Gelonghui February 21,Xinyi.com Group (01686.HK) announcementIn the interim results for the six months ended December 31, 2022, revenue rose 11% year-on-year to HK $1.108 billion, driven by increased demand for data centres from new and existing customers. EBITDA rose 11 per cent year-on-year to HK $805 million, while profit attributable to shareholders rose 6 per cent to HK $433 million.Profit per share (profit per share shown in the accounts) attributable to shareholders of the company is HK10.67 cents.

Over the past six months, demand for data center services has remained strong, with a number of customers expanding their capacity. A number of international submarine cables will be connected to Hong Kong, further increasing the demand for the company's data center capacity.

Demand growth from cloud service providers is strong. While the growth rate of the world's major cloud service providers appears to be slowing according to their recent results, this does not seem to be the case in Asia, particularly in Hong Kong. In the past six months, a number of cloud service providers have added capacity to the company's facilities. Some customers are already planning the next wave of expansion with state-of-the-art data center equipment. These cloud service providers are looking for facilities with superior location, infrastructure and management performance.

On the whole, compared with their investment in equipment, optical fiber and IT infrastructure, data centre services account for a relatively small share of their total costs. Cloud service providers cannot accept low-quality data centers, and high-quality data centers are the company's advantage. The company will continue to invest in data centers to deliver quality services according to customer requirements.