Montage Technology Co.,Ltd. (ASX: 688008) issued a late-night announcement stating that its office in South Korea was subject to an on-site search and evidence collection by prosecutors.

The company disclosed that on July 15, the Fair Trade Investigation Department of the Seoul Central District Prosecutors' Office conducted the search at its Korean office concerning potential violations of antitrust regulations.

The announcement clarified that the company is fully cooperating with all investigative requests from the prosecutors. It stated that neither the company nor its directors and employees have been charged with any misconduct by the prosecutors' office or any other government authority.

Given that the case is still in the investigation phase, Montage Technology noted it is currently unable to predict the duration or outcome of the probe. The company emphasized that its operations remain normal and that it continues to focus fully on product development and customer service.

Montage Technology is a fabless integrated circuit design company dedicated to providing innovative, reliable, and energy-efficient interconnect solutions for cloud computing and AI infrastructure. Its current primary product lines are interconnect chips and its "Jindi" product series.

In a separate announcement on the evening of July 16, Montage Technology released a preliminary earnings forecast. Based on initial calculations by its finance department, the company expects to achieve operating revenue of approximately RMB 33.35 billion for the first half of 2026, representing a year-on-year increase of about 26.6%. It forecasts non-GAAP net profit between RMB 12.50 billion and RMB 14.50 billion, a rise of 14.5% to 32.9%.

Simultaneously, the company expects its net profit attributable to shareholders for the first half of 2026 to be in the range of RMB 19.00 billion to RMB 21.00 billion, an increase of 63.9% to 81.2%. After excluding the impact of share-based payment expenses, the adjusted net profit attributable to shareholders is projected to be between RMB 20.80 billion and RMB 22.80 billion, growing 56.1% to 71.1%.

Montage Technology attributed the significant expected growth in its operating performance for the first half of 2026 primarily to the rapid development of the AI industry, which continues to drive robust demand.

On one hand, with the increasing penetration rate of DDR5 and its ongoing generational iterations, the shipment volume of the company's DDR5 RCD chips has increased significantly. The shipment proportion of its third- and fourth-generation RCD chips has further risen.

On the other hand, revenue from the company's new interconnect chip products, including MRCD/MDB, PCIe Retimer, CKD, and CXL MXC chips, has seen a notable climb.

Additionally, Yang Chonghe, Chairman and CEO of Montage Technology, submitted a proposal to the company's board on July 16 regarding a share buyback of the company's A-shares.

Yang Chonghe proposed that Montage Technology use its own funds to repurchase a portion of its A-shares through centralized bidding transactions, with the total repurchase amount ranging from RMB 3 billion to RMB 6 billion.

As of the market close on July 16, Montage Technology's A-share price was RMB 211.13 per share, marking a decline of 16.44%, with a total market capitalization of RMB 2600 billion.