BYTE META (08645) Expects Significant Reduction in Annual Shareholder Loss to No More Than HK$11.5 Million

Stock News09-12

BYTE META (08645) announced that the Group expects the loss attributable to equity holders of the Company for the year ending June 30, 2025 to be significantly reduced to no more than HK$11.5 million, compared to the net loss attributable to equity holders of the Company of approximately HK$28.9 million for the year ended June 30, 2024.

The Board believes that the expected significant reduction in net loss for the current year is mainly attributable to the combined effect of the following factors: (i) reduction in administrative and other operating expenses by approximately HK$13.1 million, which was mainly due to the disposal of Michong Technology Information (Shenzhen) Limited and its subsidiaries (collectively the "Michong Group") during the year and the reduction in professional fees arising from the submission of license applications for conducting Type 1 (dealing in securities) and Type 7 (providing automated trading services) regulated activities; (ii) recognition of a gain of approximately HK$5.5 million from the disposal of the Michong Group during the year; (iii) reduction in selling expenses by approximately HK$3.7 million, which was mainly due to the decrease in staff costs of the sales team in China, consistent with the reduction in average headcount of sales personnel following the disposal of the Michong Group, and this reduction was partially offset by an increase in commission for the Group's sales representatives; (iv) increase in share of results of associates by approximately HK$3.1 million due to investment in associates; and partially offset by (v) reduction in gross profit by approximately HK$8.5 million during the year despite an increase in revenue. The reduction in gross profit was mainly due to profitable projects with low gross profit margins being guaranteed.

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