NVC International (2222) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2026 rose 11.5% year-over-year to US$119.5 million, driven by international and non-NVC brand sales growth despite challenging global conditions.

• Net profit attributable to owners was US$959,000, down from US$15.2 million in the prior year, reflecting margin pressure, increased costs, and a swing from net gains to net losses in other gains and losses.

• Gross profit margin declined to 32.9% from 37.9% due to higher raw material, freight, and tariff costs.

• The Group maintained strong liquidity, with net current assets of US$193.6 million and a current ratio of 3.03.

• No interim dividend was declared for the period.

Financial highlights

• International non-NVC brand sales grew 14.9% year-over-year, while PRC sales declined 8.5% due to intensified competition.

• Gross profit was US$39.3 million, down 3.2% year-over-year.

• Selling and distribution costs decreased 3.7% to US$14.6 million, representing 12.2% of revenue.

• Administrative expenses were stable at US$16.1 million, 13.4% of revenue.

• Net cash from operating activities was US$7.3 million; cash and cash equivalents stood at US$123.0 million at period end.

Outlook and guidance

• The Group will continue to focus on international lighting as its core business, expanding product portfolios and strengthening sales channels in the US, UK, Middle East, and Southeast Asia.

• Strategic emphasis on cost-effective and intelligent products for overseas markets, with targeted growth in the Middle East and Southeast Asia.

• Ongoing optimization of management structure and integration of overseas business.

• Anticipates continued margin pressure from high raw material and semiconductor prices, and supply chain risks.