Longsys Reports Q1 Net Profit of 3.862 Billion Yuan, Swinging From Loss to Profit Year-Over-Year

Longsys Delivers Stellar Q1 Report: Revenue Approaches 10 Billion Yuan as Net Profit Swings to Positive

Leading memory chip enterprise Longsys recently disclosed its first-quarter 2026 financial results, delivering a performance that energized the market. The company achieved operating revenue of 9.909 billion yuan in Q1, a massive year-over-year increase of 132.79%. Net profit attributable to listed company shareholders reached 3.862 billion yuan, successfully swinging from a loss to profitability on a year-over-year basis.

Key Data Analysis

Looking at the specific figures, Longsys's quarterly revenue approached the 10-billion-yuan milestone, more than doubling from the same period last year with a growth rate of 132.79%, demonstrating exceptionally strong momentum. More critically, the company's net profit reversed from a loss in the year-ago period to a profit of 3.862 billion yuan, with a net profit margin approaching 39%, marking a significant improvement in profitability.

This performance substantially exceeded market expectations and further corroborated the sustained recovery in the memory chip industry's business cycle.

Industry Background and Growth Drivers

Longsys's strong earnings rebound was driven by multiple converging factors:

Memory market cyclical recovery. After enduring an industry trough from 2023 through early 2024, the global memory chip market entered an upcycle starting in the second half of 2024. Sustained price recoveries in NAND Flash and DRAM provided robust support for profit restoration across memory companies.

Sustained AI-driven demand. With the explosive growth of application scenarios such as large language models and AI inference, data center demand for high-performance storage has surged dramatically. The need for high-capacity, high-bandwidth memory modules in AI servers has become a core engine driving memory industry growth.

Optimized product mix. As a leading domestic memory brand enterprise, Longsys operates two major brands — FORESEE and Lexar — with products spanning embedded storage, mobile storage, and consumer-grade storage. The company has continued to advance its high-value-added product portfolio, with rising contributions from enterprise SSDs and other premium products effectively boosting overall gross margins.

Competitive Landscape

Within China's memory industry chain, Longsys is positioned in the memory module and brand operations segment, forming a complementary and synergistic relationship with upstream wafer fabs. As the domestic memory ecosystem continues to mature, Longsys's strategic advantages in supply chain localization are increasingly coming to the fore.

Meanwhile, international giants such as Samsung, SK hynix, and Micron continue to dominate at the memory manufacturing level. However, in the module branding and application segments, Chinese companies led by Longsys are accelerating their catch-up efforts and steadily expanding market share.

Future Outlook

Looking ahead to subsequent quarters of 2026, the memory industry's favorable cycle is expected to continue. On one hand, AI infrastructure construction remains in a phase of rapid expansion, sustaining robust demand for storage. On the other hand, a moderate recovery in the consumer electronics market will also provide incremental opportunities for memory products.

For Longsys, the key to maintaining high growth will be its ability to sustain momentum in emerging high-value segments such as AI storage and automotive storage. Based on the Q1 performance, the company has demonstrated strong operational resilience and earnings flexibility, making its subsequent results well worth continued attention.