Shannon New Chip Projects Strong Profit Growth in H1 2026

Shannon New Chip, a China-based technology firm, has released its earnings forecast for the first half of 2026, projecting a substantial increase in profits. The company expects net profit attributable to shareholders to range between 3.5 billion and 4 billion yuan, marking a year-on-year increase of 2117.54% to 2434.34%.

The company also indicated that net profit after deducting non-recurring items is projected to be between 3.39 billion and 3.89 billion yuan, reflecting a growth of 2073.15% to 2393.67% compared to the previous year. Founded in 1998, Shannon New Chip's core businesses involve the distribution of electronic components and investments in the semiconductor ecosystem.

The projected growth is driven by several market factors. Increased demand related to artificial intelligence (AI) has led to a sustained rise in the need for enterprise storage products within data centers. This has maintained high demand in the storage chip industry, resulting in a steady increase in product prices compared to the prior year. Shannon New Chip's electronic component distribution business has seen an improvement in its gross profit margin, significantly boosting the company's overall profitability.

Furthermore, the company's proprietary brand, "Haipu Storage," has entered a large-scale sales phase. This business segment has benefited from increased domestic demand for customized and localized enterprise storage solutions. The 'Haipu Storage' business has demonstrated substantial improvements in revenue and profitability compared to the previous year, contributing positively to the company's overall financial performance for the reporting period.

Shannon New Chip anticipates these trends to continue, with sustained strong demand for enterprise storage solutions fueled by AI applications and data center expansion.