High-quality growth expectations are being realized! Lingxiong Technology's 2025 revenue is steadily increasing to 2.392 billion yuan, with net profit and adjusted profit both turning from loss to profit significantly.

On March 27, 2026, China’s first DaaS (Device as a Service) industry listed company, Lingxiong Technology (02436.HK), released its 2025 annual performance report. The announcement shows that Lingxiong Technology’s revenue in 2025 steadily increased to approximately 2.392 billion yuan (RMB); gross profit significantly grew by about 26.3% year-on-year to 248 million yuan; net profit turned from loss to profit, reaching approximately 11.1 million yuan, and adjusted profit also turned from loss to profit, reaching about 38.92 million yuan. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) surged approximately 27.3% to 361 million yuan. Overall, Lingxiong Technology delivered an impressive high-quality development report for 2025. It is reported that, based on 2025 revenue, Lingxiong Technology set a new record high, continuing to firmly maintain its industry-leading position.

Since 2025, despite the ongoing complex and severe domestic and international macroeconomic environment, Lingxiong Technology has consistently maintained strategic focus, emphasizing high-quality development, keenly seizing new opportunities emerging from economic and market changes, continuously optimizing operational efficiency, customer service quality, and revenue structure, ultimately achieving a move towards higher quality. Its core main business continues to maintain a high-quality growth trend. Among them, the equipment recycling business continued steady development, generating revenue of approximately 1.835 billion yuan; equipment subscription revenue increased by 2.6% year-on-year to about 389 million yuan; IT technology services revenue grew by 7% year-on-year to about 167 million yuan. Benefiting from the sustained increase in enterprise customer demand for equipment subscription services, total equipment subscriptions increased by 11% year-on-year to approximately 6.86 million units.

Industry experts believe that, under the complex and severe macroeconomic conditions in recent years, Lingxiong Technology has long been well-prepared to respond to unpredictable changes, steadily advancing along its strategic plan, focusing on innovation-driven high-quality development, continuously strengthening endogenous growth drivers, improving overall profitability, and achieving expected goals year after year. In 2025, Lingxiong Technology’s key operational indicators reached new historic highs, with both adjusted profit and net profit turning from loss to profit, indicating that the company has truly entered a scalable profitability stage. With its overall profitability continuing to steadily improve and be realized, the company’s future has enormous growth potential.

Adhering to Innovation-Driven High-Quality Development, All Main Business Gross Margins Increased Across the Board

For over 20 years, Lingxiong Technology has placed great importance on enhancing its internal growth momentum, successfully building a strong core competitiveness: first, the closed-loop DaaS ecosystem can generate powerful synergy; second, a complete and robust recycling and refurbishment industry chain provides strong support and synergy for equipment subscription services; third, the company has established an industry-leading intelligent risk control system, maintaining a very low bad debt rate; fourth, strategic shareholders provide strong support. These core competitive advantages have steadily strengthened Lingxiong Technology’s solid fundamentals, enabling it to maintain steady growth even amid complex economic conditions.

In 2025, amid increasing economic uncertainties, Lingxiong Technology persisted in innovation-driven high-quality development, implementing multiple measures to enhance the certainty of achieving annual strategic goals. Its focus was on two key areas: first, strengthening digital and lean management to improve operational efficiency and customer service quality; second, optimizing resource allocation and revenue structure.

In terms of digital and lean management, Lingxiong Technology began its digital transformation in 2018 and has fully realized seamless internal information flow across the entire chain. Through data accumulation at various stages, it analyzes based on an integrated digital architecture, effectively supporting process control, risk management, data analysis, and other operational activities, leading to more refined management. Building on the continuous accumulation of big data, in recent years, Lingxiong Technology has also continuously introduced advanced AI technologies, further improving its intelligent risk control system and establishing its AI customer service system, significantly enhancing operational and customer service quality. Since 2025, the company has increased investment in digital infrastructure, focusing on developing new technologies such as AI, big data, and blockchain, and has obtained over ten software copyrights and multiple invention patents. These digital innovations are deeply integrated into core business development and internal management, further greatly improving operational efficiency and service quality. Notably, Lingxiong Technology’s self-developed IT equipment intelligent maintenance system and intelligent warehouse terminal management system, recognized for their industry-leading technology and outstanding performance in daily enterprise services, have been awarded the “2025 Guangdong Province Famous High-Tech Product” title.

