Core Viewpoint - Lingxiong Technology (02436), the first DaaS (Device as a Service) company listed in China, reported a significant performance improvement in the first half of 2025, with revenue reaching 1.117 billion RMB, a year-on-year increase of approximately 18.5% [1][2][9] Financial Performance - Revenue for the first half of 2025 was approximately 1.117 billion RMB, with a gross profit of about 102 million RMB, reflecting a year-on-year growth of around 9.7% [1] - Net profit turned positive at approximately 5 million RMB, with adjusted profit reaching about 18.645 million RMB, and adjusted EBITDA increased by approximately 38.5% to 194 million RMB [1] - The company achieved a historical high in revenue for the same period, maintaining its position as the industry leader [1] Business Segments - Revenue from the equipment recycling business grew by 24.4% to approximately 848 million RMB, while equipment subscription service revenue increased by 4.5% to about 192 million RMB [1][3] - IT technology subscription services also showed steady growth, generating approximately 76 million RMB [1] - Total equipment subscriptions rose by 11.7% to about 3.475 million units [1] Strategic Factors - Lingxiong Technology's business model, focusing on full lifecycle management of devices, has proven resilient in complex economic conditions [2][4] - The management team has demonstrated exceptional operational capabilities in navigating challenging market environments [2] - The company has built strong core competencies, including a closed-loop DaaS ecosystem, a robust recycling and refurbishment supply chain, and an industry-leading intelligent risk control system [3][4] Market Trends - The DaaS market in China is expected to grow significantly, with projections indicating a market size exceeding 100 billion RMB by 2025 [9][10] - The demand for DaaS services remains strong, driven by enterprises' need for cost reduction and efficiency improvements [10][11] - The introduction of advanced AI technologies is enhancing operational efficiency and customer service quality within the DaaS sector [10][11] Industry Leadership - Lingxiong Technology has established itself as a "chain leader" in the DaaS industry, contributing to the development of industry standards and participating in national initiatives [6][7] - The company has been recognized for its contributions to the DaaS market, receiving multiple national certifications and accolades [9] Future Outlook - The DaaS market penetration rate is anticipated to rise from approximately 5% to 10% over the next five years, indicating a shift in consumer preferences towards DaaS solutions [11] - Lingxiong Technology is well-positioned to capitalize on this growth, with expectations of substantial increases in market share and revenue potential [11]

[Company Overview and Financial Highlights](index=1&type=section&id=I.%20Company%20Overview%20and%20Financial%20Highlights) This section provides an overview of Lingxiong Technology Group's business model and key financial performance for the period [Company Profile and Business Model](index=1&type=section&id=I.A.%20Company%20Profile%20and%20Business%20Model) Lingxiong Technology Group Co., Ltd. is a Cayman Islands-incorporated company listed on the HKEX, providing equipment full lifecycle management solutions in China - Lingxiong Technology Group Co., Ltd. (Stock Code: 2436) is incorporated in the Cayman Islands, with its shares listed on the Main Board of the Hong Kong Stock Exchange[2](index=2&type=chunk) - The Group is a leading provider of equipment full lifecycle management solutions in China, offering equipment recycling, equipment subscription, and IT technical subscription services[4](index=4&type=chunk) [Financial Summary](index=1&type=section&id=I.B.%20Financial%20Summary) For H1 2025, the Group's revenue grew by 18.5% to RMB 1,116.7 million, achieving a net profit of RMB 4.9 million and adjusted EBITDA growth of 38.5% Key Financial Data for H1 2025 (Unaudited) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,116.7 | 942.6 | Growth 18.5% | | Gross Profit | 101.9 | 92.9 | Growth 9.7% | | Net Profit | 4.9 | (40.6) | Turnaround to Profit | | Adjusted Profit | 18.6 | (22.3) | Turnaround to Profit | | Adjusted EBITDA | 194.1 | 140.2 | Growth 38.5% | [Management Discussion and Analysis](index=2&type=section&id=II.%20Management%20Discussion%20and%20Analysis) This section reviews the Group's strong H1 2025 performance, including its turnaround to profit, industry recognition, and future strategic outlook [Business Review](index=2&type=section&id=II.A.%20Business%20Review) The Group demonstrated strong development in H1 2025, achieving a turnaround to profit driven by service scale expansion, refined expense management, process optimization, and enhanced digital operational efficiency - The Group recorded a net profit of approximately **RMB 4.9 million** in H1 2025, compared to a net loss of approximately **RMB 40.6 million** in the same period of 2024, achieving a turnaround to profit[4](index=4&type=chunk) - The turnaround to profit was primarily attributable to continuous expansion of service scale, refined expense management, process optimization, and enhanced digital operational efficiency[4](index=4&type=chunk) [Overall Performance and Industry Recognition](index=2&type=section&id=II.A.1.