GigaDevice Semiconductor Interim Profit Surges 1,092%, Driven by Tight Memory Supply and Hong Kong Listing Proceeds

Bulletin Express
08/18

GigaDevice Semiconductor (GigaDevice) released its 2026 interim report showing a sharp turnaround in profitability as memory prices rebounded and capacity expanded.

Revenue jumped 178.67% year-on-year to RMB 11.57 billion, propelled by a 245.44% rise in memory-chip sales and a 49.07% increase in MCU revenue. Gross profit reached RMB 7.30 billion, lifting the gross margin to 63.1% from 37.2% a year earlier.

Net profit attributable to shareholders soared 1,091.50% to RMB 6.86 billion. Excluding non-recurring items, core profit grew 796.90% to RMB 4.88 billion. A RMB 2.23 billion fair-value gain on equity investments—mainly the revaluation of its CXMT stake—also supported the bottom line.

Operating cash inflow rose more than sixfold to RMB 6.05 billion, while cash and bank balances expanded to RMB 16.96 billion. The company’s January Hong Kong listing injected a net HK$5.31 billion, boosting capital reserves to RMB 13.80 billion.

Memory remained the growth engine. NOR Flash revenue benefited from AI-related demand in smartphones, PCs and autos; niche DRAM and SLC NAND saw volume and price increases after overseas suppliers cut 2D capacity. Automotive-grade shipments continued to climb, with cumulative flash deliveries topping 450 million units and automotive MCUs exceeding 10 million units.

R&D spending grew 40.72% to RMB 966 million, representing 8.35% of revenue. During the half, the company filed 83 new invention patents and launched new 4 Gb/8 Gb SLC NAND, 1.2 V ultra-low-power NOR Flash, and high-performance GD32H7 MCUs.

At mid-year, total assets stood at RMB 42.41 billion, up 98.1% from end-2025, while the gearing ratio edged up to 11.5%. Inventories rose 36.47% to RMB 4.18 billion as the company secured additional wafer capacity to meet demand.

Looking ahead, GigaDevice plans to repurchase up to RMB 2 billion of A shares, subject to shareholder approval on 20 August 2026, and will seek approval on 9 September 2026 for a new 2026 H-share award scheme to retain talent and align interests.

No material contingencies were reported after 30 June 2026.

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