Net profit surged by 71528.66% in the first half of the year, the Shenzhen-based 100-billion-yuan storage chip company rang the listing bell on the Hong Kong Stock Exchange.
Reported by Core Things on September 8, the Shenzhen, Guangdong-based storage chip company Longsys has just rung the bell for listing on the Hong Kong Stock Exchange.
Its issue price is HK$236 per share (approximately RMB 202.04), and the opening price is at par. As of 10:00, its share price fell slightly by 1.19% to HK$233.2 per share (approximately RMB 199.62), with a total market value of HK$107.192 billion (approximately RMB 91.758 billion).
▲ Changes in Longsys' share price (Source: Tencent Stock Selection)
Founded in 1999, Longsys is an independent brand semiconductor memory manufacturer. Its core business covers master control chip and storage chip design, firmware development, and backend manufacturing capabilities, selling storage products for consumer-grade, enterprise-grade, and industrial-grade applications.
In this listing, Longsys has introduced 14 cornerstone investors including Transsion Holdings, Lenovo Group, and Lens Technology, who have subscribed for a total of approximately US$151 million (approximately RMB 1.015 billion) of the offered shares.
According to data from CIC, in terms of revenue from storage products in 2025, Longsys is the 9th largest memory manufacturer among more than 100 market participants worldwide, as well as the 3rd largest memory manufacturer and the largest independent memory manufacturer among more than 30 market participants in China, accounting for 1.2% of the global semiconductor memory market share.
Longsys' customers include Dell, Lenovo, OPPO, Samsung, Transsion, and Xiaomi, etc.
In August 2022, the company was listed on the Shenzhen Stock Exchange's A-share market. As of the close of trading on September 7, its A-share price has risen by 26.86% this year, at RMB 358.22 per share, with a market value of RMB 153.916 billion.
To meet the needs of different customers, Longsys' product line consists of four categories: embedded storage solutions, SSD, mobile storage products, and memory modules. Its prospectus discloses unaudited financial data for the first half of 2026: revenue reached RMB 240.88 billion, a year-on-year increase of 136.3%; attributable net profit reached RMB 105.77 billion, a year-on-year increase of 71528.66%.
The net proceeds Longsys will receive from the global offering are approximately HK$60.202 billion (approximately RMB 51.6 billion), of which HK$47.11 billion (approximately RMB 40.38 billion) will be used to enhance its independent R&D and innovation capabilities in chip design and advanced storage product development, HK$7.07 billion (approximately RMB 6.06 billion) will be used for strategic investments or acquisitions, and HK$6.02 billion (approximately RMB 5.16 billion) will be used for working capital and other general corporate purposes.
01.
Revenue Surged 136% in the First Half
Net Profit Skyrocketed 700 Times
In 2023, 2024, 2025 and the first four months of 2026, Longsys' revenue was RMB 101.25 billion, RMB 174.64 billion, RMB 227.66 billion, and RMB 147.07 billion respectively, and its net profit was RMB -8.37 billion, RMB 5.05 billion, RMB 14.98 billion, and RMB 64.27 billion. Longsys' R&D investment in the same period was RMB 5.94 billion, RMB 9.1 billion, RMB 10.48 billion, and RMB 3.75 billion, accounting for 5.9%, 5.2%, 4.6%, and 2.5% of the revenue in the same period respectively.
Longsys also released unaudited financial data for the first half of 2026: revenue in the first half reached RMB 240.88 billion, up 136.3% year on year; attributable net profit reached RMB 105.77 billion, up 71528.66% year on year; gross margin was 58.2%, 47.2 percentage points higher than the same period of last year; R&D investment reached RMB 8.51 billion.
▲ Longsys' revenue, net profit and R&D investment from 2023 to the first half of 2026 (Chart by Core Things)
According to the prospectus, Longsys' loss in 2023 was caused by weak end-market demand and increased operating expenses. The subsequent rebound in net profit is related to the overall recovery of the storage product industry, rising product demand and increasing prices.
In 2023, 2024, 2025 and the first four months of 2026, Longsys' gross margin was 4.7%, 15.8%, 18.0% and 57.5% respectively, showing a year-by-year improvement trend. The improvement of gross margin in the first four months of 2026 is due to the surge in AI infrastructure investment, the overall market being in short supply, and the rising price of storage products.