%20Overall%20Performance%20and%20Industry%20Recognition) The company achieved significant financial improvement in H1 2025 and received multiple national industry recognitions, demonstrating its leadership in sustainable development and innovation - In January 2025, the Group was selected as one of the second batch of national service industry standardization pilot enterprises (commercial circulation special project)[5](index=5&type=chunk) - In April 2025, the Group was selected as one of the first national pilot enterprises for second-hand goods circulation, reinforcing its role in implementing national sustainable development strategies and IT equipment reuse[5](index=5&type=chunk) - In July 2025, the Group was recognized as a Shenzhen Gazelle Enterprise, reflecting its strong innovation capabilities, rapid growth momentum, and significant industry development potential[5](index=5&type=chunk) [Core Business Segment Performance](index=3&type=section&id=II.A.2.%20Core%20Business%20Segment%20Performance) The Group's three core business segments showed varied performance: equipment recycling revenue significantly increased by 24.4%, equipment subscription service revenue grew by 4.5%, while IT technical subscription service revenue slightly decreased by 0.5% [Equipment Recycling Business](index=3&type=section&id=II.A.2.a.%20Equipment%20Recycling%20Business) Equipment recycling business revenue significantly increased by 24.4% year-on-year to RMB 848.1 million, primarily driven by a 19.9% increase in customer numbers and a 3.7% growth in average revenue per customer Key Operating Data for Equipment Recycling Business | Metric | H1 2025 | H1 2024 | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue (RMB million) | 848.1 | 681.9 | 24.4% | | Number of Devices Sold (units) | 424,710 | 449,029 | -5.4% | | Number of Equipment Recycling Customers | 1,570 | 1,309 | 19.9% | | Average Revenue per Equipment Recycling Customer (RMB) | 540,206 | 520,896 | 3.7% | - The equipment recycling business provides the Group with a stable source of retired equipment, which is then refurbished for equipment subscription services or sold through proprietary quotation platforms[8](index=8&type=chunk) [Equipment Subscription Services](index=4&type=section&id=II.A.2.b.%20Equipment%20Subscription%20Services) Equipment subscription business revenue grew by 4.5% to RMB 191.9 million, primarily driven by an 11.7% increase in total equipment subscription volume, with second-hand equipment outperforming new equipment Equipment Subscription Service Revenue and Subscription Volume | Metric | H1 2025 | H1 2024 | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue (RMB thousand) | 191,914 | 183,730 | 4.5% | | - New Equipment Revenue | 154,945 | 151,551 | 2.2% | | - Second-hand Equipment Revenue | 36,969 | 32,179 | 14.9% | | Total Equipment Subscription Volume (units) | 3,475,364 | 3,112,036 | 11.7% | | - New Equipment Subscription Volume | 2,803,650 | 2,505,320 | 11.9% | | - Second-hand Equipment Subscription Volume | 671,714 | 606,716 | 10.7% | - Equipment subscription services primarily include IT equipment selection, assembly, pre-installation configuration, and customized system settings, offering short-term and long-term subscription services targeting SMEs[8](index=8&type=chunk) [IT Technical Subscription Services](index=4&type=section&id=II.A.2.c.%20IT%20Technical%20Subscription%20Services) IT technical subscription service revenue slightly decreased by 0.5% to RMB 76.6 million, primarily due to a slight decline in business opportunities, with short-term subscriptions decreasing and long-term subscriptions slightly increasing IT Technical Subscription Service Revenue | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Growth Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 76,633 | 77,015 | -0.5% | | - Long-term Subscription | 59,608 | 58,685 | 1.6% | | - Short-term Subscription | 17,025 | 18,330 | -7.1% | - IT technical subscription services primarily complement equipment subscription services, and also independently provide IT equipment troubleshooting and system upgrade services[8](index=8&type=chunk) [Future Outlook](index=5&type=section&id=II.B.%20Future%20Outlook) The Group is confident in its future growth, aiming to solidify its IT equipment full lifecycle service platform through network expansion, digitalization, industry standardization, and sustainable practices - The Group will continue to expand its service network, further broaden its layout in key regional markets, and enhance operational efficiency[12](index=12&type=chunk) - Accelerate the deployment of data-driven tools and automation technologies to support high-quality, standardized service delivery[12](index=12&type=chunk) - Actively participate in national pilot projects to set industry standards, gain first-mover advantage, and deepen environmental practices to promote reliable reuse of IT equipment[12](index=12&type=chunk) [Financial Review](index=6&type=section&id=III.%20Financial%20Review) This section provides a detailed financial review, covering revenue, cost, profit, balance sheet, liquidity, and other financial information [Revenue Analysis](index=6&type=section&id=III.A.%20Revenue%20Analysis) The Group's total revenue for H1 2025 increased by 18.5% to RMB 1,116.7 million, primarily driven by growth in equipment recycling and equipment subscription services, with equipment recycling being the largest revenue source - Total revenue for the period was approximately **RMB 1,116.7 million**, an increase of approximately **18.5%** compared to the same period in 2024[13](index=13&type=chunk) - Revenue growth was primarily attributable to sales growth in the equipment recycling business segment and equipment subscription services segment[13](index=13&type=chunk) [Revenue Overview and Composition](index=6&type=section&id=III.A.1.%20Revenue%20Overview%20and%20Composition) The Group's revenue primarily derives from equipment recycling, equipment subscription, and IT technical subscription services, with equipment recycling accounting for the largest share at 76.0% and experiencing the fastest growth Revenue Breakdown by Service Line | Service Line | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Equipment Recycling Revenue | 848,124 | 76.0 | 681,853 | 72.3 | 24.4 | | Equipment Subscription Services | 191,914 | 17.2 | 183,730 | 19.5 | 4.5 | | IT Technical Subscription Services | 76,633 | 6.8 | 77,015 | 8.2 | -0.5 | | **Total** | **1,116,671** | **100** | **942,598** | **100** | **18.5** | [Revenue Details by Business Line](index=6&type=section&id=III.A.2.