Analogue Holdings Limited Announces Significant Profit Surge for 1H2026 Driven by Disposal of Nanjing Canatal Shares

Key Highlights

• Analogue Holdings Limited expects a substantial increase in profit attributable to owners for the six months ending 30 June 2026 (1H2026).
• Projected profit for 1H2026: HK\$145 million to HK\$155 million, representing an increase of approximately 79.5% to 91.8% compared to HK\$80.8 million in 1H2025.
• The profit surge is mainly due to a one-off gain from disposal of shares in Nanjing Canatal Data Centre Environmental Tech Co. Ltd., an associate listed in Shanghai.
• The company disposed of approximately 3% of Nanjing Canatal’s total issued shares between 25 March and 23 April 2026, receiving aggregate consideration of RMB154.3 million (approx. HK\$176.2 million).
• The expected unaudited gain from the disposal is HK\$112.5 million (before corporate income tax).

Details of the Nanjing Canatal Disposal

1. Disposals occurred in three tranches, as previously announced:
   • First tranche: 1.17% of shares disposed between 25 March and 8 April 2026.
   • Second tranche: 1.69% of shares disposed between 10 April and 20 April 2026.
   • Final tranche: 0.14% of shares disposed on 23 April 2026.
2. Total shares disposed: 16,254,000 shares (approx. 3% of Nanjing Canatal’s issued shares).
3. Sale proceeds: RMB154.3 million (HK\$176.2 million), exclusive of transaction costs.
4. The gain is calculated based on the difference between the book value of the interests and net proceeds from the disposals.

Adjusted Profit Outlook Without One-Off Gain

• Excluding the one-off disposal gain, the adjusted estimated profit for 1H2026 is HK\$32.5 million to HK\$42.5 million, which is a decrease of approximately 47.4% to 59.8% versus 1H2025.
• The decrease is mainly due to:
  • Project phasing issues
  • Increase in estimated project costs, including labor, sub-contractor, and material costs

Important Information for Shareholders and Investors

• This announcement is price sensitive: The significant profit increase is largely a one-off event. Investors should note that the underlying business performance is showing a marked decline if the disposal gain is excluded.
• The information provided is preliminary, unaudited, and subject to change pending future events and performance up to 30 June 2026.
• Final financial results will be disclosed in the interim results announcement expected in August 2026.
• The Board will monitor the Group’s performance and provide further updates if necessary.
• Caution is advised: Shareholders and potential investors are urged to exercise caution when dealing in the securities of the Company, given the impact of the one-off gain versus underlying business performance.

Board and Management Information

As of the date of this announcement, the Board consists of Dr. Poon Lok To, Otto, Dr. Mak Kin Wah, Mr. Chan Hoi Ming, Mr. Cheng Wai Lung, Mr. Cheng Wai Keung, Peter (Executive Directors), and Mr. Chan Fu Keung, Mr. Lam Kin Fung, Jeffrey, Ms. Shing Mo Han, Yvonne (Independent Non-Executive Directors).

Conclusion

The expected surge in profits for Analogue Holdings Limited is primarily due to a one-off gain from the disposal of shares in Nanjing Canatal. This event is highly price sensitive and may affect share values. However, the core business is facing cost pressures and project phasing challenges, leading to a significant drop in adjusted profit estimates. Investors should carefully evaluate these factors and remain alert for further announcements as the situation develops.

Disclaimer: The information contained in this article is based on unaudited, preliminary estimates provided by Analogue Holdings Limited. Actual financial results may differ and are subject to audit and future events. Investors are advised to exercise caution and consult with financial advisors before making investment decisions.

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