Tmall and Longsys Sign Strategic Cooperation Agreement to Accelerate Domestic Production of Storage Products

On April 27, 2019, the Tmall-Longsys Strategic Cooperation Agreement Signing Ceremony & the 20th Anniversary of Longsys was concluded. The two partners announced that a strategic cooperation partnership was reached to promote the development of China's storage industry and expedite the domestic production of storage products.

In recent years, thanks to policy support, quality improvement, and the shift of marketing strategy, homemade products have become sought-after among consumers, even triggering a "tide of Chinese goods".

In terms of the storage industry, China is still backward technically. Despite a demand of over USD 40 billion for storage chips in Chinese market in 2018, homemade products contributed less than 1% of the total supply. Therefore, it is imperative to change the scenario with competitive home brands and boost China's electronic industry with homemade chips.

Since its founding in 1999, Longsys has devoted itself to product R&D and independent innovation, and used self-developed technologies to produce all components and parts of their storage products ahead of others.

In the core areas of flash memory chip (embedded memory chip, SSD, removable memory card, and U disk), Longsys has maintained the largest market share among Chinese enterprises, with annual sales volume of various storage products and modules over 200 million.

Based on its unique "DMS Q" business model—technical design, modular mass production, and professional services as well as its commitment to product quality, Longsys serves global clients with innovative products amid growing size of markets, showing the quality and brand strength of China's storage products.

As a domestic leading enterprise in internet and new economy, Tmall has joined hands with Longsys to play their due part in the domestic production of storage products. We will use 3D NAND FLASH of Yangtze Memory Technologies, and choose memory control chips of YEESTOR Microelectronics and Maxio Technology, and realize packaging and production in Payton Technology and KYEC Group; meanwhile, we are inviting other partners of industrial chain to participate in the "Tmall Plan", such as Lenovo, Hikvision, Colorful, ONDA Technologies, Billion Reservoir, KingBank, Reeinno, OV, and DM. Leveraging on the strength of Tmall as a platform that pools global resources, greater efforts will be made to support Chinese storage brands, speed up new products introduction, and intensify brand publicity, so as to enable Chinese storage brands to enter global markets at an earlier date.

Our predictions:

Lexar, a high-end storage brand under the belt of Longsys, will join top 2 in Tmall in terms of the sales of high-end photographic memory cards and 1TB storage products this year;

The Chinese storage brands supported by or cooperating with Longsys have achieved their annual sales of more than RMB 300 million at Tmall, with 8 million storage products being sold. Longsys has over 10 home brands as partners;

In 2020, their sales at Tmall will exceed RMB 500 million and continue to grow at a fast pace.

The day April 27, 2019 marks the 20th anniversary of Longsys. Signing the strategic cooperation agreement with Tmall at this special day, Longsys has endowed the historical moment with more far-reaching significance. It will cooperate with other Chinese storage companies with own quality brands and strengths in pursuit of shared values to shoulder more responsibilities in the industrial chain market and technical application platforms, to realize a prosperous Chinese storage scene and purely domestic production of storage products.