Storage products are selling like crazy? Shannon CoreTech's Q1 net profit is expected to increase by up to 87 times. The independent storage brand has entered mass production stage.

Ask AI · How Generative AI Has Sparked Demand for Storage

Our reporter: Zhang Baolian Our editor: Zhang Yiming

The computing power demand brought about by the wave of generative AI (artificial intelligence) is profoundly changing the landscape of the storage market, and is directly reflected in the performance of related companies.

On the evening of April 7, Shannong Chips (SZ300475, share price 141.33 yuan, market cap 65.7B yuan) released its 2025 full-year performance forecast. The announcement showed that the company expects to achieve net profit attributable to shareholders of listed companies of approximately 544 million yuan in 2025. Compared with 264 million yuan in the same period of the previous year, this represents a significant increase of 106.06%.

Shannong Chips stated that this is mainly due to the robust development of generative AI, which has driven growth in enterprise-level storage demand as internet data centers (IDCs) are built out. The company said its own brand “Haipu Storage” has officially entered mass production, and in this reporting period it achieved annual profitability for the first time.

The company also released an earnings pre-announcement for its 2026 Q1 results on the same day. For the first quarter of 2026, Shannong Chips’ net profit attributable to shareholders is expected to be 1.14 billion yuan to 1.48 billion yuan, a year-on-year surge of 6714.72% to 8747.18%. Net profit attributable to shareholders in a single quarter is more than twice that of full-year 2025.

Generative AI Demand Drives a Sharp Surge in Performance

Shannong Chips’ 2025 performance forecast indicates that in 2025, multiple key financial indicators of the company all recorded rapid growth. During the reporting period, the company expects to achieve total operating revenue of as much as 35.25B yuan, up 45.24% from 24.27B yuan in the same period of the previous year. In terms of profitability, the growth momentum was even more pronounced: operating profit is expected to be 856 million yuan, up 182.42% year over year; total profit is approximately 856 million yuan, up 181.77%.

In terms of returns to shareholders, non-recurring items net profit attributable to shareholders rose steadily by 70.22%, reaching approximately 519 million yuan. Basic earnings per share are expected to increase from 0.58 yuan in the prior year to 1.18 yuan, an increase of as much as 103.45%.

Shannong Chips attributes this to market demand sparked by the development of generative AI. Previously, in its 2025 full-year performance pre-announcement, the company mentioned that in 2025, the number of enterprise-level storage products it sold increased, and the prices of its main products showed an upward trend, with full-year revenue growth expected to exceed 40%.

Own Brand “Haipu Storage” Enters Mass Production and Achieves Annual Profitability for the First Time

As one of the core hardware components of data centers, demand for enterprise-level storage products has also grown accordingly. The company said that it captured this market opportunity: both its electronic component distribution business and the storage business of its self-owned brand “Haipu Storage” saw revenue grow to varying degrees.

In 2025, “Haipu Storage” achieved a historic breakthrough, with projected sales revenue of 1.7 billion yuan. In the fourth quarter alone, it reached 1.3 billion yuan on a single-quarter basis. It achieved annual scale profitability for the first time, becoming a core growth driver.

This means that Shannong Chips has taken a crucial step in its transition from an electronic component distributor to a comprehensive semiconductor company with core products and its own brand. Moving from “agency” to “self-developed” often symbolizes greater room for profit, helping the company improve its position in the supply chain and strengthen its core competitiveness.

According to the information in the announcement, the “Haipu Storage” brand has already rolled out multiple products one after another, covering two major core product lines: enterprise SSDs (solid-state drives) and enterprise DRAM (dynamic random-access memory). Both products are indispensable key components in data center servers, directly related to the speed and efficiency of data processing. In the AIGC (generative AI) era, the unprecedented high demands placed on storage products’ performance, stability, and bandwidth for reading, writing, and accessing massive volumes of data.

It is reported that the company’s self-owned brand products have completed certification and adaptation work for some mainstream domestic server platforms and have officially entered the mass production stage.

On April 1, Ai Jian Securities said that the market outlook for storage chips in 2026 will continue to remain strong. In the fourth quarter of 2025, storage chips entered a new round of price increase cycle. Micron, Samsung, and SK hynix—the three major storage giants—successively raised contract prices for DRAM (dynamic random-access memory) and NAND Flash (non-volatile flash memory) products, and related spot prices also continued to rise. Looking ahead to 2026 in the electronics industry, driven jointly by sustained downstream AI compute power demand, steady improvements in automotive electronics penetration, and a cyclical recovery in consumer electronics, the global semiconductor industry will continue the upward cycle that began in 2024.

The Daily Economic News