NVC International (2222) investor relations material

Executive summary

• Revenue rose 11.5% year-over-year to US$119.5 million, driven by international non-NVC brand sales growth, despite challenging global economic conditions and increased competition.

• Gross profit declined 3.2% to US$39.3 million, with gross margin falling from 37.9% to 32.9% due to higher raw material, freight, and tariff costs.

• Net profit attributable to owners dropped sharply to US$959,000 from US$15.2 million, mainly due to lower gross margin and a swing from net gains to net losses in other gains and losses.

• No interim dividend was declared.

Financial highlights

• International non-NVC brand sales grew 14.9% year-over-year, offsetting declines in PRC and NVC brand sales.

• Cost of sales increased to 67.1% of revenue (from 62.1%), reflecting higher input costs.

• Other income rose 8.7%, mainly from higher bank interest income.

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

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

• Finance costs increased to US$402,000 due to higher accounts receivable financing.

• Net cash from operating activities was US$7.3 million; cash and equivalents stood at US$123 million.

Outlook and guidance

• Focus remains on international lighting business, product innovation, and expanding sales channels in the US, UK, Middle East, and Southeast Asia.

• Plans to optimize management structure, strengthen brand image, and accelerate R&D for cost-effective and intelligent products.

• Ongoing supply chain risks and high procurement costs expected to persist in H2 2026.