LX Technology Group (2436) H1 2024 earnings summary

Executive summary

• H1 revenue reached a record RMB942.6m, up 14.6% YoY; gross profit rose 32.9% to RMB92.9m.

• Loss attributable to owners narrowed to RMB39.8m from RMB42.4m; adjusted loss widened to RMB22.3m from RMB11.4m.

Financial highlights

• Revenue was RMB942.6m versus RMB822.4m; cost of sales increased to RMB849.7m from RMB752.5m, broadly tracking higher sales.

• Gross profit rose to RMB92.9m from RMB69.9m; gross margin expanded to 9.9% from 8.5%.

• Other income increased 57.7% to RMB13.6m, including RMB10.1m of government subsidies; selling expenses rose 48.2% to RMB77.3m.

• Administrative expenses fell 4.5% to RMB47.1m; R&D expenses increased 14.2% to RMB14.5m, primarily for AI development.

• Basic and diluted loss per share were both RMB0.13, versus RMB0.14 in H1 2023.

Outlook and guidance

• Plans include integrating AI into front-end processes and mid-office management to handle contracts, orders and customer inquiries more efficiently.

• Continued sales and marketing investment aims to deepen market penetration and improve service for customers, particularly SMEs.