Longsys ends 1% lower in Hong Kong debut after $900 million share sale

By Donny Kwok and Yantoultra Ngui

HONG KONG, Sept 8 (Reuters) – Shares of Shenzhen Longsys Electronics ended 1% lower in their Hong Kong debut on Tuesday, after the Chinese data storage products maker raised about HK$7.08 billion ($903 million) in a share sale.

The stock closed at HK$233.60, lower than its offer price of HK$236. It opened flat and edged up 0.3% to HK$236.60 in the morning before slipping as much as 2% to HK$231.2 in the afternoon. Hong Kong’s benchmark Hang Seng Index fell 0.4%, while the Hang Seng TECH Index dropped 1.6%.

About 7.38 million Longsys shares worth HK$1.73 billion changed hands.

The listing adds to a run of Hong Kong share sales by Chinese companies tied to the AI boom, helping fuel the city’s dealmaking momentum.

“This Hong Kong listing is an important step in deepening the company’s global expansion,” Chairman Cai Huabo said at the listing ceremony on Tuesday.

Longsys sold 29.99 million Hong Kong shares after exercising an upsizing option. It secured cornerstone investors, including smartphone maker Transsion and computer maker Lenovo, according to its listing prospectus.

The Shenzhen-listed company makes memory and data storage products for smartphones, computers, data centres, vehicles and industrial equipment, according to its prospectus. Its main brands are FORESEE, Lexar and Zilia.

Longsys said demand for larger and faster data storage products was being supported by the build-out of AI data centres and the addition of AI functions to smartphones, computers and vehicles, according to its prospectus.

It added that it planned to use most of the listing proceeds to expand research and development in chip design and advanced memory products.

Longsys’ net profit surged more than 260-fold to 10.7 billion yuan ($1.59 billion) in the first six months of 2026 from 41 million yuan in the year-earlier period, its prospectus showed.

It said higher prices for its memory products, driven by demand that outstripped supply amid investment in AI infrastructure and data centres, helped lift earnings.

Revenue rose 136.3% on-year to 24.1 billion yuan in the period, the prospectus showed.

Longsys said selling prices rose across all its main product lines, even as sales volumes fell because higher raw material prices and tight supplies limited output and made some customers delay purchases.

CITIC Securities and Citigroup were the Hong Kong listing’s joint sponsors.

($1 = 7.8400 Hong Kong dollars)

(Reporting by Donny Kwok and Yantoultra Ngui; Editing by Subhranshu Sahu and Muralikumar Anantharaman)