Neo-Concept International Group Holdings Limited Announces First Half 2025 Unaudited Financial Results

Rhea-AI Summary

Neo-Concept International Group Holdings (NASDAQ: NCI) reported unaudited results for the six months ended June 30, 2025. Revenue was approximately HK$60.2 million (US$7.7 million), a decrease of ~24.0% year‑over‑year. Net income rose to HK$2.0 million (US$0.3 million) from HK$1.4 million, and basic and diluted EPS were HK$0.50 (US$0.06) vs HK$0.37 a year earlier.

Private‑label apparel sales fell ~51.7% to HK$32.7 million due to China‑USA customs policy effects, while owned‑brand retail sales increased ~138.8% to HK$27.5 million after new stores opened. SG&A rose ~48.33% to HK$23.5 million; income tax expense was HK$0.9 million.

Positive

• Owned‑brand retail sales +138.8% to HK$27.5 million
• Net income increased by HK$0.6 million to HK$2.0 million
• EPS improved to HK$0.50 from HK$0.37

Negative

• Total revenue down 24.0% to HK$60.2 million
• Private‑label sales down 51.7% to HK$32.7 million
• SG&A expenses up 48.33% to HK$23.5 million
• Income tax expense HK$0.9 million (was nil)

Insights

Financial results analyst

Revenue fell 24% while net income rose modestly; margin and cost pressures make this a mixed operational update.

Neo-Concept International Group Holdings Limited recorded revenue of HK$60.2 million for the six months ended June 30, 2025, down ~24.0% year‑over‑year, driven by a 51.7% drop in private‑label apparel sales to HK$32.7 million and a 138.8% increase in owned‑brand retail to HK$27.5 million. Selling, general and administrative expenses rose to HK$23.5 million, reflecting higher payroll, Nasdaq‑listing related professional fees, and amortization related to the trademark acquired in May 2024. Net income improved to HK$2.0 million with basic and diluted EPS of HK$0.50.

The business impact stems from two clear drivers stated in the release: an external custom policy affecting demand in the USA that reduced private‑label volumes, and expansion of owned‑brand retail after new shops opened in late 2024. Risks include sustained lower demand from the affected US channel, elevated G&A from listing and staffing costs, and reduced agency fee income tied to lower related‑party sales in the United Kingdom. The recognition of HK$0.9 million income tax expense also reflects deferred tax movements.

Watch for subsequent interim or annual disclosures for signs of recovery in private‑label orders from the USA, retail sales traction from the new stores, and whether G&A growth moderates after listing‑related costs. Short‑term horizon: next reporting period; medium term: how owned‑brand retail contributes to revenue mix and margins over the following two reporting cycles.

 Hong Kong, Nov. 21, 2025 (GLOBE NEWSWIRE) -- Neo-Concept International Group Holdings Limited (“NCI” or the “Company”) (NASDAQ: NCI), today announced its unaudited financial results for the six months ended June 30, 2025.

Overview:

• Revenue was approximately HK$60.2 million (US$7.7 million) for the six months ended June 30, 2025, representing a decrease of approximately 24.0% from the same period in 2024.

• Net income was approximately HK$2.0 million (US$0.3 million) for the six months ended June 30, 2025 (2024: net income approximately HK$1.4 million).

Six Month Financial Results Ended June 30, 2025

Revenue. Revenue decreased by approximately 24.0% from approximately HK$79.3 million for the six months ended June 30, 2024 to approximately HK$60.2 million (approximately US$7.7 million) for the six months ended June 30, 2025. The decrease was mainly caused by the decrease in sales of private-labelled apparel products in by 51.7% to HKD32.7million (approximately US$4.2 million) for the six months ended June 30, 2025, from HKD67.7 million for the six months ended June 30, 2024 as it impacted from the custom policy between China and United State of America (“USA”) which led to decrease in demand in the sales in USA. The decrease in sales of private-labelled apparel products was offset by the increase in retail sales of owned-branded apparel products, which increased by approximately 138.8% to approximately HK$27.5 million (approximately US$3.5 million) for the six months ended June 30, 2025 from approximately HK$11.5 million for the six months ended June 30, 2024 as new shops was established in late of 2024.

