CRYPTO FLOW (08198) has issued a profit warning, announcing that the group anticipates recording a net loss of no less than HK$54 million for the six-month period ending June 30, 2026, subject to certain valuations. This compares with a net loss of approximately HK$33 million recorded in the corresponding period ending June 30, 2025.
The substantial widening of the net loss is primarily attributed to several key factors. First, the on-chain data analysis platform experienced a reduction in gross profit, driven by newly added amortisation of intangible assets and decreased electricity usage at the US data centre. Second, the newly launched operational segments, including the analysis platform as well as exchange and over-the-counter trading services, incurred significantly higher expenses, mainly covering subscription fees, maintenance, technical support, and staff costs. Third, administrative and other operating expenses rose, largely due to increased employee costs and benefits, rental expenses, as well as advisory and professional fees related to due diligence on investment targets and Web3.0-related projects.
These combined pressures have weighed heavily on the company's financial performance during the reporting period, signalling a challenging operating environment as it continues to scale its newer business ventures.
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