%20Revenue%20Details%20by%20Business%20Line) Equipment recycling revenue increased due to more customers and higher average revenue, particularly from higher-priced IT equipment sales; equipment subscription revenue grew with increased subscription volume, while IT technical subscription revenue slightly declined due to fewer business opportunities - The increase in equipment recycling revenue was primarily due to an increase in the number of equipment recycling customers from **1,309** to **1,570**, an increase in average revenue per customer from **RMB 520,896** to **RMB 540,206**, and an increased proportion of higher-priced laptops and other IT equipment sold[14](index=14&type=chunk) - The increase in revenue from equipment subscription services was primarily due to an increase in total equipment subscription volume from **3,112,036 units** to **3,475,364 units**[16](index=16&type=chunk) - The slight decrease in revenue from IT technical subscription services was primarily due to a slight decline in business opportunities identified by the IT technical subscription services segment[17](index=17&type=chunk) Equipment Recycling Business Revenue by IT Device Type | IT Device Type | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Tablets and Mobile Phones | 413,813 | 48.8 | 470,348 | 69.0 | -12.0 | | Laptops and Other IT Equipment | 434,311 | 51.2 | 211,505 | 31.0 | 105.3 | | **Total** | **848,124** | **100** | **681,853** | **100** | **24.4** | [Regional Revenue Distribution](index=8&type=section&id=III.A.3.%20Regional%20Revenue%20Distribution) Shenzhen remains the Group's largest revenue source, accounting for 80.0% of total revenue, though its share slightly decreased, while Shanghai's revenue grew significantly, increasing its share from 5.8% to 8.5% Revenue Breakdown by Geographical Location | Geographical Location | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Shenzhen | 893,391 | 80.0 | 781,815 | 82.9 | | Shanghai | 95,070 | 8.5 | 54,335 | 5.8 | | Wuhan | 20,498 | 1.8 | 20,149 | 2.1 | | Beijing | 52,570 | 4.7 | 45,115 | 4.8 | | Guangzhou | 22,068 | 2.0 | 22,154 | 2.4 | | Others | 33,074 | 3.0 | 19,030 | 2.0 | | **Total** | **1,116,671** | **100.0** | **942,598** | **100.0** | [Cost and Gross Profit Analysis](index=8&type=section&id=III.B.%20Cost%20and%20Gross%20Profit%20Analysis) Cost of sales increased in line with revenue growth, leading to a slight decrease in overall gross profit margin, while equipment subscription services saw improved margins and equipment recycling experienced a decline [Cost of Sales](index=8&type=section&id=III.B.1.%20Cost%20of%20Sales) Cost of sales for the period was approximately RMB 1,014.8 million, a year-on-year increase consistent with revenue growth, primarily due to the cost of inventories sold increasing from RMB 662.0 million to RMB 818.6 million - Cost of sales increased to approximately **RMB 1,014.8 million** from approximately **RMB 849.7 million** in the same period of 2024[19](index=19&type=chunk) - The increase in cost of sales was primarily attributable to the cost of inventories sold increasing from approximately **RMB 662.0 million** to approximately **RMB 818.6 million**[19](index=19&type=chunk) [Gross Profit and Gross Profit Margin](index=9&type=section&id=III.B.2.%20Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's gross profit increased by 9.7% to RMB 101.9 million, but the overall gross profit margin slightly decreased to 9.1%, with varied performance across service lines Gross Profit and Gross Profit Margin by Service Line | Service Line | H1 2025 Gross Profit (RMB thousand) | H1 2025 Gross Profit Margin (%) | H1 2024 Gross Profit (RMB thousand) | H1 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Equipment Recycling Revenue | 4,396 | 0.5 | 7,677 | 1.1 | | Equipment Subscription Services | 51,670 | 26.9 | 39,746 | 21.6 | | IT Technical Subscription Services | 45,798 | 59.8 | 45,457 | 59.0 | | **Total** | **101,894** | **9.1** | **92,880** | **9.9** | - Gross profit margin for the equipment recycling business decreased to **0.5%**, primarily because the increase in cost of goods sold exceeded the increase in revenue[21](index=21&type=chunk) - Gross profit margin for equipment subscription services increased to **26.9%**, primarily due to revenue growth exceeding service cost growth, and the average monthly utilization rate increasing from **86.5% to 88.8%**[22](index=22&type=chunk)[23](index=23&type=chunk) - Gross profit margin for IT technical subscription services increased to **59.8%**, primarily attributable to reduced service costs due to efficiency improvement measures[24](index=24&type=chunk) [Expense and Profit Analysis](index=10&type=section&id=III.C.%20Expense%20and%20Profit%20Analysis) The Group achieved a significant turnaround to profit in H1 2025, driven by increased revenue and gross profit, coupled with effective control and reduction in operating expenses, while finance costs increased due to business expansion - A profit attributable to owners of the Company of approximately **RMB 5.7 million** was recorded for the period, compared to a loss of approximately **RMB 39.8 million** in the same period of 2024, primarily due to increased revenue and gross profit, and reduced operating expenses[31](index=31&type=chunk) [Other Income](index=10&type=section&id=III.C.1.