Montage Technology Co.,Ltd. disclosed three announcements on Thursday, presenting a first-half performance forecast showing net profit could surge by up to 81.2% year-on-year. Concurrently, the Chairman and CEO proposed initiating an A-share buyback plan of up to 6 billion yuan and addressed an on-site investigation at its South Korean office.

The company anticipates first-half 2026 operating revenue of approximately 33.35 billion yuan, a year-on-year increase of about 26.6%. Net profit attributable to shareholders is forecast to be between 19 billion and 21 billion yuan, representing growth of 63.9% to 81.2%, continuing the high-growth momentum driven by demand in the AI industry chain.

Simultaneously, Chairman and CEO Yang Chonghe proposed that the company use its own funds to repurchase 3 billion to 6 billion yuan worth of its A-shares to safeguard the company's value and shareholder rights. This proposal follows a cumulative decline of over 20% in the company's A-share price across 20 consecutive trading days, which triggered the conditions for a buyback under relevant regulations.

Addressing the market's focus on the South Korean antitrust investigation, Montage Technology stated that its South Korean office was subject to an on-site search and evidence collection by South Korean prosecutors on July 15. The company clarified that neither the company nor its directors and employees have been accused of any misconduct by prosecutors or any government agency. Operations remain normal, and the company will continue to cooperate with the investigation, noting it is currently unable to predict the duration or final outcome.

Robust AI Demand Drives Performance via DDR5 and Interconnect Chips

Montage Technology attributed the significant first-half performance growth primarily to strong industry demand fueled by AI trends.

The company explained that, on one hand, as DDR5 penetration continues to increase and product iteration advances, shipments of DDR5 RCD chips have risen substantially, with the proportion of third and fourth-generation RCD chip shipments growing further.

On the other hand, revenue from new interconnect chip products, such as MRCD/MDB, PCIe Retimer, CKD, and CXL MXC, has seen significant growth.

The announcement showed that in the first half of 2026, the company's interconnect chip product line achieved sales revenue of approximately 31.11 billion yuan, a year-on-year increase of about 26.4%. Second-quarter sales revenue for this segment was about 16.94 billion yuan, up roughly 28.2% year-on-year and 19.5% quarter-on-quarter.

The company stated that operating revenue, gross profit, investment income, and gains from changes in fair value all increased compared to the same period last year, collectively driving the net profit higher.

Chairman's Buyback Proposal Reflects Confidence in Company Value

Alongside the earnings forecast, Montage Technology disclosed that Chairman and CEO Yang Chonghe has submitted a share buyback proposal to the board.

According to the announcement, as of July 16, the cumulative decline in the company's A-share price over 20 consecutive trading days exceeded 20%, meeting the trigger conditions for a buyback as stipulated by relevant Shanghai Stock Exchange self-regulatory rules.

Yang Chonghe expressed that the proposal is based on confidence in the company's future steady development and a high recognition of its value, aiming to use the company's own funds to repurchase a portion of A-shares to protect company value and shareholder interests.

The proposal suggests a total repurchase amount of no less than 3 billion yuan and no more than 6 billion yuan, funded by the company's own capital.

The repurchased shares are intended to be sold via centralized bidding after 12 months from the disclosure of the repurchase results and share change report, in accordance with relevant rules. If not sold within three years, they will be cancelled according to regulations. The proposed repurchase period is within 3 months after board approval of the plan.

However, the company also noted that the buyback matter still requires board review, and the final plan is subject to uncertainty.

Clarification on South Korean Probe: No Misconduct Allegations

Regarding the South Korean investigation, Montage Technology provided a specific explanation.

The company stated that on July 15, the Fair Trade Investigation Department of the Seoul Central District Prosecutors' Office in South Korea conducted an on-site search and evidence collection at its South Korean office concerning potential violations of antitrust regulations.

Montage Technology stated it is fully cooperating with the investigation. As of the announcement date, neither the company nor its directors and employees have been charged with any misconduct by the prosecutors' office or any government agency. Current operations are normal, and the company remains focused on product development and customer service.

As the case is still under investigation, the company is temporarily unable to predict the investigation timeline or outcome and stated it will fulfill its information disclosure obligations based on subsequent developments.