Demingli Reports Strong H1 Performance with Net Profit Up 196%-266%

The company said its second-quarter net profit performance was affected by multiple factors, including higher expenses, increased R&D investment, higher provisions from capacity construction, and elevated share-based payment costs. The company has actively increased strategic reserves, maintaining ample inventory. Customer expansion spending has risen, while enterprise-grade storage, embedded storage, and memory businesses remain in an accelerated expansion phase. These products have long certification cycles and require substantial upfront adaptation testing, leading to higher R&D and administrative expenses. Investments made during the business expansion phase have begun to contribute gradually in the second quarter, and the company continues to achieve high growth, driven by new businesses such as enterprise-grade storage and memory modules.