%20Other%20Income) Other income decreased by 3.9% year-on-year to RMB 13.1 million, primarily due to a reduction in customer compensation for damaged equipment - Other income decreased by approximately **3.9%** from approximately RMB 13.6 million to approximately **RMB 13.1 million**, due to a reduction in customer compensation for damaged equipment received during the period[25](index=25&type=chunk) [Operating Expenses](index=10&type=section&id=III.C.2.%20Operating%20Expenses) The Group effectively controlled operating expenses, with distribution and selling expenses, administrative expenses, and R&D expenses all decreasing year-on-year, primarily due to refined management, utilization of internal teams, and successful R&D project delivery [Distribution and Selling Expenses](index=10&type=section&id=III.C.2.a.%20Distribution%20and%20Selling%20Expenses) Distribution and selling expenses decreased by 19.6% year-on-year to RMB 62.1 million, with its percentage of revenue falling from 8.2% to 5.6%, primarily due to refined expense management and a shift to internal sales and marketing teams - Distribution and selling expenses decreased by approximately **19.6%** from approximately RMB 77.3 million to approximately **RMB 62.1 million**[26](index=26&type=chunk) - The decrease was primarily due to reduced staff costs following the implementation of refined expense management measures, and lower promotion expenses resulting from a shift from engaging external marketing experts to utilizing internal sales and marketing teams[26](index=26&type=chunk) [Administrative Expenses](index=10&type=section&id=III.C.2.b.%20Administrative%20Expenses) Administrative expenses decreased by 9.7% year-on-year to RMB 42.5 million, with its percentage of revenue falling from 5.0% to 3.8%, primarily due to a reduction in share-based payments - Administrative expenses decreased by approximately **9.7%** from approximately RMB 47.1 million to approximately **RMB 42.5 million**, primarily due to a reduction in share-based payments of approximately **RMB 6.1 million**[27](index=27&type=chunk) [Research and Development Expenses](index=11&type=section&id=III.C.2.c.%20Research%20and%20Development%20Expenses) R&D expenses decreased by 38.0% year-on-year to RMB 9.0 million, with its percentage of revenue falling from 1.5% to 0.8%, primarily due to reduced costs from successful R&D project delivery, organizational streamlining, and productivity improvements - R&D expenses decreased by approximately **38.0%** from approximately RMB 14.5 million to approximately **RMB 9.0 million**[28](index=28&type=chunk) - The decrease was primarily due to reduced costs from the successful delivery of several R&D projects, as well as lower staff-related expenses resulting from organizational streamlining and productivity improvements[28](index=28&type=chunk) [Finance Costs and Income Tax](index=11&type=section&id=III.C.3.%20Finance%20Costs%20and%20Income%20Tax) Finance costs increased by 5.9% year-on-year to RMB 25.0 million due to increased borrowings for business expansion, while income tax credit decreased from RMB 3.5 million to RMB 0.8 million - Finance costs increased by approximately **5.9%** from approximately RMB 23.6 million to approximately **RMB 25.0 million**, due to increased borrowings for working capital to support business expansion during the period[29](index=29&type=chunk) - An income tax credit of approximately **RMB 0.8 million** was recorded for the period, compared to approximately **RMB 3.5 million** in the same period of 2024[30](index=30&type=chunk) [Net Profit and Adjusted Profit](index=11&type=section&id=III.C.4.%20Net%20Profit%20and%20Adjusted%20Profit) The Group successfully achieved a turnaround to profit, recording a profit attributable to owners of the Company of approximately RMB 5.7 million, with adjusted profit and adjusted EBITDA also showing significant improvement - A profit and total comprehensive income attributable to owners of the Company of approximately **RMB 5.7 million** was recorded for the period, compared to a loss and total comprehensive expense of approximately **RMB 39.8 million** in the same period of 2024[31](index=31&type=chunk) - Adjusted profit (non-IFRS measure) was approximately **RMB 18.6 million**, compared to an adjusted loss of approximately **RMB 22.3 million** in the same period of 2024[32](index=32&type=chunk) - Adjusted EBITDA (non-IFRS measure) increased by approximately **38.5%** from approximately RMB 140.2 million to approximately **RMB 194.1 million**[33](index=33&type=chunk) Reconciliation of Non-IFRS Measures to the Most Directly Comparable IFRS Performance Measures | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit / (Loss) for the period | 4,908 | (40,583) | | Add: Share-based payment expenses | 9,585 | 18,332 | | Add: Exchange losses / (gains) | 4,152 | (53) | | **Adjusted Profit / (Loss)** | **18,645** | **(22,304)** | | **EBITDA** | **180,392** | **121,880** | | Add: Share-based payment expenses | 9,585 | 18,332 | | Add: Exchange losses / (gains) | 4,152 | (53) | | **Adjusted EBITDA** | **194,129** | **140,159** | [Balance Sheet Analysis](index=14&type=section&id=III.D.%20Balance%20Sheet%20Analysis) As of June 30, 2025, the Group's total current assets increased by 7.8%, and the current ratio improved to 1.3 times, with significant changes in receivables, inventories, and property, plant and equipment [Current Assets](index=14&type=section&id=III.D.1.