LX Technology Projects Strong Interim Profit Growth on AI Infrastructure Demand

Stock News
Aug 17

LX Technology Group Ltd has issued a positive profit alert, indicating a significant surge in its net profit for the six months ending June 30, 2026. The company now projects a net profit of approximately RMB 20 million, marking a substantial increase of around 300% compared to the roughly RMB 4.9 million reported for the same period in the previous year.

Alongside the profit uplift, the group also anticipates a robust expansion in its gross profit, which is expected to reach approximately RMB 180 million for the interim period. This would represent a growth of no less than 75% when set against the RMB 101.9 million gross profit recorded in the corresponding period of 2025.

The notable improvement in the company's financial performance is primarily attributed to the rapid growth of its lifecycle management solutions business for computing power infrastructure. This segment caters to clients requiring dedicated and scalable computing resources, particularly those with intensive artificial intelligence (AI) and other compute-heavy application needs.

The group believes that its strategic realignment of the business portfolio, alongside the expansion of its computing power-related products and services, has been instrumental in enhancing operational efficiency and profitability. These moves are also seen as reinforcing the company's long-term growth potential. The board and management retain a strong conviction in the group's business development and future outlook.

Management remains confident that the ongoing evolution and commercialization of AI, coupled with the escalating demand for computing power and related digital infrastructure, will continue to generate attractive business opportunities. In light of this, the group is committed to closely monitoring evolving market trends, strengthening its computing capabilities, and optimizing its business mix to focus on value-added services that offer higher margins and more sustainable long-term development prospects. Building on the positive momentum achieved in the current period, the company is dedicated to pursuing sustainable growth, improving operational efficiency, and creating enduring value for its shareholders and potential investors.

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