LX Technology Group (2436) H1 2023 earnings summary

Executive summary

• H1 2023 revenue fell 3.7% YoY to RMB822.4m; net loss widened to RMB42.4m, while adjusted EBITDA rose 5.2% to RMB134.1m. Long-term device subscription customers increased 38.1% YoY to 13,761.

Financial highlights

• Revenue was RMB822.4m, down 3.7% YoY; gross profit declined 29.8% to RMB69.9m as revenue fell faster than cost of sales.

• Net loss was RMB42.4m versus RMB5.8m in H1 2022; adjusted loss was RMB11.4m versus RMB5.2m.

• Adjusted EBITDA increased 5.2% YoY to RMB134.1m; reported basic and diluted loss per share were RMB0.14 each.

Outlook and guidance

• For H2 2023, plans include expanding customer reach and market share, penetrating core cities, deepening partner collaboration, and improving service quality and business resilience.

• Device recycling and subscription services are to be more closely integrated; subscription plans include further system upgrades, product R&D, and SaaS-function enhancements.