%20Current%20Assets) Total current assets were approximately RMB 962.7 million, an increase of 7.8% compared to December 31, 2024, with the current ratio improving to 1.3 times, driven by a significant decrease in trade and lease receivables and an increase in inventories - As of June 30, 2025, the Group's current assets were approximately **RMB 962.7 million**, an increase of approximately **7.8%** from approximately **RMB 893.4 million** as of December 31, 2024[37](index=37&type=chunk) - The current ratio was approximately **1.3 times** (December 31, 2024: approximately **1.2 times**)[37](index=37&type=chunk) - Inventories increased from approximately **RMB 102.8 million** to approximately **RMB 135.0 million**, primarily due to increased demand from upstream suppliers for disposal of retired IT equipment towards the end of the period[39](index=39&type=chunk) - Trade and lease receivables decreased from approximately **RMB 255.6 million** to approximately **RMB 132.0 million**, primarily due to reduced credit terms offered to customers and enhanced risk management processes[40](index=40&type=chunk) [Non-current Assets](index=14&type=section&id=III.D.2.%20Non-current%20Assets) Property, plant and equipment and right-of-use assets decreased to RMB 719.8 million, primarily due to a reduction in purchases of property, plant and equipment during the period - Property, plant and equipment and right-of-use assets decreased from approximately **RMB 743.5 million** to approximately **RMB 719.8 million**, due to a reduction in purchases of property, plant and equipment during the period compared to the same period in 2024[38](index=38&type=chunk) [Liabilities](index=14&type=section&id=III.D.3.%20Liabilities) Trade payables decreased, reflecting timely settlement, while other payables and accrued expenses increased, primarily due to higher accrued expenses - Trade payables were approximately **RMB 92.0 million**, a decrease of approximately **RMB 15.4 million** from approximately **RMB 107.4 million** as of December 31, 2024, due to timely settlement of trade payables[42](index=42&type=chunk) - Other payables and accrued expenses were approximately **RMB 74.2 million**, an increase of approximately **RMB 6.5 million** from approximately **RMB 67.7 million** as of December 31, 2024, due to an increase in accrued expenses[43](index=43&type=chunk) [Liquidity and Capital Resources](index=15&type=section&id=III.E.%20Liquidity%20and%20Capital%20Resources) The Group primarily funds its cash requirements through cash generated from operations and other debt financing, with bank balances and cash significantly increasing, and the gearing ratio remaining stable around 113% - During the period, cash requirements were primarily funded by cash generated from operations and other debt financing[44](index=44&type=chunk) [Cash and Borrowings](index=15&type=section&id=III.E.1.%20Cash%20and%20Borrowings) Bank balances and cash increased to RMB 386.2 million, primarily due to higher cash generated from business operations, while total bank and other borrowings increased to approximately RMB 852.3 million - As of June 30, 2025, bank balances and cash were approximately **RMB 386.2 million** (December 31, 2024: approximately **RMB 295.9 million**), with the increase primarily due to higher cash generated from business operations[45](index=45&type=chunk) - As of June 30, 2025, bank borrowings were approximately **RMB 550.3 million**, and other borrowings were approximately **RMB 302.0 million**, totaling approximately **RMB 852.3 million**[46](index=46&type=chunk) - Borrowings are primarily denominated in RMB, with maturities ranging from one to three years, and effective annual interest rates ranging from **3.5% to 7.7%**[46](index=46&type=chunk) [Gearing Ratio](index=16&type=section&id=III.E.2.%20Gearing%20Ratio) The gearing ratio as of June 30, 2025, was 113.1%, a slight increase from 113.0% as of December 31, 2024, indicating a largely stable leverage level - The gearing ratio was **113.1%** as of June 30, 2025 (December 31, 2024: **113.0%**)[47](index=47&type=chunk) [Other Financial Information](index=16&type=section&id=III.F.%20Other%20Financial%20Information) There were no significant investments, acquisitions, or disposals, nor any material contingent liabilities during the period, and the Group primarily settles transactions in RMB without a foreign exchange hedging policy - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period[48](index=48&type=chunk) - There are no future plans for material investments or capital assets during the period, but the Group will continue to seek new business development opportunities[49](index=49&type=chunk) - As of June 30, 2025, there were no material contingent liabilities[50](index=50&type=chunk) - Most of the Group's transactions are settled in RMB, with a small portion settled in HKD and USD, and currently no foreign exchange hedging policy is adopted[51](index=51&type=chunk) [Other Information](index=17&type=section&id=IV.%20Other%20Information) This section covers employee and remuneration policies, events after the reporting period, corporate governance, and dividend policy [Employees and Remuneration Policy](index=17&type=section&id=IV.A.%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 942 full-time employees, offering competitive remuneration, performance bonuses, and other incentives, while emphasizing employee training and development to maintain a competitive edge - As of June 30, 2025, the Group had **942** full-time employees (December 31, 2024: **970** full-time employees)[52](index=52&type=chunk) - Employee remuneration (excluding directors' remuneration) was approximately **RMB 86.6 million** (same period in 2024: approximately **RMB 93.8 million**)[52](index=52&type=chunk) - The company provides employees with competitive remuneration, performance bonuses, other incentive measures, on-the-job training, and regular seminars, and has established LX Brothers and Beauty Bear employee incentive schemes[52](index=52&type=chunk) [Events After Reporting Period](index=17&type=section&id=IV.B.