Pangaea Connectivity announced positive profit alert. Expected 1H net profit to be not less than RMB14 million, with increase in sales driven by AI products
HONG KONG, Oct. 18, 2024 /PRNewswire/ -- Pangaea Connectivity Technology Limited ("Pangaea" or the "Company", together with its subsidiaries, the "Group", stock code: 1473) is pleased to announce that based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ended 30 September 2024 and the information currently available to the management of the Group, the Group is expected to record a net profit of not less than HK$14 million for the six months ended 30 September 2024, as compared to a net loss of approximately HK$14 million for the corresponding period last year. This is the Company's first positive profit alert since its listing.
The expected turnaround of the Group's unaudited consolidated net profit after tax for the six months ended 30 September 2024 is primarily attributable to the significant increase in turnover by over 70% than that of approximately HK$600 million for the corresponding period of 2023. The increase in turnover aligns with the increase in sales and gross profit margin resulting from the increase in sales of artificial intelligence (AI) products due to strong market demand.
Mr. Fung Yui Kong, Chairman, CEO, and Executive Director of Pangaea Connectivity Technology Limited, said, "The exponential growth of global AI data centers has presented the Group with unprecedented opportunities. In recent years, we have been actively advancing the development of AI and its associated business. We recognize the growing demand for AI-enabled communications devices, particularly in data centers and HPC (High-Performance Computing) environments. Our product offerings are meticulously crafted to meet the stringent requirements of AI, propelling the Group towards reform and innovation. As the market's appetite for AI solutions continues to surge, our connectivity devices play a pivotal role in meeting these market needs. Looking ahead, we are committed to driving innovation, harnessing emerging technologies, and intensifying our research and development efforts to deliver products of exceptional performance, enhanced efficiency, and scalability. This strategic focus not only fuels our sales but also positions us at the forefront of technological innovation."
SOURCE Pangaea Connectivity Technology Limited
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