Demingli Says Operations Strong, Net Profit Up 196%-266% Year-on-Year

Second-quarter net profit performance was affected by multiple factors, including rising expenses, increased R&D investment, higher provisions from capacity construction, and increased share-based payment costs. The company is actively increasing strategic reserves and maintains ample inventory. Customer acquisition spending has increased, and businesses such as enterprise-grade storage, embedded storage, and memory modules are still in an accelerated expansion phase. These products have long certification cycles and high upfront adaptation testing costs, resulting in increased R&D and administrative expenses. The corresponding investments made during the business expansion period began to gradually contribute in the second quarter, and the company still maintains a relatively high growth rate driven by new businesses such as enterprise-grade storage and memory modules.