Regarding resource allocation, Lingxiong Technology closely monitors, studies, and accurately responds to the evolving market and customer demands, keenly identifying new opportunities. It strategically adjusts resource deployment to high-demand emerging business areas, optimizing revenue structure and supporting sustained high-quality growth. For example, in the computing power leasing sector, addressing the core issue that “large numbers of small and medium-sized enterprises in China’s digital economy and AI fields find it difficult to access affordable computing resources,” Lingxiong Technology in 2025 has built a comprehensive intelligent computing ecosystem and actively launched targeted initiatives to bridge the “computing power gap” for SMEs. Through a “recycling + remanufacturing + leasing” closed-loop model, it enables numerous SMEs to lease and use AI servers, GPUs, and cloud computing resources at low cost, making high-quality computing resources affordable and accessible, thus supporting their high-quality development. As a result, Lingxiong Technology’s computing power leasing business has become highly popular in the market, achieving rapid growth and becoming a new growth engine.

These innovative initiatives have significantly enhanced Lingxiong Technology’s product premium capability, continuously improved operational and customer service quality, and increased customer satisfaction and loyalty. Consequently, the company’s customer base has continued to grow steadily. Benefiting from this, in 2025, all main business gross margins increased across the board: equipment recycling gross profit increased by 264% year-on-year; equipment subscription gross profit increased by 15.8%; IT subscription service gross profit increased by 12%.

Industry analysts believe that, based on precise assessments of the DaaS market fundamentals and emerging trends, Lingxiong Technology consistently prioritizes customer service, implementing multiple measures to improve service quality, creating new value for enterprise clients, and earning substantial market and customer returns year after year, ultimately turning losses into profits in 2025. Two core factors behind this success deserve particular attention: first, Lingxiong Technology’s full lifecycle management business model demonstrates excellent resilience through economic cycles, with proven scalable profitability over years of practice; second, the management team possesses outstanding operational capabilities to handle complex situations and seize new opportunities swiftly.

Continuously Strengthening Industry Infrastructure to Drive High-Quality Development through Standards

Many institutions have pointed out that after more than 20 years of innovation and high-quality development, Lingxiong Technology has established itself as a leading enterprise in the DaaS industry chain. Recently, the company has actively taken on the role of a leading enterprise in the DaaS industry chain, working to enhance the social recognition and market acceptance of DaaS service’s strategic and economic value, continuously strengthening industry infrastructure, and promoting high-quality industry development to new levels.

In terms of increasing industry awareness, Lingxiong Technology has led the establishment of the first forward-looking industry think tank, the “Lingxiong Research Institute,” and the first national platform, the “DaaS Service Professional Committee of the China Small and Medium Enterprises Association” (DaaS Service Committee). Over the past two years, through organizing high-profile forums and releasing authoritative industry reports, these platforms have become key channels for comprehensive understanding of the DaaS industry. In 2025, Lingxiong Technology further intensified DaaS promotion efforts, jointly releasing in-depth research reports such as “Research on DaaS Market Opportunities in China’s State-Owned Enterprises” and “DaaS Market Opportunities in the Context of the Growing Strategic Importance of China’s Producer Services Industry,” providing insights into positive factors and development opportunities for high-quality DaaS growth from a national strategic perspective. Additionally, in collaboration with the DaaS Service Committee and other industry organizations, it organized the first World Environment Day themed forum on the “Six-Five Environment Day” and the inaugural “New Leasing, New Economy” conference, both influential national events, which helped all stakeholders recognize that “DaaS services have become a daily operational necessity for enterprises,” while promoting the strategic, social, and economic value of DaaS services comprehensively.

Standards and credit are the two fundamental pillars and core infrastructure of China’s DaaS industry. Lingxiong Technology deeply understands this. In recent years, it has actively promoted and participated in dozens of government-organized credit system initiatives and has co-authored more than ten standards, laying a solid foundation for steadily increasing DaaS market penetration. In 2025, the industry standard “Physical Leasing Terminology,” the national standards “Grading Norms for Usability of Second-Hand Electronic Products” and “Requirements for Processing Waste Electrical and Electronic Products Part 3: Servers,” as well as the group standards “IT Equipment Leasing Process and Service Specifications” and “IT Equipment Leasing Service Quality Evaluation,” which Lingxiong Technology led, have been issued and implemented. Due to its outstanding achievements in standardization, Lingxiong Technology was selected as one of the “Top Ten Excellent Cases of Standardization Innovation in Guangdong Province in 2025.” Furthermore, since 2025, as a leading enterprise in the DaaS industry, Lingxiong Technology has been invited to participate in relevant thematic forums organized by the Ministry of Commerce, the Ministry of Ecology and Environment, and the Shenzhen Municipal Bureau of Commerce, sharing its best practices and continuously advising on industry development. The release and implementation of these standards and ongoing policy suggestions will play a vital role in further promoting high-quality development of the DaaS industry.

