Storage module leader LONGSYS (09976.HK), also listed as Shenzhen Longsys Electronics Co.,Ltd. (301308.SZ), made its debut on the Hong Kong Stock Exchange on September 8th, marking the first independent memory manufacturer to achieve dual "A+H" listings in China. However, the first trading day ended in disappointment as the H-shares broke below their issue price. By the midday close, H-shares were trading at HK$234, a 0.68% decline from the HK$236 offering price.
Meanwhile, the situation for A-share private placement participants has become increasingly awkward. The 21 institutions that took part in the placement just a month ago at a high price of RMB 560 per share are now witnessing their paper losses expand significantly. According to Longsys' 2025 targeted private placement listing announcement, the placement price was set at RMB 560.00 per share, with the pricing benchmark date being June 29, 2026. This price had already drawn market attention at the time. By August 7th, when the placement report was disclosed, the A-share closing price had already dropped to RMB 386.60, meaning the placement price represented a premium of approximately 45% over the market price. In other words, the 21 subscribers were already facing paper losses exceeding 30% at the moment they paid for their shares.
If the losses a month ago were merely "numbers on paper," they are now transforming into an increasingly heavy financial burden. Based on today's intraday A-share price of RMB 355.36 (as of 14:31), the 21 subscribers are facing paper losses of approximately 36.55%, corresponding to a total unrealized loss of around RMB 1.352 billion.
Among the 21 subscribers in this private placement, seven are public fund management companies, collectively allocated 2.7935 million shares, representing 42.3% of the total 6.6071 million shares issued. Among the fund companies, E Fund Management secured the largest allocation at RMB 530 million, corresponding to 947,300 shares; Caitong Fund received RMB 248 million for 442,300 shares; Noah Fund obtained RMB 221 million for 395,400 shares; Southern Fund took RMB 201 million for 358,400 shares; Oriental Alpha Fund invested RMB 150 million for 267,900 shares; China AMC allocated RMB 114 million for 203,600 shares; and Guotai Fund invested nearly RMB 100 million for 178,600 shares. Based on today's intraday price of RMB 355.36, the combined paper losses for these seven fund companies total approximately RMB 573 million, with E Fund suffering losses of RMB 194 million, Caitong Fund down RMB 91 million, and Noah Fund losing RMB 81 million.
It is worth noting that these private placement shares carry a six-month lock-up period and cannot be unwound until February 17, 2027. Until that date arrives, regardless of how deep the paper losses go, these institutions are powerless to stop the bleeding or rebalance their positions. Adding salt to the wound, the H-share issue price, when converted to RMB, stands at approximately RMB 202 per share, representing a discount of roughly 43% compared to the A-share market price of around RMB 355. While such AH price gaps are not uncommon in the two markets, this significant discount inevitably exerts downward psychological pressure on A-share valuations.
On the fundamental front, Longsys' first-half 2026 results are nothing short of impressive: revenue reached RMB 24.088 billion, surging 136.3% year-on-year; net profit for the period hit RMB 10.718 billion, compared to just RMB 41 million in the same period last year. However, this stellar performance has failed to serve as an anchor for the stock price. With the H-share breaking below its issue price on day one, the market is now questioning whether the A-share valuation benchmark can hold its ground.
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