According to the Zhitong Finance App, Yabo Technology Holdings (08279) announced that the Group expects to make a profit of not less than HK$22 million for the 12 months ended 31 December 2023 (second mid-term of 2023), while the year ended 31 December 2022 (FY2022) had a loss of approximately HK$131 million.

According to the announcement, the expected change in loss to profit is mainly due to the combined impact of several factors. Relevant factors include: the Group's revenue increased by no less than HK$237 million in the second mid-term of 2023, mainly due to the consolidated financial statements of Macau Express Holdings Limited and its subsidiaries (Macau Pass Group) in the Group's financial statements throughout the second mid-term of 2023; the 2022 fiscal year was only consolidated in the Group's financial statements on March 24, 2022 (that is, the day the Group completed the acquisition of Macau Connect Group) to the Macau Express Group Financial statements increased revenue by approximately HK$106 million; due to economic recovery after the COVID-19 pandemic, the increase in the number of visitors to Macau, and the non-extension of the SME transaction fee exemption after the end of February 2023, the Group's revenue from electronic payment, lifestyle services and gaming and entertainment businesses in Macau for the nine months ended 31 December 2023 increased by no less than HK$68 million over the nine months ended 31 December 2022; and the Group's revenue from lottery hardware sales and lottery consignment business in the second mid-2023 compared to 2022 An increase of no less than HK$60 million for the fiscal year. Despite this, the increase in the Group's revenue was partially offset by an increase in procurement and inventory changes of not less than HK$18 million in mid-2023 and an increase in other operating expenses of not less than HK$105 million, such as an increase in the cost of electronic payment services of no less than HK$85 million (including transaction service fees and stored value card value-added service fees, and customer loyalty programs for e-wallet services); and the increase in consignment expenses related to lottery ticket sales to HK$22 million; while the above costs were partially consumed by Macau in 2022 offset by a reduction of not less than HK$12 million in marketing expenses relating to promotional activities under the concession scheme;

The Group's employee benefit expenses increased by no less than HK$35 million in the second mid-term of 2023, while these expenses in FY2022 were about HK$128 million, mainly due to the fact that Macau Express Group's employee benefit expenses for the entire second mid-term of 2023 were consolidated; in fiscal year 2022, these expenses were only consolidated into the Group's financial statements from March 24, 2022 to December 31, 2022; and the Group's comprehensive recruitment of employees to cope with business growth and expansion;

The Group's net financing income for the second interim period of 2023 increased to no less than HK$55 million, while the net financing income for FY2022 was approximately HK$44.4 million, mainly due to the increase in the second mid-term market interest rate in 2023 compared to FY2022;

The Group's other net losses were reduced from about HK$25.4 million in fiscal year 2022 to no less than HK$6 million in the second half of 2023, mainly due to a decrease in exchange losses due to the stabilizing depreciation of the RMB against the Hong Kong dollar;

Earnings on changes in the fair value of financial assets in the second mid-term of 2023 are expected to be no less than HK$2 million, mainly due to fair value gains from a convertible term loan of up to INR 1,319 billion provided by the Group to the Indian joint venture First Games Technology Private Limited (previously known as Paytm First Games Private Limited) with 45% interest, while the financial asset was obtained in FY2022 The loss from the change in fair value was approximately HK$39.9 million.