Following a downturn driven by slowing demand in traditional consumer electronics, the semiconductor memory industry has seen a robust recovery starting in 2024, entering a structurally strong phase from 2025 to 2026 fueled by on-device AI, enterprise big data, and industrial control applications. At this pivotal juncture marked by technological breakthroughs, accelerated domestic self-reliance, and supply chain restructuring, Chinese memory companies are accelerating their journey to international capital markets.
As the world's second-largest and China's largest independent semiconductor memory manufacturer with a long-standing listing on the A-share market, Shenzhen Longsys Electronics Co.,Ltd. (301308.SZ) has officially submitted its listing application to the Hong Kong Stock Exchange, embarking on a new chapter with a dual "A+H" financing platform strategy.
Recovery Cycle Meets AI Dividend, Accelerating Growth
Established in 1999, Shenzhen Longsys Electronics Co.,Ltd. is one of the earliest domestic entrants into the memory module industry. After listing on the Shenzhen Stock Exchange's ChiNext board in 2022, the company has progressively transformed from a single-module manufacturer into a full-chain storage technology firm. According to Frost & Sullivan data, based on 2025 storage product revenue, Shenzhen Longsys Electronics Co.,Ltd. ranks as the world's second-largest independent semiconductor memory manufacturer and holds the top position in the domestic market.
From a business structure perspective, the company has established four core product lines: embedded storage, solid-state drives (SSDs), portable storage, and memory modules, covering a full spectrum of needs from consumer electronics to enterprise data centers. In terms of revenue composition, embedded storage is the company's largest revenue contributor, generating 10.012 billion yuan in 2025, accounting for 44.0% of total revenue. SSDs and portable storage contributed 5.570 billion yuan and 4.894 billion yuan, representing 24.5% and 21.5% respectively. The memory module business is the fastest-growing segment, with revenue reaching 2.216 billion yuan in 2025, more than tripling over three years, and its share increasing to 9.7%.
A multi-brand strategy is one of the features distinguishing Shenzhen Longsys Electronics Co.,Ltd. from its domestic peers. The company operates a clear brand matrix: its self-owned brand FORESEE, targeting the B2B commercial market, contributed 9.066 billion yuan in 2025 revenue (39.8% of total), serving a full range of industry clients in consumer electronics, IoT, automotive electronics, and enterprise sectors. The internationally acquired high-end consumer brand Lexar generated 4.741 billion yuan in 2025 revenue, leveraging its global channel system to deepen its presence in the consumer market with strong brand recognition in portable storage and consumer-grade SSDs. The Zilia brand, focused on the Latin American B2B market, experienced explosive growth, with revenue surging from 37.21 million yuan in 2023 to 2.899 billion yuan in 2025, exceeding a 12% share and becoming the company's third revenue pillar.
These three brands work synergistically, creating a multi-dimensional market layout spanning "industrial + consumer, domestic + overseas." As of 2025, 66.8% of the company's revenue originated from regions outside mainland China, with its global footprint effectively diversifying risks associated with single-market volatility.
Furthermore, unlike many domestic module manufacturers, Shenzhen Longsys Electronics Co.,Ltd.'s core competitive edge lies in its ongoing vertical integration strategy. The company has not limited itself to module packaging and testing but has extended upstream into core components. Through subsidiaries like Huiyi Microelectronics and Shanghai Yuanmingxin, it has embarked on independent R&D for storage controller chips, having launched several self-developed chips including eMMC/SD controllers, SPI NAND & NOR Flash controllers, and UFS controllers.
In addition to controller chips, the company has also mastered core capabilities such as storage firmware algorithms, chip testing technology, and system-in-package design, forming a comprehensive industrial chain layout encompassing "controller design + firmware development + module manufacturing + brand operations."
Now, the surge of the AI wave has opened a second growth curve for the company. In the enterprise and AI storage track, it has launched high-performance SSDs for data centers, CXL 2.0 memory modules, MRDIMMs, and SOCAMM memory products specifically designed for AI data centers, with SOCAMM offering bandwidth and power efficiency suitable for high-end computing platforms. Concurrently, its automotive-grade products have entered the supply chains of several automakers and Tier 1 suppliers.
Currently, the global storage industry is in a dual-benefit window of cyclical upturn and exploding AI demand. From 2023 to 2025, the company's revenue grew from 10.125 billion yuan to 22.766 billion yuan, doubling over two years. Its net profit attributable to shareholders turned from a loss of 828 million yuan in 2023 to a profit of 1.423 billion yuan in 2025. The improvement in industry sentiment and optimization of the product mix jointly drove this performance growth.
