Shares of ASIA TELE-NET (00679) dropped more than 20% in afternoon trading, last down 20% at HK$5.36, with turnover reaching HK$16.09 million.

The company recently announced that it expects revenue growth, rising from HK$237 million to HK$424 million. This increase is primarily driven by its core electroplating equipment business segment, whose revenue jumped 90% from HK$214 million to HK$406 million.

However, despite the top-line expansion, the group anticipates a net loss of no more than HK$20 million for the six months ending June 30, 2026, compared with a net profit of approximately HK$14.4 million in the same period of 2025. The expected decline in profitability is mainly attributed to fair value losses on trading investment products and a reduction in fair value losses on investment properties.

Commercial property prices in mainland China and Hong Kong have remained weak, largely due to oversupply and relatively soft local demand. Consequently, the group projects a fair value loss of around HK$29.6 million on investment properties for the reporting period, versus a loss of approximately HK$53 million in the prior-year period.