CHAMPION TECH (00092) has issued a profit warning, projecting a consolidated net loss attributable to shareholders (excluding other comprehensive income and expenses) of approximately HK$52 million to HK$58 million for the year ending 30 June 2026. This compares with a loss of about HK$44 million (excluding other comprehensive income and expenses) recorded in the corresponding period ended 30 June 2025.

The anticipated loss for FY2026 is primarily driven by several factors. CHAMPION TECH has seen a significant decline in operating performance within its smart city solutions segment, which is largely attributed to difficulties in procuring key components such as chips and GPUs due to geopolitical sanctions. Additionally, the company has substantially increased its expected credit loss provisions, as accounts receivable have worsened amid a triangular debt issue.

Furthermore, the group's renewable energy operations have also experienced reduced performance. This decline is partly due to decreased investments in solar photovoltaic systems in Hong Kong, driven by the fact that the Feed-in Tariff (FiT) scheme is scheduled to expire in 2033. Lastly, despite substantial capital investments made by the group, the commercial production of the Chuang Zhi Rong water-to-gas generator has encountered unexpected delays.