On August 27, LX Technology (02436), a leading AI inference computing power rental enterprise, released its 2026 interim results announcement. The announcement revealed that the company achieved revenue of 1.083 billion yuan (RMB, same below) in the first half of the year, with its computing power infrastructure full-lifecycle management solutions business contributing approximately 615 million yuan, accounting for about 57% of total revenue. Gross profit surged approximately 77.4% year-on-year to 180 million yuan, while net profit soared 319.8% to 20.6 million yuan. Adjusted profit climbed approximately 149% year-on-year to 46.43 million yuan, and adjusted EBITDA rose approximately 11.9% to 220 million yuan. Overall, LX Technology demonstrated continued upward and optimized development momentum in the first half of 2026, delivering an impressive earnings report.

During the first half of 2026, amid persistent complexity and volatility in both domestic and international macroeconomic environments, LX Technology maintained strategic focus and agility, precisely capturing new opportunities emerging in the economic and market landscape. Closely aligning with evolving market and enterprise customer demands, the company continued optimizing resource allocation from a strategic perspective, directing key resources toward the high-demand, higher-margin, and growth-potential-rich computing power infrastructure full-lifecycle management solutions segment. This approach drove continuous improvement in both revenue and profit structure while sustaining high-quality growth. Specifically, the equipment recycling business maintained steady development with revenue of 755 million yuan, equipment subscription business grew 11.9% year-on-year to 215 million yuan, and IT technical subscription services surged 47.7% year-on-year to 113 million yuan.

Multiple institutions believe that building on its strong 2025 performance and having genuinely entered a phase of scale profitability, LX Technology has continued to execute its strategic roadmap throughout 2026, placing greater emphasis on high-quality growth. By continuously optimizing resource allocation and business structure while strengthening internal momentum and overall profitability, the company drove its major profit indicators to record highs in the first half of 2026. Notably, its first-half net profit has already far exceeded its full-year 2025 net profit, indicating that the realization of high-quality growth expectations has fully entered a normalized state. As LX Technology continues enhancing operational efficiency, customer service quality, and revenue structure, its full-year performance is expected to impress the market, with immense room for future growth.

Computing Power Business Emerges as Primary Growth Engine, All Core Profit Metrics Surge Significantly

Since the 14th Five-Year Plan period, China's computing power market has experienced exponential growth, driven by the convergence of national strategic emphasis on computing infrastructure, major breakthroughs in AI large model technologies, and the "AI+" initiative empowering various industries. IDC data shows that China's intelligent computing power scale multiplied from 155.2 EFLOPS in 2021 to 1037.3 EFLOPS in 2025, projected to reach 2781.9 EFLOPS by 2028. However, despite exponentially growing demand, enterprises face distinct challenges: large AI companies, leading internet platforms, and telecom operators that have built massive data centers and computing clusters through substantial self-investment encounter structural idling and cost waste due to rapid iteration and high depreciation of AI computing infrastructure. Conversely, numerous small and medium-sized enterprises in the digital economy and AI sectors lack the resources to build their own data centers or access computing power cost-effectively, severely constraining their high-quality development.

To effectively address these customer pain points, LX Technology has focused on building a comprehensive intelligent computing ecosystem, providing tailored full-lifecycle management solutions for computing infrastructure. For large enterprises, the company leverages its DaaS service model to deliver integrated solutions encompassing computing equipment leasing, localized computing cluster deployment, full-stack technical operations and maintenance, and equipment recycling, substantially reducing operational costs while enhancing market responsiveness. For SMEs, LX Technology has persistently pursued targeted initiatives to bridge the "computing power gap," employing a closed-loop "recycling + remanufacturing + leasing" operational model that enables cost-effective access to AI servers, storage servers, and Token services, genuinely empowering SMEs to utilize computing resources affordably and effectively for high-quality development.

