Champion Technology Group Warns Of Going-Concern Doubts After Subsidiary Losses

Champion Technology Group (00092) said its auditor may be unable to express an opinion on the group’s annual financial statements for the year ended June 30 because a major subsidiary is currently loss-making and has raised substantial doubt over the group’s ability to continue as a going concern. The company said it is still assessing the subsidiary’s losses and the impact on its 2026 financial statements. It also expects the loss for the year ended June 30 to be worse than a year earlier because of difficulties in recovering trade receivables. A separate profit warning will be issued once the relevant financial data are finalised, according to ETNet. Champion Technology previously said it planned to place up to 84.024 million new shares under a general mandate. However, the placing agent said the potential going-concern qualification constituted a material adverse change in the group’s financial condition or prospects, and exercised its right on August 31 to terminate the placing immediately.