On January 22, GigaDevice simultaneously released two key announcements: a pre‑earnings growth forecast and a board resolution, highlighting robust financial performance while unveiling an expansion of its DRAM business, signaling strong confidence in the memory market.
According to the preliminary earnings forecast, GigaDevice expects 2025 net profit attributable to shareholders of about RMB 1.61 billion, representing year‑over‑year growth of approximately 46% (an increase of roughly RMB 510 million). Non‑GAAP net profit is projected at about RMB 1.42 billion, up about 38% (an increase of around RMB 390 million), while revenue is estimated at RMB 9.203 billion, rising about 25% (an increase of roughly RMB 1.847 billion). All three core financial metrics point to strong, steady growth.
GigaDevice attributed the performance to the combined effects of technological innovation, a favorable industry cycle, and effective execution of its strategy. Technologically, rapid development in AI computing has significantly boosted demand, benefiting the company’s products for PCs, servers, and automotive electronics. Industry‑wise, the memory sector is in an upcycle with improving supply‑demand dynamics. GigaDevice has continued to increase R&D investment, expand into emerging markets, and enhance product competitiveness, driving business diversification and providing a solid foundation for earnings growth.
The board resolution disclosed several strategic moves:
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Approval for GigaDevice and its controlled subsidiaries to purchase DRAM products manufactured by ChangXin Memory Technologies (CXMT) and its subsidiaries, with expected related‑party transaction volume of $221 million (approx. RMB 1.547 billion) in the first half of 2026, securing stable DRAM supply.
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A plan to allocate RMB 500 million from its A‑share IPO proceeds to increase capital in its wholly‑owned subsidiary Zhuhai Hengqin Core Memory Semiconductor Co., Ltd., which will then inject RMB 30 million and RMB 50 million, respectively, into its wholly‑owned subsidiaries Hefei Core Memory Semiconductor Co., Ltd. and Xi’an Core Memory Semiconductor Co., Ltd., specifically for DRAM project implementation. Post‑capital increase, Zhuhai Core Memory’s registered capital will rise from RMB 100 million to RMB 150 million, while Hefei Core Memory and Xi’an Core Memory will increase to RMB 40 million and RMB 70 million, respectively, with full ownership maintained.
ICgoodFind: GigaDevice’s strong earnings reflect industry tailwinds, and its RMB 500 million investment in DRAM will further strengthen its position in the memory sector, supporting the upgrade of China’s domestic memory industry.
