Lesi Group (2540) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 127.3% YoY to RMB682.9m; profit for the period fell 62.6% to RMB10.7m, while profit attributable to shareholders fell 62.3% to RMB10.7m.

• Gross billings increased 121.3% to RMB963.1m; mobile advertising solutions generated 99.6% of revenue, serving 188 customers.

Financial highlights

• Revenue was RMB682.939m versus RMB300.519m; gross profit fell to RMB33.249m from RMB42.998m.

• Operating profit was RMB13.343m versus RMB31.102m; profit before tax was RMB11.139m versus RMB29.710m.

• Profit for the period was RMB10.651m versus RMB28.560m; attributable profit was RMB10.651m versus RMB28.274m; basic and diluted EPS was RMB0.02 versus RMB0.06.

• Cost of services rose 152.3% to RMB649.7m, outpacing revenue growth amid higher traffic acquisition costs and lower media rebates.

Outlook and guidance

• Focus includes high-quality customers, value-added marketing, short-video production, and expanding customer and media-platform relationships, especially on high-traffic and interest-focused platforms.

• Planned AI and platform upgrades include content-production workflows and automated traffic and user-behaviour data analysis to improve advertising solutions.

• Exploring collaborations and M&A in marketing, content, live commerce, cross-border e-commerce and overseas advertising; no suitable target had been identified for the relevant IPO proceeds.