Shenzhen Longsys Electronics (301308) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥9.04 billion, up 143.82% year-over-year, with net profit attributable to shareholders at ¥594 million, reversing a loss in the prior year.

• All major business lines—embedded storage, SSDs, mobile storage, and memory modules—achieved significant growth, driven by industry recovery and proactive business expansion.

• Enterprise storage revenue surged over 2000% year-over-year to ¥291 million, and self-developed controller shipments exceeded 10 million units.

• Integration of acquired subsidiaries Zilia (Brazil) and Yuan Cheng Suzhou contributed positively to profits and global supply chain resilience.

• R&D investment rose 92.51% year-over-year to ¥475 million, supporting innovation in high-end and automotive-grade storage products.

Financial highlights

• Operating income: ¥9.04 billion, up 143.82% year-over-year.

• Net profit attributable to shareholders: ¥594 million, compared to a loss of ¥596 million in H1 2023.

• Gross margin: 23.66%, up 0.81 percentage points year-over-year.

• Basic EPS: ¥1.44, compared to -¥1.44 in H1 2023.

• Total assets: ¥17.63 billion, up 28.86% from year-end 2023.

• Net cash flow from operating activities: -¥1.42 billion, reflecting increased inventory and procurement.

Outlook and guidance

• The semiconductor storage industry is expected to continue its recovery, with moderate price increases and robust demand for high-performance enterprise products.

• The company will focus on expanding high-end, automotive, and overseas markets, leveraging R&D and supply chain integration.

• Ongoing investment in R&D and capacity expansion projects, with major construction projects scheduled for completion in 2025.