Nokoda Technology (00519) expects annual shareholders' share loss of approximately HK$479 million to change profit to loss year over year

According to the Zhitong Finance App, Nokoda Technology (00519) issued an announcement. Compared with the profit attributable to the company owner of about HK$9.046 million for the financial year ending June 30, 2025, the Group may obtain a loss attributable to the company owner of approximately HK$479 million in the fiscal year ending June 30, 2026.

The Board considers that the loss was mainly due to the net impact of (among others) the following factors:

(1) The fair value of the Group's investment properties was reduced from a fair value gain of about HK$74.522 million for the financial year ended June 30, 2025 to a fair value loss of approximately HK$494 million for the financial year ended June 30, 2026;

(2) In the financial year ended June 30, 2026, the impairment loss on property held for sale was approximately HK$35.502 million, and no relevant amount was obtained for the financial year ended June 30, 2025;

(3) In the financial year ended June 30, 2026, the impairment loss on non-current assets listed as held sales was approximately HK$22.379 million, and no relevant amount was obtained for the financial year ended June 30, 2025;

(4) A provision of approximately HK$145.69 million was obtained for the financial year ended June 30, 2025, and no relevant amount was obtained for the financial year ended June 30, 2026;

(5) The net proceeds obtained from the sale of financial assets recorded at fair value for the financial year ended June 30, 2025 were approximately HK$1,593 million, while the amount obtained in the financial year ended June 30, 2026 was not significant; and

(6) The Group's deferred tax liabilities were reduced from about HK$395.39 million in deferred tax provisions for the financial year ended June 30, 2025 to about HK$136 million in deferred tax credits for the financial year ended June 30, 2026.

The Board wishes to emphasize that the factors (1) to (4) and (6) above are non-cash in nature and come from the property development and investment sector. With the transformation of the Group's business from properties as a whole to intelligent (AI) robots, and the weak performance of the real estate market, the Group expects to experience asset impairment and a decline in fair value for properties.

Although the overall performance of the property sector has shrunk, the Group's AI robotics business has achieved significant growth. First, for the fiscal year ending June 30, 2026, the revenue share of the AI robot business in the entire group soared from 4% in the same period last year to 30%, and revenue increased by 550%. Second, in just three months from July 1, 2026 to the date of this announcement, the AI robot signed a new contract amount approximately equal to the total revenue for the fiscal year ending June 30, 2026. Third, the product matrix, customer base and service regions are becoming more diversified. The products cover patrolling, cleaning and humanoid robots, and the business covers Hong Kong, mainland China, Southeast Asia and the Middle East. At the same time, it has evolved from a single product and service to a comprehensive solution for multiple products and multiple scenarios. Taken together, this reflects the explosive growth of the robotics sector and indicates that the Group's transformation is beginning to be reflected in its financial indicators. This also reflects the Group's forward-looking and advance planning for business adjustments, so that the overall business can transition steadily.