Biwin Storage swings to 70B yuan profit as AI storage cycle booms

Biwin Storage expects H1 net profit of 70B to 75B yuan, swinging from a 2.26B yuan loss a year earlier.

The company attributed the results to AI computing demand and the storage industry entering a high-cycle period, along with optimized product and customer structures, it said in a filing. The Shenzhen-listed memory and storage solutions provider also cited investments in chip design, advanced packaging and testing equipment as strengthening its competitive position.

Revenue reached 150B to 160B yuan, up 283 percent to 309 percent from about 39.1B yuan in the same period last year. Net profit improved by more than 72B yuan year-over-year. Core operating profit — measured by non-GAAP net income — ranged from 62B to 70B yuan, confirming the turnaround was driven by main business operations rather than one-time gains. Share-based compensation expenses totaled about 90.6 million yuan, a negligible drag relative to the profit scale.

The results underscore how AI infrastructure spending is reshaping the memory supply chain. Peer company德明利 also reported a swing to profit of 57B to 65B yuan for the first half, citing similar AI-driven demand for storage products. The preliminary figures are unaudited, and investors will watch the formal half-year report for gross margin, cash flow and inventory metrics that will clarify how much of the profit surge came from price cycles versus structural volume growth.

The guidance raise signals management expects AI demand to sustain through the second half. Investors will look to the formal half-year filing for segment-level margins and order backlog details that could confirm the durability of the cycle.

This article is for informational purposes only and does not constitute investment advice.