CHAMPION TECH (00092) issues profit warning, expects annual consolidated net loss attributable to shareholders (excluding other comprehensive income and expenses) of approximately HK$52 million to HK$58 million

CHAMPION TECH (00092) has issued an announcement that the Group expects to record a consolidated net loss attributable to shareholders (excluding other comprehensive income and expenses) of approximately HK$52 million to HK$58 million for the full year ended 30 June 2026, compared with a loss attributable to shareholders of approximately HK$44 million (excluding other comprehensive income and expenses) for the full year ended 30 June 2025. The consolidated loss attributable to shareholders for the full year ended 30 June 2026 was mainly attributable to the following reasons: (i) a significant decrease in the operating results of the Group's smart city solutions, primarily due to difficulties in procuring key components (such as chips and GPUs) as a result of geopolitical sanctions, as well as a substantial increase in expected credit loss provisions on trade receivables due to the deterioration of triangular debt issues; (ii) a decrease in the operating results of the Group's renewable energy, and a decrease in the investment in Hong Kong CECEP Solar Energy photovoltaic systems, as the Feed-in Tariff (FiT) scheme will expire in 2033; and (iii) unexpected delays in the commercial production of Chuangzhirong's water-to-gas generator after the Group had invested substantial funds.