CLSA Premium Ltd (HKG:6877), formerly known as KVB Kunlun, has issued a profit alert for the six months ended 30 June 2023.

The Board expects the Group to record an unaudited net profit of approximately HK$5.2 million, as compared with the unaudited consolidated net loss of approximately HK$17.5 million in the corresponding period of 2022.

The expected net profit was mainly attributable to the combined effects of the following factors:

• The growth of healthcare products business in the first half of 2023 with revenue from sales of healthcare products of approximately HK$130 million for the six months ended 30 June 2023, as compared with the revenue of approximately HK$8 million for the six months ended 30 June 2022; and
• The Group has continued to take actions to streamline operations and make the business more efficient, which has reduced expenses in the first half of 2023 as compared with the first half of 2022 including approximately HK$7.6 million on the staff cost and approximately HK$1.2 million on IT maintenance and support expenses.

Let’s recall that, in May 2023, the company announced its plans to suspend its margin dealing business.

The Board considered there to be limited prospect for the Group’s margin dealing and the bullion trading business to obtain new clients and to improve its performance. On that basis, the Board considered that the resources and effort deployed in the Margin Dealing Business could potentially be better utilized in the healthcare business, and has decided to suspend the operation of the Margin Dealing Business.

Trading in the Company’s shares on the Stock Exchange has been suspended with effect from 9:00 a.m. on Tuesday, 25 April 2023 and will remain suspended pending fulfilment of the Resumption Guidance.