Expert Systems Holdings Limited (stock code: 8319) disclosed that its wholly-owned subsidiary, Expert Systems Limited (ESL), may terminate a service agreement with a customer after the first term. ESL originally submitted a tender in October 2022 to supply software licenses and services from March 2023 to March 2026 and, subsequently, from March 2026 to March 2028 under a licensing program. However, the supplier of these software products has indicated that it will discontinue supply for the second term, rendering ESL unable to fulfill that portion of the service agreement.

ESL is negotiating with the customer to terminate the agreement after the end of the first term and provide an alternative solution that includes a substitute set of software licenses and services. The total cost tied to this termination and the substitute arrangement is expected to be roughly HK$4 million to HK$8 million, which will affect the Group’s financial performance for the six months ending 31 March 2026. Management is also seeking legal advice concerning potential actions against the supplier. As of the announcement date, no binding agreement has been finalized with the customer.