Flydoo Technology Holding Limited announced that, based on unaudited management accounts, its consolidated net loss for the year ended 31 March 2026 (FY2025/26) is expected to expand by roughly 750% from the HK$1.30 million loss booked in FY2024/25.
Management attributes the sharp deterioration to three main factors:
1. Revenue contraction: Sales from travel-related products and services fell by more than 15% year-on-year. The decline was driven largely by weak demand for outbound travel to Japan—historically the Group’s core destination—after media-fuelled earthquake rumours in July 2025 and subsequent reports of bear attacks dampened tourist sentiment.
2. Market shifts and geopolitical events: Greater convenience and value for money prompted Hong Kong residents to favour trips to Mainland China, while a late-February 2026 U.S.–Israel military operation against Iran suppressed demand for tours to Dubai and Turkey.
3. Higher costs and one-off losses: Spending on developing school tour products and other promotional activities increased, and discontinuation of retail operations led to inventory being liquidated at a gross loss.
The figures in the profit warning are based on preliminary unaudited data; full audited results are scheduled for release by end-June 2026. The Board advises shareholders and potential investors to exercise caution when dealing in the company’s shares.
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