Demingli expects a net profit of 3.6 billion in the first quarter, surpassing the total of the past 9 years. The stock price has increased by 34 times, and Li Hu's net worth has grown by 27.75 billion.

Yangtze Business Daily news ●Yangtze Business Daily reporter Shenyourong

A huge breakout! Global storage prices have continued to rise, and A-share company Demingli (001309.SZ) has seen explosive growth in performance.

On the evening of March 31, Demingli released its 2026 first-quarter performance forecast. The company expects to achieve operating revenue of RMB 7.3 billion—RMB 7.8 billion in the first three months of 2026, a year-on-year surge of 483.05%—522.98%; it expects to realize net profit attributable to shareholders of RMB 3.15 billion—RMB 3.65 billion, compared with a loss of RMB 69.0877 million in the same period last year, an explosive increase of 4659.42%—5383.14%.

With the highest profit reaching RMB 3.65 billion, up nearly 54 times, the information Demingli is sending to the market is astonishing enough.

Yangtze Business Daily reporter calculated roughly: single-quarter earnings of RMB 3.65 billion are 5.31 times Demingli’s full-year 2025 net profit attributable to shareholders, and 2.64 times the sum of net profit attributable to shareholders from 2017 to 2025 over nine years.

In 2025, Demingli’s operating performance also showed rapid growth. In that year, the company’s net profit attributable to shareholders was RMB 688 million, nearly doubling versus the previous year.

In the first quarter of 2026, why is Demingli’s operating performance so strong? The company explained that it has continuously focused on its storage core business; industry sentiment has kept improving; storage prices have kept rising; and the company’s forward-looking layout has pushed the profit level up significantly.

In the secondary market, since Demingli’s listing in July 2022, its share price has累计 risen by about 34 times (calculated using post-adjustment for dividends and splits).

With the share price soaring, Demingli’s actual controller, Li Hu, is the biggest winner. Based on its shareholding ratio, Li Hu’s current wealth from holding shares is about RMB 28.6 billion, which is RMB 27.75 billion more than the amount at Demingli’s initial public offering.

Profit surges amid a storage super cycle

Under the storage super cycle, Demingli’s first-quarter performance forecast is startling.

According to the performance forecast, in the first quarter of 2026, Demingli expects to achieve operating revenue of RMB 7.3 billion—RMB 7.8 billion, up 483.05%—522.98% year on year; it expects net profit attributable to shareholders of RMB 3.15 billion—RMB 3.65 billion, up 4659.42%—5383.14% year on year.

Judging from the announcement, Demingli’s year-over-year surge in net profit attributable to shareholders stems from its main business. The company expects its profit after deducting non-recurring gains and losses (non-GAAP) in the first quarter to be RMB 3.14 billion—RMB 3.64 billion, basically in line with net profit attributable to shareholders; the year-on-year growth rate is also as high as 4288.98%—4956.01%.

Earnings expected to exceed RMB 3 billion in a single quarter is, for Demingli, downright crazy.

Previously, Demingli’s disclosed annual report showed that in 2025, the company achieved operating revenue of RMB 10.79B, up 126.07%; net profit attributable to shareholders and non-GAAP profit were RMB 688 million and RMB 668 million, respectively, up 96.35% and 120.77%; performance delivered rapid growth at a high speed.

By comparing historical performance, it was found that in 2025, Demingli’s revenue and net profit had both reached historical highs.

Demingli listed on China’s A-share market in July 2022. Before listing, the company’s annual earnings had not exceeded RMB 100 million. In 2022 and 2023, the company’s operating revenue was RMB 1.19B and RMB 1.78B, respectively, up 10.27% and 49.15%; net profit attributable to shareholders was RMB 67 million and RMB 25 million, respectively, and compared with operating revenue, net profit attributable to shareholders was not strong.

In 2024, Demingli’s operating performance showed signs of a breakout. Its operating revenue reached RMB 4.77B, up 168.74%; net profit attributable to shareholders was RMB 351 million, up 1302.30%.

