Champion Technology posts wider interim loss despite 54.4% revenue jump; pivots to green and renewable energy

Bulletin Express
Mar 26

Champion Technology Holdings (CHAMPION TECH) released its unaudited results for the six months ended 31 December 2025, highlighting a revenue rebound but a deeper bottom-line loss and a strategic shift toward green and renewable initiatives.

Revenue and profit • Turnover climbed 54.4% year on year to HK$33.52 million, driven mainly by Renewable Energy projects, whose sales surged to HK$21.59 million (Previous Period: HK$5.83 million). • Gross profit improved to HK$2.07 million (2024: HK$1.43 million). • Impairment provisions on loan, trade and other receivables ballooned to HK$26.97 million (2024: HK$7.65 million), offsetting the higher revenue. • Loss attributable to shareholders widened to HK$27.84 million (2024: HK$21.61 million); basic and diluted loss per share stood at HK$(2.83) cents (2024: HK$(2.67) cents).

Balance-sheet and cash flow • Net assets fell to HK$77.84 million at 31 December 2025 (30 June 2025: HK$109.28 million). • Cash and cash equivalents declined to HK$5.19 million from HK$11.92 million six months earlier. • Net current assets narrowed to HK$41.23 million (30 June 2025: HK$74.94 million). • Net cash used in operating activities increased to HK$21.65 million (2024: HK$15.86 million). • Total borrowings rose to HK$20.41 million; gearing ratio increased to 0.23 (30 June 2025: 0.09).

Segment highlights • Renewable Energy – Became the largest contributor, benefiting from completion of several solar photovoltaic (SPV) projects and growing Southeast Asian demand. • Smart City Solutions – Revenue contracted amid semiconductor shortages and delayed client payments; management is scaling down exposure until demand recovers. • Green Energy – Launched the “Innovative Ecoglory Oxyhydrogen Gas System”, secured a steam-supply contract at a Guangzhou industrial park and targets broad industrial applications.

Capital moves • February 2025 placing raised net proceeds of HK$38.50 million at HK$0.245 per share, earmarked mainly for green-energy working capital. • A further placing completed in February 2026 (post-period) generated HK$19.50 million to fund renewable and green-energy development.

Dividend The Board declared no interim dividend for the half-year (2024: nil).

Governance and compliance The company reported full compliance with the HKEX Corporate Governance Code during the period.

Outlook Management expects sustained demand for its hydrogen-oxygen and SPV solutions, particularly in Southeast Asia, while remaining cautious on mainland data-centre expansion given power-supply constraints and elongated customer payment cycles. The group aims to leverage AI for efficiency gains across renewable-energy systems and data-centre design, positioning itself for future growth once market conditions stabilise.

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