Montage Technology, a leading global interconnect chip design company, delivered strong annual results and completed its Hong Kong listing, opening new international financing channels.
In 2025, Montage Technology achieved operating revenue of 5.456 billion yuan, a year-on-year increase of 49.9%. Net profit attributable to shareholders of the listed company reached 2.236 billion yuan, up 58.4% year-on-year. Revenue, net profit, and cash flow from operating activities all hit record highs for the company.
During the reporting period, the company completed preparations for its H-share issuance and was listed on the main board of the Hong Kong Stock Exchange in February 2026, establishing a dual A+H capital platform. The global offering of H-shares received active subscription from international capital. Cornerstone investors subscribed for 50% of the base H-share offering size. The international placement attracted over 500 orders totaling more than $30 billion, with coverage exceeding 60 times the actual allocation to anchor investors.
Regarding shareholder returns, the company proposed a cash dividend of 472 million yuan for 2025 (the annual distribution plan is still subject to shareholder approval). Combined with interim dividends and share repurchases, total annual cash returns reached approximately 1.119 billion yuan, representing 50.07% of net profit attributable to the parent company.
**DDR5 Adoption Accelerates, Maintaining Leadership in Memory Interconnect**
Benefiting from strong AI server market demand, DDR5 penetration in servers increased rapidly. Montage Technology's interconnect chip product line achieved sales revenue of 5.139 billion yuan, a 53.4% year-on-year increase, with the product line's gross margin rising by 2.91 percentage points to 65.57%.
During the reporting period, the company's DDR5 RCD chip shipments grew significantly. The third-generation product achieved volume shipments, the fourth-generation product (supporting 7200MT/s) successfully entered mass production, and the fifth-generation product (supporting 8000MT/s) completed development of its mass production version. In the second half of 2025, sales revenue from third-generation RCD chips surpassed that of second-generation products, maintaining a leading position in the industry's generational transition.
In the server MRDIMM (new high-bandwidth memory module) sector, Montage Technology is one of only two global suppliers capable of providing first-generation MRCD/MDB chips. The company launched its second-generation MRCD/MDB chips in January 2025, increasing supported speeds to 12800MT/s, a 45% improvement over the first generation. Shipments of the second-generation product increased significantly starting from the fourth quarter.
For the PC segment, the company also launched a new-generation CKD chip supporting 9200MT/s during the reporting period, further increasing industry penetration and achieving rapid shipment growth.
According to Frost & Sullivan data, the top three companies accounted for 93.4% of the global memory interconnect chip market in 2024, with Montage Technology ranking first globally with a 36.8% market share.
**Expanding PCIe/CXL Interconnect Portfolio, Driven Directly by AI Server Demand**
PCIe Retimer chips have become core high-speed interconnect components in AI servers. A typical AI server configured with 8 GPUs usually requires 8 to 16 PCIe Retimer chips, with some domestic AI server configurations requiring up to 24 chips.
The company's PCIe Retimer chip shipments have grown rapidly since 2024. According to Frost & Sullivan, the company ranked second in the global PCIe Retimer chip market in 2024, with approximately a 10.9% market share.
In January 2025, the company launched its PCIe 6.x/CXL 3.x Retimer chip and provided samples to customers, supporting 64GT/s transmission rates. In January 2026, it released a corresponding AEC active cable solution while actively advancing the development of PCIe 7.0 Retimer chips and PCIe Switch chips.
In the CXL interconnect field, the company launched an MXC chip compliant with the CXL 3.1 standard in September 2025 and provided samples to key customers. In January 2025, the company's MXC chip was included in the CXL Consortium's first CXL 2.0 compliance supplier list. Samsung Electronics and SK Hynix, which were listed concurrently, both used Montage Technology's MXC chips in their tested products.
**R&D Investment Continues to Increase, SerDes Technology as Core Foundation**
In 2025, the company's R&D expenses reached 915 million yuan, a year-on-year increase of 19.9%, accounting for 16.8% of operating revenue.
Since its A-share listing in 2019, the company's R&D expenses have increased annually. By the end of 2025, it had 583 R&D technical staff, representing 74.4% of total employees, with approximately 64% holding master's degrees or higher.
At the core technology level, the company's self-developed 64GT/s PAM4 SerDes technology has been successfully applied in its PCIe 6.x/CXL 3.x Retimer chips. It is currently developing 128GT/s SerDes technology for PCIe 7.0 Retimer and high-speed Ethernet PHY Retimer chips.
Regarding intellectual property, the company had accumulated 224 granted invention patents in China and abroad by the end of 2025.
**Gross Margin Improves, Expense Fluctuations Affect Net Profit Growth Appearance**
The company's overall gross margin for 2025 was 62.2%, an increase of 4.1 percentage points from the previous year. The net profit margin was 41.0%, up 2.2 percentage points. Net cash flow from operating activities was 2.022 billion yuan, marking four consecutive years of growth.
It should be noted that administrative expenses increased significantly to 526 million yuan in 2025, a surge of 168.2% year-on-year, primarily due to a substantial increase in share-based payment expenses resulting from the implementation of a core executive incentive plan.
Total share-based payment expenses for the year amounted to 431 million yuan, impacting net profit attributable to the parent company by approximately 412 million yuan (after tax). Non-GAAP net profit, excluding share-based payments and Hong Kong listing expenses, was 2.650 billion yuan, representing a year-on-year increase of approximately 81%.
Regarding exchange rate risk, the company's daily operations are primarily settled in US dollars. The company recorded a foreign exchange loss of 40.7494 million yuan in 2025. Assuming other variables remain constant, a 5% appreciation of the RMB against the US dollar would negatively impact the company's annual net profit or loss by approximately 93.59 million yuan.
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