Labixiaoxin Snacks Group Limited reported mixed interim results for the six months ended 30 June 2026. Revenue climbed 21.8% year on year to RMB628.46 million, lifted by a 4.0% rise in traditional snacks sales to RMB536.80 million and a RMB91.67 million first-time contribution from newly acquired Qucloud AI HK’s enterprise-intelligent-services unit (completed 31 March 2026).

Gross profit advanced 8.7% to RMB143.04 million; however, the gross margin compressed by 2.7 percentage points to 22.8%, weighed down by a greater revenue mix from lower-margin snacks convenience-store chains and the early-stage nature of the AI services business.

Operating performance deteriorated sharply. EBITDA fell 53.5% to RMB13.30 million, and the Group swung to a net loss of RMB17.70 million (1H25: RMB2.52 million profit), translating into a –2.8% net margin. Higher advertising, promotion and logistics outlays—up 35.7% to RMB96.52 million—alongside start-up losses at Qucloud drove the reversal.

The balance sheet shows total assets of RMB1.07 billion and total liabilities of RMB764.26 million at period-end, resulting in a gearing ratio of 174.4% (31 December 2025: 235.6%). Bank borrowings stood at RMB436.92 million, all classified as current due to near-term maturities or repayment-on-demand clauses. Cash and bank balances declined to RMB39.43 million from RMB76.80 million six months earlier, though operating activities generated RMB101.24 million in net cash, helped by faster customer collections and extended supplier credit.

The Group completed capital spending of RMB17.58 million, largely for production-line upgrades. Inventory rose 62.5% to RMB114.51 million in anticipation of higher sales through convenience-store chains, while trade receivables fell 4.9% to RMB157.65 million, reflecting improved collections.

Management maintains a going-concern outlook, citing ongoing shareholder support, anticipated refinancing of short-term bank debt, cost-control initiatives, and potential asset disposals. No interim dividend was declared.

Looking ahead, Labixiaoxin Snacks plans to deepen its presence in new retail channels, roll out additional snack SKUs, and leverage Qucloud’s AI-driven marketing tools to enhance consumer engagement. The Group also targets scaling Qucloud’s MaaS and RaaS offerings despite heightened competition in China’s enterprise AI market.