Baiyue Group (08545) issued a profit warning that shareholders should account for a loss of no more than HK$1.7 million year-on-year profit to loss

According to Zhitong Finance App News, Baiyue Group (08545) issued an announcement. It is anticipated that the Group may obtain losses attributable to the Company's owners of not more than HK$1.7 million during the current period (period ending September 30, 2026), while profit of about HK$1.2 million will be obtained during the period ending September 30, 2025 (same period last year).

According to information obtained by the Company immediately prior to publication of this publication, the Board believes that the loss during this period was mainly due to the Group's revenue from distributing imported toys and related products decreased by about 45.4% from about HK$40.1 million in the same period last year to about HK$21.9 million. The decline in revenue from the distribution of imported toys and related products is mainly due to the temporary lack of large-scale franchise product launches by brand licensors. This leaves wholesale buyers without the “hot” products they need to secure pre-orders. Since the upcoming product line lacks products that guarantee popularity, wholesalers and regional B2B customers all take a cautious approach and refuse to make large pre-order commitments for imported product lines.