The leading storage module manufacturer, Shenzhen Longsys Electronics Co.,Ltd., has recently released a performance forecast that can only be described as explosive.
For the first half of this year, Longsys anticipates achieving revenue between 22 billion and 25 billion yuan, representing a year-on-year increase of approximately 115.78% to 145.2%. Its estimated net profit attributable to shareholders is between 9.2 billion and 11 billion yuan, a staggering surge of 62,204.03% to 74,393.95% compared to the same period last year.
Even when calculated using the lower end of the forecast, the net profit for the first half already exceeds three times the total net profits from all years since 2018 combined.
Regarding this explosive growth in performance, Longsys attributed it primarily to the favorable external environment brought about by the global semiconductor storage industry's boom, as well as the successful renewal of wafer supply agreements with several major global storage wafer manufacturers, which secured the supply of storage wafers.
Amid the super cycle in the semiconductor industry, Longsys's market value has skyrocketed, and the fortune of its founder, Cai Huabo, has also surged dramatically. The recently released "2026 New Fortune 500 Rich List" shows that the Cai Huabo family, with a wealth of 43.29 billion yuan, has made the list again, with their fortune nearly tripling compared to last year.
However, beneath the brilliant performance lurk potential risks. On one hand, Longsys's performance is closely tied to the industry cycle, meaning it will face significant pressure when the cycle turns downward. On the other hand, its massive inventory scale and continuously rising asset-liability ratio are also concerns that cannot be ignored.
It is noteworthy that after the release of the half-year performance forecast, Longsys's stock price closed up 10.32% on July 6, but fell 7.91% the next day to close at 627.9 yuan per share, with a latest market capitalization of approximately 265.6 billion yuan.
First-Half Performance Explosion: Profits Surge Over 600-Fold
Information shows that Shenzhen Longsys Electronics Co., Ltd. was established in 1999. It is an innovative storage solutions manufacturer integrating R&D design, packaging and testing, production, and sales services.
Currently, Longsys primarily has four major product lines: embedded storage, solid-state drives, mobile storage, and memory modules.
According to the latest performance forecast released by Longsys on July 3, after preliminary calculations by the company's finance department, it is expected to achieve revenue between 22 billion and 25 billion yuan for the first half of this year, an increase of about 115.78% to 145.2% compared to 10.196 billion yuan in the same period last year.
In terms of profit, Longsys's performance is even more "crazy": for the first half of this year, the company expects to record a net profit attributable to shareholders of 9.2 billion to 11 billion yuan, a massive year-on-year increase of 62,204.03% to 74,393.95%. The net profit after deducting non-recurring gains and losses is between 9 billion and 10.5 billion yuan, with the highest year-on-year increase exceeding 300 times.
It is worth mentioning that in 2025, Longsys's full-year net profit attributable to shareholders was only 1.423 billion yuan. Even using the lower limit of this forecast, the net profit for the first half of this year is more than six times that of the entire previous year and exceeds the total net profits from all years since 2018.
The biggest contributor to this "explosive" financial report is the sharp rise in the global semiconductor storage industry's prosperity.
According to the latest spring forecast from the World Semiconductor Trade Statistics organization, the global semiconductor market size is expected to reach $1.5 trillion in 2026, a 90% increase from 2025.
Among these, memory chips, as the absolute main force driving the current semiconductor market surge, are expected to see sales exceed $800 billion in 2026, a year-on-year increase of about 250%.
As a globally leading semiconductor storage brand enterprise, Longsys has naturally benefited from this industry "dividend."
In the released performance forecast, Longsys clearly stated that the company's performance growth in the first half benefited from the favorable external environment brought by the global semiconductor storage industry's prosperity.
Simultaneously, the successful renewal of wafer supply agreements with several major global storage wafer manufacturers secured the supply of storage wafers, laying a solid resource foundation for future long-term development.
Additionally, Longsys disclosed that during the reporting period, it completed joint optimization with AMD, achieving a technological innovation where its own SSD storage intelligent body and HLC technology reduced DRAM usage in end-side AI products by approximately 40%.
Riding Industry Waves: The Fortune of a 40-Billion-Yuan Storage Magnate Takes Off
The arrival of the industry super cycle has made the storage track the strongest theme for wealth creation in semiconductors this year. As the founder of Longsys, Cai Huabo has also experienced the taste of a rapidly swelling fortune.
The recently released "2026 New Fortune 500 Rich List" shows that the Cai Huabo family's wealth reached 43.29 billion yuan, an increase of 28.09 billion yuan in one year. Compared to the 10.42 billion yuan when they first made the list in 2023, their wealth has increased by over 300%.
Public information shows that Cai Huabo was born in 1976 in Jiujiang, Jiangxi, with only a high school education. Early in his career, he worked as a salesperson at Shenzhen Huaqiangbei, where he came into contact with discrete components like resistors, capacitors, and transistors.
