B.Duck Semk Holdings Issues Significant Profit Warning for FY2025

Key Points of the Announcement

• Substantial Increase in Expected Loss: B.Duck Semk Holdings International Limited (“the Company”) has issued a profit warning, forecasting a loss attributable to equity holders of not less than HK\$78 million for the financial year ended 31 December 2025 (FY2025). This is a significant increase from the loss of approximately HK\$46.4 million recorded in FY2024.
• Decreased Operating Loss: The Group anticipates an improvement in its operating loss, with a decrease of approximately 41% compared to the operating loss of HK\$52 million in FY2024.
• Major Non-Cash Impairment: The increase in overall loss despite improved operating performance is primarily due to an anticipated non-operating, non-cash provision for impairment of the consideration receivable from the transfer of trademarks. This impairment is expected to be not less than HK\$45 million for FY2025.

Details That May Affect Shareholders and Share Price

• Profit Warning and Increased Losses:
  
  The Company’s profit warning highlights a substantial increase in losses for FY2025. Investors should note this significant deterioration in net profit, which may affect market confidence and potentially trigger share price volatility.
• Impairment of Receivables:
  
  The anticipated impairment loss is both non-operating and non-cash, but it materially reduces the Company’s bottom line for the year. This impairment is related to the consideration receivable from the transfer of trademarks, and the provision is expected to exceed HK\$45 million.
• Improvement in Operating Loss:
  
  Despite the increased overall loss, the Company’s operating loss is projected to decrease by approximately 41%. This suggests some improvement in the core business, excluding the impact of one-off or non-operating items.
• Uncertainty and Pending Final Results:
  
  The figures provided are based on the Board’s preliminary assessment of unaudited consolidated management accounts. The final audited results may differ and will be released by the end of March 2026. Shareholders should exercise caution as further adjustments are possible.

Board Composition and Announcement Date

As of the date of this announcement (13 March 2026), the Board comprises Mr. Hui Ha Lam as Chairman and Executive Director, along with other executive, non-executive, and independent non-executive Directors.

Conclusion for Investors

The profit warning issued by B.Duck Semk Holdings International Limited is a material development for shareholders and potential investors. The expected substantial increase in losses for FY2025, primarily driven by a significant non-cash impairment, is a key price-sensitive factor. While the reduction in operating loss suggests some operational improvement, the overall financial outlook remains negative for the upcoming results. Investors are advised to monitor the final results announcement and exercise caution in any trading decisions involving the Company’s shares.

Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Investors should refer to the official financial results and seek independent professional advice before making any investment decisions. The information herein is based on preliminary estimates released by the Company and may be subject to change.

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