Fujikon Ind (00927) has announced that compared to the surplus of approximately HKD 24.6 million attributable to the company's equity holders for the year ended March 31, 2023, the group may see a reduction of approximately 30% to 35% in the surplus attributable to the company's equity holders for the fiscal year 2024. The decline in the group's financial performance is mainly due to (i) a decrease in sales orders for audio headphones from customers; (ii) a provision for inventory of approximately HKD 29 million due to audio headphone-related inventory becoming obsolete; and (iii) a provision for compensatory guarantee for quality issues of approximately HKD 17 million.

The board of directors hereby further notifies the company's shareholders and potential investors that, after the date of the announcement and as of the date of this announcement, (i) the group has secured purchase orders for various other products from customers, and (ii) no significant progress has been made between the group, customers, and suppliers with respect to quality issues.