DeMingLi Posts Q1 Net Profit of 3.346 Billion Yuan, Swinging From Loss to Profit Year-Over-Year

DeMingLi Q1 Report: Revenue Surges Fivefold, Net Profit Exceeds 3.3 Billion Yuan

According to 36Kr, Shenzhen DeMingLi Technology Co., Ltd. (hereinafter referred to as "DeMingLi") recently disclosed its first quarter report for 2026. The report shows that the company achieved revenue of 7.538 billion yuan in Q1, a year-over-year increase of 502.08%. Net profit attributable to listed company shareholders reached 3.346 billion yuan, compared to a loss of 69.0877 million yuan in the same period last year, marking a remarkable swing from loss to profitability and a qualitative leap in performance.

Key Financial Data Analysis

From a financial perspective, DeMingLi's performance this quarter can only be described as "stunning." Revenue soared from approximately 1.25 billion yuan in the same period last year to 7.538 billion yuan, an increase of more than fivefold, indicating that the company's core business has entered a high-growth trajectory. More critically, net profit surged from a loss of nearly 70 million yuan in the same period last year to 3.346 billion yuan, with a net profit margin of approximately 44.4%, demonstrating exceptional profitability.

This pace of growth is rare even within the semiconductor industry, reflecting a fundamental improvement in the company's operations driven by multiple factors including product mix optimization, market expansion, and an industry-wide upturn in demand.

Industry Background and Growth Drivers

DeMingLi's explosive performance is closely tied to the current upcycle in the broader semiconductor industry. As global demand for AI computing power continues to surge, sectors such as memory chips and high-performance computing chips are experiencing a new wave of peak demand. The training and inference needs of large AI models have driven a sharp increase in demand for High Bandwidth Memory (HBM) and various storage solutions, directly boosting order volumes and product prices for upstream chip design and packaging & testing companies.

As a company deeply rooted in integrated circuit design and sales, DeMingLi's strategic positioning in the memory chip space has placed it squarely in the sweet spot of this AI-driven industrial upgrade cycle. The company's products are widely used in consumer electronics, data centers, smart terminals, and other sectors. Fueled by the AI wave, market demand has been robust and order volumes have surged significantly.

At the same time, improved supply-demand dynamics in the industry have pushed up average selling prices, enabling the company to achieve significant improvements in both gross and net profit margins alongside rapid revenue expansion, ultimately resulting in explosive profit growth.

Future Outlook

Looking ahead to the coming quarters, DeMingLi is well-positioned to continue benefiting from chip demand growth driven by AI infrastructure buildout and the proliferation of on-device AI applications, amid the sustained boom in the global AI industry. However, investors should also be mindful of potential uncertainties such as intensifying industry competition, geopolitical risks, and fluctuations in downstream demand.

Whether DeMingLi can sustain such strong growth momentum in the quarters ahead will depend on the company's overall competitiveness in areas such as R&D, customer acquisition, and supply chain management. The impressive Q1 report card has undoubtedly laid a solid foundation for full-year performance and injected greater confidence into the market.