BRIEF: Coolpad loss widens as hardware margins drop
Cellphone maker Coolpad Group Ltd. (2369.HK) announced on Thursday it expects to report a net loss of HK$245 million ($31.5 million) to HK$265 million for 2024, widening 10% to 20% from its loss of HK$221 million in 2023.
Coolpad attributed the wider loss to a HK$44 million decrease in its gross profit last year, as it cleared out inventory. The company’s administrative and other operating expenses also rose by HK$42 million, mainly due to investment losses in U.S.-listed securities and an increase in financial costs of approximately HK$49 million.
Coolpad’s stock was suspended from trading on April 2 last year due to the delayed release of its 2023 full-year results, but resumed trading on Feb. 27 this year. Once a leading Chinese smartphone maker, the company has seen its mobile business decline due to intensifying market competition and internal management issues. The company is now actively expanding into the cryptocurrency sector.
Coolpad’s stock opened flat at HK$0.03 on Friday, but fell more than 6% in early trading, but later recovered losses, closing unchanged at HK$0.03 by the midday break.
By Lee Shih Ta
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