Montage Technology (06809.HK) Reports Strong H1 Earnings Growth Amid South Korean Antitrust Investigation, Chairman Proposes Share Repurchase

NewTimeSpace News: Montage Technology Co., Ltd. (06809.HK / 688008.SH) issued multiple announcements on July 16 regarding its 2026 first-half earnings forecast, a South Korean antitrust investigation, and a proposed A-share buyback by the Chairman.

Earnings Forecast: Based on preliminary calculations by the finance department, the Company expects to achieve operating revenue of approximately RMB3.335 billion for the first half of 2026, representing year-on-year growth of approximately 26.6%; net profit attributable to shareholders of the listed company of approximately RMB1.900 billion to RMB2.100 billion, representing year-on-year growth of approximately 63.9% to 81.2%; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses of approximately RMB1.250 billion to RMB1.450 billion, representing year-on-year growth of approximately 14.5% to 32.9%; and net profit attributable to shareholders of the listed company after excluding the impact of share-based payment expenses of approximately RMB2.080 billion to RMB2.280 billion, representing year-on-year growth of approximately 56.1% to 71.1%. This earnings forecast has not been audited by a certified public accountant.

The corresponding period last year: H1 2025 operating revenue was RMB2.633 billion; total profit was RMB1.186 billion; net profit attributable to shareholders was RMB1.159 billion; net profit after deducting non-recurring gains and losses was RMB1.091 billion; net profit after excluding share-based payment expenses was RMB1.333 billion; and earnings per share was RMB1.02.

In H1 2026, the Company's significant earnings growth was mainly driven by AI industry trends and strong industry demand. On one hand, with the increasing penetration of DDR5 and continuous sub-generation iterations, the Company's DDR5 RCD chip shipments increased significantly, with the shipment proportion of third and fourth sub-generation RCD chips further rising. On the other hand, revenue from new interconnect chip products including MRCD/MDB, PCIe Retimer, CKD and CXL MXC chips climbed notably. In H1 2026, the Company's interconnect chip product line sales revenue was approximately RMB3.111 billion, representing year-on-year growth of approximately 26.4%, of which Q2 interconnect chip product line sales revenue was approximately RMB1.694 billion, representing year-on-year growth of approximately 28.2% and quarter-on-quarter growth of approximately 19.5%. The year-on-year growth in net profit was mainly attributable to increases in operating revenue, gross profit, investment income and fair value change gains.

South Korean Antitrust Investigation: The Company announced on July 15, 2026 (Korea time) that the Fair Trade Investigation Department of the Seoul Central District Prosecutors' Office conducted an on-site raid and evidence collection at the Group's Korean office regarding potential violations of antitrust-related regulations. The Group is fully cooperating with the Prosecutors' Office's requirements. As of the date of the announcement, none of the Group, its directors or employees have been accused of any misconduct by the Prosecutors' Office or any government authority. The Group's business operations remain normal, and it will continue to focus on product R&D and serving customers. Given the current stage of the investigation, the Company believes it is unable to predict the timing and outcome of the investigation at this time, including whether any subsequent actions will be taken against the Group, whether charges will be brought against the Group or other parties, or whether it will have a material adverse effect on the Group's financial condition. The Company reminds shareholders, security holders and potential investors not to rely on market rumors regarding the Company, and that all information about the Company should be based solely on the Company's official announcements.

A-share Buyback Proposal: The Company's Board received a letter from Mr. Yang Chonghe, Chairman and CEO, on July 16, 2026, titled "Proposal on Montage Technology Co., Ltd. Repurchasing the Company's A-shares," proposing that the Company repurchase A-shares through the Shanghai Stock Exchange trading system via centralized competitive bidding using its own funds.

As of July 16, 2026, the closing price of the Company's A-shares had cumulatively declined by more than 20% over 20 consecutive trading days, meeting the condition specified in Article 2, Paragraph 2, Item (2) of the "Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 7—Share Repurchase" that "the cumulative decline in the closing price of the Company's stock reaches 20% over 20 consecutive trading days," and qualifying for repurchase under Article 2, Paragraph 1, Item (4) of the Guidelines for "maintaining the Company's value and shareholders' equity as necessary." Mr. Yang Chonghe proposed the buyback based on his confidence in the Company's future sustainable and steady development and his high recognition of the Company's value.

The proposal includes: repurchasing the Company's A-shares; the repurchased shares to be used for maintaining the Company's value and shareholders' equity, with the Company planning to sell them via centralized competitive bidding 12 months after the disclosure of the repurchase results and share change report in accordance with relevant repurchase rules and regulatory guidelines, and any unsold shares to be cancelled before the expiry of the three-year period in accordance with relevant requirements; funding from the Company's own funds; repurchase price not exceeding 150% of the average trading price of the Company's A-shares over the 30 trading days prior to the Board's approval of the repurchase resolution, with specifics subject to the repurchase plan approved by the Board; and repurchase period of 3 months from the date of Board approval. Mr. Yang Chonghe did not trade the Company's shares in the six months prior to the proposal, has no plans to increase or decrease his holdings during the repurchase period, and has committed to actively promote the convening of a Board meeting to consider the repurchase and to vote in favor of the repurchase proposal at the Board meeting.

The Company will promptly formulate a reasonable and feasible A-share repurchase plan based on the above proposal, and fulfill the necessary review procedures and information disclosure obligations in accordance with relevant regulations. The above repurchase matters currently remain subject to uncertainty.

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