Longsys Electronics, a China-listed independent memory company, has resubmitted its application for a dual listing on the Hong Kong Stock Exchange, aiming to raise approximately $800 million. This move is intended to facilitate its expansion into edge artificial intelligence storage solutions, boost capacity, and appeal to a broader international investor base. The company's strategy also reflects a shift from consumer-grade memory modules towards enterprise storage and customized edge AI, seeking stronger customer retention and pricing power through technical solutions rather than just standardized hardware sales.
The company has demonstrated significant financial growth, with revenue more than doubling from $1.5 billion in 2023 to $2.6 billion in 2024, and further increasing to $3.4 billion in 2025. It also returned to profitability, moving from a net loss of $123.2 million in 2023 to a net profit of $74.3 million in 2024, which then surged to $220.5 million in 2025. The first quarter of 2026 saw an exceptional performance, with net profit attributable to shareholders reaching $580.3 million, 2.8 times the full-year 2025 figure, driven by rising storage prices and inventory built during a period of lower prices. Longsys is the world's second-largest independent memory company and the largest in China, holding a 1.2% market share in the global memory product market in 2025.
Longsys operates three core brands: Foresee, which focuses on B2B customers in areas like consumer electronics, IoT, automotive electronics, and enterprise storage, generating $1.3 billion in revenue in 2025; Zilia, serving B2B customers in Latin America with $430.3 million in revenue in 2025; and Lexar, targeting the global high-end B2C market, recording $697.7 million in revenue in 2025. From 2023 to 2025, a significant portion of Longsys's revenue, ranging from 66.8% to 77.1%, came from outside mainland China, with key customers including Dell, Lenovo, Samsung, and Xiaomi.
Despite its impressive growth and strategic pivot towards edge AI, Longsys faces financial considerations, including rising liabilities and inventory levels. Its debt-to-equity ratio climbed from 112% in 2023 to 172% in 2025. Short-term bank liabilities reached $900 million in 2025, nearly double the 2023 level, while cash stood at $216 million at the end of 2025, well below its short-term liabilities. Inventory also increased significantly, from $866 million in 2023 to $1.7 billion in 2025. The Hong Kong listing is part of the company's broader strategy to leverage the AI boom for global expansion and technological upgrades, while addressing the inherent cyclicality of the memory industry and managing its concentrated upstream supply chains.
