B.DUCK SEMK (02250) issues a profit warning, expecting a roughly 50% increase in interim losses attributable to shareholders compared to the same period last year.

B.DUCK SEMK (02250) announced that the group expects to record a loss attributable to the company's equity holders of approximately HKD 10.7 million for the six months ending June 30, 2026 (the Current Period), representing an increase of about 50% compared to the loss attributable to the company's equity holders for the six months ending June 30, 2025 (the Previous Period). The Board of Directors believes that the increase in loss attributable to the company's equity holders in the Current Period is due to a combination of several factors: (1) the role authorization business was affected by the adjustment of renewal terms by some authorized merchants and intensified industry competition, resulting in a decrease in royalty income during the Current Period compared to the Previous Period; (2) legal and professional fees increased significantly during the Current Period due to the company's share placement and trademark enforcement matters; (3) inventory costs increased during the Current Period, primarily due to price reductions to clear inventory for optimizing inventory structure (a one-time measure); (4) the cost of using online platforms increased significantly during the Current Period, mainly due to the increase in platform service fee ratios for major e-commerce channels; and (5) the urban amusement park business is in the investment phase, with related pre-operational and administrative expenses (excluding depreciation) increasing compared to the Previous Period. During the Current Period, employee costs and promotional expenses decreased compared to the Previous Period, reflecting the initial effectiveness of the group's restructuring and cost control measures. However, these savings were not sufficient to fully offset the impact of the aforementioned decline in revenue and rising costs, resulting in an increased loss attributable to the company's equity holders compared to the Previous Period.