HK Stock Market Move | SUN.KING TECH (00580) fell nearly 7% in early trading, with first half-year revenue expected to increase by over 40% but recording a loss of nearly 30 million yuan.

SUN.KING TECH (00580) fell nearly 7% in early trading, dropping 3.93% as of press time to 1.71 Hong Kong dollars, with a turnover of 22.1088 million Hong Kong dollars. On the news front, SUN.KING TECH announced that the company is expected to generate revenue of approximately 1.268 billion yuan in the first half of the year, an increase of about 42.7% year-on-year. This growth is mainly attributed to the company's concentrated delivery of products for the Gansu-Zhejiang flexible DC transmission project, including DC support capacitors and their online monitoring system. In addition, the company is expected to incur a loss of nearly 30 million yuan. The main reasons for this expected loss include: a decrease in the Swiss franc exchange rate leading to a net loss of about 59 million yuan on foreign exchange forward contracts; a decrease of about 25 million yuan in exchange gains; continued increases in research and development expenses for new products of about 22 million yuan; and the expiration of government subsidies for the self-developed power semiconductor project, resulting in a reduction of about 16 million yuan in subsidies.