Economic Observation Network LeXin Outdoor (02720) disclosed its mid-term performance for 2026, with both revenue and net profit decreasing, no dividend payout in the mid-term, and a relatively low proportion of revenue growth from its own brand.

Performance and business situation:
During the reporting period, the operating revenue was 301 million yuan, a year-on-year decrease of 9.8%; The net profit attributable to the parent company was 23.05 million yuan, a year-on-year decrease of 42.97%, and the decrease in profit was significantly greater than the decrease in revenue 。

This deviation itself indicates that the problem lies not in the revenue side but in the cost side: the gross profit margin of 26.6% remained basically unchanged year-on-year, but exchange losses, rising raw material prices, and increased sales and administrative expenses collectively ate up profits 。

The company has explicitly stated that it will not distribute the 2026 interim dividend, which is a negative signal for funds holding on the grounds of "stable dividends" 。

Business progress:
The only highlight is its own brand: OBM (Solar brand) revenue was 34.9 million yuan, a year-on-year increase of 59%, and its revenue proportion increased to about 11.6% - but its proportion is still less than 12%, which is not enough to offset the decline of its OEM main business 。

Our main business relies on a single major customer and overseas demand: nearly 90% of our revenue comes from outsourcing. With declining revenue in the European market and longer OEM order cycles, if overseas consumption or geopolitical disturbances continue, our performance elasticity will still be significant 。

The above content is based on publicly available information and does not constitute investment advice.