In 2025, the company’s operating revenue continued to multiply, net profit attributable to shareholders nearly doubled, and non-GAAP profit grew by 1.21 times.

Comparing it reveals that the upper end of Demingli’s expected profit in the first quarter of 2026 is 5.31 times the company’s full-year 2025 figure, and 2.64 times the sum of net profit attributable to shareholders from 2017 to 2025.

In 2026, why can Demingli’s operating performance achieve a strong start in the form of a huge breakout?

Demingli explained that the company rolled out differentiated, customized storage solutions around areas including data centers, consumer electronics, and industrial control; market expansion continued to make breakthroughs, and product shipment volumes increased. Meanwhile, against a backdrop of tight supply, industry sentiment has kept rising and storage prices have continued to climb. Relying on its ample prior strategic reserves of raw materials, the company significantly improved its profit level.

Forward-looking procurement and inventories increase by RMB 2.6 billion

Demingli’s expected blowout performance in the first quarter is related to the company’s forward-looking procurement of materials.

Demingli is a professional provider of storage controller chips and solutions. Its core capabilities come from long-term deep cultivation in the research and development of independently controllable storage controller chips and firmware solutions, as well as their industrialized applications.

Forward-looking procurement lies in Demingli’s ability to anticipate the rise in storage market conditions. The company’s financial reports already show clear evidence of提前备货. By the end of 2025, the company’s inventory balance reached RMB 7.06B, accounting for 65.05% of the company’s total assets; it increased by RMB 2.62B year on year, an increase of 59.11%.

Demingli is stockpiling inventory with borrowed funds. By the end of 2025, the company’s short-term interest-bearing liabilities were RMB 4.66B, up RMB 2.64B from the end of the previous year.

Being able to seize the rare market opportunity is also related to Demingli’s own market competitiveness. After years of accumulation, Demingli has built a dual-wheel support system of “hard tech + soft services.” It has mastered core technologies for the R&D of independently controllable controller chips, while also forming core technologies for firmware solution sets and mass-production optimization tools, strengthening the technical foundation of its solutions. On this basis, the company has continued to deepen its end-to-end layout from “core technologies at the bottom layer to end application scenarios,” promoting a transformation and upgrade of its business model from pure product sales to scenario-based, customized solution services, so that storage modules become an important carrier for deploying solutions and providing customers with one-stop, end-to-end storage solution services.

As its operating scale grew rapidly, Demingli accelerated integration into the industry ecosystem. In 2025, some embedded products of the company had already completed deep adaptation with domestic SoC platforms such as Unisplendour Ziguang and Rockchip; for enterprise-level products, it completed certification as a partner within the Feitian ecosystem, completed mutual compatibility certifications for OpenCloudOS and Tencent Cloud technologies, joined the Hygon industry ecosystem cooperation organization (i.e., the “OpenHarmony” organization), joined China Mobile’s “Qianfan” ecosystem alliance, becoming a technical activity unit of the Xinchuanggongwei committee; and it carried out joint testing and long-term ecosystem adaptation with mainstream domestic CPU platforms such as Feitian, Loongson, Zhaoxin, and Hygon, as well as operating systems such as UnionTech, Kylin, and Center for Industrial and Data Technology.

Demingli’s R&D spending has also continued to grow. In 2017, the company’s R&D spending was only RMB 7.7954 million; in 2025, R&D spending reached RMB 292 million.

In the secondary market, Demingli’s share price has previously surged significantly. The company’s issue price in its IPO was RMB 26.54 per share. On April 1, 2026, the share price reached RMB 417.67 per share intraday. Affected by the release of performance that exceeded expectations, the company’s share price pulled back on April 1 and April 2. Even so, based on the post-adjusted share price, since listing, Demingli’s cumulative share price gain has still been as high as about 34 times.

With the share price rising sharply, Demingli’s actual controller, Li Hu, is the biggest winner. Currently, Li Hu directly holds 35.01% of the company’s equity. His wealth from holding shares is about RMB 28.6 billion, which is RMB 27.75 billion more than the RMB 852 million at the time of Demingli’s listing and issuance.

Visual China photo

Editor: ZB

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