As a result, LX Technology's computing power infrastructure full-lifecycle management solutions have gained significant market traction. During the first half of this year, the company was invited to exhibit at major international events including the 6th China International Consumer Products Expo, the 20th Shenzhen International Finance Expo, the 2nd Asia Data Center Summit and Industry Exhibition, and the 2026 World Artificial Intelligence Conference, where its solutions garnered enthusiastic attention and became focal points. Benefiting from sustained robust demand, this business segment has achieved rapid growth and emerged as the company's new growth pole. According to the announcement, computing power infrastructure solutions generated approximately 615 million yuan in first-half 2026 revenue, representing about 57% of total revenue.

Furthermore, the higher-margin nature of this business has significantly optimized LX Technology's profit structure. The announcement shows that first-half gross profit surged 77.4% year-on-year, with gross margin expanding substantially to 16.7%. Net profit grew 319.8%, adjusted profit rose approximately 149%, and adjusted EBITDA increased approximately 11.9% year-on-year. Notably, driven comprehensively by the computing power business, all core business segments achieved substantial gross profit growth: equipment recycling gross profit surged 996%, equipment subscription gross profit rose 26.2%, and IT technical subscription services gross profit increased 47.1%.

A representative from LX Research Institute stated that LX Technology's DaaS service model possesses exceptional market sensitivity and responsiveness, enabling rapid enrichment of service offerings to comprehensively address evolving demands. Since the 14th Five-Year Plan period, the company has precisely seized opportunities arising from China's thriving computing power industry, strategically integrating its DaaS model with the sector to deliver cost-effective solutions for enterprises' rapidly growing computing needs, successfully establishing a new growth engine. "Through this, LX Technology once again reminds the market of its proven capability to navigate complex cycles and continuously create new value for customers and shareholders through its equipment full-lifecycle management business model."

"AI+" Initiative Dramatically Enhances Operational and Customer Service Efficiency, Standards Drive Industry High-Quality Development

Since 2026, amid increasing economic uncertainties, LX Technology has focused on strengthening internal momentum and advancing industry-wide high-quality development, reinforcing the certainty of achieving its 2026 strategic objectives. The company's core innovations center on two key initiatives: first, the "AI+" initiative comprehensively improving resource allocation efficiency while dramatically enhancing operational and customer service quality; second, assuming industry leadership responsibility by driving high-quality development through standards, achieving synchronized upward advancement for both the company and the industry.

In terms of AI-empowered enterprise development, LX Technology has fully implemented its "AI+" initiative over the past two years, leveraging its two-decade accumulation of massive operational datasets and extensive industry high-quality datasets as key production factors, combined with advanced AI technologies, large model deployments, and computing power as essential production tools. This approach has comprehensively enhanced resource allocation efficiency, significantly improving overall operational and customer service quality, thereby driving continuous business elevation and optimization. Particularly noteworthy is the company's successful in-house development of an operational intelligence agent platform available to all employees. Through this platform, each employee can construct a personalized "digital intelligence employee" tailored to their specific role and work scenarios, dramatically improving efficiency and output while empowering all operational facets of the company.

For instance, in business development, the AI agent platform recommends customer visit priorities for sales personnel based on comprehensive analysis of geographic location and factors such as enterprise customer hiring activities. It also periodically generates customer expansion reports for management and sales teams, helping identify issues in the customer acquisition process, thereby substantially improving lead quality and efficiency. In merchandising, the platform enables continuous optimization of product pricing based on real-time, comprehensive market demand analysis, ensuring inventory levels align with real-time customer demand. In customer service, the round-the-clock automated AI customer service system provides instant responses to customer inquiries at any time, enabling faster access to necessary support. The system also generates extensive data for analyzing customer needs, trends, and feedback, facilitating continuous service improvement.

