NVC International (2222) H2 2025 earnings summary

Executive summary

• Revenue for the year ended 31 December 2025 was US$222.9 million, down 5.8% year-over-year, mainly due to weaker demand and intensified competition in both domestic and international markets.

• Gross profit increased 2.4% to US$76.4 million, with gross margin rising from 31.6% to 34.3% due to procurement and production optimizations.

• Net profit reached US$12.4 million, reversing a prior year loss of US$15.4 million; profit attributable to owners was US$11.9 million.

• No final dividend was declared for 2025.

Financial highlights

• International sales accounted for the majority of revenue; PRC sales dropped 23.9% while international sales declined 4.9%.

• Cost of sales decreased to US$146.5 million (65.7% of revenue), down from 68.4% in 2024.

• Selling and distribution expenses fell 6.5% to US$28.8 million; administrative expenses rose 5% to US$35.6 million.

• Other income was US$5.4 million, mainly from government grants, interest, and licensing fees.

• Other gains and losses improved to a gain of US$6.2 million, driven by foreign exchange and investment gains.

• Finance costs decreased to US$313,000.

• Basic EPS was US$0.0235, compared to a loss per share of US$0.0344 in 2024.

Outlook and guidance

• The international lighting business will remain the core focus in 2026, with continued investment in R&D and brand building.

• North America and Japan expected to face ongoing economic headwinds; UK and Nordics to see further contraction.

• Strategic emphasis on operational efficiency, product innovation, and expansion into new product lines and markets.