Universal Technologies Holdings Limited (Universal Tech) announced that its Build-Operate-Transfer concession for the Taihe Water Plants in Qingyuan City is likely to end on 30 November 2026 after receiving no positive response to its renewal application. The subsidiary Qingyuan Qingxin District Taihe Water Co., Ltd. holds the first right of renewal but recent correspondence from the Water Resources Bureau of Qingxin District instructs the company to prepare for handover at concession expiry. Universal Tech has engaged PRC legal advisers to safeguard its interests and will release further updates as warranted.

Constructed assets under the concession are classified as intangible rather than property, plant and equipment; the related intangible asset was carried at only HK$9.10 million as of 30 June 2026. With total group assets of HK$1.73 billion, management expects the concession’s potential expiry to have an immaterial balance-sheet impact.

Taihe Company’s contribution to group results has been modest and loss-making. For the 18 months ended 30 June 2025, Taihe generated revenue of HK$82.73 million, representing 18.33 % of group turnover, and recorded a pre-tax loss of HK$99.69 million. For the 12 months ended 30 June 2026, revenue fell to HK$67.62 million (21.41 % of group turnover) with a pre-tax loss of HK$69.03 million. Following concession expiry, the remaining water business is expected to be transferred to the local authority and cease operations.

Universal Tech will concentrate resources on its Property Business, which delivered HK$29.51 million in rental income during FY 2026, up 37 % year-on-year on a comparable basis. The flagship Guangzhou shopping-mall portfolio was valued at RMB435.73 million (HK$503.27 million) and achieved an occupancy rate of 88 % at fiscal year-end, up from 77 % in the prior comparative period. Management targets higher occupancy and rental income in FY 2027, subject to market conditions.

The Financial Services segment, licensed for Type 1, 6 and 9 activities under Hong Kong’s SFO, remains small relative to property operations. The group is in preliminary discussions with mainland institutions for client cross-referral arrangements and intends to accelerate expansion as Hong Kong and PRC equity markets stabilize.

Universal Tech’s board stated that it will continue to explore domestic and overseas property opportunities and pursue selective investments to diversify revenue streams while maintaining prudence in capital deployment.