%20Events%20After%20Reporting%20Period) As of the date of this announcement, no other events have occurred after the reporting period that would have a material impact on the Group's operations and financial performance and require disclosure - No other events have occurred after June 30, 2025, and up to the date of this announcement that would have a material impact on the Group's operations and financial performance and require disclosure[53](index=53&type=chunk) [Corporate Governance](index=18&type=section&id=IV.C.%20Corporate%20Governance) The Group has adopted the HKEX Corporate Governance Code, and despite the Chairman and CEO roles being combined, the Board believes this arrangement serves the overall interests of the company and shareholders, with all Directors confirming compliance with securities transaction standards - The Group has adopted the Corporate Governance Code set out in Appendix C1 Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[54](index=54&type=chunk) - The roles of Chairman and Chief Executive Officer are held by Mr. Hu Zuoxiong, and the Board believes this arrangement is most appropriate, beneficial to the Group's management, and in the overall interests of the company and shareholders[54](index=54&type=chunk) - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the period[56](index=56&type=chunk) - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[57](index=57&type=chunk) [Dividend Policy](index=19&type=section&id=IV.D.%20Dividend%20Policy) The Board resolved not to declare an interim dividend for the period, and the Company has not declared or paid any dividends since its incorporation, with no intention to do so since the end of the reporting period - The Board resolved not to declare an interim dividend for the period[59](index=59&type=chunk) - The Company has not declared or paid any dividends for the six months ended June 30, 2025 and 2024 since its incorporation, and does not intend to declare any dividends since the end of the reporting period[78](index=78&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=23&type=section&id=V.%20Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the condensed consolidated financial statements, including general information, accounting policies, revenue and expense breakdowns, taxation, and receivables/payables [General Information and Basis of Preparation](index=23&type=section&id=V.A.%20General%20Information%20and%20Basis%20of%20Preparation) The Company is incorporated in the Cayman Islands and listed on the HKEX, with its condensed consolidated financial statements prepared in RMB according to IAS 34 and Listing Rules, consistent with 2024 annual report policies - The Company is an exempted company incorporated in the Cayman Islands, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[64](index=64&type=chunk) - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[66](index=66&type=chunk) - The condensed consolidated financial statements are presented in RMB, the Company's functional currency[65](index=65&type=chunk) [Accounting Policies and Segment Information](index=23&type=section&id=V.B.%20Accounting%20Policies%20and%20Segment%20Information) The Group adopted all new and revised IFRS effective January 1, 2025, without material changes, and segment information is primarily categorized by equipment recycling and equipment subscription services, with geographical data provided - The Group has adopted all new and revised International Financial Reporting Standards issued by the International Accounting Standards Board that are relevant to its operations and effective for the accounting period beginning on January 1, 2025, without material changes[67](index=67&type=chunk) - The Group's reportable segments include equipment recycling business and equipment subscription services[69](index=69&type=chunk) Revenue and Non-current Assets by Geographical Area | Region | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | Non-current Assets as of June 30, 2025 (RMB thousand) | Non-current Assets as of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | China | 1,103,867 | 942,598 | 808,298 | 796,388 | | Hong Kong | 12,804 | — | 7,276 | — | | **Total** | **1,116,671** | **942,598** | **815,574** | **796,388** | [Revenue and Expense Details](index=25&type=section&id=V.C.%20Revenue%20and%20Expense%20Details) This section details customer contract revenue types and recognition timing, along with the composition of other income (government grants, customer compensation) and finance costs (primarily interest expenses on borrowings) Disaggregation of Revenue from Contracts with Customers | Type of Goods or Services | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Equipment Recycling Revenue | 848,124 | 681,853 | | IT Technical Subscription Services | 76,633 | 77,015 | | Short-term Equipment Subscription | 23,464 | 23,830 | | **Total** | **948,221** | **782,698** | | **Timing of Revenue Recognition** | | | | At a point in time | 848,124 | 681,853 | | Over time | 100,097 | 100,845 | Other Income Details | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 1,014 | 333 | | Government grants | 9,524 | 10,082 | | Customer compensation income | 2,387 | 3,051 | | Miscellaneous income | 125 | 108 | | **Total** | **13,050** | **13,574** | Finance Costs Details | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest expense on borrowings | 24,618 | 23,050 | | Interest expense on lease liabilities | 382 | 563 | | **Total** | **25,000** | **23,613** | [Taxation and Earnings Per Share](index=27&type=section&id=V.D.