This study examined how Hong Kong kindergarten teachers integrate digital and non-digital technologies to support literacy development in L1 and L2 Chinese-speaking children, including perceptions of GenAI. Data from 108 teachers across 15 bilingual kindergartens revealed they primarily conceptualize language needs through basic literacy skills: listening, speaking, reading, and writing (70.37% L1, 59.26% L2), with significant perception differences between L1 and L2 learners regarding social integration and classroom support needs. Teachers predominantly used non-digital technology (70.2% of time), though younger teachers integrated digital tools more than senior colleagues. Key challenges were time constraints for non-digital tools (41.60%) and technical issues for digital tools (50.00%). While 54.4% expressed positive attitudes toward AI-powered technology, their understanding remained largely surface-level, not pedagogically transformative. The findings highlight a disconnect between teachers’ conceptual understanding of young L1/L2 learners’ needs and their teaching practices. This underscores an urgent need for professional development that bridges theoretical knowledge of L1/L2 learning with effective integration of both traditional and digital (AI-powered) technologies for pedagogical affordances in early bilingual education.