Shannon Semiconductor Technology Co., Ltd. is a semiconductor distributor operating in China. It provides products and solutions for industries including autonomous driving, finance, and manufacturing. The company was formerly known as Anhui Julong Transmission Technology Co., Ltd. It was incorporated in 1998 and is headquartered in Xuancheng, China.
Blowout profit forecast met with sell-off as memory chip rally cools
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First-half profit forecast surges over 2,000% Shannon Semiconductor expects net profit of 3.5–4.0 billion yuan for H1 2026, up 2,117%–2,434% year-on-year. The company credits high memory chip demand, rising prices, better distribution margins, and its own 'Haipu Storage' brand entering mass sales. This is a fundamental positive that supports the stock's value.
The earnings pre-announcement is the core new fundamental event driving the stock's narrative.
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Stock plunges 20% despite strong earnings On July 17, Shannon Semiconductor hit the daily 20% limit-down even after the huge profit forecast. Investors had already pushed the stock up in a months-long rally, and the good news was priced in. This shows how high expectations can turn positive news into a sell signal.
This is the key new market reaction that explains why the stock is moving down despite good news.
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Memory chip sector tumbles, dragging stock down On July 13 and 16, memory chip stocks fell sharply. Demingli hit limit-down twice, and Shannon Semiconductor dropped nearly 20% on July 13. Weakness in US memory stocks like Micron also weighed on sentiment. Sector-wide selling pressure pulled the stock lower.
Sector-wide weakness is a major force pushing the stock down, separate from company-specific news.
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Industry outlook still strong but price increases slow Analysts maintain that memory chip supply will stay tight through at least late 2027, supporting long-term demand. However, memory price increases slowed in June, and some companies like Demingli warned of quarter-on-quarter profit declines. This creates uncertainty about how long the boom can last.
This provides the necessary counterweight: the long-term story is intact but near-term momentum may be fading.
Q3 2026
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Blowout profit forecast met with sell-off as memory chip rally cools
▲
First-half profit forecast surges over 2,000% Shannon Semiconductor expects net profit of 3.5–4.0 billion yuan for H1 2026, up 2,117%–2,434% year-on-year. The company credits high memory chip demand, rising prices, better distribution margins, and its own 'Haipu Storage' brand entering mass sales. This is a fundamental positive that supports the stock's value.
The earnings pre-announcement is the core new fundamental event driving the stock's narrative.
▼
Stock plunges 20% despite strong earnings On July 17, Shannon Semiconductor hit the daily 20% limit-down even after the huge profit forecast. Investors had already pushed the stock up in a months-long rally, and the good news was priced in. This shows how high expectations can turn positive news into a sell signal.
This is the key new market reaction that explains why the stock is moving down despite good news.
▼
Memory chip sector tumbles, dragging stock down On July 13 and 16, memory chip stocks fell sharply. Demingli hit limit-down twice, and Shannon Semiconductor dropped nearly 20% on July 13. Weakness in US memory stocks like Micron also weighed on sentiment. Sector-wide selling pressure pulled the stock lower.
Sector-wide weakness is a major force pushing the stock down, separate from company-specific news.
◆
Industry outlook still strong but price increases slow Analysts maintain that memory chip supply will stay tight through at least late 2027, supporting long-term demand. However, memory price increases slowed in June, and some companies like Demingli warned of quarter-on-quarter profit declines. This creates uncertainty about how long the boom can last.
This provides the necessary counterweight: the long-term story is intact but near-term momentum may be fading.
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Critical Materials & Supply Chain▲
Tianqi Lithium's first-half net profit exceeds 4.2 billion yuan, up over 4900% year-on-year
Tianqi Lithium released its first-half results, with net profit reaching 4.242 billion yuan, up 4925.46% year-on-year. In addition, Kaierda's first-half net profit was 28.269 million yuan, up 1095.3% year-on-year; Shannon Core Innovation's net profit was 3.642 billion yuan, up 2207.2% year-on-year; Demingli's net profit was 6.017 billion yuan, turning from loss to profit year-on-year, and it plans a share conversion of 4 shares for every 10 shares with a dividend of 15 yuan. Xinwei Communication plans to acquire 55% equity of Yiyang Electronic Technology for 1.1 billion yuan. Supor's net profit was 868 million yuan, down 7.7% year-on-year.
