Locking in $1.5 billion in wafer procurement, with explosive performance growth. Beiwei Storage is seizing the industry upturn opportunities.

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Sourced from: Xinhua Finance

Xinhua Finance Shanghai, March 24 (reporter Guo Qingqing) At present, the storage industry has entered an upswing in the business cycle, showing a pattern of strong demand, rising prices, and tight supply. Storage companies are set to benefit from both profit recovery and a surge in demand.

On the evening of March 24, Boyi Storage released an announcement indicating that the company has signed a material purchase contract for day-to-day operations with a certain memory original equipment manufacturer (OEM). Under the agreement, the company will purchase a certain type of storage wafers within 24 months. The total contract value is $1.5 billion. The contract amount exceeds 50% of the company’s audited operating revenue and total assets for the most recent fiscal year, and also exceeds 100 million yuan, meeting the disclosure threshold.

Regarding the impact of the contract on the company’s operations, Boyi Storage said that, according to the relevant terms of the contract, within each 12-month period, the company’s purchase volume of this product will account for 11.1% of Boyi Storage’s total NAND Flash purchase volume in 2025 and 18.01% of its total NAND Flash sales volume in 2025, with both proportions being relatively small. By signing the contract in advance, the company has locked in a portion of its baseline usage for the next 24 months, which aligns with the company’s business scale and business plan, and overall risk is controllable. This transaction falls within the scope of the company’s ordinary business operations. If the contract is performed smoothly, it will help enhance the stability of the company’s long-term supply of storage wafers and reduce the impact of storage wafer price fluctuations on costs.

Apart from “stockpiling,” in terms of performance, Boyi Storage has achieved leapfrog growth. According to its 2025 annual report, the company recorded operating revenue of 11.3 billion yuan, up 68.82%; and net profit of 853 million yuan, up 429.07% year over year. From a loss of 624 million yuan in 2023 to a profit of over 850 million yuan in 2025, the company completed a performance turnaround in just two years.

In addition, Boyi Storage’s recently released “Voluntary Disclosure Announcement Regarding the Performance Forecast for January–February 2026” also shows that the company expects to achieve operating revenue of 4.0 billion to 4.5 billion yuan from January to February 2026, which, compared with the same period last year, will increase by 3.09 billion to 3.59 billion yuan, representing year-over-year growth of 340% to 395%. It also expects net profit attributable to owners of the parent company of 1.5 billion to 1.8 billion yuan, which, compared with the same period last year, will increase by 1.68 billion to 1.98 billion yuan, representing year-over-year growth of 921.77% to 1086.13%.

Regarding the significant growth in performance, Boyi Storage said that the storage industry has entered a highly favorable business cycle. Driven by AI computing power and domestic substitution, DRAM/NAND prices have continued to rise, and industry supply still fails to meet demand, from which the company benefits significantly. At the same time, to strengthen the market competitiveness of the company’s products in the AI era, the company continues to increase investment in fields such as chip design, solutions, advanced packaging and testing, as well as testing equipment.

However, behind the rapid growth, Boyi Storage’s cash flow pressure has also become a key focus for outside observers. Data show that in 2025, Boyi Storage’s net cash flow from operating activities was -1.965 billion yuan. In response, the company explained that it is in a phase of rapid development, and to cope with the industry’s supply-demand landscape, it implemented strategic inventory stocking of storage wafers, resulting in a significant increase in cash outflows for raw material procurement. By the end of 2025, the company’s inventory amounted to 7.868 billion yuan, up 122%. Inventory accounted for about 50.7% of total assets. The high-level stocking will effectively support the release of future production capacity, but it also ties up a large amount of working capital.

Industry analysts believe that, currently, the high-demand momentum in the storage industry continues. AI computing power, terminal upgrades, and localization will continue to drive storage demand. Relying on locked-in supply sources, technological layout, and industry tailwinds, Boyi Storage is expected to sustain its growth momentum. At the same time, risks such as volatility in the industry cycle, inventory impairment, and tight cash flow also need to be kept in mind. Only by balancing the pace of expansion with operating quality can the company achieve stable and long-term development.

According to publicly available information, Boyi Storage was established in 2010, focusing on the R&D design, packaging and testing, manufacturing, and sales of semiconductor memory. Its business covers multiple areas including embedded storage, PC storage, automotive-grade industrial control storage, and enterprise storage, among others. It also provides advanced packaging and testing services. Its products are widely used in scenarios such as consumer electronics, artificial intelligence, and industrial control.

Editor: Tan Rui

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