LongiXing IPO performance directly exploded, the "super cycle" of storage chips finally waiting for Chinese players.

Q1 revenue of 50.8 billion yuan, a year-on-year surge of 719%.
Net profit attributable to the parent company of 24.7 billion yuan, +1688% YoY.
The company directly released its H1 performance guidance:
Net profit attributable to the parent of 50-57 billion yuan, a projected increase of 2244% to 2544% YoY.
Brothers, what the hell is this growth? Half-year revenue may exceed 100 billion, and quarterly net profit nearly 25 billion—LongiXing Technology, with a "crazy surge," has pushed China's DRAM industry directly into the global spotlight.
What does this mean?
Over the past years, a total loss of 36.65 billion yuan, might be completely wiped out in just half a year; a domestically produced storage enterprise once seriously underestimated, is entering the global DRAM supply chain at a speed far exceeding international giants.
This is not ordinary performance growth, but China's first true leap in the "bottleneck" field of storage chips, turning cyclical dividends into real profits and influence.
一、Data behind the historic cycle
The explosion of LongiXing Technology is essentially the result of a severe mismatch between global DRAM supply and demand.
Since the second half of 2025, AI computing power demand has continued to explode, and data centers' demand for high-bandwidth memory (HBM) and high-end DDR5/LPDDR5 has far exceeded expectations. Meanwhile, the three major global manufacturers (Samsung $SSNLF, SK Hynix $SK Hynix, Micron $MU) have taken a relatively cautious approach to capacity expansion, leading to a clear supply shortage in the #DRAM market. Prices began to rise sharply from the second half of 2025 and continued into Q1 2026.
LongiXing Technology's Q1 data is highly convincing:
Revenue of 50.8 billion yuan, a 719% YoY surge
Net profit margin approaching 49% (close to international giants)
Product structure continues to optimize, #DDR5、#LPDDR5 and other high-value-added products' share increases
More importantly, the company's H1 guidance shows that this high growth is sustainable. This indicates that the current market is not a short-term pulse but driven by long-term AI demand, leading to a cyclical upward trend.
Compared to international giants:
Samsung Electronics Q1 revenue about 609.1 billion yuan (+69%)
SK Hynix about 239.2 billion yuan (+198%)
LongiXing's growth far exceeds that of giants, showing that in this cycle, domestically produced DRAM is transitioning from "catch-up" to "running alongside."
二、Why can LongiXing seize this wave?
LongiXing's outperformance in this cycle hinges on three key points:
1. Successful "jump" in technological platform
The company adopts a leapfrog R&D strategy, having completed mass production from the first to the fourth-generation process platforms, covering #DDR4 到 # DDR5/LPDDR5X, with technical levels now entering the mainstream international sequence. This lays a foundation for product structure upgrades and ASP improvements.

2. Capacity and scale effects begin to manifest
The company has three 12-inch #DRAM wafer fabs in Hefei and Beijing. Continuous capacity ramp-up over the past few years has formed effective supply for the explosive demand in 2025-2026. The expansion of production and sales scale directly amplifies profit elasticity from price increases.
3. Structural opportunities for domestic substitution
In the current geopolitical and supply chain security context, domestic cloud vendors (Alibaba, ByteDance, Tencent, etc.) have significantly increased acceptance of domestically produced storage. Although the top five customers' sales account still remains high, downstream terminal demand is genuine and stable.
三、Strategic significance of Sci-Tech Innovation Board IPO
LongiXing plans to raise about 29.5 billion yuan (one of the largest in recent Sci-Tech Innovation Board offerings), mainly investing in wafer manufacturing line upgrades, DRAM technology upgrades, and forward-looking technology R&D.
This capital will be directly used to further expand capacity, improve process technology, and deploy next-generation products like HBM. If successfully listed on the Sci-Tech Innovation Board, LongiXing will not only gain low-cost capital support but also complete the transformation from "national team project" to "market-leading company."
This has benchmark significance for the entire Chinese semiconductor industry—proving that in the storage field, once severely "bottlenecked," domestic forces now possess global competitiveness.
四、Risks and challenges still cannot be ignored
Cyclical risks: Storage industry is a typical cyclical sector. If demand growth slows or the three major manufacturers significantly expand capacity, prices may fall rapidly.
Technology and scale gap: LongiXing's global market share is about 7-8%, still with a clear gap compared to the top three. High-end products like HBM are still in the catching-up stage.
Customer concentration: High dependence on leading cloud vendors; if downstream capital expenditure slows, performance elasticity will be affected.
Gross margin sustainability: Currently high gross margins mainly come from price increases and scale effects; future maintenance requires continuous process upgrades.
五、Industry and investment perspective
LongiXing's explosion is essentially a microcosm of China's AI infrastructure localization process.
AI large model training and inference demand exponential increases in memory bandwidth and capacity. #HBM、#High-end storage like DDR5, #LPDDR5X has become an indispensable part of the AI computing chain. Against this background, storage localization is no longer a question of "whether," but "how fast and how strong."
From an investment perspective, LongiXing's listing will provide a window to observe the maturity of China's DRAM industry. Meanwhile, upstream equipment and materials, downstream module manufacturers may also benefit simultaneously.
LongiXing's performance in the first half of 2026 marks China's #DRAM industry officially moving from "strategic investment phase" to "harvest verification phase." It caught this AI-driven super cycle of storage, and proved with actual data that domestically produced memory has feasibility in technology, capacity, and commercialization.
Of course, the real test lies ahead—how to maintain technological iteration speed amid cycle fluctuations, continuously expand market share, and achieve breakthroughs in next-generation products like HBM.
But regardless, the "crazy surge" in 2026 has already written a bold chapter for China's storage industry.
The pendulum of storage cycles will never stay forever at the low point.
And this time, LongiXing Technology, has positioned itself correctly and seized its era.
#长鑫科技 #Storage chips #DRAM #Semiconductors #CXMT #Sci-Tech Innovation Board #国产替代 #AI computing power #Semiconductor equipment