Underlying Concerns Amid Expansion: High Debt, Strong Cycles, and Technological Competition
Although the growth logic at the business level is clear, financial data disclosed in the prospectus reveals significant financial pressures accumulated during Shenzhen Longsys Electronics Co.,Ltd.'s scale expansion. From the end of 2023 to the end of 2025, the company's total assets grew from 13.680 billion yuan to 22.751 billion yuan, an increase of over 66% in two years, indicating significant business expansion. However, this asset growth has been heavily reliant on debt financing.
During the same period, total liabilities climbed from 7.230 billion yuan to 14.389 billion yuan, nearly doubling. The asset-liability ratio continued to rise from 52.85% to 63.25%, indicating increasing debt pressure year by year. Interest-bearing bank borrowings form the core component of liabilities, with their book value increasing from 5.263 billion yuan at the end of 2023 to 10.490 billion yuan at the end of 2025, nearly doubling in two years and becoming the primary driver of rising leverage.
The debt maturity structure warrants particular attention regarding short-term repayment pressure. As of the end of 2025, interest-bearing bank borrowings due within one year amounted to approximately 6.112 billion yuan, accounting for nearly 60% of all interest-bearing borrowings. Coupled with 2.017 billion yuan in trade payables and 473 million yuan in other payables, the short-term rigid payment obligations are substantial.
Although the company holds 1.469 billion yuan in cash and cash equivalents on its books, this reserve is insufficient to cover the large short-term debt burden. If industry sentiment shifts subsequently, fluctuations in operating cash flow could impact the company's liquidity safety.
It is worth noting that the company has initiated a private placement plan on the A-share market, aiming to raise up to 3.7 billion yuan, which received approval from the Shenzhen Stock Exchange in May 2026. If successfully completed, this placement would, to some extent, replenish capital, optimize the capital structure, and alleviate debt pressure, although the output effects of the fundraising proceeds will require time to materialize.
From a broader industry perspective, the highly cyclical nature of the storage sector represents an underlying risk the company cannot avoid. The significant fluctuations in its performance over the past three years directly reflect the industry cycle: during the 2023 downturn, the company reported a net loss of 837 million yuan; as the industry bottomed out and recovered in 2024, it returned to profitability with a net profit of 505 million yuan; with the rapid industry upswing in 2025, net profit surged to 1.498 billion yuan. The amplitude of profit volatility far exceeds that of revenue.
Storage chip prices exhibit pronounced cyclical fluctuations influenced by global supply-demand dynamics, rising in both volume and price during upturns and falling during downturns. Midstream module manufacturers' performance often mirrors these large industry swings.
Although the industry is currently in an upward phase, as global memory manufacturers' capacity expansion plans are gradually implemented, the supply-demand balance could reverse again. If downstream AI and consumer electronics demand fall short of expectations, the industry might enter a downturn earlier, putting pressure on the company's revenue and profits to adjust downward.
Simultaneously, competition in the storage space is intensifying. The consumer-grade market has numerous participants with frequent price wars, continuously compressing profit margins. The company's Lexar brand faces competition from both international giants and a host of domestic manufacturers. The number of players in the industrial and automotive-grade markets is increasing, with homogenized competition gradually emerging and signs of price wars appearing. The enterprise and AI storage markets have long been dominated by international giants like Samsung, Micron, and SK Hynix, which possess extremely high barriers in technology, ecosystem, and brand, making it difficult for domestic manufacturers to break through.
The uncertainty of technological iteration is also a key test for the company's long-term competitiveness. The storage industry experiences rapid technological change, with ongoing advancements in interface standards and media upgrades, requiring manufacturers to maintain high-intensity R&D investment. Although the company has achieved breakthroughs in mid-to-low-end controller areas, gaps remain compared to international leaders in high-end enterprise controllers and high-end DRAM products. If the pace of technological iteration is misaligned, product competitiveness could decline, causing the company to miss out on industry upgrade benefits.
Overall, as a leading domestic memory module manufacturer, Shenzhen Longsys Electronics Co.,Ltd.
However, the continuously rising debt leverage, the strong cyclical volatility of the storage industry, increasingly fierce market competition, and rapidly evolving technological roadmaps all constitute real challenges on its development path. Therefore, the company's long-term value depends not only on its performance resilience during industry booms but, more importantly, on its ability to break into high-end markets through sustained technological investment, gradually reduce its vulnerability to cycles, and achieve a genuine transformation from a module manufacturer to a storage technology company.
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