Lianxun Instrument Shares Plunge 14%, Market Cap Down Over RMB 90 Billion; Changxin Technology Falls 4.08% on
Lianxun Instrument shares closed down 14% on July 28, with market capitalisation shrinking by over RMB 90 billion from its peak, after rising 10% the previous day. Changxin Technology, which surged 465.82% on its debut on July 27, fell 4.08% on its second trading day. Lianxun Instrument reported Q2 2026 net profit of RMB 391-461 million, up 228%-287% quarter-on-quarter. The company holds a 9.9% share in China's optical communication test instrument market, ranking third.
As of the close on July 27, Changxin Technology debuted at RMB 49 per share, surging 465.82% for the day, giving it a total market capitalisation of RMB 3.31 trillion. On the same day, Lianxun Instrument rose 10%. On July 28, Lianxun Instrument fell as much as 18% intraday, while Changxin Technology opened 7.71% lower before recovering some losses. They closed down 14% and 4.08%, respectively.
Lianxun Instrument reported a net profit attributable to shareholders of RMB 119 million for the first quarter of 2026. Based on this, its second-quarter net profit is estimated at RMB 391 million to RMB 461 million, representing a quarter-on-quarter increase of 228% to 287%.
Lianxun Instrument's main businesses are electronic measuring instruments and semiconductor testing equipment. In 2023, 2024 and the first three quarters of 2025, these two product lines together accounted for over 90% of total revenue. Among them, revenue from testing products for the optical communications sector has consistently exceeded 70% of total revenue, rising from about RMB 200 million in 2023 to RMB 558 million in 2024, and further to RMB 629 million in the first three quarters of 2025.
According to Frost & Sullivan, in 2024, overseas companies held about 84% of China's optical communication test instrument market, while domestic firms accounted for about 16%. Lianxun Instrument held a 9.9% market share in China, ranking third and being the only domestic company among the top five. Its main competitor, Keysight (formerly the electronic measurement business of Hewlett-Packard), held about 31% of the market. In fiscal 2024, Keysight reported revenue of approximately USD 5.375 billion and net profit of USD 850 million. Lianxun Instrument's total revenue for 2025 was about RMB 1.194 billion, with net profit attributable to shareholders of RMB 174 million.
Lianxun Instrument has a total share capital of 102.6667 million shares, of which 19.2961 million shares are tradable, representing a free float of 18.79%. Two rounds of lock-up share expirations are scheduled for the end of October 2026 and April 2027, with the single April 2027 release accounting for over 30% of total share capital.
From 2022 to 2024 and the first three quarters of 2025, Lianxun Instrument's top five customers accounted for 42.64%, 52.81%, 44.21% and 36.94% of total sales, respectively, with no single customer exceeding 50%. Major customers include Zhongji Innolight, Eoptolink, Accelink, Hisense Group, Huagong Zhengyuan, Saili Technology and Lumentum.
Lianxun Instrument's accounts receivable rose from RMB 82.46 million at the end of 2022 to RMB 563 million at the end of the first quarter of 2026, an increase of over 525%. Its inventory balance grew from RMB 70.73 million at the end of 2022 to RMB 751 million at the end of the first quarter of 2026, an increase of over 910%.
Other domestic manufacturers of memory device testing equipment include Rigol, Siglent, Changchuan Technology, Huafeng Test & Control and Liandong Technology, most of which are still in the early stages of research and development or industrialisation, with a gap in high-speed products. Domestic companies lag behind overseas leaders by five to eight years in high-speed sampling algorithms and RF baseband chips.