Revenue surges but IPO costs drive loss at Lianhe Sowell (LHSW)

Rhea-AI Filing Summary

Lianhe Sowell International Group Ltd reported strong top-line growth but a swing to loss for the six months ended September 30, 2025. Revenue rose to $26.54M, up 56.9% from $16.92M, driven by electronic products and higher-margin software sales.

Gross profit nearly doubled to $6.70M, lifting gross margin to 25.3% from 21.2%. However, operating expenses surged, with general and administrative costs up 443.4% to $3.55M and research and development up 158.4% to $3.82M, reflecting public-company costs and robotics innovation.

The company moved from net income of $1.25M to a net loss of $0.69M. Total assets increased to $39.23M, supported by higher prepayments and contract liabilities, including new software service deposits that raised contract liabilities to $3.82M.

Insights

Equity research analyst

Rapid revenue growth is offset by a deliberate spend-driven swing to loss.

Lianhe Sowell delivered strong scale-up, with revenue rising 56.9% to $26.54M and gross margin improving to 25.3%. Both electronic products and software grew quickly, suggesting healthy demand and traction for higher-margin solutions.

Profitability deteriorated as operating expenses jumped. General and administrative costs rose 443.4% to $3.55M, tied to becoming a public company, while R&D spending increased 158.4% to $3.82M to advance industrial robotics. This shifted net income of $1.25M to a $0.69M loss.

On the balance sheet, total assets expanded to $39.23M, with higher prepayments and contract liabilities, including $3.32M of new software service deposits that raised contract liabilities to $3.82M as of September 30, 2025. Future filings may clarify whether revenue growth continues to outpace elevated operating costs.

Form 6-K: How Foreign Companies Report to the SEC →

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of March 2026

Commission File Number 001-42579

Lianhe Sowell International Group Ltd

(Translation of registrant’s name into English)

RM1502, Sannuo Smart Building,

No. 3388 Binhai Ave, Binhai Community,

Nanshan District, Shenzhen, China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒      Form 40-F ☐

EXPLANATORY NOTE

Lianhe Sowell International Group Ltd, a Cayman Islands exempted company, is furnishing this Form 6-K to provide six-month interim financial statements for the six months ended September 30, 2025.

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EXHIBIT INDEX

Exhibit No.		Description
99.1		Financial results for the six months ended September 30, 2025

2

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Lianhe Sowell International Group Ltd.
Date: March 27, 2026	By:	/s/ Yue Zhu
		Yue Zhu
		Chief Executive Officer

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Exhibit 99.1

Lianhe Sowell International Group Ltd
Financial Results for the First Half Year ended September 30, 2025

Key Financial Performance Highlights for the First Half Year ended September 30, 2025

● Revenues were $26.54 million for six months ended September 30, 2025, representing an increase of 56.9% compared to $16.92 million for the same period in 2024. Revenue from sales of electronic products for the six months ended September 30, 2025 grew by 58.7% to $20.90 million, up from $13.17 million for the six months ended September 30, 2024, driven by increased market demand and expanded distribution channels. Revenue from sales of software for the six months ended September 30, 2025 increased 50.5% to $5.63 million, compared to $3.74 million for the six months ended September 30, 2024, driven by strengthened marketing efforts that resulted in significant customer growth.

● Gross profit was $6.7 million for the six months ended September 30, 2025, up from $3.59 million for the same period in 2024. Gross margin was 25.3% for the six months ended September 30, 2025, up about 4 percentage points from 21.2% for the same period in 2024, which was primarily driven by increased sales of higher-margin software.

● Net loss was $0.69 million for the six months ended September 30, 2025, compared to net income of $1.25 million for the same period in 2024.

The first half of fiscal 2025 marked a period of strategic transformation for Lianhe Sowell International Group Ltd (the “Company”). The Company’s total revenue grew significantly by 56.9%, driven by deliberate shifts in its business mix. Revenue from higher-margin software solutions increased 50.5%, while revenue from electronic products grew by 58.7%. This balanced growth, combined with disciplined cost management, expanded the Company’s gross margin by 4.0 percentage points.

The Company also accelerated innovation in its industrial robotics line, achieving significant milestones in the commercialization of its new generation automated precision vision spray painting robots, both domestically and internationally. The strong market reception, reflected in major orders and deliveries, reinforces its belief that intelligent, automated solutions will be a major growth driver for years to come.

Selected First Half Year ended September 30, 2025 Financial Results

		For the Six Months Ended September 30,
In USD Millions, except %, differences due to rounding.		2025				2024				Variances /%
Revenues			26.54				16.92				9.6
Cost of revenues			19.83				13.33				6.5
Gross profit			6.70				3.59				3.1
Gross margin			25.3	%			21.2	%			4.0	%
Operating (loss) income			(0.98	)			1.17				(2.2	)
Net (loss) income			(0.69	)			1.25				(1.9	)

Revenue

Total revenues increased significantly by $9.62 million, or 56.9%, from $16.92 million for the six months ended September 30, 2024 to $26.54 million for the six months ended September 30, 2025. This growth was primarily driven by strong performance across both business segments. All revenues were derived from third parties, with no related party transactions in either period.

