LX Technology Group (2436) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 18.5% YoY to RMB1,116.7m; net profit was RMB4.9m versus a RMB40.6m loss in H1 2024.

• Adjusted profit reached RMB18.6m versus an adjusted loss of RMB22.3m; adjusted EBITDA increased 38.5% to RMB194.1m.

• Growth and return to profit reflected higher revenue, expense controls, process optimisation and improved operating efficiency through digitalisation.

Financial highlights

• Gross profit rose 9.7% to RMB101.9m, while gross margin declined to 9.1% from 9.9%; cost of sales increased to RMB1,014.8m, mainly from higher inventory costs.

• Selling and distribution expenses fell 19.6% to RMB62.1m, administrative expenses fell 9.7% to RMB42.5m, and R&D expenses fell 38.0% to RMB9.0m.

• Finance costs rose 5.9% to RMB25.0m as additional borrowings supported working capital for business expansion.

• Net cash generated from operating activities was RMB201.1m, compared with RMB50.3m in H1 2024.

• Profit before tax was RMB4.1m versus a loss of RMB44.1m; basic and diluted EPS were RMB0.02 versus a loss per share of RMB0.13.

Outlook and guidance

• H2 2025 and beyond priorities include expanding regional service coverage, deepening customer engagement, deploying data-driven tools and automation, and participating in national pilot programs.

• Strategy focuses on an integrated IT-device lifecycle platform, sustainability leadership and collaboration to diversify revenue; competitive operating conditions are expected to continue.

• National policies supporting the circular economy, green consumption and industry standardisation are expected to support structural expansion and transformation in DLM.