LX TECHNOLOGY (02436) issued a positive profit warning, expecting its mid-term net profit to increase significantly to approximately 20 million yuan.

LX TECHNOLOGY (02436) announced that the Group expects its net profit to significantly increase to approximately RMB 20 million for the six months ending June 30, 2026, representing an increase of about 300.0% compared to approximately RMB 4.9 million in the same period of 2025. The Group also expects its gross profit to surge to approximately RMB 180 million for the six months ending June 30, 2026, with an increase of no less than 75%, compared to approximately RMB 101.9 million in the same period of 2025. The significant improvement in the Group's financial performance is primarily due to the rapid growth of its lifecycle management solutions for power infrastructure-related equipment. This business provides clients with proprietary and scalable computing power, particularly for clients with artificial intelligence (AI) and other compute-intensive application needs. The Group believes that strategic adjustments to its business portfolio and the expansion of its power-related products and services have enhanced operational efficiency, improved profitability, and strengthened the Group's long-term growth potential. The Board of Directors and the management team remain confident in the Group's business development and long-term prospects. We believe that the ongoing development and commercialization of AI, coupled with the increasing demand for computing power and related digital infrastructure, will continue to create attractive business opportunities for the Group. Against this backdrop, the Group will continue to closely monitor the evolving market trends, strengthen its computing power, and optimize its business portfolio to focus on value-added service products with higher margins and greater long-term growth potential. Based on the good momentum achieved during this period, the Group is committed to pursuing sustainable growth, enhancing operational efficiency, and creating lasting value for shareholders and potential investors.