Author: Jiang Shan | Location Selection: 960

Full text: 1690 characters, approximately a 3-minute read

Amidst the surge of artificial intelligence, the storage industry is experiencing remarkable growth.

Today, during trading hours, share prices of listed storage companies, including GigaDevice, Puya Semiconductor, Demingli, BIWIN Storage, Shannon Semiconductor, and Jiangbo Long, reached all-time highs, with market capitalizations surpassing 100 billion yuan each.

During this prosperous cycle, storage companies are leveraging the capital market to expand production capacities and enhance R&D environments.

Demingli, with a market capitalization nearing 200 billion yuan, has announced plans to construct its headquarters in Shenzhen.

1.175 Billion Yuan Investment in Headquarters Base, Projected Output Value of 40 Billion Yuan

The Shenzhen Public Resources Trading Center has officially listed Plot B405-0246 for transfer, located at the intersection of Meilin Road and Meikang Road in Futian District. According to a previous announcement by the Futian District Bureau of Science, Technology, and Industry Information, the intended land user for this plot is Demingli, which will use it for the construction of the 'Intelligent Storage Management and R&D Headquarters Base.'

The plot is designated for commercial use, covering a total land area of 7,209 square meters and a total construction area of approximately 46,900 square meters. The land use term spans 30 years, with a starting bid price of approximately 352 million yuan.

Location Schematic

According to the industrial development supervision agreement, within five years from the natural year of applying for the headquarters project selection, the project's cumulative output value (revenue) included in Shenzhen's statistical accounting must be no less than 40 billion yuan. The cumulative local financial contribution formed in Shenzhen should be no less than 800 million yuan, with an import and export volume of no less than 5 billion US dollars and R&D investment of no less than 1 billion yuan. Construction must commence within two years from the date of acquiring the land, with full completion and commissioning within 4.5 years. The paid-in registered capital during the land use term must be no less than 220 million yuan. Throughout the land use term, 100% of the construction area shall not be transferred, with at least 70% for self-use and no more than 30% for non-self-use.

Annual Quantitative Breakdown of Committed Indicators

From Leasing to Self-Construction: Enhancing R&D and Management Capabilities

Demingli has previously disclosed a private placement plan related to the project, raising a total of no more than 3.2 billion yuan. The funds will be allocated to expanding solid-state drive (SSD) production, memory product (DRAM) production, the Demingli Intelligent Storage Management and R&D Headquarters Base project, and supplementary working capital.

The 'Demingli Intelligent Storage Management and R&D Headquarters Base project' will be constructed on the listed land. The project aims to establish the company's modern management and R&D headquarters, addressing issues such as insufficient space and limited functionality in the company's existing R&D and office facilities. It will enhance R&D innovation vitality and meet the urgent needs of the company's business expansion.

According to disclosures, Demingli's current R&D and office spaces are all leased, which limits R&D and management synergy as well as the expansion of R&D functionality. With the company's expanding scale and increasing personnel, the demand for R&D and office spaces continues to grow. To further enhance product R&D capabilities and improve overall corporate management, constructing a headquarters base with management and R&D functions is crucial.

Data shows that as of the end of December 2025, the company had accumulated 221 authorized patents, with the R&D team rapidly expanding from 103 members at the beginning of 2022 to 437 members by the end of December 2025.

Demingli stated that through the project's implementation, on the one hand, it can support the company's professional work in market expansion, product development, and operations management. It will provide employees with a personalized and efficient office environment, enhance the office environment and space, and comprehensively strengthen management capacity building. This will optimize business processes, achieve resource integration, improve communication efficiency, and reduce comprehensive operational costs.

On the other hand, the project also enhances the company's innovation vitality. Demingli pointed out that by constructing new R&D laboratories, pilot production platforms, and other infrastructure, and introducing a series of advanced domestic and foreign software and hardware R&D equipment and testing equipment, the company can keep pace with technological development trends in the semiconductor storage market and downstream market demands. This will further enhance its technological R&D and testing capabilities, providing a research and development platform for new technologies and product development. It effectively ensures the company's capabilities in new product development, new process design, and new technology application in the field of storage control chips and solutions, further enhancing the company's overall R&D level and technical strength, and providing support for future sustainable development.

Riding the AI Wave: Net Profit Soars 49-Fold in the First Quarter

The confidence in self-constructing the headquarters comes from both the industry cycle's tailwind and the company's own performance support.

With the explosive advancement of artificial intelligence technology, the construction of data centers has driven explosive growth in demand for high-capacity, high-performance storage, promoting continuous upgrades in storage product specifications. Additionally, the increasing penetration of smart terminals such as smartphones and smart vehicles in both consumer and industrial markets, along with the continuous enrichment of terminal application scenarios, further provides core support for the expansion of the memory industry's market size.

Benefiting from the comprehensive surge in demand, the current upward cycle in the storage market is expected to have relatively long-lasting sustainability. According to WSTS forecasts, the global market size for semiconductor storage products is expected to grow from 165.5 billion US dollars in 2024 to 184.8 billion US dollars in 2025, a year-on-year increase of 11.7%. It is further projected to grow by 16.2% in 2026, reaching a scale of 214.8 billion US dollars. Storage product prices have bottomed out and rebounded, with the market size continuing to expand, comprehensively enhancing the prosperity of the storage industry, which possesses strong growth momentum.

In terms of performance, in the first quarter of 2026, Demingli achieved revenue of 7.538 billion yuan, a year-on-year increase of 502.08%. It realized net profit attributable to shareholders of 3.346 billion yuan, soaring 4949.28% year-on-year. This means that the profit earned by Demingli in the first quarter of this year is nearly five times that of the entire year of 2025.