Huazhang Technology Holding Limited Issues Significant Profit Warning for Second Half of 2025

Key Highlights and Details for Investors

• Significant Increase in Expected Losses:
  Huazhang Technology Holding Limited (“the Company”) has announced a substantial increase in its expected losses for the six months ended 31 December 2025. The Group anticipates a loss attributable to shareholders in the range of RMB 20 million to RMB 21 million, compared to a loss of RMB 6.9 million in the same period of 2024.
• Primary Reason for Deterioration:
  The main factor behind this greater loss is a decrease in revenue caused by the delay of certain projects by customers during the reporting period. This delay in project execution has directly impacted the Group’s financial results.
• Unaudited Figures and Caution:
  The figures provided are based on a preliminary assessment of the latest unaudited financial information available to the Board. The interim results for the period have not yet been finalized, reviewed by the audit committee, or audited by the Company’s auditors. The numbers are subject to possible finalization and adjustments.
• Upcoming Interim Results Announcement:
  The official interim results announcement for the six months ended 31 December 2025 is expected to be published in late February 2026. Investors and shareholders are advised to review that announcement for finalized figures and further details.
• Board Composition:
  The Board currently comprises three executive Directors (Mr. Fang Hui as Chairman, Mr. Chen Hongwei, and Mr. Cai Haifeng) and three independent non-executive Directors (Mr. Heng, Keith Kai Neng, Mr. Yao Yang Yang, and Ms. Zhang Dong Fang).

Important Considerations for Shareholders

• Potential Share Price Impact: This significant profit warning, with losses tripling year-on-year, is highly price sensitive. The projected financial deterioration may trigger negative sentiment and downward pressure on the Company’s share price.
• Ongoing Uncertainty: Since the results are preliminary and unaudited, further revisions are possible, which could add to share price volatility.
• Guidance for Investors: Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of the Company until the finalized results are published.

Next Steps and Outlook

The Company’s Board emphasizes the importance of waiting for the official interim results announcement in late February 2026, where more comprehensive and audited data will be provided. The current outlook remains challenging due to the delay of customer projects, and the Company’s management is expected to address these issues and any recovery strategies in the forthcoming disclosure.

Disclaimer: This article is based solely on the information disclosed by Huazhang Technology Holding Limited as of 20 February 2026. The financial data referenced is preliminary and unaudited, and may be adjusted before the official results are released. Investors should exercise caution and consult professional advisors before making any investment decisions.

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