Longsys Electronics, a Shenzhen‑based maker of memory and data‑storage products, listed on the Hong Kong Stock Exchange on Tuesday. The stock closed at HK$235.8, only a fraction below its HK$236 offer price, after the company raised roughly HK$7.08 billion ($903 million) in the offering.
Strong financial backdrop fuels listing
Longsys reported a dramatic surge in profitability, with net profit jumping more than 260‑fold to 10.7 billion yuan ($1.59 billion) in the first half of 2026, up from 41 million yuan a year earlier. Revenue rose 136.3% year‑over‑year to 24.1 billion yuan, driven by higher selling prices for its memory products as demand outpaced supply amid rapid AI‑data‑center construction.
The company said higher raw‑material costs and tight supplies limited output, causing sales volumes to dip even as prices rose across all product lines.
Use of proceeds and strategic partners
According to the prospectus, most of the proceeds will be directed toward expanding research and development in chip design and advanced memory technologies. Longsys secured cornerstone investors such as smartphone maker Transsion and computer manufacturer Lenovo, underscoring confidence from major technology players.
Chairman Cai Huabo called the Hong Kong listing “an important step in deepening the company’s global expansion,” highlighting the firm’s ambition to serve AI‑enabled smartphones, computers, vehicles and industrial equipment.
Market context
The debut adds to a recent wave of Hong Kong listings by Chinese firms tied to the AI boom, helping sustain the city’s deal‑making momentum. While the Hang Seng Index slipped 0.5% and the Hang Seng TECH Index fell 1.1% on the day, Longsys’s performance remained relatively steady.
CITIC Securities and Citigroup acted as joint sponsors for the listing.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
