UNIVERSAL TECH (01026.HK): Taihe Water Concession Likely to Expire 30 Nov

NewTimeSpace News: On 3 November 2026, Universal Technologies Holdings Limited (stock code: 01026) provided an update on the Taihe Water Plants. Taihe Company, a non-wholly owned subsidiary, operates certain water supply plants in Qingyuan, Guangdong on a build-operate-transfer (BOT) basis under a concession agreement dated 21 November 2006, for a concession period of 20 years from December 2006 to November 2026.

Taihe Company has applied to the Water Resources Bureau of Qingxin District, Qingyuan City for a renewal under its first right of renewal, but had not received any positive feedback as at the date of the announcement. Recent correspondence indicated that works should be planned in preparation for the expiry of the concession on 30 November 2026 and the handover of the plants to the Water Bureau. The Company considers the concession likely to expire on that date under its original terms and is seeking PRC legal advice to continue negotiations and uphold the Group's rights and interests.

The intangible assets attributable to the concession amounted to only about HK$9.1 million as at 30 June 2026, against total assets of about HK$1,729 million, so the expiry has an insignificant impact on the Group's financial position. For the twelve months ended 30 June 2026, Taihe Company recorded turnover of about HK$67.6 million, or 21.41% of the Group's turnover, and a loss before taxation of about HK$69.0 million, or 28.57% of the Group's figure. On a look-through basis, the Company holds an effective economic interest of 24.99% in Taihe Company.