Today, multiple listed companies released their 2026 half-year reports. Fenghua Advanced Technology announced first-half revenue of 3.5 billion yuan, up 26.28% year-on-year, with net profit attributable to shareholders of 290 million yuan, up 74.01% year-on-year. Second-quarter net profit was 202 million yuan, up 127% quarter-on-quarter. SMIC reported first-half net profit of 4.467 billion yuan, up 94.2% year-on-year, mainly due to increased wafer sales, higher average selling prices, and changes in product mix. Tianqi Lithium reported first-half net profit of 4.242 billion yuan, up 4,925.46% year-on-year. Shannon Semiconductor reported first-half net profit of 3.642 billion yuan, up 2,207.2% year-on-year. In addition, CICC's share swap merger with Dongxing Securities and Cinda Securities was approved by the Shanghai Stock Exchange, and WuXi AppTec's sale of WuXi XDC equity assets is expected to affect 2026 pre-tax profit by approximately 3.143 billion yuan.
000636.CS · Capital · Positive First-half net profit up 74.01% year-on-year, Q2 net profit up 127% quarter-on-quarter.
002466.CS · Capital · Positive First-half net profit up 4,925.46% year-on-year.
300475.CS · Capital · Positive First-half net profit up 2,207.2% year-on-year.
0981-OL.HK · Capital · Positive SMIC reported first-half net profit up 94.2% year-on-year due to increased wafer sales, higher ASPs, and product mix.
603259.CG · Capital · Negative Sale of WuXi XDC equity assets expected to affect 2026 pre-tax profit by approximately 3.143 billion yuan.
2268.HK · Capital · Negative WuXi AppTec's sale of WuXi XDC equity assets is expected to affect 2026 pre-tax profit by approximately 3.143 billion yuan.
Shannon Xinchuang Plans to Acquire 3% Stake in Haiwei Intelligent Computing and Co-invest
Shannon Xinchuang announced that it plans, together with related party Huang Zewei and others, to jointly acquire a 29% stake in Haiwei Intelligent Computing held by Su Xin. The company will acquire a 3% stake for 150,000 yuan, corresponding to a subscribed capital contribution of 3 million yuan, with 150,000 yuan actually paid, and will assume the obligation to pay the remaining 2.85 million yuan in subscribed capital. This transaction constitutes a related-party joint investment, does not constitute a major asset restructuring, and aims to explore business synergy opportunities.
300475.CS · Capital · Positive Shannon Xinchuang plans to acquire a 3% stake in Haiwei Intelligent Computing for 150,000 yuan as a related-party joint investment to explore business synergy.
海威智算 · Capital · Neutral Haiwei Intelligent Computing is the target of a 29% stake acquisition by Shannon Xinchuang and related parties; impact on the company itself is unclear.
Shannon Semiconductor Technology's first-half net profit attributable to parent reaches 3.64 billion yuan, up 2207.2% year-on-year
Shannon Semiconductor Technology released its 2026 interim report, with first-half net profit attributable to the parent company of 3.64 billion yuan, up 2207.2% year-on-year. Operating revenue was 60.2 billion yuan, up 251.6% year-on-year; net profit attributable to the parent after deducting non-recurring items was 3.53 billion yuan, up 2163.5% year-on-year; net operating cash flow was 5.731 billion yuan, up 1250.3% year-on-year; earnings per share were 7.7555 yuan. In the second quarter, operating revenue was 36.44 billion yuan, up 295.3% year-on-year, and net profit attributable to the parent was 2.31 billion yuan, up 1540.0% year-on-year. As of the end of the second quarter, total assets were 31.404 billion yuan, up 183.3% from the end of the previous year, and net assets attributable to the parent were 7.139 billion yuan, up 99.7% from the end of the previous year. The company said revenue from its electronic components distribution business grew 239.44% year-on-year, while revenue from its Haipu Storage business grew 996.19% year-on-year. The latter's profit share increased by 17.76 percentage points year-on-year, while the former's share decreased by 23.09 percentage points, indicating that the business structure is changing.
Shannon Semiconductor Innovation posts first-half net profit of 3.642 billion yuan, up 2207.2% year on year
Shannon Semiconductor Innovation released its 2026 semi-annual report on August 27. During the period, it achieved operating revenue of 60.204 billion yuan, up 251.6% year on year. Net profit attributable to shareholders of the listed company was 3.642 billion yuan, up 2207.2% year on year.
