FINSOFT FIN (08018) announced that the group expects its net loss for the first half of 2025 to decrease by at least 20%, compared to a net loss of approximately HK$9.9 million in 2024.

According to the announcement, the expected reduction in net loss is mainly due to the combined effects of the following factors: (i) the group's gross profit for the interim period of 2025 increased compared to approximately HK$10.9 million for the interim period of 2024; (ii) the net fair value loss of approximately HK$3.4 million on financial assets at fair value through profit or loss recognized in the interim period of 2024 turned into a net fair value gain on financial assets at fair value through profit or loss in the interim period of 2025; (iii) due to the group's implementation of cost control and efficiency improvement measures in the interim period of 2025, the administrative expenses incurred by the group in the interim period of 2025 decreased compared to approximately HK$18.3 million in the interim period of 2024; and (iv) the reversal of impairment loss provision for loans and interest receivable of approximately HK$800,000 recognized in the interim period of 2024 turned into impairment loss provision for loans and interest receivable in the interim period of 2025.

The aforementioned net fair value gain on financial assets at fair value through profit or loss and impairment loss provision for loans and interest receivable obtained by the group in the interim period of 2025 are non-cash items and have no immediate impact on the group's cash flow and operating business.