Shenzhen Longsys Electronics (301308) Q2 2025 earnings summary

Executive summary

• Achieved revenue of ¥10.20 billion in H1 2025, up 12.80% year-over-year; net profit attributable to shareholders was ¥14.77 million, down 97.51% year-over-year due to margin pressure and non-recurring items.

• Second quarter revenue reached a record ¥5.94 billion, up 39.53% sequentially; Q2 net profit after non-recurring items was ¥234 million, up 215.94% sequentially.

• Overseas business continued strong growth: Lexar revenue up 31.61% and Zilia up 40.01% year-over-year in H1 2025.

Financial highlights

• Gross margin for storage products was 13.28%, down 10.38 percentage points year-over-year.

• Operating cash flow turned positive to ¥692.90 million from negative ¥1.42 billion year-over-year.

• Total assets at period end were ¥18.07 billion, up 6.97% from year-end 2024; net assets attributable to shareholders rose 4.21% to ¥6.74 billion.

• Non-recurring losses included asset impairment of ¥196 million and fair value losses of ¥13.74 million.

• R&D investment was ¥445.74 million, down 6.25% year-over-year.

Outlook and guidance

• Management expects continued demand growth in AI, cloud, and data center markets, with global semiconductor storage market projected to grow 11.7% in 2025 and 16.2% in 2026.

• Company will focus on high-end enterprise and industrial storage, product innovation, and global expansion.