Dosilicon Co.,Ltd. (ASX: 688110) has released its preliminary financial results for the first half of 2026, forecasting a net profit attributable to shareholders of between 640 million yuan and 680 million yuan. This represents a substantial turnaround from a loss in the same period last year, with an increase of approximately 7.51 billion to 7.91 billion yuan year-on-year.

The company attributes the strong performance to the sustained surge in demand for AI computing power and the enhanced competitiveness of domestic niche storage technologies. Concurrently, major overseas memory manufacturers have accelerated their exit from the niche market, leading to a noticeable contraction in supply. Meanwhile, demand from downstream applications such as network communications, industrial control, and automotive electronics has steadily recovered, further widening the supply-demand gap for niche memory chips.

This dynamic has created a structurally tight market for the memory chips that Dosilicon Co.,Ltd. operates in, resulting in a sharp increase in product market prices. The company successfully capitalized on these favorable market conditions, achieving both volume and price increases for its storage business, with SLC NAND Flash as a key representative product. This drove a significant rise in operating revenue for the first half and led to a substantial improvement in overall gross margin, which in turn significantly boosted profitability.

On a quarterly basis, the company's performance shows a continuous positive trend. Revenue for the second quarter increased by 110.85% to 119.20% compared to the first quarter. Furthermore, the net profit attributable to shareholders for Q2 surged by 262.81% to 291.74% quarter-on-quarter, indicating a sustained enhancement in profitability.