The semiconductor memory sector leader, Shenzhen Longsys Electronics Co.,Ltd. (stock code: 301308), saw its shares plunge at market open on June 8, with intraday losses exceeding 9%. By the close, the stock price had settled at 485.06 yuan per share, down 6.72%, wiping nearly 15 billion yuan off its market capitalization in a single day.
The sell-off followed an announcement released on the evening of June 5. The company disclosed that Vice President Zhu Yu, citing personal financial needs, plans to sell up to approximately 598,400 shares between June 30, 2026, and September 29, 2026, via block trades and centralized bidding. This represents about 0.1414% of the company's total shares. Based on the closing price of 520.01 yuan on June 5, the planned divestment is valued at over 300 million yuan.
Public records indicate Zhu Yu, born in 1974 and a graduate of the former Xi'an Engineering College (now Chang'an University), joined the company in July 2016. As Vice President, he oversees finance, investment, and capital market activities. Data shows his annual salary for 2025 was 2.8748 million yuan, an increase of 1.371 million yuan from 2024. He currently holds 2.3935 million shares, or 0.5658% of the total, with a market value of approximately 1.245 billion yuan based on the June 5 closing price.
Context of the Recent Share Price Surge
Despite the short-term negative sentiment from insider selling, the company, known as a domestic memory module leader, has been a darling of the capital markets since September 2025.
Looking back to 2025, its share price hovered around 90 yuan for an extended period, with a market cap below 50 billion yuan. However, starting in September that year, the stock embarked on a sharp rally. It closed at 240 yuan on the last trading day of 2025 and hit an all-time intraday high of 637.25 yuan on May 14 this year. Even after recent pullbacks, the stock is still up over 98% year-to-date, with its market capitalization soaring from about 120 billion yuan at the start of the year to the current 205.2 billion yuan.
Drivers Behind the Market Re-rating
This revaluation is closely tied to a super-cycle in the memory industry. Since the second half of 2025, the global memory market has undergone a dramatic reversal, shifting rapidly from a phase of oversupply to severe supply-demand imbalance. The explosive growth in AI computing demand has been the core engine driving this industry upswing.
Recently, the World Semiconductor Trade Statistics organization significantly upgraded its growth forecasts for the global semiconductor industry in 2026 and 2027 in its Spring 2026 report. It now projects the global semiconductor market size could exceed $1.5 trillion in 2026. The agency noted that the accelerated growth is primarily led by the memory chip sector, with sales expected to surge approximately 250% year-over-year in 2026, surpassing the $800 billion mark.
Company Background and Strategic Moves
As a leading domestic NAND flash memory module company, its development path is notable. Founded in 1999, it completed its shareholding reform in 2018 and listed on the Shenzhen Stock Exchange's ChiNext board in August 2022. Notably, its founder, Cai Huabo, holds only a high school diploma.
The company started as a memory product seller, later moving into OEM manufacturing. Around 2010, with the rise of domestic smartphones, it focused on embedded memory chips (eMMC) and launched the FORESEE brand for the enterprise market. A pivotal moment came in 2017 when it acquired the Lexar brand from international memory giant Micron Technology, entering the consumer-grade memory chip market.
In 2023, it acquired an 81% stake in Brazilian semiconductor memory manufacturer Zilia for $195 million in cash, gaining access to the Latin American market. In 2025, it purchased the remaining 19% stake for $46.08 million.
Positioned in the middle of the semiconductor memory supply chain, the company's core business involves purchasing memory chips (NAND Flash, DRAM) from upstream wafer manufacturers, processing them into products like solid-state drives and memory modules, and delivering complete solutions to downstream end-customers.
Financial Performance Amid the Cycle
Amid the memory chip super-cycle, the company's performance exploded in 2025. Full-year operating revenue reached 22.766 billion yuan, up 30.36% year-over-year. Net profit attributable to shareholders surged 185.41% to 1.423 billion yuan, while adjusted net profit skyrocketed 674.08% to 1.289 billion yuan.
For the first quarter of 2026, operating revenue was 9.909 billion yuan, a 132.79% increase year-over-year. Net profit attributable to shareholders reached 3.862 billion yuan, soaring 2644.05% year-over-year, meaning its Q1 profit alone exceeded the total for the entire previous year.
Recent Insider Selling and Capital Market Activities
Against this backdrop of rising performance and share price, shareholders and executives have been reducing their holdings since the second half of 2025. According to incomplete statistics, Vice President Zhu Yu announced a plan on August 11, 2025, to sell up to 742,700 shares between September 2 and December 1, 2025. On November 27, 2025, Vice President Gao Xichun planned to sell up to 30,648 shares between December 18, 2025, and March 17, 2026. Furthermore, five employee持股 platforms controlled by founder Cai Huabo planned to sell up to 5.48 million shares between September 11 and December 10, 2025.
Amid this insider selling, the company recently resubmitted an application for an H-share listing on the Hong Kong Stock Exchange, with CITIC Securities and Citigroup acting as joint sponsors. This marks its second attempt at a Hong Kong listing, following a previous application in March 2025 that was shelved due to incomplete review processes.
Additionally, in December 2025, the company announced a planned private placement of up to 3.7 billion yuan. The proceeds are earmarked for various projects, including 880 million yuan for AI high-end memory R&D, 1.22 billion yuan for semiconductor memory controller chip R&D, 540 million yuan for high-end packaging and testing facility construction, and 1.1 billion yuan to supplement working capital. This placement received approval from the Shenzhen Stock Exchange on May 20.
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