Leyou Tech: Profit Warning Announcement said:...based on a preliminary assessment of the unaudited consolidated management accounts of the Company for the year ended 31 December 2019 and other information currently available, the Group expects to record a loss for the year in the range of approximately US$4.0 million to US$8.0 million as compared to the profit for the year of US$20.4 million recorded in the consolidated financial statements of the Company for the year ended 31 December 2018.
This was primarily attributable to:
- (i) a decrease in revenue of the Group due to fewer content update release of our flagship product Warframe during the year;
- (ii) an increase in selling and marketing expenses as the Group has engaged in more extensive advertising and promotion activities during the year; and
- (iii) a turnaround of net foreign exchange difference from a gain in 2018 to a loss in 2019 as a result of the depreciation of the foreign currencies against Canadian Dollars as at 31 December 2019.