NOVAUTEK (00519) Issues Profit Warning, Expects Annual Loss Attributable to Shareholders of Approximately HK$479 Million, Turning from Profit to Loss Year-on-Year

NOVAUTEK (00519) has issued an announcement that, compared with the profit attributable to owners of the Company of approximately HK$9.046 million for the financial year ended 30 June 2025, the Group may record a loss attributable to owners of the Company of approximately HK$479 million for the financial year ended 30 June 2026. The Board considers that the loss was primarily attributable to the net effect of, among other things, the following factors: (1) The fair value of the Group's investment properties decreased from a fair value gain of approximately HK$74.522 million for the financial year ended 30 June 2025 to a fair value loss of approximately HK$494 million for the financial year ended 30 June 2026; (2) For the financial year ended 30 June 2026, an impairment loss of approximately HK$34.502 million was recorded on properties held for sale, whereas no such amount was recorded for the financial year ended 30 June 2025; (3) For the financial year ended 30 June 2026, an impairment loss of approximately HK$22.379 million was recorded on non-current assets classified as held for sale, whereas no such amount was recorded for the financial year ended 30 June 2025; (4) A reversal of provision for legal claims of approximately HK$14.569 million was recorded for the financial year ended 30 June 2025, whereas no such amount was recorded for the financial year ended 30 June 2026; (5) A net gain of approximately HK$15.093 million from the disposal of financial assets at fair value through profit or loss was recorded for the financial year ended 30 June 2025, whereas an insignificant amount was recorded for the financial year ended 30 June 2026; and (6) The Group's deferred tax decreased from a deferred tax provision of approximately HK$39.539 million for the financial year ended 30 June 2025 to a deferred tax credit of approximately HK$136 million for the financial year ended 30 June 2026. The Board wishes to emphasise that factors (1) to (4) and (6) above are non-cash in nature and arose from the property development and investment segment. As the Group undergoes a comprehensive transformation from property to intelligent (AI) robotics, coupled with the weak performance of the real estate market, the Group expects to record asset impairments and fair value declines in respect of its properties. Despite the overall contraction in the performance of the property segment, the Group's AI robotics business has achieved significant growth. First, for the financial year ended 30 June 2026, the revenue of the AI robotics business as a share of the entire Group surged from 4% in the same period last year to 30%, with revenue increasing by 550%. Second, from 1 July 2026 to the date of this announcement, in just three months, the amount of new contracts signed for AI robotics was approximately equal to the total revenue for the financial year ended 30 June 2026. Third, the product matrix, customer base and service regions have become more diversified, with products covering patrol, cleaning and humanoid robots, and business covering regions such as Hong Kong, Mainland China, Southeast Asia and the Middle East. At the same time, it has developed from single products and services to integrated solutions with multiple products and multiple scenarios. Taken together, the above reflects the explosive growth of the robotics segment and indicates that the Group's transformation is beginning to be reflected in its financial indicators. This also reflects the Group's forward-looking approach and advance planning in business adjustment, enabling a stable transition of the overall business.