Dosilicon Co Ltd

Dosilicon released its 2026 semi-annual report, achieving operating revenue of 1.497 billion yuan, up 336.44 percent year on year, and net profit attributable to shareholders of the listed company of 659 million yuan, swinging to a profit, while gross margin jumped from less than 19 percent in the same period last year to 67.66 percent. The company said the sharp reversal in performance was mainly due to the surge in AI computing power demand prompting overseas memory manufacturers to accelerate their exit from the niche market, with supply continuing to shrink, while downstream demand in network communications, industrial control and other areas recovered steadily, and the widening supply-demand gap drove product prices up sharply. While the memory main business recovered strongly, the company continued to advance its integrated strategy of storage, computing and connectivity. Wi-Fi 7 chip research and development and the strategic investment in GPU company Shanghai Lisuan are still in the investment phase, with the latter confirming an investment loss of about 41.59 million yuan during the reporting period. The company stressed that the significant improvement in profitability of its main memory business is sufficient to support and cover the impact of the above strategic investments on short-term profit. The board of directors also approved the 2026 interim profit distribution and capital reserve conversion plan, proposing to distribute a cash dividend of 6 yuan per 10 shares before tax to all shareholders, totaling about 264 million yuan in cash, accounting for 40 percent of net profit attributable to the parent company for the period, while converting 4.9 shares for every 10 shares from capital reserve, totaling about 216 million shares. On the same day, Dosilicon disclosed plans to use 682 million yuan of over-raised funds to build a storage, computing and connectivity integrated chip research and development project with a construction period of about 42 months. The project will integrate memory chips, connectivity chips and computing chips into a single chip through advanced packaging technology to create low-power embedded system-on-chip intelligent computing chips that can be applied in smart homes, industrial Internet of Things and other fields. Research and development expenses account for as much as 75.4 percent of the total project investment, reaching 514 million yuan, which will be used for wafer tape-outs, packaging and testing trial production, and expansion of the research and development team. The company believes that as generative large models migrate toward lightweight deployment on terminal devices, demand for on-device intelligent computing will continue to grow, and the company's existing complete NAND, NOR and DRAM storage solutions and Wi-Fi 7 research and development accumulation can provide coordinated storage, computing and connectivity support for the new project. After the project is completed, it will enrich the company's product structure, promote the company's expansion from a memory chip supplier to a provider of smart chips and solutions, and enhance its overall competitiveness. However, Dosilicon cautioned that competition in the integrated circuit design industry is fierce, and the new project involves high technical complexity and a long development cycle, so there are still risks that research and development progress may fall short of expectations or even fail.

Dosilicon announced that it plans to use 682 million yuan of over-raised funds to invest in the construction of an integrated storage-compute-connect chip research and development project, with a construction period of about 42 months. The project will integrate storage chips, connectivity chips, and computing chips into a single chip through advanced packaging technology, creating a low-power embedded system-on-chip intelligent computing chip that can be applied in areas such as smart homes and industrial Internet of Things. After the project is completed, it will enrich the company's product structure, promote the company's expansion from a storage chip supplier to a provider of intelligent chips and solutions, and enhance overall competitiveness. The matter has been approved by the board of directors and still needs to be submitted to the shareholders' meeting for review.

On the evening of August 21, multiple listed companies on the Shanghai and Shenzhen stock exchanges issued announcements. Among them, the IPO review status of Yangtze Memory Technologies Co., Ltd. on the STAR Market was changed to accepted, with a planned fundraising amount of 33 billion yuan. Zhongji Innolight reported semi-annual net profit attributable to the parent of 13.651 billion yuan, up 241.7 percent year on year, and plans to distribute 12 yuan per 10 shares. Yangtze Optical Fibre and Cable reported semi-annual net profit attributable to the parent of 2.925 billion yuan, up 888.88 percent year on year, and plans to distribute 10.6 yuan per 10 shares. Dongshan Precision Manufacturing reported semi-annual net profit attributable to the parent of 2.957 billion yuan, up 290.09 percent year on year. Zijin Mining Group reported semi-annual net profit attributable to the parent of 39.17 billion yuan, up 68.17 percent year on year, and plans to distribute 4.2 yuan per 10 shares. Sea Gull Housing's controlling shareholder Zhongyu Investment plans to transfer 20 percent of the company's shares to Botai Chelian, and 5.01 percent of the shares to Fuqing Yaohong. The company's controlling shareholder will change to Botai Chelian, and the actual controller will change to Ying Zhenkai. Trading in the shares will resume on August 24. Zoneco Group plans to list and transfer an 18 percent stake in Amur Company with a reserve price of 108 million yuan. Dosilicon plans to invest 682 million yuan to build a storage-computing integrated chip research and development project. In addition, Guolian Minsheng President Ge Xiaobo resigned, and Wang Jinling will act as president. Harbin Investment and Longjian Road and Bridge also saw changes in their board secretaries.

