Longsys Reports H1 Net Profit of 10.577 Billion Yuan, Surging Over 715-Fold Year-on-Year
Miles Bennett
Longsys (江波龙) posted RMB 10.58 billion in net profit for H1 2026, a 715× year-on-year jump — but the staggering multiple mainly reflects last year's near-zero base, not a sudden super-engine.
A 715× gain — why is the number so extreme?
H1 net profit attributable to shareholders reached RMB 10.58 billion, up 71,528.66% year on year — roughly 715×.
This means → the multiple is eye-catching, but the core driver is an extremely low profit base in H1 2025, not a new growth engine appearing overnight.
In plain terms = last year the company barely broke even; this year it earned normally — divide a real number by near-zero and the multiple looks astronomical. The absolute figure matters more than the multiple.
What does the non-GAAP profit tell us?
Stripping out non-recurring items, net profit was RMB 10.05 billion, up 31,096.33% year on year.
This means → the gap between reported and non-recurring-adjusted profit is only about RMB 500 million — profit came overwhelmingly from core operations, not one-off gains or subsidies.
This reflects a substantive recovery in Longsys's operating profitability as the memory-chip cycle rebounds from its trough.
How did the top line perform?
H1 revenue hit RMB 24.09 billion, up 136.26% year on year.
The doubling ties directly to rising memory-chip prices and recovering downstream demand — memory chips are the storage components inside phones, PCs, and servers.
In plain terms = chips sold in higher volumes at higher prices; revenue followed.
Why no dividend?
The company declared no cash dividend, no bonus shares, and no capital-reserve conversion for the period.
This means → management prefers to retain earnings internally — likely for capacity expansion or cash reserves against cyclical swings.
Longsys itself flagged that sustaining current profit levels depends on memory-chip price trends and the durability of downstream demand — effectively telling the market that today's high margins may not be the new normal.
Content is for reference only, not financial advice.