Hang Seng Technology is about to undergo a major revamp, and XUNCE (03317) is expected to be included in passive fund allocations.

On August 10, the Hang Seng Index Company sought market opinions on the proposed revisions to the calculation method for the Hang Seng Tech Index, intending to expand the number of constituent stocks from the current 30 to 50, and to introduce a dual-track stock selection mechanism of "market capitalization group + revenue growth group." Among these, 40 constituent stocks will be selected based on their ranking in eligible tech stocks by market capitalization, while the remaining 10 will be supplemented from companies with faster revenue growth that rank beyond the top 40 by market capitalization. This reform also broadens the coverage of the technology theme, likely enhancing the representation of emerging tech sectors such as AI and advanced hardware in the index. Against this backdrop, XUNCE (03317) is expected to be a potential beneficiary of this round of Hang Seng Tech Index expansion. According to institutional estimates, XUNCE is on the potential inclusion list for the "high revenue growth group," with the latest revenue growth reaching 103.3%. It belongs to the AI theme, aligning with the reform's direction to strengthen the representation of high-growth tech companies. In terms of performance, on July 31, XUNCE announced an interim earnings surprise for 2026: the company expects revenue for the first half of the year to reach 967 million yuan, a surge of 389% year-on-year, setting a historical record for the same period; net profit attributable to the parent company is expected to be 72.51 million yuan, compared to a net loss of 89 million yuan the previous year, marking its first half-year profit; adjusted net profit is expected to be 67 million yuan, a significant turnaround from a net loss of 105 million yuan the same period last year. The core operational quality has significantly improved, and the company has officially transitioned from the investment phase to the profit release phase. The company stated that the strong growth in performance is driven by five major factors: the release of demand for AI implementation, accelerated penetration into diversified industries, rapid deployment of TokentOS products, the establishment of the Token business model, and the expansion and ecological construction of international business. Analysis indicates that if XUNCE ultimately succeeds in being included in the Hang Seng Tech Index, it is expected to enhance the company's market visibility within the Hong Kong stock technology sector and may also lead to passive allocation by index funds. CITIC SEC estimates that upon completion of this round of Hang Seng Tech Index expansion, the potential inflow from included stocks could result in approximately 36 billion HKD of passive capital increment, with about 7.5 billion HKD from the revenue growth group.