Profits up 715x: Chinese AI memory giant heads to the Hong Kong stock exchange

Longsys, the Chinese parent company of Lexar, is launching an IPO on the Hong Kong Stock Exchange to raise nearly $800 million, with trading expected to begin on September 8. Fueled by the surge in AI memory prices, the group saw its half-year profits multiply by over 700. Unlike other recent Chinese AI startups, this listing is accessible to international investors. The article Profits up 715x: Chinese AI memory giant heads to the Hong Kong stock exchange appeared first on Cryptoast.

The Asian tech landscape is set to reach a major milestone with the imminent arrival of Longsys on the Hong Kong Stock Exchange. Already listed on the Shenzhen market, the storage solutions specialist—well known to the general public through its subsidiary Lexar—is orchestrating a historic dual listing. Planned for early September, the transaction aims to raise capital ranging from $800 million to $1.06 billion. This strategic move comes amid widespread euphoria surrounding artificial intelligence infrastructure, where demand for high-performance memory components is soaring to record highs, propelling industry players toward unprecedented growth levels.

The company's recent financial trajectory underscores this extraordinary momentum. In the first half of 2026, the group delivered a stellar performance, with net profit surging 715-fold to nearly $1.6 billion. This meteoric performance is no coincidence: it stems from an aggressive anticipation strategy of stockpiling components during the trough of the market cycle to resell them at a premium following the surge in global demand for AI semiconductors. With revenues up 136%, Longsys is cementing its role as an essential pillar of the supply chain, backed by major international clients such as Samsung, Dell, and Xiaomi.

Unlike other Chinese tech darlings that are often restricted to institutional or local investors, this IPO has the unique feature of being directly accessible to French retail investors. By offering its shares in Hong Kong as H-shares, the firm bypasses mainland regulatory barriers. To attract foreign capital, the company is offering a discount of around 45% relative to its current share price in Shenzhen. This opportunity allows retail investors to gain exposure to a major AI player through standard European brokerage platforms, effectively bypassing the usual restrictions of the Shanghai and Shenzhen markets.

From a structural standpoint, Longsys's positioning gives it notable resilience against ongoing geopolitical tensions. As a module and controller designer rather than a chip manufacturer (foundry), the company avoids much of the international sanctions targeting advanced Chinese technologies. With 70% of its revenue generated internationally, the group enjoys global exposure that secures its business model. However, this appeal comes with real risks, particularly the cyclical volatility of memory prices. A market downturn could swiftly impact inventory valuations, making the first trading days—scheduled for September 8—particularly tense for industry observers.