According to Zhitong Finance App News, Little Yellow Duck (02250) announced that the Group expects the losses attributable to the Company's equity holders for the six months ended June 30, 2026 (current period) to increase by about 50% compared to the loss attributable to equity holders of the Company for the six months ended June 30, 2025 (corresponding period) of about HK$10.7 million.
The board of directors believes that the above increase in losses due to the Company's equity holders during this period was due to a combination of the following factors: (1) the role licensing business was affected by adjustments in the renewal terms of some licensees and increased competition in the industry, which led to a decrease in license fee revenue during the period compared to the corresponding period; (2) legal and professional expenses increased significantly during this period due to the company's share placement and trademark rights protection matters; (3) the increase in inventory costs during this period was mainly due to a significant increase in the cost of using online platforms during this period (a one-time measure); (4) the cost of using online platforms during this period was mainly due to a significant increase in the cost of using online platforms during this period Due to an increase in the e-commerce channel platform service fee ratio; and (5) the city park business is in the investment stage, and related upfront operating and administrative expenses (excluding depreciation) increased compared to the corresponding period.
Staff costs and promotion expenses were reduced during this period compared to the corresponding period, reflecting the initial results of the Group's restructuring and cost control measures. However, these savings were not sufficient to fully offset the impact of the above decline in revenue and various cost increases, so losses due to the Company's equity holders during the current period increased compared to the corresponding period.