LX Technology Group (2436) H2 2025 earnings summary

Executive summary

• FY25 revenue rose 0.8% YoY to RMB2,391.7m; net profit was RMB11.1m versus a RMB58.3m loss in FY24, on higher gross profit and improved operational efficiency.

• Adjusted profit was RMB38.9m versus an adjusted loss of RMB30.5m; adjusted EBITDA increased 27.3% to RMB360.9m.

• Revenue mix continued shifting toward recurring subscription services and higher-margin activities, supporting profitability and revenue stability.

Financial highlights

• Gross profit increased 26.3% to RMB248.1m; gross margin expanded to 10.4% from 8.3%.

• Cost of sales fell to RMB2,143.5m from RMB2,175.3m and declined to 89.6% of revenue from 91.7%.

• Selling expenses declined 7.2% to RMB132.8m; administrative expenses fell 8.8% to RMB85.5m; R&D expenses declined 12.7% to RMB21.9m.

• Basic and diluted EPS were RMB0.04, versus a loss per share of RMB0.19 in FY24.

Outlook and guidance

• Priorities include computility-related devices and services, technology-led innovation, operating efficiency and further business-structure optimisation; no quantitative targets were stated.

• Plans include prioritising higher-margin opportunities and scalable models, and developing complementary devices and services to improve revenue quality and profitability.

• Management cited growing demand from the computility economy and wider AI adoption as opportunities for business expansion and long-term growth.