Gelonghui, March 13, 丨 Little Yellow Duck (02250.HK) announced that the company expects to record a loss attributable to the company owner of not less than HK$40.0 million in the 2023 fiscal year. In comparison, the profit attributable to the company owner for the year ended 31 December 2022 was approximately HK$75.6 million.
The Board of Directors believes that the expected losses due to the company's owners are mainly due to the following reasons: 1. Confirmation of share-based compensation relating to reward shares granted to key employees to contribute to the continued operation and development of the group under the company's share award program; 2. Decrease in gross margin of the e-commerce business due to the group's one-time priority use of accumulated inventory balances of products from previous years; 3. Decrease in overall revenue and other revenue, including the decline in revenue generated by the group's authorized businesses, due to the weakening of consumer confidence in fiscal year 2023 and additional authorization fees collected from licensees Reduction; and 4. In order to actively promote the establishment of an Internet Entertainment Center, dedicated to game R&D, production and derivative product sales; and setting up a design team using AI technology to enhance innovation capabilities, leading to an increase in overall expenses.