During the 2025 Annual and 2026 First Quarter Earnings Conference held on May 26, Shannon Semiconductor Technology Co.,Ltd.'s General Manager Li Xiaohong projected that the tight supply-demand situation for memory chips would be difficult to alleviate in 2026, with prices expected to remain at elevated levels.
On May 27, Shannon Semiconductor disclosed detailed content from the earnings conference, covering topics such as the reasons for its Q1 2026 performance growth, customer structure, in-house R&D strategy, and trends in the memory industry. As of the market close on May 27, Shannon Semiconductor's stock price was 192.72 yuan per share, down 1.13%, with a total market capitalization of 90.49 billion yuan.
Regarding the reasons for the company's strong Q1 2026 performance, Shannon Semiconductor's CFO Su Zejing stated that the growth was primarily driven by its electronic component distribution business. For the full year 2025 and Q1 2026, Shannon Semiconductor's net profit attributable to shareholders was 5.45 billion yuan and 13.27 billion yuan, representing year-on-year increases of 106.23% and 7,835.06%, respectively. This indicates that the company's profitability in Q1 2026 far exceeded that of the entire previous year. Shannon Semiconductor had previously announced that the significant performance growth was mainly due to factors such as rising prices of memory products.
Currently, Shannon Semiconductor has established a dual-pillar development model of "Distribution + Products." Its electronic component distribution business primarily includes data memory products supplied by SK Hynix. Li Xiaohong noted that the company is one of SK Hynix's agents in the Chinese market. As memory chip prices have increased, the company's sales profits have risen correspondingly.
Some investors raised concerns about the risk of changes in the agency agreement. Li Xiaohong emphasized that Shannon Semiconductor maintains a long-term cooperative relationship with SK Hynix, and the agency rights are stable. Investors also inquired about the composition of Shannon Semiconductor's inventory and whether existing inventory had achieved book value appreciation due to product price increases. Su Zejing clarified that, as of the end of Q1 2026, the company's inventory mainly consisted of newly procured products.
Strong market demand has kept memory chips in a price-up cycle. Investors questioned whether Shannon Semiconductor would consider extending its inventory holding period to capture more appreciation gains. Su Zejing responded that the company prioritizes customer needs and formulates procurement and sales plans based on its operational risk management.
For 2026, Shannon Semiconductor plans to increase its focus on its in-house brand, Haipu Storage. Su Zejing anticipates significant growth in both revenue and net profit for Haipu Storage in 2026. Li Xiaohong stated that Haipu Storage is the company's self-developed brand and a key strategic focus. Shannon Semiconductor will gradually allocate strategic resources to Haipu Storage to capitalize on the favorable market conditions in the memory chip sector and enhance revenue and profitability.
Investors inquired about the impact of Haipu Storage on Shannon Semiconductor's revenue and profits. Li Xiaohong projected that Haipu Storage's revenue would account for 10% of Shannon Semiconductor's total operating revenue in 2026. When asked about expectations for Haipu Storage's revenue in the first half of 2026, Li Xiaohong forecasted significant growth during that period, suggesting a notable shift in Shannon Semiconductor's revenue structure for Q2 2026.
According to the 2025 annual report, Haipu Storage has completed the R&D and production of enterprise-grade memory products such as DDR4, DDR5, and Gen4 eSSD, which can be applied in areas like cloud computing storage (data center servers). Li Xiaohong mentioned that the development of Shannon Semiconductor's enterprise-grade SSD products is progressing smoothly, with validation and large-scale sales already achieved with major domestic computing equipment manufacturers. Su Zejing added that Alibaba, Tencent, and ByteDance are key clients of Shannon Semiconductor, and revenue from these customers is expected to grow substantially in 2026.