Champion Tech Group (00092) announced that the group expects to record a consolidated net loss attributable to shareholders (excluding other comprehensive income and expenses) of approximately HK$42 million to HK$46 million for the full year ended June 30, 2025, compared to a loss of approximately HK$12 million (excluding other comprehensive income and expenses) for the full year ended June 30, 2024.

The company stated that the expected losses are primarily due to the following combined factors:

Geopolitical issues have led to shortages of key components related to data centers, causing severe delays in the development of the entire smart city industry. The group's smart city solutions business revenue and operating performance have declined significantly, accompanied by substantial increases in expected credit losses on trade receivables due to delayed customer payments.

The Hong Kong government has recently indicated that the feed-in tariff subsidy scheme is likely not to be renewed after its expiration in 2033. Consequently, investors in general renewable energy projects have become hesitant. The group's renewable energy business revenue and operating performance have recorded significant decreases.

Additionally, during the full year period ended June 30, 2024, the group recorded a one-time gain of HK$32.1 million from the disposal of a hotel located in Dongguan, which was non-recurring in nature.