Zhaodaolai (08316) issues positive profit alert, expecting interim net profit of not more than approximately HK$4.6 million, turning from loss to profit year-on-year.

Zhitong Finance APP News, On Call (08316) announces that the Group is expected to record a net profit of not more than approximately HK$4.6 million for the first six months of 2026, compared with a net loss of approximately HK$14.4 million for the six months ended September 30, 2025. The Board considers that the turnaround from net loss to net profit was primarily due to: (i) an increase in gross profit of approximately HK$10.4 million, driven by an increase in merchant acquisition activities and expansion of service scope during the first six months of 2026; (ii) a decrease in administrative expenses of approximately HK$4.7 million, as operating expenses recognized in the first six months of 2025 in relation to a wholly-owned subsidiary of the Company prior to its deconsolidation were not incurred; (iii) a decrease in impairment losses recognized on financial assets of approximately HK$5.3 million; and (iv) a decrease in finance costs of approximately HK$0.6 million, as the former shareholder's loan had been fully repaid. The above factors were partially offset by an increase in income tax expense of approximately HK$2.0 million, due to higher taxable profits generated by the internet services segment during the first six months of 2026.