Shenzhen memory module maker MacroSquare posted RMB 3.84 billion in four month net profit while running an RMB 2.69 billion operating cash outflow, capital hoarded in memory chips that may not keep rising.
MacroSquare Electronics is a Shenzhen-based independent memory-module maker that buys DRAM and NAND wafers from Samsung, SK hynix and Micron and resells them as finished modules. For the first four months of 2026, the company posted RMB 3.84 billion in net profit, a 3,020.8% surge over RMB 123 million in the same window of 2025. Revenue rose 186% to RMB 8.01 billion. Gross margin, per the company's Hong Kong Stock Exchange application proof, jumped from 13.8% to 62.0% as DRAM prices per gigabyte rose from RMB 12.24 to RMB 34.98.
The same four months produced an operating cash outflow of RMB 2.69 billion, roughly RMB 6 in cash leaving the business for every RMB 10 in reported profit. The gap between earnings and cash is structural: the company spent the period hoarding inventory ahead of further wafer-price spikes, adding RMB 3.76 billion in stock on its balance sheet. As long as DRAM and NAND prices keep rising, the inventory is worth more than it cost. If they turn, it is the impairment risk the prospectus flags.
The Hong Kong Stock Exchange application proof, refiled July 3, 2026, is a second submission after the initial January 2 filing and the first disclosure of these four-month figures. Sole sponsor CITIC Securities will have to defend them in front of investors who will ask how durable a 62% gross margin is when wafer prices have risen more than 30% month-over-month in some DRAM product lines.
Taiwanese NAND controller-chip leader Phison Electronics disclosed on December 2, 2024 plans to sell its roughly USD 171 million stake in MacroSquare, a transaction covered in Phison's investor-relations materials and separately reported. Phison is not a financial investor. It is the world's leading independent NAND flash controller maker and a long-standing supplier of the controller silicon inside MacroSquare's products. When a strategic partner whose entire business depends on NAND demand decides the timing is right to exit, the implication for the cycle is bearish.
MacroSquare's headline 3,020% number also obscures a scale gap the prospectus itself quantifies. Independent module makers have no fabs; they buy wafers from Samsung, SK hynix and Micron and pay for packaging and testing as outsourced services. Wafer-original manufacturers, the companies that actually produce the NAND and DRAM silicon, retain more than 95% of the global storage market. MacroSquare itself, at 2025 revenue of RMB 11.24 billion (about USD 1.6 billion), is the world's fifth-largest independent module maker and China's second-largest. Kingston Technology, the world's largest, generated roughly USD 10.6 billion in 2025 revenue, a 6.6-times gap. MacroSquare's share of the global all-storage market, including the wafer companies, sits at about 0.6%.
The company's prospectus warns this profile is cyclical. It calls out that memory industry downturns, including the 2022-2023 downcycle when MacroSquare posted a full-year net loss of RMB 118 million, have materially hurt the business before. Inventory and goodwill impairment are listed as downside risks. The 2026 four-month ASP spike that drives 62% gross margins is, in the prospectus's own framing, the kind of upcycle whose reversal it warns about.
Two narrative threads the prospectus leans on also have limited current support. The first is the self-developed controller story. Revenue in the "Other" category, which includes the company's own controller chips, came to RMB 54.6 million in 2025, or 0.5% of total revenue, with eight self-developed controller models still in sampling, tape-out or front-end design rather than mass production. The second is the enterprise and automotive pivot the prospectus frames as strategic. Consumer end-markets accounted for 99.6% of 2025 revenue; enterprise was 0.1% and automotive 0.3%.
The bet is on memory prices. MacroSquare has built an inventory machine that pays for wafers first and collects cash later. As long as DRAM and NAND keep climbing, the gross margin is real and the cash outflow is deferred revenue. As soon as they flatten, the same machine produces the 2022-2023 outcome the prospectus lays out. Phison's December 2024 decision to sell its stake is one strategic partner's read on that bet. The July 3, 2026 refiling gives Hong Kong investors the next chance to do the same.