Revenue from electronic products increased by $7.73 million, or 58.7%, from $13.17 million in the first half of 2024 to $20.90 million in the first half of 2025. Electronic products continued to be the primary revenue contributor, representing 78.8% of total revenues in the first half of 2025, compared to 77.9% in the same period of 2024.

Revenue from software sales increased by $1.89 million, or 50.5%, from $3.74 million in the first half of 2024 to $5.63 million in the first half of 2025. Software sales represented 21.2% of total revenues in the first half of 2025, compared to 22.1% in the same period of 2024. The surge in software sales was driven by enhanced marketing efforts, including increased investment in advertising and promotion, which led to rapid customer growth during the six months ended September 30, 2025.

The following table presents revenues by revenue categories for the six months ended September 30, 2025 and 2024, respectively:

		For the Six Months Ended September 30,
In USD Millions, except %, differences due to rounding.		2025								2024								Variance
Revenue Category		Amount				% of revenues				Amount				% of revenues				Amount				%
Electronic products			20.90				78.8				13.17				77.9				7.73				58.7
Software			5.63				21.2				3.74				22.1				1.89				50.5
Total revenues			26.54				100.0				16.92				100.0				9.62				56.9

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Cost of Revenues and Margins

Cost of revenues primarily consists of (i) labor expenses, including salaries, social insurance, and benefits, for employees engaged in operations and product support, and (ii) associated costs of materials and equipment.

Cost of revenues increased by $6.51 million, or 48.8%, from $13.33 million in the first half of 2024 to $19.83 million in the first half of 2025. This increase was primarily attributable to the growth in sales volume across both electronic products and software.

As a result, gross profit increased by $3.11 million, or 86.7%, from $3.59 million for the six months ended September 30, 2024 to $6.70 million for the six months ended September 30, 2025. The gross profit margin improved to 25.3% in the first half of 2025 from 21.2% in the same period of 2024, primarily driven by the growth in software sales, which carry higher margins.

Operating Expenses

Selling Expenses

Selling expenses increased by $26,000, or 9.1%, from $292,000 in the first half of 2024 to $319,000 in the first half of 2025, mainly due to higher salary and welfare costs.

General and Administrative Expenses

General and administrative expenses increased significantly by $2.89 million, or 443.4%, from $653,000 in the first half of 2024 to $3.55 million in the first half of 2025. This substantial increase was primarily due to expenses associated with being a newly public company, including increased professional fees, insurance, and compliance-related costs following the Company’s initial public offering in April 2025.

Research and Development Expenses

Research and development expenses increased by $2.34 million, or 158.4%, from $1.48 million in the first half of 2024 to $3.82 million in the first half of 2025. The increase was mainly due to higher spending on third-party R&D services and accelerated innovation in the Company’s industrial robotics line. 

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Net (Loss) Income

As a result of the foregoing, the Company reported a net loss of $0.69 million for the six months ended September 30, 2025, compared to net income of $1.25 million for the six months ended September 30, 2024. The turnaround into loss was primarily attributable to a significant increase in operating expenses, particularly general and administrative expenses (up 443.4%) and research and development expenses (up 158.4%), following the Company’s initial public offering in April 2025 and accelerated investment in R&D activities.

Recent Developments

As of September 30, 2025, Lianhe Sowell newly received certain sales deposit for the software service, which led to the significant increase of contract liabilities of $3.32 million. In addition, Lianhe Sowell also prepaid purchase deposits to the suppliers mainly for the electronic products sales, which led to the significant increase of prepayments, deposits and other receivables, net of $2.47 million. As of September 30, 2025, Lianhe Sowell also further prepaid the service fees for research and development projects and other service projects amounted to $4.36 million.

Forward-Looking Statement

This document contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “plan” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other risk factors discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this document. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

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LIANHE SOWELL INTERNATIONAL GROUP LTD
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2025 AND MARCH 31, 2025

(Stated in US Dollars)

