CM Energy Tech Co., Ltd. (CM Energy Tech) has issued a profit warning, projecting a loss of approximately USD 9.30 million for the six months ended 30 June 2026. The group posted a profit of about USD 2.78 million in the comparable period of 2025, marking a sharp year-on-year reversal.

The anticipated swing into the red is mainly driven by a one-off impairment provision of roughly USD 9.50 million related to work-in-progress on drilling rig and equipment supply projects with Petróleos Mexicanos (Pemex). Following changes in Pemex’s management, strategy and budget allocation, payments to CM Energy Tech stalled, disrupting project execution. Subsequent negotiations did not yield a viable path forward, and both parties elected to discontinue the remaining project scope to avoid escalating costs.

CM Energy Tech noted that the impairment largely reflects expenditures incurred on project segments not yet completed. While outstanding contractual payments have been acknowledged by Pemex, recovery discussions are ongoing. Based on preliminary analysis, the company believes the combination of received and anticipated payments should offset most costs, limiting the overall financial impact to an estimated net loss close to the stated USD 9.30 million.

The disclosed figures derive from unaudited management accounts and may be adjusted when the interim results are finalised. The company intends to release its full interim results on 28 August 2026 in accordance with Hong Kong Listing Rules. Shareholders and potential investors are advised to exercise caution when dealing in CM Energy Tech shares.