Over the past week, STAR Market companies have been sending a flurry of positive signals. More than 30 companies announced new share buyback plans or progress updates, over 20 disclosed their 2026 half-year earnings forecasts with most reporting upbeat results, and several others signed major contracts or revealed R&D breakthroughs. The semiconductor supply chain is showing a cluster of strong performances. Puya Semiconductor expects first-half net profit attributable to the parent of about 825 million yuan, a more than 19-fold increase year-on-year. Dosilicon expects between 640 million and 680 million yuan, swinging from a loss to a profit. Yuanjie Technology expects net profit attributable to the parent of 600 million to 650 million yuan, up about 12-fold. Lianxun Instruments expects 510 million to 580 million yuan, up over 8-fold. Amlogic expects about 608 million yuan, up 22 percent. China Micro Semicon expects about 165 million yuan, up 91 percent, covering segments from memory and optical chips to SoCs. In biopharma, OPM Biosciences expects revenue of about 450 million yuan, up roughly 1.5 times, and net profit attributable to the parent of about 124 million yuan, up around 229 percent. In new energy and new materials, Minmetals New Energy and Oulai New Materials both expect to swing from losses to profits in net profit attributable to the parent. In the low-altitude economy, AVIC UAS expects revenue of 1.58 billion to 1.68 billion yuan, a more than 2.6-fold increase. On the buyback front, Montage Technology plans to repurchase 300 million to 600 million yuan worth of shares. Kingsoft Office has set a buyback cap of 500 million yuan and has already repurchased about 75 million yuan. Segway-Ninebot has cumulatively repurchased about 220 million yuan. Hoymiles Power Electronics' buyback ratio has exceeded 1 percent. Baimtec Material completed about 100 million yuan in buybacks using over-raised funds. Wasion Information completed 50 million yuan in buybacks. Controlling shareholders of Puya Semiconductor and Biwin Storage have proactively proposed buybacks. Market participants say the intensive buybacks and positive earnings forecasts reflect the growing quality of hard-tech companies and the accelerating release of industrial clustering effects.

Dosilicon stated in its investor relations record released on July 3 that in the second quarter, benefiting from overseas original manufacturers exiting the niche memory market, supply contracted while downstream demand continued to recover, leading to an upward trend in niche memory product prices. The company expects that the market price of niche memory chips will maintain an upward trend in the second half of the year, and noted that wafer foundry capacity remains tight, with overall foundry prices rising. Dosilicon adopts a fabless model and is orderly increasing production and inventory buildup for its major memory product lines. It also disclosed that the first self-developed GPU chip professional card from its invested company, Lisuan Technology, has begun delivery, and consumer-grade graphics cards are now publicly available for sale. The company's stock price closed at 178.8 yuan on July 3, up 1.53 percent, after hitting a nearly one-year high during the session.

Dongxin Shares indicated that the price increase trend for niche memory products continued in the second quarter, and prices are expected to keep rising in the second half of the year. JPT plans to acquire 100% equity in NEOPTICS for 1.12 million Singapore dollars through a wholly owned subsidiary, aiming to strengthen its optical connectivity business. South Korea, together with companies like Samsung and SK, has launched a 312 trillion won investment plan, focusing on the semiconductor and aerospace industries. The National Medical Products Administration plans to include eligible cell and gene therapy drugs in the 30-day review and approval channel for innovative drug clinical trials. Alibaba has completely banned internal use of Claude Code starting July 10 due to the risk of implanted backdoors. This week, the Shanghai Stock Exchange conducted focused monitoring of stocks with abnormal fluctuations such as CSSC Special Gas, Changyingtong, and Yunzhong Technology, as well as funds with high premiums like Caitong Fuxin LOF and Global Chip LOF. Deutsche Bank estimates that Meta's cloud business could generate additional revenue of 9 billion to 30 billion US dollars by 2027. Huaqin Technology signed a framework sales contract for special functional materials for aircraft fuselages worth approximately 278 million yuan. Sun-Novo plans to raise no more than 240 million yuan for nucleic acid drug platform construction. Rushen Robotics and InnoMab completed Pre-A round financing of 100 million yuan and several hundred million yuan, respectively.