Asia Network Technology (00679) Fa Ying Guang expects a net loss of no more than HK$20 million in the first half of the year

Zhitong Finance App News, Asia Network Technology (00679) announced that the Group expects revenue growth from HK$237 million to HK$424 million. The revenue growth was mainly due to the Group's main business, the Electroplating Equipment Business Division, which increased its revenue from HK$214 million to HK$406 million, an increase of 90%. This growth is mainly driven by the following factors: (i) large-scale construction of data centers has driven strong demand for high-density interconnect boards (HDI boards); (ii) upgrading artificial intelligence (AI) computing power has driven strong demand for 1.6T high-speed optical modules. Traditional subtractive electroplating processes are no longer able to meet the production needs of these advanced products, and major manufacturers in the PCB industry are now turning to modified semi-additive processes (mSAP). The company's SVCP products perfectly fit this mSAP market demand. The net profit of the company's electroplating equipment business division is expected to increase by no less than 50%.

Despite this, compared with the net profit of approximately HK$14.4 million for the six months ended June 30, 2025, the Group expects a net loss of no more than HK$20 million for the six months ended June 30, 2026. The main factors contributing to the decline in net profit include (i) loss due to changes in fair value of transactional investment products and (ii) reduction in fair value change losses of investment properties.

As of December 31, 2025, the Group held a basket of investment portfolios of Hong Kong listed shares worth approximately HK$240 million. In late June, the Hong Kong stock market fell sharply. The Hang Seng Index fell 11% from 25,630 points on December 31, 2025 to 22,881 points on June 30, 2026. Affected by this, the Group expects to earn a fair value change loss of HK$28.1 million on these listed shares during the reporting period, while a fair value change gain of HK$30.7 million was obtained during the last year period.

Commercial property prices in mainland China and Hong Kong continued to weaken, mainly due to oversupply and relatively weak local demand. As a result, the Group expects to earn a loss of approximately HK$29.6 million from changes in the fair value of investment properties during the reporting period, compared to a loss of approximately HK$53 million during the previous period.

Furthermore, the Hong Kong-listed stock portfolio and commercial properties held by the Group continue to generate stable and regular returns for the Group. The associated fair value change impairment did not have any negative impact on the Group's day-to-day operations or cash flow.