Giantec's profit surge is one-off; core business weakens as HK listing refiled
Core profit falls nearly 50% despite headline gain First-half net profit jumped 156% to 525 million yuan, but that came almost entirely from a 432-471 million yuan paper gain on SJ Semiconductor shares. Strip that out and core profit fell 47.3% to 93.47 million yuan, showing the actual chip business is weakening.
This is the key counterweight: the headline profit is not from operations, so investors should not read it as business strength.
Controlling shareholder camp cashed out over 1 billion yuan Entities tied to actual controller Chen Zuotao sold 4.12 million shares in late 2025 and April 2026, raising over 1 billion yuan. Chen was also publicly reprimanded twice by the Shenzhen exchange over related-party issues at another company, a governance red flag.
Insider selling and governance concerns weigh on investor confidence and can pressure the stock.
Hong Kong IPO refiled after first prospectus lapsed The initial Hong Kong listing application lapsed in July, but the company quickly refiled on July 28. A successful H-share listing could bring fresh capital and liquidity, but the lapse and refiling also signal uncertainty and extra cost.
The refiling is a new capital-markets event that could affect financing and sentiment, though the outcome is still uncertain.
Memory chip shipments grow in autos and industrial control The interim report showed rapid shipment growth for high-reliability memory chips used in automotive electronics and industrial control. This is the real operating bright spot, though it was not enough to stop core profit from falling.
It shows where actual business demand is improving, giving a fair picture alongside the weak core profit.