July 16 — Demingli shares hit the daily limit-down for a second straight
session. The company said Q2 QoQ net profit fell mainly due to higher costs:
increased R&D spending, capacity expansion-related charges and higher
share-based compensation. Management said it is building inventory strategically
to support rapid business expansion and has raised customer-acquisition and
certification-related spending as enterprise storage, embedded storage and
memory businesses accelerate. Those products have long certification and testing
cycles and require large upfront R&D and sales investment, which depresses
near-term earnings but are described as long-term strategic investments that
began to yield positive contributions in Q2 and should support future
performance.