"Our operational intelligence agent platform provides real-time feedback on the company's overall operational status based on real-time BI data across all operational segments, offering comprehensive coverage, detailed insights, and precise issue identification. It provides constructive recommendations for strategic optimization, decision-making, and daily operations, enabling revolutionary improvements in our operational and customer service efficiency while sustaining high-quality growth," explained an LX Technology representative. "Our pioneering experience in AI-empowered resource allocation efficiency enhancement also provides valuable reference for industry peers."

Regarding industry high-quality development advancement, LX Technology, as the leading DaaS enterprise, has persistently implemented multiple initiatives during the first half of this year to elevate industry development. On one front, the company collaborated with industry organizations including the "China Association of Small and Medium Enterprises DaaS Service Professional Committee," the first national-level platform in the DaaS industry, to convene influential national events such as the inaugural "New Circular Economy, New Value" forum, exploring green transformation and value regeneration in the AI computing power industry while comprehensively promoting DaaS services and enhancing industry awareness. On another front, LX Technology has strengthened industry infrastructure by leading standards development, with its core-contributed national standard "Requirements for Treatment of Waste Electrical and Electronic Products Part 3: Servers" and industry standard "Technical Specifications for Server Remanufacturing" both officially released. These standards have not only established and reinforced LX Technology's leadership position in the computing power infrastructure full-lifecycle management solutions market but also play a crucial role in advancing high-quality DaaS industry development.

Industry observers believe that LX Technology's consistent assumption of industry leadership responsibilities and its series of significant initiatives will effectively promote sustained high-quality growth in China's DaaS industry. Throughout this process, the company continues deepening its "AI+" initiative, persistently enhancing operational and customer service efficiency. In the coming years, its major operational indicators are expected to rise in tandem with industry high-quality growth, offering substantial market imagination.

Multiple Positive Factors Converge, Promising Prospects for AI Inference Computing Power Rental Leader

Since the first half of this year, China's economy has continued its upward, innovative, and optimized development trajectory. During this process, more favorable factors and conditions have emerged to promote sustained high-quality DaaS industry growth: first, China's enterprise count continues steady growth with stronger rigid demand for cost-reduction and efficiency-enhancing DaaS services, establishing a solid foundation for continued steady improvement in DaaS market penetration. Second, the nation's deepening "AI+" initiative empowering all industries has sustained exponential growth in computing power demand, generating substantial demand for computing equipment leasing and recycling services and injecting strong momentum into DaaS market development. Third, rapid AI evolution with accelerated adoption of next-generation intelligent terminals and agents has spawned new intelligent economy forms, providing new scenarios and opportunities for DaaS service expansion. Fourth, DaaS service providers are actively developing proprietary or adopting advanced AI technologies to significantly enhance operational and customer service efficiency, further strengthening the industry's internal growth momentum.

A representative from LX Research Institute indicated that benefiting from multiple positive factors resonating in the macroeconomic environment, the inflection point for China's DaaS market penetration will accelerate: over the next five years, penetration is projected to rise from the current approximately 5% to 10%. Against this backdrop, China's DaaS market scale will continue maintaining a relatively high compound annual growth rate in the coming years. "As the most prominent enterprise in the DaaS industry, LX Technology's major operational indicators will correspondingly maintain high-quality growth, with broad development prospects worthy of anticipation."

Looking ahead, China's intelligent economy is entering a critical phase of accelerated breakthroughs and upgrades, with key industries including large models, intelligent agents, embodied intelligence, and AI terminals continuing to expand. The "AI+" initiative will deliver increasingly significant results across sectors, maintaining robust overall development momentum as a powerful driver of China's high-quality economic development. Consequently, computing power demand precisely aligned with intelligent economy development needs will continue growing geometrically. In this context, LX Technology will comprehensively seize this historic opportunity by continuing to prioritize its computing power business with increased resource allocation, while steadfastly maintaining customer-centric service excellence, continuously enhancing operational and customer service efficiency, optimizing business and revenue structure, improving long-term profitability, and persistently creating new value for customers and shareholders while contributing greater contributions to national high-quality economic development.