tiprankstipranks
Advertisement
Advertisement

Xuan Wu Cloud Flags Wider 2025 Loss but Sees Cash Flow Turning Positive

Story Highlights
  • Xuan Wu Cloud expects its 2025 net loss to widen sharply amid tighter telecom regulations hitting CRM service sales.
  • The company projects positive operating cash flow for 2025 and is exiting lower-yield sales cloud operations to focus on core businesses.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Xuan Wu Cloud Flags Wider 2025 Loss but Sees Cash Flow Turning Positive

Meet Samuel – Your Personal Investing Prophet

Xuan Wu Cloud Technology Holdings Limited ( (HK:2392) ) has shared an update.

Xuan Wu Cloud Technology Holdings warned investors that it expects a significantly wider net loss of between RMB58 million and RMB64 million for 2025, compared with a loss of about RMB1.1 million a year earlier. Management attributed the deterioration largely to tighter regulatory policies in the telecommunications sector, which have depressed demand for its CRM PaaS and some CRM SaaS offerings.

Despite the deeper loss forecast, the group forecasts a positive operating cash flow for 2025, reflecting stricter financial controls and improved cash management. It is also exiting its self-operated sales cloud business and reallocating capital to more profitable core areas, a strategic reshuffle aimed at boosting long-term returns and enhancing shareholder value as the annual results are finalized.

The most recent analyst rating on (HK:2392) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Xuan Wu Cloud Technology Holdings Limited stock, see the HK:2392 Stock Forecast page.

More about Xuan Wu Cloud Technology Holdings Limited

Xuan Wu Cloud Technology Holdings Limited is a Hong Kong–listed provider of cloud-based customer relationship management solutions, offering CRM PaaS and CRM SaaS services. The group focuses on telecommunications-related applications and has operated ancillary businesses such as a self-operated sales cloud, which it is now phasing out to concentrate on higher-margin core segments.

Average Trading Volume: 316,594

Technical Sentiment Signal: Buy

Current Market Cap: HK$768.4M

Learn more about 2392 stock on TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1