HK Stock Market Move | DC Holdings (00861) surged nearly 50% in early trading, with its subsidiary Digital China Information Service Group expected to achieve a turnaround from loss to profit for the year.

DC HOLDINGS (00861) rose nearly 50% in the morning session, up 42.11% at the time of writing, at 3.78 Hong Kong dollars, with a turnover of 56.3773 million Hong Kong dollars. On the news front, DC HOLDINGS announced that its indirectly held non-wholly owned subsidiary, Digital China Information Service Group, is expected to achieve a net profit attributable to owners of the company of 46 to 69 million yuan by 2025, reversing a loss of 524 million yuan in 2024. The company stated that the significant increase in performance is a result of actively expanding market, year-on-year increase in operating income, and improved profit growth. Additionally, the company has strengthened accounts receivable management and seen a clear improvement in payment collection. Furthermore, impairment of goodwill has significantly decreased compared to the previous year. According to the announcement from DC HOLDINGS, the company currently holds approximately 38.70% of Digital China Information Service Group's shares. Therefore, the substantial increase in profit for Digital China Information Service Group will also positively impact DC HOLDINGS' overall performance in 2025.