Explosion! Storage giant Jiang Bolong expects net profit to increase by 620%-740% in the first half of the year | Financial Report Insights

Storage chip module manufacturer Longsys has delivered an impressive interim performance forecast, reflecting the strong momentum of the global semiconductor storage industry.

Longsys announced on Friday that it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be 920 million to 1.1 billion yuan, a year-on-year increase of 620% to 740%; net profit excluding non-recurring gains and losses is expected to be 900 million to 1.05 billion yuan, a year-on-year increase of about 278% to 325%. Revenue for the first half is expected to range from 2.2 billion to 2.5 billion yuan, compared to about 1.02 billion yuan in the same period last year.

The company’s Q2 net profit is estimated to be 5.338 billion to 7.138 billion, Q1 net profit was 3.862 billion. Based on this, Q2 net profit is expected to change quarter-on-quarter by 38% to 84%.

The company attributes the significant improvement in performance to two main factors: first, the external benefits brought by the recovery of the global storage industry; second, the company's continuous breakthroughs in self-developed technology on the edge-side AI track. These results have not yet been audited by an audit institution, and specific data will be disclosed in the semi-annual report.

Storage boom upward, supply agreements strengthen the resource moat

Longsys pointed out in the announcement that downstream demand continued to increase during the reporting period, while overall global storage wafer production capacity expanded only moderately. The improvement in supply-demand dynamics has boosted industry prosperity and created a favorable business environment for the company.

At the same time, during this reporting period, the company successfully renewed wafer supply agreements (LTA or MOU) with several major global storage wafer manufacturers, securing upstream resource supply.

On the technical side, Longsys has positioned edge-side AI as a core strategic direction. The company uses its self-developed SPU controller chip and HLC software architecture as the technical base, and relies on its own high-end packaging and testing capacity to accelerate the implementation of R&D achievements, systematically deploying diversified storage needs in edge-side AI.

A joint verification disclosed in the announcement is particularly noteworthy: Longsys and AMD completed joint optimization, achieving that after the company’s SSD storage intelligent agent is combined with HLC technology, the DRAM usage of edge-side AI products decreased by about 40%. If this technical approach can be promoted at scale, it means finding a new balance between memory cost control and AI performance in terminal devices, with the potential to open up broader market application space.

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