GigaDevice Semiconductor (603986) Q2 2026 earnings summary

Executive summary

• Achieved revenue of RMB 11.57 billion, up 178.67% year-over-year, with net profit attributable to shareholders of RMB 6.86 billion, up 1,091.50% year-over-year, driven by strong demand and price increases in memory chips.

• Storage chip business saw both volume and price increases, with DRAM and SLC NAND Flash leading growth; MCU and analog chip lines also expanded, while sensor revenue declined due to smartphone market weakness.

• Company expanded product lines, launched new EEPROM and MLC NAND Flash, and continued to invest in R&D, with R&D expenses up 40.72% year-over-year.

• Maintained robust global supply chain and deepened ESG initiatives, including significant charitable contributions and enhanced employee training.

Financial highlights

• Operating income: RMB 11.57 billion, up 178.67% year-over-year.

• Net profit attributable to shareholders: RMB 6.86 billion, up 1,091.50% year-over-year.

• Operating cash flow: RMB 6.05 billion, up 531.47% year-over-year.

• Gross margin improved due to higher product prices and favorable product mix.

• Non-recurring gains (mainly fair value changes in investments): RMB 1.97 billion.

Outlook and guidance

• Company expects continued tight supply and price increases in memory products, with plans to further expand market share in Flash, DRAM, and MCU segments.

• Focus on high-growth areas such as automotive, AI, and industrial applications, with ongoing R&D in new product lines including MLC NAND and high-performance MCUs.

• Will continue to strengthen supply chain resilience and digitalization, and pursue international expansion via A+H dual listing platforms.