Longsys Electronics' Second Largest Shareholder Plans to Reduce Holdings of 2.4 Million Shares, Potentially Cashing Out Over 800 Million Yuan, After Cashing Out 640 Million Yuan Last Year

Red Star Capital Bureau, March 22 — Over the past year, as storage chip prices soared, Jiangbolong (301308.SZ) achieved both strong performance and a rising stock price. The company’s actual controllers’ combined wealth also increased significantly, growing over 40 billion yuan in just over half a year.

Meanwhile, major shareholders and the actual controllers have been reducing their holdings. Since the second half of 2025, Jiangbolong shareholders have cashed out more than 4 billion yuan through share disposals.

Image courtesy of Visual China

Rising Storage Chip Prices Drive Company Performance

According to CFM flash memory market data, in 2025, the spot storage market experienced a price increase wave, with DRAM and NAND prices rising by 386% and 207% respectively over the year. Additionally, TrendForce data shows that since September 2025, the prices of DDR4 and DDR5 memory modules have increased by over 150% and 300%, respectively.

Semiconductor storage company Jiangbolong also rode this wave. In 2025, its stock price increased by a total of 184.7%; in 2026, it rose another 34.8%.

In March 2026, Jiangbolong’s market value temporarily exceeded 150 billion yuan; in August 2025, its market value was around 40 billion yuan.

As of the end of Q3 2025, Jiangbolong’s actual controllers, siblings Cai Lijiang and Cai Huabo, held approximately 42% of the shares. Based on this, their combined wealth increased by over 40 billion yuan in just over half a year.

On January 29, 2026, the company released an earnings forecast, estimating net profit for 2025 to be between 1.25 billion and 1.55 billion yuan, representing year-over-year growth of 150.66% to 210.82%.

Regarding the reasons for the performance increase, the company stated that during the reporting period, storage prices bottomed out in the first quarter and then stabilized and rebounded. By the end of the third quarter, explosive demand from AI servers and the shift of manufacturing capacity toward enterprise-grade products caused further supply imbalance, leading to continued price increases. Leveraging high-end product layout, overseas expansion, and its own brand advantages, the company turned profitable in the first half of the year and steadily improved profitability in the second half, with net profit excluding non-recurring gains and losses in Q4 estimated to be between 650 million and 870 million yuan.

Shareholders Cashed Out Over 4 Billion Yuan

On March 19, Jiangbolong announced that director and second-largest shareholder Li Zhixiong plans to reduce his holdings by no more than 2.4 million shares between April 13 and July 12, 2026. Vice General Manager Gao Xichun plans to reduce his holdings by no more than 22,986 shares during the same period.

Based on Jiangbolong’s closing price of 356.5 yuan on March 19, Li Zhixiong’s planned reduction amounts to about 856 million yuan, while Gao Xichun’s would be approximately 8.19 million yuan.

This is not the first time they have reduced holdings. According to the announcement, from September 2 to November 11, 2025, Li Zhixiong sold about 4.1915 million shares at an average price of 152.42 yuan per share, cashing out approximately 639 million yuan. As of December 2025, Gao Xichun had reduced 30,648 shares at an average price of 266.35 yuan per share, amounting to about 8.16 million yuan.

Additionally, employee stock ownership platforms controlled by the company’s actual controller and chairman, Cai Huabo—Longxi No. 1, Longxi No. 2, Longxi No. 3, Longjian Management, and Longxi No. 5—sold a total of about 5.4797 million shares between September 11 and October 31, 2025. Based on the average sale price, this amounted to approximately 755 million yuan.

In January 2026, Jiangbolong issued a shareholder inquiry transfer plan, stating that employee stock platforms Longxi No. 1, Longxi No. 2, Ningbo Longxi No. 3, Ningbo Longjian, and Ningbo Longxi No. 5 plan to transfer a total of 12.5744 million shares at an inquiry price of 212.09 yuan per share, totaling about 2.667 billion yuan.

In total, the two rounds of disposals by Cai Huabo-controlled employee stock platforms have cashed out approximately 3.422 billion yuan. Combined with Li Zhixiong and Gao Xichun’s sales, Jiangbolong’s shareholders have cashed out over 4 billion yuan.

However, it should be noted that the cashing out by employees within the stock platforms does not mean Cai Huabo himself has sold his holdings. Cai Huabo previously promised not to reduce his indirect holdings until August 6, 2026. According to the announcement, the employee stock platform’s disposals mainly aim to meet some employees’ needs for liquidity to improve their lives.

Editor: Tao Yueyang, Xiao Shiqing. Compiled from China Economic Net, Blue Whale Finance, company announcements, and other sources.