AMUSE GROUP (08545) issued a profit warning, expecting a net loss attributable to shareholders of not less than HK$2 million for the year.

AMUSE GROUP (08545) announced that it is expected to incur a loss of not less than HK$2 million for the current year, compared to a profit of approximately HK$490,000 for the year ended March 31, 2024 (last year). Based on information obtained prior to the announcement, the Board of Directors believes that the main reason for the loss this year is a decrease in revenue of about 34.7%. The decline in revenue is primarily due to significant decreases in sales across all divisions of the toy business. Notably, sales of ODM toys to franchisees and sales of self-owned franchise toys and related products decreased by 46.5% and 40.4% respectively. The significant decrease in sales is attributed to economic pressures, including inflation and reduced consumer spending on non-essential items. The shift from profit to loss this year is also mainly due to an impairment loss of HK$4.5 million in the equity interest of a joint venture company, as the operations of this joint venture company are facing challenges due to economic downturn, intensified competition, and operational difficulties.