CEO’s Letter of LZ Technology Holdings Limited

Rhea-AI Summary

LZ Technology (NASDAQ: LZMH) posted FY2024 results showing Total Revenue RMB 823 million (USD 113 million), a 44.6% year-over-year increase. Local Life – Retail Sales grew 122.7% YoY to RMB 273 million (USD 37 million), representing 33.2% of revenue. The company describes a strategic shift from advertising to a platform-driven technology model covering communities, digital media, local services, e-commerce and travel.

Management announced a globalization strategy with the Middle East first: a strategic cooperation framework with Dubai’s MBH group and plans to form a UAE joint venture. The company is also accelerating integration with blockchain technologies, targeting areas such as Real-World-Asset tokenization and digital payments. Leadership says it will pursue a three-year "Scale-First" strategy to expand users, product mix and global footprint.

Positive

• Total revenue RMB 823M in FY2024 (+44.6% YoY)
• Local Life retail sales RMB 273M in FY2024 (+122.7% YoY, 33.2% of revenue)
• Announced strategic cooperation with Dubai MBH and planned UAE joint venture

Negative

• None.

HUZHOU CITY, China, Oct. 30, 2025 (GLOBE NEWSWIRE) -- LZ Technology Holdings Limited (NASDAQ: LZMH) (“LZ Technology” or the “Company”), an information technology and advertising company, today issued the following letter from the Company’s CEO to its employees and shareholders.

Dear Fellow Colleague and Shareholder,

The year 2025 marks a pivotal moment in the transformation of LZ Technology. On behalf of the management team, I would like to express my heartfelt appreciation to every employee for your dedication and to all our shareholders for your unwavering trust and support.

Over the past few years, LZ Technology has completed a deep transformation—from an advertising company into a platform-driven technology enterprise. Today, LZ Technology is no longer defined by advertising alone. We have evolved into an integrated platform that connects communities, digital media, local lifestyle services, e-commerce, and travel, reshaping how communities and commerce interact at scale.

Our FY2024 results clearly demonstrate the strength of this transformation:

1. Total Revenue reached RMB 823 million (USD 113 million), representing a year-over-year growth of 44.6%, driven by robust business momentum.
2. Local Life – Retail Sales revenue surged 122.7% year-over-year to RMB 273 million (USD 37 million), accounting for 33.2% of total revenue—up significantly from the previous year.

Looking ahead, we will continue to expand investment in our high-growth verticals—e-commerce and travel—leveraging our established community reach and traffic advantages to build a synergistic and sustainable business ecosystem.

In parallel, we have formally launched our globalization strategy, with the Middle East as our first destination. We have reached a strategic cooperation framework with Dubai’s MBH group, and plan to establish a joint venture in the UAE that integrates LZ Technology’s technological expertise with local resources to tap into the region’s vast market potential.

Our goal is to “build another LZ Technology” in the Middle East—combining our proven technology and operational experience from the Chinese market with localized demand to create a digital-ecosystem platform with distinctive regional characteristics. This will represent not only market expansion, but also a global validation of LZ Technology’s brand and business model.

At the same time, LZ Technology is accelerating its integration with blockchain technology. We are actively exploring diverse collaborations with leading blockchain enterprises—particularly in areas such as Real-World-Asset (RWA) tokenization and digital payments. We believe blockchain will bring a revolutionary upgrade to our platform’s trust mechanisms, transaction efficiency, and user-rights protection—forming a stronger technological foundation for LZ Technology in the digital-economy era.

While LZ Technology is already a leader in its field, we recognize the vast room for continued growth. Over the next three years, we will steadfastly execute our “Scale-First” strategy, expanding both platform reach and business breadth. We will grow our user base, optimize our product structure, and strengthen our global footprint to create a replicable, scalable growth model. Only with sufficient scale can we build the network effects and competitive moat that define truly enduring platform enterprises.

Every breakthrough we achieve, every new market we enter, and every user who places trust in us strengthens our drive to move forward. LZ Technology will continue to expand its platform and global footprint with focus, discipline, and resolve. Together, let us build LZ Technology into a world-class technology platform that connects communities across the globe.

Thank you for your continued trust and support.

With my best regards,

Theo Zhang
Chief Executive Officer
LZ Technology Holdings Limited

About LZMH
LZ Technology Holdings Limited is an information technology and advertising company operating through its subsidiaries in China. The Company’s business spans three key verticals: Smart Community, Out-of-Home Advertising, and Local Life. Its Smart Community services provide intelligent access control and safety management systems, installed in thousands of residential communities in China. Its Out-of-Home Advertising division offers multi-channel advertising solutions through a vast network of monitors across approximately 120 cities in China, with ad placements on access control screens, SaaS platforms, and third-party advertising spaces. The Company’s Local Life vertical connects businesses with consumers through online promotions, social media marketing, and retail sales of various products and services. LZ Technology is committed to providing high-quality services to communities and businesses.

Forward-Looking Statements
Certain statements in this press release are “forward-looking statements” as defined under the federal securities laws. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “believe”, “plan”, “expect”, “intend”, “should”, “seek”, “estimate”, “will”, “aim” and “anticipate”, or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov.

For further information, please contact:

Michael Wu
Investor Relations
LZ Technology Holdings Limited
michael@lzmh.co

FAQ

What were LZ Technology's FY2024 revenues reported on October 30, 2025 for LZMH?

LZ Technology reported Total Revenue RMB 823 million (USD 113 million) for FY2024, a 44.6% increase year-over-year.

How much did Local Life retail sales grow for LZ Technology (LZMH) in FY2024?

Local Life – Retail Sales grew 122.7% YoY to RMB 273 million (USD 37 million), making up 33.2% of total revenue.

What globalization steps did LZ Technology (LZMH) announce on October 30, 2025?

The company said it launched a globalization strategy, reached a strategic cooperation framework with Dubai’s MBH group, and plans to establish a UAE joint venture.

What blockchain initiatives did LZ Technology (LZMH) describe in the CEO letter?

LZ Technology said it is accelerating integration with blockchain, exploring RWA tokenization and digital payments collaborations with leading blockchain enterprises.

What is LZ Technology's strategic focus over the next three years as stated by management?

Management outlined a three-year "Scale-First" strategy to expand platform reach, grow users, optimize product structure, and strengthen its global footprint.