Telecommunications services firm Citic 21CN expects its purchase of short-messaging service provider Beijing HL95 will help it report a profit in the coming financial year. Citic 21CN reported a net loss of $2.04 million for the year to March, a 92 per cent improvement from the previous year's loss of $27.04 million. Turnover grew 12-fold from $10.6 million to $139.45 million. Vice-chairman David Vong said the results did not fully reflect the profit contribution of the new acquisition as legal complexities prevented the Beijing HL95 deal from being completed until February. HL95 generated $2.46 million of profits for the company between February and March. 'HL95 should contribute several tens of millions of dollars in profit in the coming year,' he said. Citic 21CN has a 49 per cent interest in HL95. Mr Vong said the company might consider purchasing the remainder, a possibility opened up by Cepa. The company has expanded its interactive voice response system platforms and SMS services in the mainland to support government agencies and business this year. Mr Vong admitted competition in messaging services was keen but said weak SMS sales affecting its rivals - such as Netease.com, Sohu.com and Sina Corp - should not be too damaging to Citic 21CN as long as it expanded its non-leisure and entertainment operations.