In 1999, Cai Huabo, together with his sister Cai Lijiang, founded Longsys. Initially, the company was mainly engaged in storage trading. However, an unexpected mistake became a turning point for the company's transformation.
In 2002, due to market information asymmetry, Longsys mistakenly purchased a batch of AND Flash storage products, but the mainstream standard had already shifted to NAND Flash products.
To recoup funds, Cai Huabo had to find another way out. He formed a technical team to turn this batch of goods into products for sale.
This experience not only led Longsys to develop the world's first U盘 product based on AND-NAND flash memory but also prompted its transformation from a trading company to an OEM manufacturer of memory products.
Thereafter, under Cai Huabo's leadership, Longsys repeatedly caught industry trends. Around 2010, with the rise of domestic smartphones, Longsys entered the embedded storage chip eMMC field and cultivated its own brand, FORESEE.
In 2020, amid intensifying Sino-US technology competition, Cai Huabo overcame opposition and led the company into the storage controller chip track, which the industry considered a "no-go zone for module factories."
In 2022, Longsys completed the R&D and mass production of its self-developed "WM" series controller chips. In August of the same year, Longsys listed on the Shenzhen Stock Exchange's ChiNext board, successfully accessing the capital market.
The following year, a powerful AI wave swept the globe. Longsys quickly adjusted its strategic focus, increasing R&D efforts on enterprise-grade high-performance SSDs and AI-optimized storage solutions, and subsequently launched a series of high-end storage products for data centers.
In 2025, the global memory chip industry entered an upward cycle, and Longsys successfully "took off" based on its previous technological accumulation.
That year, the company's revenue exceeded 20 billion yuan for the first time, increasing 30.36% year-on-year to 22.766 billion yuan; its net profit attributable to shareholders also successfully broke the 1 billion yuan mark, increasing 185.41% year-on-year to 1.423 billion yuan.
Entering 2026, the momentum of Longsys's strong performance growth has not diminished at all: first-quarter revenue reached 9.909 billion yuan, a year-on-year increase of 132.79%; net profit attributable to shareholders was 3.862 billion yuan, a surge of over 26 times year-on-year.
Hidden Risks Beneath the Brilliant Performance
Despite delivering an "explosive" performance forecast for the first half, Longsys is not without worries, as its performance is closely linked to industry cyclicality.
Data shows that in recent years, the NAND price index has fluctuated significantly, with the recent upward period beginning in the second quarter of 2025.
Longsys's performance also began to explode precisely from this period. In the second quarter of last year, the company achieved quarterly revenue of 5.939 billion yuan, a year-on-year increase of 29.51%; although its net profit attributable to shareholders fell 20.55% year-on-year to 167 million yuan, it successfully turned a profit compared to the first quarter's loss.
When the industry previously entered a downward phase, Longsys's performance was clearly under pressure. For example, in 2022, the company's revenue decreased 14.55% year-on-year to 8.33 billion yuan; net profit attributable to shareholders was only 73 million yuan, a sharp drop of over 90% year-on-year.
Longsys also explicitly mentioned in its 2025 annual report that if future market demand and industry cyclicality experience severe fluctuations, the company's operating performance may be affected.
In response, Longsys stated it will enhance its anti-cyclical capabilities through a strategy of "moving towards the high-end, expanding overseas, building the brand, and focusing on edge AI."
Simultaneously, the issue of Longsys's high inventory cannot be ignored. Since its listing, its inventory scale has been continuously climbing.
As of March 31, 2026, Longsys's inventory scale was as high as 17.961 billion yuan, an increase of 53.81% from the beginning of the period, accounting for approximately 50% of total assets.
Some investors are concerned that with technological innovation and the continuous expansion of competitors' production capacity, its existing inventory may become technologically obsolete. Moreover, if product market prices fall, substantial asset impairment could impact the company's performance.
Furthermore, as of the end of the first quarter, Longsys's total assets were 35.946 billion yuan; total liabilities were 23.563 billion yuan, of which long-term loans surged 115.46% from the beginning of the period to 9.431 billion yuan; the asset-liability ratio climbed to 65.55%.
Longsys stated that the continuous rise in its asset-liability ratio in recent years is mainly due to its main business being in a period of rapid growth, requiring significant working capital and R&D investment, along with new merger and acquisition loans used for equity acquisitions.
Longsys emphasized that the increase in its asset-liability ratio is in line with industry characteristics and matches the company's business scale and development plans.
It is worth noting that in December last year, Longsys released a "Plan for Private Placement of A Shares in 2025," proposing to raise no more than 3.7 billion yuan through a private placement to specific investors.
The funds raised will mainly be used for four major projects: 880 million yuan is earmarked for high-end memory R&D and industrialization projects targeting the AI field; 1.22 billion yuan is for semiconductor storage controller chip series R&D projects; 500 million yuan is for semiconductor storage advanced packaging and testing construction projects; and the remaining 1.1 billion yuan is intended to supplement working capital.
Whether this storage giant with a market cap exceeding 260 billion yuan can continue its "performance myth" remains to be seen.
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