Gelonghui May 21 丨 Xinhuo Technology Holdings (01611axieinfinitynft.HK) Announcementaxieinfinitynft, the company expects to record a net profit of no less than HK$80 million for the six months ended March 31, 2024, compared with a net loss of approximately HK$232 million for the same period last year.

The expected net profit is mainly due to (1) the reversal of the gain on impairment provision for FTX deposits of approximately HK$78.8 million due to the increase in the market recoverability of FTX deposits;(2) the decrease in administrative expenses by no less than HK$50 million compared with the 2023 period due to the continuous improvement of cost management;(3) the increase in gross profit by no less than HK$20 million due to the adjustment of the Group's business strategies; and (4) the fair value gain of cryptocurrency by no less than HK$40 million.