Labixiaoxin Snacks Group reported a 21.8% year-on-year rise in first-half 2026 revenue to RMB628.50 million, but swung to a net loss of RMB17.70 million compared with a RMB2.50 million profit a year earlier.

Key performance highlights • Snacks products remained the core business, generating RMB536.80 million, up 4.0%. • Recently acquired Qucloud AI HK and its subsidiaries contributed RMB91.70 million, accounting for 14.6% of group turnover. • Group gross profit grew 8.7% to RMB143.00 million; margin compressed to 22.8% (H1 2025: 25.5%) due to a higher sales mix from lower-margin snacks convenience store chains and start-up stage margins at the AI services unit. • Selling and distribution expenses jumped 35.7% to RMB96.50 million, driven by heavier advertising, promotion and logistics spending; administrative costs rose 12.2% to RMB57.50 million. • EBITDA fell to a RMB6.70 million loss (H1 2025: RMB70.0 million profit). • Operating cash flow improved sharply to a RMB101.20 million inflow (H1 2025: RMB11.40 million), aided by faster customer settlements and extended supplier credit. • Cash and bank balances declined to RMB39.43 million from RMB76.80 million at end-2025, reflecting debt repayments. • Gearing ratio eased to 174.4% from 235.6% at end-2025.

Acquisition of Qucloud AI HK Completed on 31 March 2026, the takeover was valued at HK$188.48 million, satisfied via 20.83 million new shares at HK$3.98 each and a HK$105.56 million convertible bond (conversion price: HK$4.62). The deal added RMB144.59 million of goodwill and RMB47.80 million of patents to the balance sheet.

Operational update • Inventory rose 62.5% to RMB114.51 million as the group stocked up for snacks convenience store demand; inventory days shortened to 42 from 48. • Trade receivables fell 4.9% to RMB157.65 million; receivable days improved to 47 from 61. • Trade payable days lengthened to 52 from 41, reflecting extended supplier terms. • Capital expenditure reached RMB17.58 million, mainly for production line upgrades.

Dividend No interim dividend was declared.

Outlook Management expects China’s moderate GDP growth and continued expansion of e-commerce and convenience-store channels to support snack sales. The group will focus on brand building, new product launches and broader distribution. For the newly acquired enterprise intelligent services segment, Labixiaoxin plans to enhance its AI product suite and client base while pursuing synergies to accelerate its transition toward a data-driven consumer-goods model.