LX Technology Group (2436) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 32.3% YoY to RMB2,371.7m; net loss narrowed 55.5% to RMB58.3m, while adjusted EBITDA increased 17.6% to RMB283.4m.

• Stronger recycling and device subscription revenue, higher gross profit and tighter expense control drove the improvement; recycling moved from gross loss to gross profit.

Financial highlights

• Revenue was RMB2,371.7m, up 32.3% YoY; gross profit rose 33.0% to RMB196.4m and gross margin edged up to 8.3% from 8.2%.

• Net loss narrowed to RMB58.3m from RMB131.0m; adjusted loss narrowed to RMB30.5m from RMB67.4m.

• Adjusted EBITDA increased to RMB283.4m from RMB241.0m; reported EBITDA was RMB255.6m versus RMB177.4m.

• Other income rose to RMB28.0m, including RMB11.8m of government subsidies; other gains and losses reached RMB36.8m, including RMB24.1m fair-value gains on FVTPL assets.

Outlook and guidance

• Priorities include investment in technology, service quality and market expansion, alongside refining and expanding DLM offerings to meet demand for flexible IT asset management.

• AI adoption is viewed as an opportunity to support digital transformation through device subscription and IT technical services; sustainability and circular-economy principles remain operational priorities.