Hang Seng Photonics (01134)'s net loss in the medium term is expected to increase year-on-year to approximately HK$12.1 million

Zhitong Finance App News, Hengguang Electronics (01134) issued an announcement. According to the preliminary review of the Group's unaudited comprehensive management accounts for the six months ended June 30, 2026 (reporting period) and information currently available to the board of directors, the Company expects to have a net loss of about HK$12.1 million during the reporting period, while a net loss of approximately HK$4.7 million for the six months ended June 30, 2025 (previous reporting period).

The board of directors believes that the expected increase in net loss is mainly due to a decrease in gross profit from sales of eyewear products. During the reporting period, fierce market competition and rising production costs (due to the appreciation of RMB, but partly offset by ongoing cost saving measures) led to a drop in the average selling price of eyewear products, which in turn affected gross profit.