SOLARTECH INT'L (01166) Issues Profit Alert, Expects Annual Profit Attributable to Shareholders of HK$79 Million to HK$86 Million, Turning Around from a Year Earlier

SOLARTECH INT'L (01166) announces that it expects to record a profit attributable to owners of the Company of between HK$79 million and HK$86 million for the year ended 30 June 2026, as compared to a loss attributable to owners of the Company of approximately HK$142 million for the year ended 30 June 2025 (the corresponding period). Based on the relevant information currently available to the Company, the Board considers that, despite the decrease in turnover and gross profit, the increase in the amount of expected credit losses recognised, the recognition of deferred tax expenses (as compared to a deferred tax credit recognised in the corresponding period), and the one-off gain on disposal of subsidiaries recorded in the corresponding period during the period in question, the results attributable to owners of the Company are expected to turn around from a loss to a profit, primarily due to the following factors: (i) a decrease in general and administrative expenses; (ii) a fair value gain recorded on the Group's investment properties during the period in question, as compared to a fair value loss recorded in the corresponding period; (iii) a reversal of impairment loss on mining rights recognised during the period in question, as compared to an impairment loss recorded in the corresponding period; and (iv) a share of profits of joint ventures recorded during the period in question, as compared to a share of losses of joint ventures recorded in the corresponding period.