Shenzhen Longsys Electronics (301308) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was ¥4.26 billion, down 4.41% year-over-year; net loss attributable to shareholders was ¥151.81 million, compared to a profit of ¥384.10 million last year.

• Excluding non-recurring items, net loss was ¥202.04 million, a significant decline from a profit of ¥363.13 million in Q1 2024.

• Operating cash flow turned positive at ¥153.03 million, a sharp improvement from negative ¥774.67 million a year ago.

• Gross margin and profitability were pressured by slow recovery in downstream consumer electronics and inventory digestion in the semiconductor storage sector.

• Lexar brand revenue grew 20.73% year-over-year; enterprise storage products (eSSD, RDIMM) revenue exceeded ¥319 million, up over 200%.

Financial highlights

• Total assets at quarter-end were ¥17.19 billion, up 1.72% from year-end 2024.

• Shareholders’ equity was ¥6.44 billion, down 0.39% from year-end.

• Basic EPS was -0.37, down from 0.93 in Q1 2024; weighted average ROE was -2.35%, compared to 6.10% last year.

• Non-recurring gains totaled ¥50.23 million, mainly from government subsidies and fair value changes.

Outlook and guidance

• Downstream inventory digestion is largely complete, and demand is showing substantial growth since late March 2025.

• Semiconductor storage market is gradually recovering, with price and sentiment improving.

• Company expects continued transformation toward a comprehensive semiconductor storage brand.