Amuse Group (08545) announced that the group may obtain the attributable surplus of no more than HKD 1 million for the year ending March 31, 2024, while it generated a surplus of about HKD 5.7 million for the year ending March 31, 2023.

The Board of Directors believes that the decrease in surplus this year is mainly due to (i) revenue decreasing from about HKD 236 million last year to about HKD 219 million this year, a decrease of about 7.1%. The decrease in revenue is mainly due to the significant decrease in ODM toy sales. On the other hand, the gross margin decreased from about 19.4% last year to about 17.3% this year, a decrease of about 10.8%. This is due to the continuous increase in production costs of suppliers in China, and the cost increase has been passed on to the group; (ii) the loss of one of the joint venture companies that the group participates in, which is in trouble, is due to the challenges faced by the economic downturn, intensified competition, and the operation of the joint venture company. It is difficult to maintain profitability; and (iii) the Hong Kong stock market demonstrated quite a volatile trend this year, resulting in losses from financial asset fair value changes recognized in profit or loss from the group's securities investment.