On the evening of July 20th, the domestic niche memory chip leader, Dosilicon Co.,Ltd. (SH: 688110), released its preliminary financial results for the first half of 2026. The announcement indicates that the company achieved substantial growth in both revenue and net profit for the period, with its second-quarter profit reaching a record high since its listing.

According to the disclosure, for the period from January to June 2026, Dosilicon expects to achieve operating revenue between 1.49 billion yuan and 1.53 billion yuan, representing a year-on-year increase of 334.41% to 346.07%. The company anticipates net profit attributable to shareholders of between 640 million yuan and 680 million yuan, with non-GAAP net profit turning from a loss to a profit. If the impact of a one-time share-based compensation expense of approximately 39 million yuan in the first half is excluded, the profitability of the company's core operations would be further enhanced.

The quarterly data is particularly impressive. Based on calculations, the company's net profit for the second quarter of this year is estimated to reach between 502 million yuan and 542 million yuan. This represents an increase of over 260% compared to the first quarter and a significant turnaround from the loss recorded in the same period last year.

Regarding the reasons for the performance changes, the company stated that the growth primarily benefits from a reshaping of the supply-side landscape in the niche memory market. Unlike the market structure for general-purpose memory (high-capacity DRAM/NAND), the niche memory (small-to-medium capacity) sector is encountering new development opportunities.

As overseas original manufacturers like Micron and Kioxia adjust their product portfolios and exit niche markets such as SLC NAND to focus on high-performance HBM and high-capacity storage products, a supply gap that is difficult to fill in the short term has emerged in the global supply chain. Leveraging its long-term expertise in SLC NAND, NOR Flash, and small-to-medium capacity DRAM, as well as its accumulated customer validation in areas like automotive-grade and industrial control applications, the company has successfully captured related market share. Its core products have experienced both volume and price increases, driving a significant improvement in profitability.

Market analysts suggest that the trend of supply contraction in the niche memory market is expected to continue in the second half of the year. Coupled with support from downstream demand, industry prosperity is likely to remain at a high level.