Longsys Electronics, one of China's leading memory module manufacturers, expects a net profit increase exceeding 600 times in the first half of 2026 compared to last year, driven by rising demand for memory chips and constrained global wafer capacity.
- First-half net profit jumps over 600-fold to up to 11 billion yuan
- Revenue expected to reach 22 billion to 25 billion yuan, doubling year on year
- Long-term wafer supply agreements secured to support future growth
What happened
Shenzhen Longsys Electronics announced a preliminary forecast showing a net profit attributable to shareholders between 9.2 billion yuan (about US$1.36 billion) and 11 billion yuan for the first six months of 2026. This represents an extraordinary increase compared to the 14.8 million yuan profit reported in the same period last year. During this timeframe, the company's revenue is projected to rise to 22 billion yuan to 25 billion yuan, compared with 10.2 billion yuan a year earlier.
The sharp profit surge is attributed primarily to stronger downstream demand for memory modules and storage products amid a global memory-chip market upcycle. This favorable environment has been supported by limited growth in memory wafer production capacity worldwide. Longsys has also renewed or signed new wafer supply agreements with key global suppliers, securing critical resources to sustain its growth trajectory.
Why it matters
Longsys’ profit outlook underscores the strengthening of China’s memory supply chain in the context of a global rebound in DRAM and NAND markets. Rising demand from artificial intelligence applications has tightened supply and boosted pricing, which benefits downstream companies that package memory into modules and storage products for diverse consumer and industrial markets.
The company’s success highlights the complementary growth drivers across China's semiconductor ecosystem. While upstream Chinese chipmakers ramp production capabilities, downstream vendors like Longsys are capitalizing on market conditions to expand sales and profitability rapidly. This growth is also vital for China’s strategic aims to ascend the memory value chain amid global technology competition.
What to watch next
Longsys plans to fund further expansion through a private share placement approved by Chinese regulators, aiming to raise up to 3.7 billion yuan. This financing effort will support the development of high-end memory products tailored for artificial intelligence, alongside investments in storage controller chips, packaging innovations, and advanced testing capacity.
Additionally, the company has refiled for a Hong Kong stock listing, which would provide another channel to access capital markets. Observers will monitor how Longsys leverages these resources to enhance its product portfolio and production capabilities amid ongoing global memory market dynamics and escalating demand.