Ingenic Semiconductor Co., Ltd. received approval for a main board listing hearing on the Hong Kong Stock Exchange on August 9. The company's move to Hong Kong comes during a notable rebound in its financial performance.

Based on the company's previously disclosed performance forecast, its total operating revenue for the first half of 2026 is expected to reach approximately 3.989 billion yuan, a year-on-year increase of about 77%. Net profit attributable to shareholders is projected to be between 1.079 billion yuan and 1.282 billion yuan, representing a surge of 431.03% to 531.34% year-on-year.

From a business structure perspective, Ingenic has established three main product lines: "memory, computing, and analog." The company operates under a Fabless model, focusing on chip design and development, while production, packaging, and testing are outsourced to external wafer foundries and packaging and testing houses.

Memory chips, including DRAM, SRAM, and Flash, are primarily used in automotive, industrial, and medical applications. Computing chips, such as intelligent vision SoCs and embedded MPUs, mainly target security surveillance and AIoT markets. Analog chips are primarily composed of LED driver chips and combo chips.

Memory business remains the company's primary revenue source.

In 2025, Ingenic generated revenue of 4.741 billion yuan, with memory chip revenue totaling 2.911 billion yuan, accounting for 61.4%. Computing chip revenue was 1.293 billion yuan, representing 27.3%, while analog chip revenue reached 506 million yuan, or 10.7% of total revenue.

Entering 2026, both the memory and computing businesses accelerated simultaneously.

In the first quarter, the company's revenue was 1.560 billion yuan, a year-on-year increase of 47.1%. Memory chip revenue was 1.018 billion yuan, up 53.6% year-on-year, while computing chip revenue was 403 million yuan, up 49.1% year-on-year.

Profit growth has significantly outpaced revenue growth. In the first quarter of 2026, the company's profit for the period rose from 74 million yuan in the same period last year to 320 million yuan. The net profit margin increased from 6.9% to 20.5%, and the comprehensive gross margin improved from 35.0% to 42.6%.

This change is primarily driven by a simultaneous increase in volume and price for memory chips.

In the first quarter, memory chip sales volume grew from 138 million units to 191 million units, while the average selling price rose from 4.8 yuan per unit to 5.3 yuan per unit. In its hearing materials, the company indicated that a tight supply of industrial and automotive-grade memory products is a key reason for the price increase.

The price elasticity of computing chips is even more pronounced. The average selling price in the first quarter rose from 11.4 yuan to 15.1 yuan, and the gross margin increased from 32.5% to 51.9%.

However, the company also disclosed that a significant portion of the computing chips sold in the current period used inventory purchased before raw material prices rose. Therefore, while selling prices have increased, costs have not yet fully risen in tandem. From this perspective, the higher gross margin in the first quarter includes a certain cost lag factor, and whether it can be sustained remains to be seen.

From a downstream perspective, Ingenic's revenue sources are relatively diversified. In the first quarter of 2026, revenue from the automotive, industrial/medical, and consumer sectors accounted for approximately 33.0%, 24.5%, and 33.6%, respectively. The automotive business remains an important foundation, while the growth in consumer segments is driven more by demand for security surveillance, AIoT, and edge AI.

The company's current growth also carries clear industry cycle characteristics. The memory chip industry itself is highly cyclical. Since 2026, tightening DRAM supply, increased demand for certain Flash products, and a shortage of upstream KGD (Known Good Die) for computing chips have collectively pushed up product prices and profit levels. This is a significant context for the profit growth rate far exceeding the revenue growth rate in the first half.

In terms of distribution channels, in the first quarter of 2026, the company's distribution revenue accounted for 81.1% of total revenue. The top five customers contributed 50.3% of sales revenue, while the top five suppliers accounted for 41.6% of total purchases. This means that although the company's customer and supplier concentration has decreased in recent years, its operations still rely heavily on the distribution system and external supply chain.

Overall, Ingenic's move to Hong Kong comes at a time when its performance is in a strong upward phase in recent years. However, the current growth cannot be fully understood without considering the price and supply cycle.

In the short term, the simultaneous volume and price increase in memory chips and the price hike in computing chips have improved profitability. Looking at the medium to long term, the key will be whether the company can sustain growth with high-density DRAM, Flash, automotive-grade chips, and edge computing products, and what level gross margins can maintain after raw material costs are fully reflected.