Solartech International Holdings Issues Profit Warning for Second Half of 2025

Key Highlights

• Profit Warning Issued: Solartech International Holdings Limited has issued a profit warning for the six months ended 31 December 2025. The company expects to record a loss attributable to owners in the range of HK\$12 million to HK\$18 million for the period.
• Improvement from Previous Year: This anticipated loss is a substantial improvement compared to the loss of approximately HK\$26.2 million recorded for the same period in 2024.
• Key Factors Influencing Results:
  • Decrease in general and administrative expenses
  • Net gain in fair values of investment properties (as opposed to a loss in the previous corresponding period)
  • Reduced finance costs
• Negative Factors: Despite improvement, the company faced:
  • Decrease in turnover and gross profit
  • Increase in recognition of expected credit loss
  • Deferred tax expenses (compared to a deferred tax credit previously)
• Preliminary Assessment: The figures are based on preliminary, unaudited management accounts and have not yet been reviewed or audited by the company’s independent auditors.
• Interim Results Announcement: The company will announce its interim results on 26 February 2026.

Important Information for Shareholders and Investors

Investors and shareholders should note the following:

• The expected loss for H2 2025, while smaller than the previous year, still represents a significant negative result. This may impact investor sentiment and share price performance.
• The improvement is mainly attributed to reductions in costs and gains in property valuation, rather than improvements in core business activities (such as turnover and gross profit, which have both decreased).
• The company warns that these results are preliminary and subject to change when the final audited accounts are released. This introduces a degree of uncertainty regarding the final reported figures.
• Price Sensitive Information: The announcement is made in compliance with Hong Kong Listing Rules and the Securities and Futures Ordinance, as it contains inside information likely to affect the company’s share price.
• Caution in Trading: The company explicitly advises shareholders and potential investors to exercise caution when dealing in its shares until the interim results are officially published.

Management Statement

The profit warning and preliminary results have been issued under the authority of Mr. Chau Lai Him, Chairman and Managing Director of Solartech International Holdings Limited, with the announcement dated 23 February 2026.

The Board comprises executive directors Mr. Chau Lai Him, Mr. Chau Chi Ho, and Mr. Liu Dong Yang, and independent non-executive directors Mr. Chung Kam Kwong, Mr. Lo Wai Ming, Mr. Lo Chao Ming, and Ms. Dou Biling.

Conclusion

While Solartech International Holdings Limited is expected to narrow its losses for the six months ended 31 December 2025, the company continues to face operational challenges such as declining turnover and gross profit, as well as increased credit losses and tax expenses. Investors should closely monitor the upcoming interim results announcement on 26 February 2026 for a clearer picture of the company’s financial position and future prospects.

Shareholders and potential investors are strongly advised to exercise caution when dealing in Solartech shares, given the ongoing uncertainties and the price-sensitive nature of this information.

Disclaimer: The above article is based on a preliminary assessment of unaudited management accounts as disclosed by Solartech International Holdings Limited. The information is subject to change upon release of the company’s audited interim results. The contents herein are for informational purposes only and should not be construed as investment advice. Investors should consult their financial advisors and exercise due diligence before making any investment decisions.

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