Particularly noteworthy is that in 2025, Lingxiong Technology continued to lead by example, deeply integrating the DaaS industry into national strategies and achieving fruitful results. In assisting enterprises, the innovative digital closed-loop DaaS service model developed by Lingxiong Technology can help companies reduce initial investments by 97.4% and cut operational costs by about 30% over three years, having already helped tens of thousands of enterprises reduce costs and improve efficiency, supporting high-quality growth. In supporting the “dual carbon” goals, Lingxiong Technology in 2025 continued to extend the service life of millions of IT devices through advanced remanufacturing technology, reducing the demand for new equipment and decreasing carbon emissions by tens of thousands of tons. In rural education revitalization, Lingxiong Technology donated two “computer classrooms” to small and medium schools in mountainous areas of Guangdong, greatly promoting local smart education development.

These key initiatives by Lingxiong Technology have effectively promoted the sustained high-quality growth of China’s DaaS industry. Data from Lingxiong Research Institute and other organizations show that China’s DaaS market size exceeded 100 billion yuan in 2025 and is expected to maintain a high compound annual growth rate in the coming years, becoming an important driver of China’s high-quality economic growth. As a result, Lingxiong Technology’s main operational indicators have risen in tandem with industry growth, with revenue maintaining a high compound annual growth rate over recent years, consistently ranking first in the industry.

Lingxiong Technology’s outstanding performance has created significant national strategic, social, and economic value, earning high recognition from various government levels. After being recognized as a national small and medium enterprise public service demonstration platform, a national specialized and innovative “Little Giant” enterprise, a national high-tech enterprise, and a Shenzhen multinational headquarters enterprise, in 2025, Lingxiong Technology was further recognized by the Ministry of Commerce as a national pilot enterprise for service industry standardization (specifically in commerce and trade circulation), and as one of the first batch of pilot enterprises for second-hand goods circulation, being the only company in China’s DaaS industry to receive this “dual recognition” from the Ministry. Additionally, it was selected as an expert member of the domestic technical working group for the International Organization for Standardization’s (ISO) project committee on cross-border trade of second-hand goods, recognized as a 2025 pilot enterprise for standardized recycling of renewable resources by the China Recycling Resources Association, and designated as a “Shenzhen Gazelle Enterprise” by the Shenzhen Small and Medium Enterprises Service Bureau.

Multiple Positive Factors Accelerate Industry Inflection Point, Leading Companies Have Vast Growth Potential

Since 2025, more favorable macroeconomic conditions have emerged to support the sustained high-quality growth of China’s DaaS industry: first, the number of enterprises in China has steadily increased, with a stronger demand for DaaS services that reduce costs and improve efficiency, laying a solid foundation for ongoing market expansion; second, the rapid development of the AI industry chain has led to increasing demand for computing power leasing and recycling services, injecting strong momentum into the industry; third, policies such as the “Notice on Promoting Green Consumption” and the “Ecological and Environmental Code of the People’s Republic of China” are being implemented gradually, further raising societal awareness of DaaS services and creating a favorable environment for market penetration; fourth, DaaS providers are actively developing or adopting advanced AI technologies, significantly improving operational and customer service quality, further boosting the endogenous growth drivers of the industry.

A senior official from Lingxiong Research Institute stated that, benefiting from the continuous accumulation of these favorable macroeconomic conditions, China’s DaaS market penetration rate is expected to reach an inflection point within the next five years, rising from about 5% now to 10%. At that point, the consumption habits and awareness of various market players will undergo significant changes, with DaaS likely becoming the first choice for IT equipment configuration. Under this scenario, China’s DaaS market will enter a period of rapid, sustained growth. “As the leading company in the DaaS industry, Lingxiong Technology has firmly positioned itself on this fast track and has entered a stage of scalable profitability, with enormous future growth potential.”

Looking ahead, with the combined effects of multiple positive factors, the DaaS industry is entering a phase of transformation and upgrading, with structural growth expected. In this context, Lingxiong Technology will actively seize new market opportunities, maintain a customer-centric approach, continuously improve operational and service quality through digital and lean management, optimize its business and revenue structure, enhance long-term profitability, create sustainable value for shareholders, and contribute more significantly to the high-quality development of the national economy.