<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6065d724-cdd0-4a88-9408-791edd160a5e.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Image" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6065d724-cdd0-4a88-9408-791edd160a5e.png"/>
The high-performance cycle in the storage industry is pushing Biwin's performance to new highs one after another.
On April 15, Biwin released its 2026 First Quarter Report. During this period, operating revenue reached 6.814 billion yuan, a year-over-year increase of 341.53%. Net profit attributable to parent company shareholders was 2.899 billion yuan, compared to a loss of 197 million yuan in the same period of the previous year, successfully achieving a significant turnaround from loss to profit. In just the first quarter of this year, the company's net profit far exceeded the 867 million yuan level of the full year 2025, with the single-quarter profit reaching 3.3 times the full-year figure of the previous year.
Behind this explosive performance, AI-related storage products are rapidly scaling up. Revenue from emerging AI edge-side storage products in the first quarter was approximately 1.175 billion yuan, with a year-over-year growth rate nearing five times. The company's cooperation with clients such as Meta continues to deepen. At the same time, the company's inventories surged significantly to 12.069 billion yuan, an increase of 53.4% from the beginning of the year, while prepaid items also skyrocketed, signaling a proactive effort to increase stockpiles in response to surging demand.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/b3eaef92-e712-4224-88e0-6e60e8c07383.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Image" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/b3eaef92-e712-4224-88e0-6e60e8c07383.png"/>
<h2>AI Glasses and Other Edge-Side Storage Scale Up, Emerging Business Revenue Grows Nearly Five-Fold Year-Over-Year</h2>
AI emerging edge-side storage products are becoming a key growth engine.
According to the financial report, in the first quarter of 2026, revenue from the company's AI emerging edge-side storage products was approximately 1.175 billion yuan, representing a year-over-year increase of 496.45% and a quarter-over-quarter increase of 53.19%. The company has cultivated expertise in the smart wearable field for many years; ePOP and other storage products have been applied in AI/AR glasses, smartwatches, and other devices from well-known domestic and international enterprises including Meta, Google, Xiaomi, Rokid, and Leiqiu Innovation.
With the scaling up of AI glasses, the company's cooperation with key clients such as Meta continues to deepen, driving sustained growth in the smart wearable storage business.
<h2>March Net Profit Approximately 1.1-1.4 Billion, Monthly Profit Exceeds Full-Year Previous Year</h2>
Combining the company's previously disclosed preliminary earnings forecast for January-February, the profit contribution for March alone can be calculated. According to the announcement, Biwin is expected to achieve a net profit attributable to parent company shareholders of 1.5 billion to 1.8 billion yuan for January-February. Based on this calculation, the net profit for March alone is approximately 1.099 billion to 1.399 billion yuan. This means that the profit generated in just March alone has already surpassed the full-year level of 2025.
Looking at the rhythm of changes in profitability, the company's performance shows an accelerating trend month by month. The weighted average return on net assets for the first quarter reached 41.98%, an increase of 50.37 percentage points compared to the same period last year.
<h2>Structural Transformation in Profit Structure, Operating Leverage Effect Emerges</h2>
The structural changes in the income statement are also worth noting. Operating costs for the first quarter were 3.182 billion yuan, with a gross margin of approximately 53.3%, marking a qualitative leap compared to the sluggish state of the same period last year. Operating profit reached 3.383 billion yuan, demonstrating a significant operating leverage effect—revenue increased by more than three times year-over-year, while operating costs grew by only about two times. The profit elasticity brought by economies of scale is extremely prominent.
Regarding expenses, R&amp;D expenses were 156 million yuan, a year-over-year increase of 26.78%, reflecting the company's continued investment in core technology areas such as chip design, firmware design, and advanced packaging and testing, along with a strong push to recruit talent. Sales and administrative expenses totaled approximately 160 million yuan, with limited absolute growth, resulting in a significant narrowing of expense ratios despite the massive expansion. Financial expenses were approximately 40 million yuan, of which interest expenses were 59.03 million yuan, matching the rapid expansion but easily covered by the robust operating profit.
Regarding non-recurring gains and losses, the total for this quarter was approximately 82.5 million yuan, primarily driven by fair value changes in financial assets (110 million yuan). Net profit attributable to shareholders after deducting non-recurring items was 2.816 billion yuan, showing little difference from the net profit attributable to shareholders, indicating solid core profitability quality.
<h2>Inventories at 12 Billion: The Logic of &#34;Proactive Inventory Buildup&#34; Behind the Surge</h2>
As of the end of the first quarter of 2026, Biwin's book value of inventories reached 12.069 billion yuan, a significant increase of 53.4% from 7.868 billion yuan at the end of 2025, with a net increase of approximately 4.2 billion yuan in a single quarter.
While inventories surged dramatically, prepaid items also skyrocketed from 155 million yuan at the beginning of the year to 2.287 billion yuan, an increase of over 13 times. The simultaneous rise in these two indicators points to the company conducting large-scale raw material procurement and stocking up to respond to strong downstream demand.
From an industry perspective, the current memory chip market faces supply shortages, with DRAM and NAND prices continuing to rise. In this cycle, ample inventory is not a risk signal but rather indicates that the company has secured lower-cost supplies, which could translate into higher profit elasticity in subsequent sales.
The company's cash flow from operating activities for the first quarter was -2.706 billion yuan, primarily due to the increase in operating procurement expenditures mentioned above. In other words, the &#34;blood loss&#34; in cash flow is the result of proactive inventory buildup, not deteriorating operations. If the subsequent inventory is successfully liquidated and revenue continues to be recognized, cash flow will improve accordingly.

688525

512480

512760

159995

588170

Biwin reported first-quarter revenue of 6.814 billion yuan, a year-over-year increase of 341.53%; net profit attributable to shareholders reached 2.899 billion yuan, turning from a loss to a profit compared to the same period last year. The single-quarter profit amounted to 3.3 times the full-year total of the previous year. March's monthly profit was approximately 1.1 to 1.4 billion yuan, already exceeding the full-year figure of the previous year. Revenue from AI edge-side storage products neared 1.2 billion yuan, representing a nearly five-fold year-over-year growth. Inventories rose to 12.069 billion yuan, up 53.4% from the beginning of the year, reflecting the company's proactive inventory buildup to meet surging demand

Wallstreetcn

Biwin

GTJA Allianz CSI All Share Semiconductors & Semiconductor Equipment ETF

Guotai CES Semiconductor Chip Industry ETF

ChinaAMC Guozheng Semiconductor Chip ETF

ChinaAMC SSE STAR Semiconductor Material & Equipment Thematic ETF

Meta Platforms

Alphabet - C

Alphabet

XIAOMI-W

Xiaomi Corporation

XIAOMI-WR

Xiaomi HK SDR 2to1

Single-Quarter Net Profit Reaches Three Times Full-Year Previous Year, Biwin Q1 Turns Loss to Massive 2.9 Billion Yuan Profit | Financial Report Insights