		As of September 30,				As of March 31,
		2025				2025
		(Unaudited)				(Audited)
ASSETS
Current assets:
Cash and cash equivalents		$	90,608			$	108,745
Accounts receivable, net			18,144,107				19,144,103
Prepayments, deposits and other receivables, net			7,172,492				3,321,253
Amount due from related parties, net			247,228				69,514
Amount due from shareholders			1,443,748				413,350
Total current assets			27,098,183				23,056,965
Non-current assets:
Property and equipment, net			137,180				67,083
Intangible assets, net			43,828				42,321
Operating lease right-of-use asset, net			815,110				120,918
Prepayments			10,394,231				6,035,922
Deferred initial public offering (“IPO”) costs			—				921,217
Deferred tax assets			738,359				484,704
Total non-current assets			12,128,708				7,672,165
TOTAL ASSETS		$	39,226,891			$	30,729,130
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term bank loans		$	2,475,041			$	1,996,775
Current portion of long-term bank loans			24,080				47,247
Short-term other borrowings			—				55,121
Accounts payable			10,555,240				11,782,429
Accrued expenses and other payables			3,456,985				2,863,896
Income tax payable			558,834				631,419
Contract liabilities			3,817,472				500,246
Operating lease liability – current			421,350				123,645
Warranty provision			166				1,311
Amount due to related parties			8,845				19,928
Amount due to shareholders			164,362				628,076
Total current liabilities			21,482,375				18,650,093
Non-current liabilities:
Operating lease liability – non-current			363,388				—
Non-current portion of long-term bank loans			48,072				287,872
Long-term other borrowing			—				137,804
Total non-current liabilities			411,460				425,676
TOTAL LIABILITIES		$	21,893,835			$	19,075,769
SHAREHOLDERS’ EQUITY
Ordinary shares, par value $0.0001; 500,000,000 shares authorized, 50,000,000 shares issued and outstanding as of September 30, 2025 and March 31, 2025, respectively		$	5,200			$	5,000
Additional paid-in capital			10,515,294				4,374,056
Statutory reserve			297,656				297,656
Retained earnings			6,261,268				6,994,445
Accumulated other comprehensive loss			149,239				(75,549	)
Equity attributable to the shareholders of the Company			17,228,657				11,595,608
Non-controlling interests			104,399				57,753
Total shareholders’ equity			17,333,056				11,653,361
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	39,226,891			$	30,729,130

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LIANHE SOWELL INTERNATIONAL GROUP LTD
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(Stated in US Dollars)

		For the Six Months Ended September 30,
		2025				2024
		(Unaudited)				(Unaudited)
Revenue from third parties		$	26,538,675			$	16,918,107
Revenue from a related party			—				—
REVENUES		$	26,538,675			$	16,918,107
COST OF REVENUES			(19,834,974	)			(13,327,901	)
GROSS PROFIT			6,703,701				3,590,206
OPERATING EXPENSES
Selling expenses			(318,863	)			(292,399	)
General and administrative expenses			(3,547,600	)			(652,843	)
Research and development expenses			(3,817,635	)			(1,477,688	)
Total operating expenses			(7,684,098	)			(2,422,930	)
OPERATING (LOSS) INCOME			(980,397	)			1,167,276
OTHER INCOME (EXPENSE), NET
Interest income			240				144
Interest expense			(53,967	)			(50,388	)
Other income			69,307				110,569
Other expense			(44,141	)			(4,092	)
Total other (expense) income, net			(28,561	)			56,233
(LOSS) INCOME BEFORE INCOME TAXES			(1,008,958	)			1,223,509
Benefit from (provision for) income taxes			322,427				21,583	)
NET (LOSS) INCOME			(686,531	)			1,245,092
Less: net income (loss) attributable to non-controlling interests			46,646				(2,708	)
Net (loss) income attributable to shareholders of the Company			(733,177	)			1,247,800
Other comprehensive income (loss)
Foreign currency translation adjustment			224,788				(69,001	)
Total comprehensive (loss) income			(461,743	)			1,176,091
Less: comprehensive income (loss) attributable to non-controlling interests			46,646				(2,708	)
Comprehensive (loss) income		$	(508,389	)		$	1,178,799
(Loss) earning per share – basic and diluted		$	(0.01	)		$	0.02
Basic and diluted weighted average shares outstanding			51,967,033				50,000,000

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FAQ

How did Lianhe Sowell (LHSW) perform in the first half of fiscal 2025?

Lianhe Sowell grew revenue to $26.54 million, up 56.9% year over year. Gross profit nearly doubled to $6.70 million and gross margin improved to 25.3%, but higher operating expenses led to a net loss for the period.

Why did Lianhe Sowell (LHSW) report a net loss despite strong revenue growth?

The company reported a $0.69 million net loss versus $1.25 million income a year earlier. The turnaround mainly reflects sharply higher general and administrative expenses and R&D spending following its April 2025 IPO and increased investment in industrial robotics.

How fast did Lianhe Sowell’s (LHSW) electronic products and software revenues grow?

Electronic products revenue rose 58.7% to $20.90 million, remaining the main contributor at 78.8% of total revenue. Software revenue increased 50.5% to $5.63 million, helped by stronger marketing and rapid customer growth during the six months ended September 30, 2025.

What drove the increase in Lianhe Sowell’s (LHSW) operating expenses?

General and administrative expenses jumped 443.4% to $3.55 million, largely due to public-company costs like professional fees, insurance, and compliance. Research and development expenses rose 158.4% to $3.82 million, reflecting accelerated work on industrial robotics and related projects.

How did Lianhe Sowell’s (LHSW) balance sheet change by September 30, 2025?

Total assets increased to $39.23 million from $30.73 million. Key drivers were higher prepayments and deposits, plus contract liabilities rising to $3.82 million after receiving about $3.32 million of new software service deposits during the period.

What was Lianhe Sowell’s (LHSW) earnings per share for the period?

For the six months ended September 30, 2025, basic and diluted loss per share was $(0.01), compared with $0.02 earnings per share a year earlier. The share count averaged about 51.97 million, slightly above 50.0 million in the prior-year period.

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• EX-99.1 FINANCIAL RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2025 126.5 KB