Changes in Hong Kong stocks | Huaxia Culture Technology (01566) rose more than 8%, with an expected mid-term profit of no less than HK$900 million. The company's strategic layout, AI business is expected to fill up the computing power sector

The Zhitong Finance App learned that Huaxia Culture & Technology (01566) rose to a high of more than 8% after earnings. As of press release, it had risen 3.94% to HK$5.28, with a turnover of HK$25.803 million.

According to the news, a few days ago, Huaxia Culture Technology announced that the company is expected to record a profit of not less than HK$900 million for the six months ending September 30, 2026, while a loss of about HK$65.9 million was recorded in the same period last year. Of this, a one-time income of about HK$1 billion comes from IPO subscriptions, the entry into force of creditor plans, and debt restructuring, which is a phased profit release. The core driver of Yingxi this time is that after the debt restructuring is completed, the debt is settled below the book value and the financial costs that would have been incurred were recovered, thus generating a one-time income of about HK$1 billion.

It is worth noting that during the period, Huaxia Culture Technology was driven by the accelerated integration of artificial intelligence technology and interactive character IP, and the multimedia animation entertainment division recorded revenue growth. According to information, Huaxia Culture Technology is currently discussing potential leasing and allocation of infrastructure capacity with a number of data center operators in Japan. Through cooperation with professional data center operators, the Group expects to obtain reliable high-performance data center infrastructure and edge computing power without the need to incur immediate huge capital expenses on hardware ownership. This move is expected to accelerate the commercialization process of the Group's AI toys and AR/VR business, while achieving scalability and operational resilience during peak demand periods.