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Domestic SSD controller chip leader Lianyun Technology has delivered a mid-term report card, with both revenue and net profit increasing. In the second quarter, net profit surged by 161.56% year-on-year, yet behind this impressive financial report lurks the risks of high accounts receivable and negative cash flow.
Lianyun Technology (688449) reported in its 2025 mid-year report that the company achievedoperating revenue of 610 million yuan, a year-on-year increase of 15.68%.
The net profit attributable to shareholders reached 56.135 million yuan, a year-on-year increase of 36.38%. More impressively, the company’s net profit attributable to shareholders in the second quarter alone was 80.9296 million yuan, up 161.56% year-on-year.
This report card reflects the company’s continuous deepening in the field of data storage controller chips and the demand growth driven by AI technology. As one of the top independent SSD controller chip manufacturers globally by shipment volume, Lianyun Technology is at the forefront of the AI-driven storage demand explosion.
01 Strong Growth in Performance, Significant Improvement in Profitability
Lianyun Technology’s 2025 mid-year report shows a trend of rising revenue and profits. The company’s net profit excluding non-recurring items reached 35.0934 million yuan,up 99.18% year-on-year, nearly doubling.
In terms of profitability, the company’s gross margin reached 51.66%, an increase of 6.01 percentage points year-on-year; the net profit margin was 9.21%, an increase of 17.89% year-on-year. This data indicates that the company has achieved significant results in cost control and product pricing strategies.
By business segment, the company’sdata storage controller chip product revenue was 522 million yuan, accounting for 85.68% of total revenue, with a gross margin of 54.79%. This segment is the main source of the company’s revenue and profit contribution.
AIoT signal processing and transmission chip product revenue was 71.7549 million yuan, accounting for 11.77% of total revenue, with a gross margin of 18.46%. Other business revenues, although small in proportion, have a gross margin as high as 99.46%.
02 Leading Storage Chip Manufacturer, Technical Advantages Build a Moat
Lianyun Technology is a platform chip design company focused on data storage controller chips and AIoT signal processing and transmission chips. In the SSD controller chip field, the company has becomeone of the top independent manufacturers globally by shipment volume, ranking second in global market share.
The company recently obtained an invention patent titled “Data Protection Method for Solid State Drives and Solid State Drives.” This technology can automatically retrieve data to be processed and perform error correction when there is an abnormal power outage, effectively enhancing data reliability.
In the first half of 2025, Lianyun Technology’sR&D investment reached 249 million yuan, a year-on-year increase of 25.53%. The company has obtained 7 patent authorizations this year, demonstrating its continuous technological innovation capability.
With the development of 5G and the Internet of Things, the demand for AIoT chips is strong. Lianyun Technology, leveraging its technological accumulation and market layout, is expected to capture a significant share in this emerging market.
03 AI-Driven Storage Demand, Unprecedented Industry Opportunities
The rapid development of AI technology has brought new growth momentum to the storage chip industry. The demand for data storage in end applications is continuously increasing, driving the overall shipment volume of the company’s data storage controller chips to maintain growth.
Huawei will launch new AI SSD products on August 27, targeting the AI storage market. This presents a direct benefit to storage controller chip manufacturers like Lianyun Technology.
Asthe leading domestic SSD controller chip enterprise, Lianyun Technology provides controller chip solutions for multiple storage module manufacturers and is expected to become an important participant in Huawei’s AI SSD supply chain.
In the AI era, the demand for data storage is experiencing explosive growth. Traditional HBM has capacity limitations, while high-capacity SSDs have become an important solution for AI storage, bringing unprecedented development opportunities for professional chip design companies like Lianyun Technology.
04 Financial Concerns Cannot Be Ignored, Cash Flow and Accounts Receivable Under Pressure
Despite the impressive performance, Lianyun Technology’s financial report also reveals some risk points. The company’soperating cash flow per share is -0.04 yuan, although it has improved by 89.8% year-on-year, it remains negative.
The ratio of accounts receivable to profit is as high as 255.27%, which is a warning signal. Although accounts receivable amounting to 301 million yuan have decreased by 12.06% year-on-year, indicating an improvement in the company’s accounts receivable collection situation, the absolute amount remains high.
Financial expenses increased significantly by 237.4% year-on-year, mainly due to exchange rate fluctuations leading to foreign exchange losses. This indicates that the company still has room for improvement in foreign exchange risk management.
Inventory increased by 46.92% year-on-year, mainly to increase safety stock and prepare for future demand. However, if market demand does not meet expectations, there may be risks of inventory devaluation.
05 Investment Strategy and Future Outlook
From the changes in shareholder structure, as of August 20, 2025, the number of shareholders of the company was 14,900, a decrease of 748, or 4.78%, compared to August 8. The average number of shares held per account has increased,indicating a concentration of shares.
The company will hold a semi-annual performance briefing on August 26, 2025. Investors can pay attention to management’s outlook on future business and measures to address risks.
Lianyun Technology currently has a total market value of 22.673 billion yuan, with a TTM price-to-earnings ratio of 272.32. This valuation level is relatively high, already reflecting the market’s high expectations for the company’s future growth.
For investors, Lianyun Technology has a clear industry advantage against the backdrop of AI-driven storage demand growth, but it is also necessary to pay attention to its financial risks and market valuation levels.
Lianyun Technology has becomethe second-largest independent manufacturer in the global market share in the SSD controller chip field.
As AI technology development drives storage demand growth, the company’s future development prospects are promising, but close attention must be paid to its cash flow improvement and accounts receivable management strategies.
Today’s performance briefing may provide more details about the company’s future development strategy.
Investors should remain rational, recognizing both the historic opportunities brought by AI and the risk factors behind financial indicators, maintaining a cool head amidst the heat of the wave.
Source Material:
Comprehensive reports from various sources including Securities Star, Daily Economic News, Sohu Technology, NetEase, Sina, and industry research institutions, covering the company’s financial reports, technology patents, market dynamics, and industry analysis.
Disclaimer:
This article is for reference only and does not constitute any investment advice or recommendations to buy or sell any securities. Investment involves risks, and market entry requires caution. Investors should make independent judgments and decisions based on their own circumstances and take responsibility for their investment actions.
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