Ling Xiong Technology (02436) is happy to say that net profit for the medium term is expected to increase sharply to about 20 million yuan

According to the Zhitong Finance App, Ling Xiong Technology (02436) announced that the Group's net profit is expected to increase sharply to about RMB 20 million for the six months ending June 30, 2026, an increase of about 300.0% over approximately RMB 4.9 million for the same period in 2025. The Group also anticipates a sharp increase in gross profit to approximately RMB 180 million for the six months ending June 30, 2026, an increase of no less than 75%, compared to approximately RMB 101.9 million for the same period in 2025.

The Group's significant improvement in financial performance is mainly due to rapid growth in the computing power infrastructure-related equipment lifecycle management solution business. The business provides customers with proprietary and scalable computing power, particularly those requiring artificial intelligence (AI) and other compute-intensive applications.

The Group believes that the strategic adjustment of its business portfolio and the expansion of products and services related to computing power has improved operational efficiency, improved profitability and enhanced the Group's long-term growth potential.

The Board of Directors and the Company's management remain confident in the Group's business development and long-term prospects. We believe that the continued development and commercialization of AI, combined with the growing demand for computing power and related digital infrastructure, will continue to create attractive business opportunities for the Group. In this context, the Group will continue to pay close attention to evolving market trends, strengthen its computing power, and optimize its business portfolio to focus on value-added service products with higher profit margins and more potential for long-term development. Based on the positive momentum achieved during this period, the Group is committed to pursuing sustainable growth, improving operational efficiency, and creating lasting value for shareholders and potential investors.