Universal Tech's net loss widens to HK$161.4m despite revenue growth

Universal Technologies Holdings Limited reported a net loss attributable to shareholders of HK$161,360,000 for the eighteen months ended June 30, 2025, an increase of HK$24,024,000 from the HK$137,336,000 loss in the year ended December 31, 2023. This expanded loss occurred despite revenue rising by 41.41% to HK$451,301,000, primarily driven by growth in its water supply business and rental income from commercial properties in China. The increase in loss was mainly attributed to higher cost of sales in water supply and related businesses, as well as increased operating and administrative expenses.

The group's gross loss reached HK$26,763,000 for the period, a stark contrast to the HK$17,771,000 profit recorded in the prior year. General and administrative expenses surged by 66.33% to HK$112,915,000. Finance costs also increased by 21.61% to HK$59,100,000 due to higher interest rates on bank loans.

Auditors issued a disclaimer of opinion on the consolidated financial statements, citing significant doubts about the group's ability to continue as a going concern due to net current liabilities of HK$362,769,000, substantial trade payables, and ongoing litigation. The board, however, believes existing financial resources are sufficient for current commitments.