Investment-holding company ITC is counting on the speculative interest in technology stocks to help it become profitable this year, according to vice-chairman Lau Ko-yuen. Mr Lau said ITC's two major information-technology (IT) investments - entertainment Web-site operator Star East Information Technology (SEIT) and New World CyberBase - could help it get back into the black if the rise of their share prices was realised. ITC directly holds a 27 per cent interest in SEIT and indirectly holds 350 million shares in New World CyberBase through Paul Y ITC Construction Holding. ITC reported a $341.75 million loss for the year ended March 31. The company attributed the poor result mainly to Paul Y ITC Construction's $797.9 million loss in the period. ITC has a 39.9 per cent stake in the construction company. In the period, Paul Y ITC reported an exceptional loss of more than $1 billion from provisions made for property and equities investments, through the company's investment arm, Paul Y Properties. In June, New World Development acquired a controlling stake in Paul Y Properties by injecting IT assets into the company, which it renamed New World CyberBase. Mr Lau said after Paul Y Properties was reorganised into an IT company, the value of ITC's interest in it surged to about $1 billion from a $100 million carrying cost. Mr Lau said Paul Y ITC's CyberBase shares made a paper gain of $900 million, based on yesterday's closing price. He said Paul Y ITC booked a $150 million gain from its disposal of 170 million shares of CyberBase in August. Moreover, ITC had an exceptional gain of $130 million from the sale of a 23 per cent interest in SEIT. ITC could also gain more than $150 million in profit if it sold the rest of its 27 per cent interest in SEIT. The company's interest in SEIT is valued at $220.97 million, based on Pacific Century CyberWorks' recent acquisition price. Mr Lau said ITC, which also has interests in multi-media and e-commerce businesses, would continue to invest in the IT sector. TECHNOLOGY