Hengfa Optics Expects Half-Year Loss to Widen to HKD 12.1 Million

Heng Fa Optics recently issued a profit warning, expecting to record a net loss of approximately HK$12.1 million for the six months ended June 30, 2026, a significant widening from the loss of about HK$4.7 million in the same period of 2025.

According to the company's announcement, the wider loss mainly stemmed from lower gross margins on eyewear products. The board noted that intense market competition during the reporting period, combined with cost pressures from the appreciation of the renminbi, drove down the average selling price of eyewear products. Although the company continued to implement cost-saving measures, these were insufficient to fully offset the impact of the above adverse factors on gross margin.

Notably, before the profit warning, Heng Fa Optics underwent a major change at the shareholder level in late July. On July 24, the company's major shareholder, Ding Feng Holdings, entered into a sale and purchase agreement to transfer a total of approximately 148 million shares of the company to an independent third party, representing about 29.59% of the issued share capital. The transaction was completed recently, and Ding Feng no longer holds any interest in the company.

According to shareholding disclosures filed with the Hong Kong Stock Exchange, the acquirer, Hu Xing, obtained the above stake at HK$0.35 per share, involving more than HK$51.78 million, becoming the company's single largest shareholder. The board stressed that the share transfer will not adversely affect the existing eyewear business operations. Eyewear will remain the group's core business, while the group will also explore potential opportunities to diversify its business and revenue sources.