%20Taxation%20and%20Earnings%20Per%20Share) The Group's Chinese subsidiaries benefit from tax incentives, including a 15% preferential tax rate for high-tech enterprises, a low tax rate for small-profit enterprises, and an R&D expense super deduction policy, contributing to a significant improvement in EPS - Lingxiong (Shenzhen), as a high-tech enterprise, renewed its qualification in November 2023, enjoying a **15%** preferential corporate income tax rate applicable for fiscal years 2023, 2024, and 2025[76](index=76&type=chunk)[77](index=77&type=chunk) - Certain PRC subsidiaries qualified as "small-profit enterprises," subject to a **5%** tax rate on profits not exceeding **RMB 3 million** (from January 1, 2023, to December 31, 2027)[77](index=77&type=chunk) - Enterprises engaged in R&D activities are entitled to claim **175%** of the R&D expenses incurred during the year as deductible expenses[77](index=77&type=chunk) Earnings / (Loss) Per Share | Metric | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings / (Loss) Per Share | 0.02 | (0.13) | | Diluted Earnings / (Loss) Per Share | 0.02 | (0.13) | [Receivables and Payables](index=29&type=section&id=V.E.%20Receivables%20and%20Payables) Trade and lease receivables significantly decreased due to shorter credit terms and enhanced risk management, while trade payables also decreased reflecting timely settlement, and other payables and accrued expenses increased due to higher accrued expenses Aging Analysis of Trade and Lease Receivables (Net of Allowance) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 107,643 | 232,594 | | Over 3 months but within 6 months | 8,269 | 7,861 | | Over 6 months but within 1 year | 9,736 | 10,626 | | Over 1 year | 6,308 | 4,542 | | **Total** | **131,956** | **255,623** | Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 66,371 | 101,483 | | 6 to 12 months | 21,294 | 3,127 | | Over 1 year | 4,364 | 2,772 | | **Total** | **92,029** | **107,382** | - The credit period for trade payables ranges from **0 to 90 days**[83](index=83&type=chunk)

Core Insights - Shenzhen, as a pioneering area for China's reform and opening-up, has demonstrated robust economic growth and resilience over 45 years, exemplified by rapid advancements in technology and manufacturing [1] - Lingxiong Technology Group, a leading private enterprise in Shenzhen, has developed a comprehensive DaaS (Device as a Service) model, significantly aiding thousands of companies in cost reduction and high-quality development [1][2] Company Development - Lingxiong Technology started in 2004 from a small rental business in Huaqiangbei and has evolved into a publicly listed DaaS leader, focusing on a full lifecycle management ecosystem for IT equipment [2] - The company has established branches in 19 major cities across China, addressing the IT equipment lifecycle management challenges faced by numerous enterprises [2] Financial Performance - In 2024, Lingxiong Technology reported a revenue increase of 32.3% year-on-year, reaching approximately 2.372 billion yuan, with the equipment recycling business growing by 42.7% to about 1.836 billion yuan [2] - The subscription service for equipment generated approximately 380 million yuan, reflecting a 9.1% increase, while IT technical services maintained steady growth with revenues around 156 million yuan [2] Industry Growth - The DaaS market in China is projected to maintain a compound annual growth rate of over 30%, expected to exceed 100 billion yuan by 2025 and reach 138.2 billion yuan by 2026, becoming a significant contributor to high-quality economic growth [3] - Lingxiong Technology has played a pivotal role in promoting the standardization and maturity of the DaaS industry, including the establishment of the DaaS Service Professional Committee and the implementation of national standards for office computer recycling [3] Support for Enterprises - Lingxiong Technology focuses on addressing the digital transformation needs of small and medium-sized enterprises (SMEs), helping them reduce initial investments by 97.4% and operational costs by 10% to 30% over three years through its DaaS model [4] - The company has successfully assisted thousands of enterprises, including Fortune 500 companies, in achieving cost efficiency and high-quality development, reinforcing its commitment to supporting SMEs [4]

Core Insights - The article highlights the significant achievements of Shenzhen as a hub for innovation and economic development over the past 45 years, particularly emphasizing the rise of the DaaS (Device as a Service) industry and the role of Lingxiong Technology as a key player in this sector [1][2][4]. Company Overview - Lingxiong Technology, founded in 2004, evolved from a small second-hand computer sales business in Huaqiangbei to a leading company in the DaaS industry, focusing on IT equipment lifecycle management [2][3]. - The company has developed a comprehensive DaaS model that includes short-term and long-term equipment subscription services, equipment recycling, and IT management SaaS solutions, establishing itself as a pioneer in the digital and closed-loop DaaS business model in China [2][3]. Industry Growth - The DaaS model allows companies to reduce initial investment costs by up to 97.4% and save 30% on total costs over three years compared to traditional purchasing methods, thereby enhancing operational efficiency [3]. - The DaaS market in China has been growing at a compound annual growth rate of over 30%, with projections indicating it will exceed 100 billion yuan by 2025 and reach 138.2 billion yuan by 2026 [6]. Environmental Impact - Lingxiong Technology's DaaS model contributes to green development by promoting the recycling and reuse of IT equipment, achieving a net carbon reduction of over 83,700 tons in 2024 and extending the lifespan of 1.41 million refurbished devices [6]. Standardization and Credit System - The company is actively involved in establishing industry standards and a credit system to enhance the DaaS ecosystem, including the implementation of national standards for enterprise credit evaluation and recycling practices [5][6].

