HK Stock Market Move | MOG DIGITECH's (01942) afternoon gains narrowed significantly. It is expected that the company will change from a profit to a loss year-on-year in the first half of the year.

MOG DIGITECH (01942) surged significantly on high volume today, with the stock soaring over 57% in the morning session. The gains narrowed significantly in the afternoon, closing at a 25.61% increase at HK$0.103 with a trading volume of HK$13.31 million. In terms of news, MOG DIGITECH announced at noon that the group is expected to incur an unaudited comprehensive net loss of no less than approximately RMB 30 million for the five months ending May 31, 2026, attributable to the equity holders of the company. Therefore, it is expected that the equity holders of the company will incur a net loss in the first half of this year, compared to a profit of approximately RMB 1.9 million for the same period last year. The company stated that the expected loss is mainly attributed to a significant decrease in revenue and gross profit, primarily due to intense competition in the Chinese market leading to a substantial decrease in revenue for the digital payment solution business segment. The lack of funding in the financing services business segment also resulted in a decrease in gross profit for the retail of optical products, franchise operations, and licensing management business segments.