Smart Cloud International Holdings (08521) announced that it is expected to turn the net loss of approximately 2.1 million Hong Kong dollars for the six months ending on June 30, 2023 ("first half of 2023") into a net profit of no less than 0.4 million Hong Kong dollars in the first half of 2024.
The expected increase in net profit is mainly due to: (1) an increase in revenue of approximately 42.8 million Hong Kong dollars compared to the first half of 2023, an increase of approximately 16.1 million Hong Kong dollars, due to the stable development of new business in cloud computing and internet traffic services; (2) consistent growth in gross profit and revenue; (3) a slight decrease in financing costs in the first half of 2024 of approximately 0.3 million Hong Kong dollars; and (4) offset by an increase in administrative and other expenses in the first half of 2024 of approximately 1.8 million Hong Kong dollars, an increase in sales and distribution expenses of approximately 0.6 million Hong Kong dollars, and a decrease in other income of approximately 0.3 million Hong Kong dollars.
The expected increase in net profit is mainly due to:
(1) an increase in revenue of approximately 42.8 million Hong Kong dollars compared to the first half of 2023, an increase of approximately 16.1 million Hong Kong dollars, due to the stable development of new business in cloud computing and internet traffic services;
(2) consistent growth in gross profit and revenue;
(3) a slight decrease in financing costs in the first half of 2024 of approximately 0.3 million Hong Kong dollars; and
(4) offset by an increase in administrative and other expenses in the first half of 2024 of approximately 1.8 million Hong Kong dollars, an increase in sales and distribution expenses of approximately 0.6 million Hong Kong dollars, and a decrease in other income of approximately 0.3 million Hong Kong dollars.