CLOUDBREAK-B (02592) announced that the group expects to achieve a net comprehensive profit before income tax of no less than $4.5 million for the six months ending June 30, 2025, representing a turnaround from a net comprehensive loss before income tax of approximately $52.1 million for the six months ending June 30, 2024.

The company believes the expected turnaround from comprehensive loss to comprehensive profit before income tax is primarily attributable to, among other factors, a positive fair value change of approximately $38.4 million in convertible redeemable preferred shares, compared to a negative fair value change of approximately $26.8 million in the prior period, reflecting a one-time fair value adjustment as of June 30, 2025.

As disclosed in the company's prospectus dated June 24, 2025: (a) all convertible redeemable preferred shares were automatically converted into ordinary shares of the company upon completion of the initial public offering and listing of the company's shares on the Main Board of the Stock Exchange on July 3, 2025; (b) following the reclassification and redesignation of convertible redeemable preferred shares from liabilities to equity after listing, the company expects no further recognition of fair value change gains or losses on convertible redeemable preferred shares in the future.

Excluding the aforementioned positive fair value changes in convertible redeemable preferred shares (prior period: negative fair value changes in convertible redeemable preferred shares), the group expects to record a net comprehensive loss before income tax of no less than $32.8 million for the reporting period, representing an increase of approximately 29.6% compared to approximately $25.3 million in the prior period.