chengbang’s response to investor inquiries on the platform

In its strategic section of the annual report, Chengbang also stated that it will maintain a moderate contraction of the ecological environment construction business in the future, while focusing resources on expanding the semiconductor storage business, enlarging its scale, and improving profitability.