Basilic Fly Studio Limited — Important, 22-04-2025: Disclosure of material issue

The company has faced a significant material issue involving a product recall due to quality concerns. This recall is expected to impact revenue and customer trust temporarily. The management is taking immediate actions to rectify the quality issues, which include enhanced quality control measures and better supplier alignment. While this situation poses short-term risks, the company has a robust plan to restore product integrity, aiming to mitigate customer concerns and recover any lost sales. Stakeholders should monitor the progress of these initiatives closely as they could influence future performance.