FLYDOO TECH (08069) Issues Profit Warning, Expects Interim Net Loss to Surge by Approximately 550%

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FLYDOO TECH (08069) announced that compared to a net loss of approximately HKD 588,000 for the six months ended September 30, 2024, the group anticipates a net loss increase of around 550% for the six months ending September 30, 2025. The primary reason for the widened loss is unfounded disaster rumors triggered by a Japanese manga artist's prediction of a large-scale earthquake occurring nationwide in Japan in July 2025, which caused panic among tourists. The manga artist's work prophesied catastrophic events such as a major earthquake, tsunami, or other large-scale disasters in Japan during July 2025, leading to widespread concern, particularly among travelers from Hong Kong. Asian social media platforms were flooded with posts urging people to cancel or postpone trips, even prompting some Hong Kong-based airlines to reduce or suspend flights between the two regions. As Japan is a key outbound travel destination for the group, bookings for summer holiday tours in July and August were severely impacted by the speculation and rumors surrounding the potential disaster. This resulted in a significant decline in both revenue and gross profit for the six months ending September 30, 2025. Fortunately, the anticipated earthquake did not occur, and the rumors were later debunked. Despite the setback, management remains confident in the eventual recovery of Japan's tourism industry and reaffirms its strategic focus, expressing optimism about the long-term growth prospects of outbound travel, sightseeing, and hotel operations.

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