TECHNOVATOR (01206) issues a profit warning, expecting mid-term losses to widen to approximately 255 million to 265 million yuan compared to the previous year.

TECHNOVATOR (01206) announced that the group expects to incur a loss of approximately RMB 255 million to RMB 265 million for the six months ending June 30, 2026, compared to a loss of approximately RMB 7.7 million for the six months ended June 30, 2025. The increase in loss during the six-month period ending June 30, 2026, is primarily attributed to: 1) Due to the slowdown in macroeconomic growth and cyclical adjustments in the industry, there is inadequate effective demand in the target market, with a significant contraction in non-essential and improvement construction project investments, resulting in a substantial decline in the groups revenue scale, and the revenue from contract energy management projects has also been significantly impacted; 2) Market competition has become increasingly fierce, reducing the bargaining space for projects and putting pressure on the group's profitability. Moreover, as contract energy management projects are traditionally high-margin businesses for the group, the reduction in revenue scale directly leads to a decrease in total gross profit. At the same time, fixed expenses such as labor costs for projects have not been proportionally reduced, further eroding gross profit levels, collectively leading to a significant decline in this period's gross profit margin; 3) After comprehensively considering changes in the industry environment and future operational expectations, the group has made increased impairment provisions for certain assets, further exacerbating the net loss during the period.