As of June 30, 2026, Longsys held cash and cash equivalents of RMB 31.01 billion.
Longsys owns three major brands: FORESEE, Zilia and Lexar.
Among them, FORESEE mainly serves the B2B market as its self-owned brand, with advantages in end-side devices such as mobile phones and computers as well as in the automotive field; Zilia mainly serves the Latin American B2B market, which was launched in 2023 after it acquired the Brazilian semiconductor memory manufacturer SMART Brazil; Lexar is a global high-end brand acquired by Longsys in 2017, serving the B2C market, and its products have been sold to more than 60 countries and regions.
The prospectus shows that FORESEE is Longsys' flagship brand, and its RDIMM products cover capacities of 32GB, 64GB and 96GB, making it one of the first batch of domestic enterprises to release the 96GB version. It has developed a portfolio of automotive-grade storage products including UFS, eMMC and SPI NAND Flash, which have passed AEC-Q100 and IATF 16949 automotive-grade certification standards and are adopted by more than 20 automotive OEMs.
By product line, it includes four categories: embedded storage solutions, SSD, mobile storage products, and memory modules.
Embedded storage mainly includes three categories: UFS and eMMC, ultra-small size eMMC and ePoP, and LPDDR, which is its main source of revenue, accounting for 50.4% of revenue in the first four months of 2026.
Compared with the same period of last year in the first four months of this year, Longsys' product sales volume has declined, mainly because the rising product prices reduced the purchasing capacity and willingness of price-sensitive customers, leading some customers to postpone their purchases. In addition, the supply of main storage raw materials is tight, and the average prices of DRAM and NAND Flash have risen, so Longsys reduced its procurement, which limited the output of storage products.
Longsys is currently focused on selling consumer-grade products. From 2023 to the first four months of 2025, the revenue from Longsys' consumer-grade products accounted for 94.7%, 92.9%, 89.8% and 88.4% of the total revenue respectively.
02.
6 Independently Designed Master Control Chips Have Been Commercialized
Cumulative Production Exceeds 250 Million Units
Longsys has independent capabilities in key fields of storage products.
In terms of master control chip design, Longsys has independently designed 8 master control chips, 6 of which have been successfully commercialized, covering USB, SD card, eMMC, UFS products and SSD. As of April 30, 2026, the cumulative production of its self-designed master control chips has exceeded 250 million units. In March 2026, the company launched its self-developed SPU master control chip, which integrates memory control and intelligent processing engine. The 64TB SSD equipped with SPU master control chip can store 128TB of valid data at the host level.
Its products using self-designed master control chips were mass-produced in the second half of 2024, generating revenue of RMB 2.989 billion in the first four months of 2026, accounting for 20.3% of the revenue in the same period.
In terms of storage chip design, the company focuses on SLC NAND Flash and other small-capacity storage chips. 9 SLC NAND Flash storage chips have been successfully taped out. As of the end of April this year, the cumulative production of self-designed SLC NAND chips has exceeded 200 million units.
In terms of firmware development, Longsys has developed HLC technology and iSA, an intelligent storage agent specially designed for AI inference on end-side devices.
Finally, for packaging and testing, its Suzhou factory is equipped with SiP technology and MCP technology (including stacked packaging), which can package 16-layer stacked storage products; the dedicated line for data center storage products in its Zhongshan factory integrates R&D and re-testing, with DPPM of all product lines below 50; the Atibaia factory and Manaus factory in Brazil can carry out packaging, testing, SMT placement and assembly for a series of storage products.
The total designed capacity, actual capacity and utilization rate of Longsys' production plants are as follows:
As of April 30, 2026, Longsys has a total of 1262 R&D personnel, accounting for 35% of the total number of employees, and holds 645 authorized patents, including 229 invention patents, 182 software copyrights and 13 registered integrated circuit layout designs.
03.
Main Revenue Source Is Overseas Markets
Revenue From Top 5 Customers Accounts For About 30%
Longsys has established a sound global layout. In 2023, 2024, 2025 and the first four months of 2026, 77.1%, 71.1%, 66.8% and 69.9% of Longsys' revenue came from regions outside mainland China.
In terms of customers, from 2023 to the first four months of 2026, the revenue from the top five