Selling, general and administrative expenses. Selling, general and administrative expenses increased by approximately 48.33% from approximately HK$15.9 million for the six months ended June 30, 2024 to approximately HK$23.5 million (US$3.0 million) for the six months ended June 30, 2025, which was mainly due to (i) increase in staff costs from increase in payroll to our staff and fees to our independent directors; (ii) increase legal and professional fee for maintenance of Nasdaq listing and (iii) amortization on the trade mark acquired in May 2024..

Other income, net. Other income representing agency fee received decreased approximately 47.1% from HK$2.4 million for the six months ended June 30, 2024 to HK$1.2 million (approximately US$0.2 million) for the six months ended June 30, 2025, the agency fee represents for liaison with customers of the related party based in United Kingdom including making price quotation, handling purchase order, after-sales service, etc. The primary reason for the decrease was a decline in sales activity of the related party in United Kingdom, which adversely impacted the agency fee.

Income tax expense. Income tax expense was HK$0.9 million (US$0.1 million) for the for the six months ended June 30, 2025 (six months ended June 30, 2024: nil) as the recognition of deferred tax expenses for reversal of expected credit loss and depreciation allowance.

Net income. Net income increased by approximately HK$0.6 million to approximately HK$2.0 million (US$0.3 million) for the for the six months ended June 30, 2025 from net income of approximately HK$1.4million for the for the six months ended June 30, 2024, which was mainly due to the increase in gross profit.

Basic and diluted EPS. Basic and diluted EPS were approximately HK$0.50 (US$0.06) per ordinary share for the six months ended June 30, 2025, as compared to income per share of HK$0.37 per ordinary share for the six months ended June 30, 2024, respectively.

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About Neo-Concept International Group Holdings Limited

Neo-Concept International Group Holdings Limited (“NCI”) is a one-stop apparel solution services provider. It offers a full suite of services in the apparel supply chain, including market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management serving customers located in the European and North American markets. It also sells its own branded apparel products under the brand “Les100Ciels” through retail stores in UK and UAE as well as the e-commerce platform www.les100ciels.com.

NCI is committed to reducing its environmental impact through recycling, clean processes, traceable sourcing and other eco-friendly practices. It also pushes for sustainable solutions to fulfil its customers’ needs throughout garment production. For more information, visit the Company’s website at www.neo-ig.com. 

Exchange Rate Information 

This announcement contains translations of certain HK$ amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from HK$ to US$ were made at the rate of HK$7.8499 to US$1.00, the exchange rate on June 30, 2025 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the HK$ or US$ amounts referred could be converted into US$ or HK$, as the case may be, at any particular rate or at all.

SAFE HARBOR STATEMENTS

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC, which are available for review at www.sec.gov.

Enquiries:
Neo-Concept International Group Holdings Limited Investor Relations Contact:

10/F, Seaview Centre
No.139-141 Hoi Bun Road
Kwun Tong, Kowloon, Hong Kong
(+852) 2798-8639
Email: ir@neo-ig.com

FAQ

What were Neo‑Concept (NCI) revenues for the six months ended June 30, 2025?

Revenue was approximately HK$60.2 million (US$7.7 million), down ~24.0% year‑over‑year.

Why did NCI's private‑label apparel sales drop in H1 2025?

Private‑label sales fell ~51.7% to HK$32.7 million, attributed to China‑USA customs policy effects reducing U.S. demand.

How did owned‑brand retail performance affect NCI's H1 2025 results?

Owned‑brand retail sales rose ~138.8% to HK$27.5 million after new shops opened in late 2024.

What happened to NCI's profitability and EPS in H1 2025?

Net income increased to HK$2.0 million and basic/diluted EPS were HK$0.50 per share.

How did operating expenses change for NCI in H1 2025?

Selling, general and administrative expenses rose ~48.33% to HK$23.5 million, driven by payroll, listing fees, and trademark amortization.

Did NCI record any income tax expense in H1 2025 and why?

Yes, income tax expense was HK$0.9 million, from recognition of deferred tax for ECL reversal and depreciation allowance.