Core Viewpoint - Lingxiong Technology (02436) expects to achieve a net profit of no more than 5 million yuan in the first half of 2025, a significant improvement compared to a net loss of approximately 40.6 million yuan in the same period of 2024 [1] Financial Performance - The expected turnaround from loss to profit is primarily attributed to the continuous expansion of service scale, with revenue expected to increase by no less than 150 million yuan compared to approximately 943 million yuan in the same period of 2024 [1] - The company has implemented refined cost management measures and process optimization across various business segments, resulting in a reduction of total operating expenses by no less than 20 million yuan compared to approximately 139 million yuan in the same period of 2024 [1]

凌雄科技(02436.HK)公布，该集团预期于2025年上半年取得净利润不超过500万元，较2024年同期约 4060万元的净亏损显著改善。据董事会所知，本期间显著由亏转盈主要得益于集团持续拓展服务规模， 本期间收入较2024年同期的约9.43亿元相比增加不少于1.5亿元;及在各业务板块推动精细化费用管理措 施及流程优化，并通过数字化提升运营效率，从而实现本期间合计运营费用较2024年同期约1.39亿元相 比减少不少于2000万元。 本文源自：金融界AI电报 ...

智通财经APP讯，凌雄科技(02436)公布，该集团预期于2025年上半年取得净利润不超过500万元，较 2024年同期约4060万元的净亏损显著改善。据董事会所知，本期间显著由亏转盈主要得益于集团持续拓 展服务规模，本期间收入较2024年同期的约9.43亿元相比增加不少于1.5亿元;及在各业务板块推动精细 化费用管理措施及流程优化，并通过数字化提升运营效率，从而实现本期间合计运营费用较2024年同期 约1.39亿元相比减少不少于2000万元。 ...

格隆汇8月14日丨凌雄科技(02436.HK)发布公告，集团预计截至2025年6月30日止六个月将录得不超过人 民币5.0百万元的净利润，较2024年同期约人民币40.6百万元的净亏损显著改善。 本期间显著由亏转盈主要(i)得益于集团持续拓展服务规模，本期间收入较2024年同期的约人民币942.6 百万元相比增加不少于人民币150.0百万元；及(ii)在各业务板块推动精细化费用管理措施及流程优化， 并通过数字化提升运营效率，从而实现本期间合计运营费用较2024年同期约人民币138.9百万元相比减 少不少于人民币20.0百万元。董事会及公司管理层对集团的业务发展及长期前景保持信心，并将致力于 在这积极势头的基础上，实现可持续增长，为股东及公司其他持份者创造持久价值。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 LX Technology Group Limited 凌雄科技集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2436） 本公司董事（「董事」）會（「董事會」）欣然知會本公司股東（「股東」）及潛在投資 者，根據董事會就本集團截至2025年6月30日止六個月（「本期間」）之未經審核 綜合管理賬目的初步審閱及董事會現時可得的其他資料，集團預計本期間將 錄得不超過人民幣5.0百萬元的淨利潤，較2024年同期約人民幣40.6百萬元的淨 虧損顯著改善。據董事會所知，本期間顯著由虧轉盈主要(i)得益於集團持續拓 展服務規模，本期間收入較2024年同期的約人民幣942.6百萬元相比增加不少於 人民幣150.0百萬元；及(ii)在各業務板塊推動精細化費用管理措施及流程優化， 並通過數字化提升運營效率，從而實現本期間合計運營費用較2024年同期約人 民幣138.9百萬元相比減少不少於人民幣20.0百萬元。 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02436 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 353,259,000 | | | 0 | | 353,259,000 | | 增加 / 減少 (-) | | | | 0 | | 0 | | | | 本月底結存 | | | 353,259,000 | | | 0 | | 353,259,000 | 公司名稱: 凌雄科技集團有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年8月4日 I. 法定/ ...