China AI Stocks’ 1,000%-Plus Profit Gains Fail to Revive Rally
China’s artificial intelligence companies are poised to deliver robust earnings, but elevated expectations after a months-long rally are raising the bar for tech stocks to climb further. A number of companies along the chip supply chain have flagged profit surges easily topping 1,000% in their preliminary reports, yet stock moves have been mixed, suggesting investors have already priced in exponential earnings growth. The CSI 300 Information Technology Index, which tracks semiconductor and electronic component makers listed on the mainland, has retreated recently after gaining 80% in the June quarter, and its valuation has risen to 36 times one-year forward earnings from 28 times in April. Shares of Shannon Semiconductor Technology Co. dropped by the daily limit of 20% after it flagged earnings growth of more than 2,000%, while Shenzhen Techwinsemi Technology Co. slumped by the daily limit of 10% following a forecast of as much as 5,600% in net income growth for the first half. Memory chipmaker Shenzhen Longsys Electronics Co. flagged a profit increase topping 62,200%, and although its shares rose 10% on the day, they have since erased all gains.
Demingli hits limit-down for second straight day as memory concept stocks plunge
Memory leader Demingli opened at limit-down again during the call auction on July 16, marking its second consecutive limit-down day, with its latest market capitalization at 135.24 billion yuan. Tianshan Electronics fell over 10 percent, while Montage Technology, Shannon Semiconductor, GigaDevice, and Longsys were among the leading decliners. Earlier, Demingli released its first-half earnings forecast, projecting revenue of 16 billion to 18 billion yuan, a year-on-year increase of 289.39 percent to 338.06 percent, and net profit attributable to shareholders of 5.7 billion to 6.5 billion yuan, a surge of 4,932.74 percent to 5,611.02 percent. However, second-quarter net profit is expected to decline 5.74 percent to 29.65 percent quarter-on-quarter. Overnight, US memory chip stocks tumbled, with Micron Technology, SanDisk, and Western Digital all dropping over 8 percent, while South Korea's SK Hynix and Samsung Electronics also fell sharply. BOCOM International noted that memory price increases slowed marginally in June, but maintained its view that the industry supply shortage will persist at least through the fourth quarter of 2027.
MU · Demand · Negative US memory chip stocks tumbled overnight, with Micron dropping over 8%, reflecting slowing memory price increases and demand concerns.
SNDK · Demand · Negative SanDisk dropped over 8% overnight as memory stocks fell on slowing price increases.
WDC · Demand · Negative Western Digital dropped over 8% overnight amid a broad memory stock selloff.
300475.CS · Demand · Negative Memory concept stocks plunge, with Shannon Semiconductor among leading decliners, reflecting weak demand sentiment.
301308.CS · Demand · Negative Longsys is a leading decliner in the memory stock rout, indicating negative demand outlook.
301379.CS · Demand · Negative Tianshan Electronics fell over 10% as part of the memory concept stock plunge, signaling weak demand.
Bank Stocks Buck the Downtrend While Memory Chip Sector Tumbles
China's A-share market saw all three major indices decline in the morning session on July 13, with the Shenzhen Component Index and the STAR Composite Index both falling more than 2%. Over 4,500 stocks across the market ended in the red. The memory chip sector suffered a sharp pullback, with Demingli hitting its daily limit down, Shannon Core Innovation plunging 19.93%, and Puya Semiconductor and Beijing Junzheng both dropping over 11%. Bank stocks bucked the trend and moved higher, with Bank of Suzhou surging over 6%, Bank of Ningbo rising over 4%, and Industrial and Commercial Bank of China and Bank of Communications gaining more than 2%. The total dividends of 41 banks for the 2025 fiscal year exceeded 645.6 billion yuan, setting a new record. The traditional Chinese medicine sector saw a short-term spike, with Longshen Rongfa hitting its 20% daily limit up and Tianmu Pharmaceutical reaching its 10% daily limit up. The State Council recently approved the 15th Five-Year Plan for the Revitalization and Development of Traditional Chinese Medicine.
300534.CS · Regulation · Positive State Council approved 15th Five-Year Plan for TCM revitalization, boosting sector; Longshen Rongfa hit 20% limit up.
Shannon Semiconductor: First-Half Net Profit Expected to Rise 2,117.54%–2,434.34% Year-on-Year
Shannon Semiconductor disclosed its earnings forecast, expecting net profit attributable to the parent company for the first half of 2026 to be between 3.5 billion and 4 billion yuan, representing a year-on-year increase of 2,117.54% to 2,434.34%. During the reporting period, the memory chip industry maintained high prosperity, with prices of related products rising steadily compared to the same period last year. The company's comprehensive gross margin for its electronic component distribution business improved year-on-year, driving a significant increase in profitability. Meanwhile, the company's proprietary brand 'Haipu Storage' continued to advance its related business and entered the large-scale sales phase.
