Lesi Group (2540) investor relations material

Executive summary

• H1 2026 revenue rose 16.8% YoY to RMB797,998,000 and gross profit increased 30.0% to RMB43,214,000; profit for the period fell 6.4% to RMB9,966,000.

• Gross billings grew 44.7% YoY to RMB1,393.8m; 237 customers were served through direct distribution across 10 platforms operated by three media publishers.

Financial highlights

• Operating profit increased to RMB14,062,000 from RMB13,343,000; profit before tax fell 7.7% to RMB10,283,000.

• Basic and diluted EPS were RMB0.02, unchanged YoY; other net income was RMB4,896,000 versus a RMB177,000 loss, mainly reflecting government grants and FX gains.

• Impairment losses on trade and other receivables increased to RMB16.6m from RMB3.2m, mainly due to higher aged receivables; finance costs rose 71.4% to RMB3.8m.

• Net cash used in operating activities was RMB95.9m; financing activities generated RMB119.3m, and cash and cash equivalents ended H1 at RMB60.2m.

Outlook and guidance

• Priorities include scaling AI across content creation, audience targeting, delivery optimisation and data analysis, upgrading the proprietary platform and pursuing customized, high-ROI advertising solutions.

• Plans include expanding media distribution and customer relationships, and pursuing strategic technology and business cooperation; e-commerce live-stream marketing and overseas advertising services are among areas for cooperation or investment.

• AI-generated scripts, text, images and short videos are under trial, with commercial deployment to be pursued prudently.