Customer relationship management (CRM) services provider Xuan Wu Cloud Technology Holdings Ltd. (2392.HK) announced on Friday that it expects to record a net loss up to 27 million yuan ($3.76 million) for the first half of 2025, up sharply from its loss of 6.1 million yuan in the same period of 2024.
The company attributed the wider loss primarily to tightened regulations in China’s telecommunications sector in the first half, which led to a decline in sales of its CRM PaaS and some CRM SaaS services. Xuan Wu Cloud emphasized that it is adjusting its business strategy and increasing investment in higher-margin SaaS offerings, which has led to an improvement in its overall gross margin. The board also noted that financial discipline and enhanced cash flow management are expected to result in positive operating cash flow for the period.
Xuan Wu Cloud’s stock opened lower on Monday, closing at HK$1.57 by the midday break, up 1.95%. The stock is up 48% over the past month.
By Lee Shih Ta
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