$LZMH

LZ Technology Holdings Ltd

CIK:0001967397|SEC Filings

Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2025 CNY (¥) ¥ / shares shares	Dec. 31, 2025 USD ($) $ / shares shares	Dec. 31, 2024 CNY (¥) ¥ / shares shares	Dec. 31, 2023 CNY (¥) ¥ / shares shares
Revenues:
Total revenues	¥ 1,129,008	$ 161,446	¥ 822,832	¥ 568,865
Cost of revenues:
Total Cost of revenues	(1,091,759)	(156,119)	(788,388)	(537,609)
Gross profit	37,249	5,327	34,444	31,256
Operating expenses
Selling and marketing expenses	(83,454)	(11,934)	(14,075)	(16,789)
General and administrative expenses	(73,513)	(10,513)	(12,279)	(15,428)
Research and development expenses	(56,290)	(8,049)	(4,464)	(5,478)
Total operating expenses	(213,257)	(30,496)	(30,818)	(37,695)
Operating profit (loss)	(176,008)	(25,169)	3,626	(6,439)
Other income, net
Financial expenses, net	(1,294)	(185)	(764)	(408)
Other income, net	4,540	649	1,942	2,843
Total other income, net	3,246	464	1,178	2,435
Loss before income tax expense	(172,762)	(24,705)	4,804	(4,004)
Income tax expenses	(510)	(73)	972	(2,368)
Net (loss) income	(173,272)	(24,778)	5,776	(6,372)
Less: net (loss) income attributable to non-controlling interests	201	29	234	(163)
Net (loss) income attributable to the Company’s ordinary shareholders	(173,473)	(24,807)	5,542	(6,209)
Total comprehensive (loss) income	(173,272)	(24,778)	5,776	(6,372)
Less: total comprehensive (loss) income attributable to non-controlling interests	201	29	234	(163)
Comprehensive (loss) income attributable to the Company	¥ (173,473)	$ (24,807)	¥ 5,542	¥ (6,209)
Net (loss) income per share - Basic \| (per share)	¥ (1.13)	$ (0.16)	¥ 0.04	¥ (0.04)
Net (loss) income per share - Diluted \| (per share)	¥ (1.13)	$ (0.16)	¥ 0.04	¥ (0.04)
Weighted average shares outstanding used in calculating basic loss per share (in Shares)	154,145,534	154,145,534	148,090,150	143,590,637
Weighted average shares outstanding used in calculating diluted loss per share (in Shares)	154,145,534	154,145,534	148,090,150	143,590,637
Services-Third Parties
Revenues:
Total revenues	¥ 863,554	$ 123,487	¥ 550,435	¥ 441,320
Cost of revenues:
Total Cost of revenues	(805,856)	(115,236)	(510,958)	(388,863)
Sales of Products-Third Parties
Revenues:
Total revenues	264,921	37,883	272,397	127,545
Services-Related Parties
Revenues:
Total revenues	533	76
Cost of revenues:
Total Cost of revenues	(26,338)	(3,766)	(8,757)	(26,604)
Sales of Goods-Related Parties
Cost of revenues:
Total Cost of revenues	(34)	(5)		(2,776)
Sales of Goods-Third Parties
Cost of revenues:
Total Cost of revenues	¥ (259,531)	$ (37,112)	¥ (268,673)	¥ (119,366)

Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2025 CNY (¥)	Dec. 31, 2025 USD ($)	Dec. 31, 2024 CNY (¥)	Dec. 31, 2023 CNY (¥)
Cash flows from operating activities:
Net (loss) income	¥ (173,272)	$ (24,778)	¥ 5,776	¥ (6,372)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Allowance for doubtful accounts	13,651	1,952	1,065	678
Depreciation and amortization	8,819	1,261	8,706	10,131
Amortization of operating lease right-of-use assets	719	103
Loss from disposal of property, equipment	343	49	435	704
Deferred income taxes	(399)	(57)	(1,676)	2,302
Share-based compensation	111,109	15,888
Changes in operating assets and liabilities:
Accounts receivable, net	(28,962)	(4,142)	(33,316)	(147,166)
Operating lease right-of-use assets			(2,596)
Advance to suppliers	(25,269)	(3,613)	5,389	(14,217)
Inventories, net	(3,199)	(457)
Prepaid expenses and other current assets, net	4,356	623	(1,491)	(3,952)
Due from related parties	(4,443)	(635)	(848)	(109)
Accounts payable	14,815	2,119	18,783	130,037
Accounts payable-a related party				(2,259)
Contract liabilities	35,665	5,100	(3,636)	4,130
Accrued expenses and other current liabilities	2,211	316	5,463	9,535
Operating lease liabilities	(630)	(90)	2,683
Due to related parties	3,285	470	(67)	(286)
Net cash (used in)/provided by operating activities	(41,201)	(5,891)	4,670	(16,844)
Cash flows from investing activities:
Purchase of property and equipment, net	(580)	(83)	(347)	(111)
Proceed from disposal of long-term investments				1,723
Proceed from disposal of a subsidiary				158
Purchases of a long-term investment	(5,000)	(715)
Loans to related parties	(125,784)	(17,987)	(45,283)	(116,529)
Collection of loans to related parties	105,918	15,146	44,208	91,514
Acquisition of a subsidiary, net of cash acquired	(105)	(15)
Net cash used in investing activities	(25,551)	(3,654)	(1,422)	(23,245)
Cash flows from financing activities:
Proceeds from borrowings	40,000	5,720	23,476	14,000
Repayments of borrowings	(10,769)	(1,540)	(21,139)	(14,145)
Payment for deferred offering cost			(2,015)	(3,550)
Proceeds of loans from related parties	1,747	250	4,677	22,891
Repayment of loans from related parties	(1,848)	(264)	(14,873)	(23,027)
Deferred initial public offering (“IPO”) costs	(7,807)	(1,116)
Proceeds from IPO	60,242	8,614
Proceeds from capital injection				47,714
Contributions from non-controlling shareholders	4,900	701
Net cash provided by/(used in) financing activities	86,465	12,365	(9,874)	43,883
Effect of exchange rate changes	(390)	(56)
Net increase/(decrease) in cash and cash equivalents:	19,323	2,764	(6,626)	3,794
Cash and cash equivalents at the beginning of year	4,150	593	10,776	6,982
Cash and cash equivalents at the end of year	23,473	3,357	4,150	10,776
Supplemental disclosure of cash flow information:
Income tax paid	496	71	227	19
Interest paid	934	134	718	340
Supplemental schedule of non-cash financing activities:
Debt-to-equity conversion				5,449
Elimination of related party loan through transfer agreement				20,855
Repayments of short-term borrowings by a related party on behalf of the Company (Note 8)	4,558	652	4,588	8,277
Obtaining right-of-use assets in exchange for operating lease liabilities and prepaid expenses	¥ 1,348	$ 193	¥ 2,683

Consolidated Balance Sheets
¥ in Thousands, $ in Thousands

Dec. 31, 2025

CNY (¥)

Dec. 31, 2025

USD ($)

Dec. 31, 2024

CNY (¥)

Current assets

Cash and cash equivalents

¥ 23,473

$ 3,357

¥ 4,150

Accounts receivable, net

248,047

35,470

223,357

Advance to suppliers

32,061

4,586

9,623

Inventories, net

3,199

458

Prepaid expenses and other current assets, net

13,571

1,938

11,069

Total current assets

370,065

52,918

278,162

Non-current assets

Long-term investment

5,000

715

Goodwill

1,656

237

Property and equipment, net

8,963

1,282

16,597

Deferred offering costs

6,122

Operating lease right-of-use assets

3,225

461

2,596

Intangible assets, net

1,185

169

2,134

Total non-current assets

20,029

2,864

27,449

Total assets

390,094

55,782

305,611

Current liabilities

Short-term borrowings

57,043

8,157

31,704

Accounts payable

201,868

28,867

181,096

Accounts payable- a related party

3,899

558

1,089

Contract liabilities

39,240

5,611

940

Accrued expenses and other current liabilities

26,434

3,780

19,138

Lease liability – current

1,153

165

457

Total current liabilities

330,239

47,224

234,653

Non-current liabilities

Deferred tax liabilities, net

170

626

Long-term Loan

667

Lease liability – non-current

2,248

321

2,226

Total non-current liabilities

2,418

345

3,519

TOTAL LIABILITIES

332,657

47,569

238,172

Commitments and contingencies (Note 14)

Shareholders’ equity

Additional paid in capital

377,704

54,011

220,285

Accumulated deficit

(328,688)

(47,002)

(155,215)

Accumulated other comprehensive loss

(390)

(56)

Total shareholders’ equity

48,654

6,957

65,097

Non-controlling interests

8,783

1,256

2,342

Total shareholders’ equity

57,437

8,213

67,439

TOTAL LIABILITIES AND EQUITY

390,094

55,782

305,611

Related Party

Current assets

Due from related parties

49,714

7,109

29,963

Current liabilities

Due to related parties

602

229

Class A Ordinary Shares

Shareholders’ equity

Ordinary shares value

^[1]

Class B Ordinary Shares

Shareholders’ equity

Ordinary shares value

^[1]

¥ 24

$ 3

¥ 23

[1]	Ordinary shares and shares data are presented on a retroactive basis to reflect the reorganization (Note 1(b)) and the Share Subdivision and the Share Surrender implemented on July 15, 2024 (Note 13).