Xiangnong Xinchuang expects first-half net profit of 3.5 billion to 4.0 billion yuan, up over 21 times year-on-year
Xiangnong Xinchuang released its first-half performance pre-increase announcement, expecting net profit of 3.50 billion to 4.00 billion yuan, a year-on-year increase of 2117.54% to 2434.34%. Securities Times Data Treasure statistics show that the stock closed at 271.00 yuan today, up 1.13%, with a daily turnover rate of 9.65%, trading volume of 11.919 billion yuan, and a 2.55% increase over the past five days. In terms of capital flows, main funds saw a net inflow of 1.384 billion yuan today, and a net inflow of 1.883 billion yuan over the past five days. The latest margin trading balance was 7.215 billion yuan, of which the financing balance was 7.207 billion yuan, up 6.67% from the previous trading day, while the financing balance has cumulatively decreased by 1.40% over the past five days.
Multiple Companies on Shanghai and Shenzhen Exchanges Release Positive Announcements on the Evening of July 10
Several listed companies on the Shanghai and Shenzhen stock exchanges released significant positive announcements on the evening of July 10. Tuojing Technology plans to acquire 82.97% equity in Wuxi Shangji and other assets through a combination of share issuance and cash payment, along with raising supporting funds. Trading of its shares will resume on July 13. Sanfu New Materials intends to invest 15 million yuan to participate in establishing a joint venture engaged in the research, development, and production of high-end electronic copper foil. He Zhenya, the controlling shareholder of Dynamic Power, plans to transfer 9% of his shares to Hongmian Science and Technology Innovation. The controlling shareholder will change to Hongmian Science and Technology Innovation, and the actual controller will change to Chen Zhimao. Trading of its shares will resume on July 13. CITIC Securities expects its net profit attributable to the parent company in the first half of the year to be 23.343 billion yuan, a year-on-year increase of 69.59%. Shannon Chuangxin expects its net profit attributable to the parent company in the first half of the year to be between 3.5 billion and 4 billion yuan, a year-on-year increase of 2,117.54% to 2,434.34%. Power Diamond expects its net profit attributable to the parent company in the first half of the year to be between 80 million and 93 million yuan, a year-on-year increase of 208.71% to 258.88%. Sichuan Gold expects its net profit attributable to the parent company in the first half of the year to be between 390 million and 450 million yuan, a year-on-year increase of 86.94% to 115.7%. China Molybdenum expects its net profit attributable to the parent company in the first half of the year to be between 15.5 billion and 16.5 billion yuan, a year-on-year increase of 78.76% to 90.29%. Rongjie Shares expects its net profit attributable to the parent company in the first half of the year to be between 900 million and 1.1 billion yuan, a year-on-year increase of 956.84% to 1,191.69%. Rike Chemical plans to acquire 70.75% equity in Genyuan New Materials, adding a new energy battery electrolyte material business. Trading of its shares will resume on July 13. Shaanxi Blower Power plans to acquire the remaining 36.06% equity in Qinfeng Gas. After the transaction, it will hold 100% of Qinfeng Gas. Trading of its shares will resume on July 13. FiberHome Communications plans to raise no more than 2.913 billion yuan through a private placement and also plans to acquire 60% equity in Fujikura FiberHome for 500 million yuan. A controlling subsidiary of Dongyangguang has signed a computing power service contract worth between 13 billion and 15 billion yuan. Unisplendour expects its net profit in the first half of the year to be between 1.91 billion and 2.32 billion yuan, a year-on-year increase of 83.5% to 122.89%.
300475.CS · Capital · Positive Shannon Chuangxin expects net profit attributable to parent in H1 to be 3.5-4 billion yuan, up 2,117.54%-2,434.34% YoY.
301071.CS · Capital · Positive Power Diamond expects net profit attributable to parent in H1 to be 80-93 million yuan, up 208.71%-258.88% YoY.
600030.CG · Capital · Positive CITIC Securities expects net profit attributable to parent in H1 to be 23.343 billion yuan, up 69.59% YoY.
600405.CG · Capital · Positive Controlling shareholder He Zhenya plans to transfer 9% shares to Hongmian Science and Technology Innovation, leading to change in control and resumption of trading.
688359.CG · Capital · Positive Sanfu New Materials intends to invest 15 million yuan to participate in a joint venture for high-end electronic copper foil R&D and production.
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