Revenue growth has turned negative at -15.4% while gross margins have eroded to 3.7%, reflecting a structural inability to compete in the commoditized logistics market.
| Sales/Revenue | 48.28M | 5.66M | 52.18M | 36.07M | 75.19M | 71.66M |
| Revenue Growth % | - | -89.16% | 44.64% | -52.02% | 4.92% | - |
| Cost of Goods Sold | 45.72M | 5.64M | 47.93M | 32.59M | 63.64M | 61.46M |
| COGS % of Revenue | - | 99.71% | 91.87% | 90.34% | 84.65% | 85.77% |
| Gross Profit | 2.56M | 16.2K | 4.24M | 3.48M | 11.54M | 10.2M |
| Gross Margin % | 5.3% | 0.29% | 8.13% | 9.66% | 15.35% | 14.23% |
| Gross Profit Growth % | - | -99.62% | 21.81% | -69.82% | 13.21% | - |
| Operating Expenses | 4.58M | 1.4M | 3.77M | 2.96M | 3.3M | 3.55M |
| OpEx % of Revenue | - | 24.83% | 7.23% | 8.21% | 4.39% | 4.96% |
| Selling, General & Admin | 4.61M | 1.4M | 3.33M | 2.94M | 3.08M | 3.01M |
| SG&A % of Revenue | - | 24.83% | 6.38% | 8.15% | 4.1% | 4.21% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | -27.71K | 0 | 444.36K | 20.09K | 215.52K | 539.83K |
| Operating Income | -2.02M | -1.39M | 470.27K | 522.5K | 8.24M | 6.64M |
| Operating Margin % | -4.19% | -24.55% | 0.9% | 1.45% | 10.96% | 9.27% |
| Operating Income Growth % | - | -395.17% | -10% | -93.66% | 24.09% | - |
| EBITDA | -1.81M | -1.38M | 687.49K | 750.87K | 8.49M | 6.78M |
| EBITDA Margin % | -3.75% | -24.39% | 1.32% | 2.08% | 11.29% | 9.46% |
| EBITDA Growth % | - | -300.59% | -8.44% | -91.15% | 25.22% | - |
| D&A (Non-Cash Add-back) | 215.37K | 9.03K | 217.22K | 228.37K | 242.18K | 133.22K |
| EBIT | -2.01M | -1.39M | 492.87K | 589.12K | 8.41M | 6.66M |
| Net Interest Income | -83.35K | -9.74K | -97.18K | -88.08K | -81.88K | -95.63K |
| Interest Income | -21.15K | 83 | 849 | 645 | 11 | 20 |
| Interest Expense | 47.93K | 9.83K | 98.03K | 88.73K | 81.89K | 95.65K |
| Other Income/Expense | -55.24K | 8.87K | -75.43K | -22.11K | 83.62K | -77.42K |
| Pretax Income | -2.08M | -1.38M | 394.84K | 500.39K | 8.33M | 6.57M |
| Pretax Margin % | -4.31% | -24.39% | 0.76% | 1.39% | 11.08% | 9.16% |
| Income Tax | 92.8K | -2.64K | 174.2K | 45.97K | 1.35M | 1.03M |
| Effective Tax Rate % | -4.46% | 0.19% | 44.12% | 9.19% | 16.16% | 15.72% |
| Net Income | -2.17M | -1.37M | 220.64K | 454.42K | 6.98M | 5.53M |
| Net Margin % | -4.5% | -24.21% | 0.42% | 1.26% | 9.29% | 7.72% |
| Net Income Growth % | - | -720.57% | -51.44% | -93.49% | 26.16% | - |
| Net Income (Continuing) | -2.17M | -1.38M | 220.64K | 454.42K | 6.98M | 5.53M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | -7.35K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.10 | -0.48 | 0.09 | 0.16 | 2.48 | 2.00 |
| EPS Growth % | - | -645.45% | -45.54% | -93.48% | 24% | - |
| EPS (Basic) | - | -0.48 | 0.09 | 0.17 | 2.56 | 2.00 |
| Diluted Shares Outstanding | 20.86M | 2.88M | 2.5M | 2.81M | 2.81M | 2.69M |
| Basic Shares Outstanding | 20.86M | 2.88M | 2.5M | 2.69M | 2.69M | 2.69M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Imminent liquidity and solvency risk
As indicated by the most recent quarterly filings, NCEW experienced a 15.4% revenue decline, reflecting a persistent inability to maintain volume in the hyper-competitive Hong Kong freight forwarding market where the company lacks the scale to compete effectively against larger, more diversified global logistics providers.
The consistent quarter-over-quarter revenue decay suggests that the company is losing its relevance as a service provider for regional exporters. This trend appears to be more than a cyclical downturn, potentially indicating the loss of key anchor clients who previously provided the necessary volume to sustain operations.
Based on the latest financial disclosures, gross margins have compressed to 3.7%, a significant deterioration from the 9.8% levels observed in early 2024, which highlights the company's inability to pass through rising carrier costs to its customer base in a commoditized freight environment.
The rapid compression of gross margins suggests that NCEW is acting as a price-taker with no meaningful competitive moat to protect its spreads. Investors should monitor whether this margin degradation is a permanent feature of the business model, as it leaves virtually no room to absorb fixed operating costs.
According to reported income statements, the company has shifted from a positive operating income of $332.2K in 2024Q2 to a loss of $915.4K in 2025Q2, demonstrating a failure to scale SG&A expenses in alignment with the precipitous decline in gross profit generation.
The inability to rationalize fixed costs in the face of falling revenue indicates a lack of operational flexibility. This negative operating leverage suggests that the current cost structure is unsustainable, and without a drastic reduction in overhead, the company may continue to erode its remaining capital base.
As evidenced by the transition to a -8.7% net margin in 2025Q2, the company's financial trajectory warrants extreme caution, as the current burn rate appears to be rapidly exhausting the limited cash reserves available to support ongoing logistics activities and regulatory compliance requirements.
Short-term observers might focus on the lack of debt, but this may actually reflect a lack of access to credit markets rather than financial strength. The combination of shrinking margins and mounting losses suggests that the business model may be approaching a terminal point unless a significant pivot occurs.
Quick answers to the most common questions about buying NCEW stock.
For fiscal year 2025, New Century Logistics (BVI) Limited (NCEW) reported total revenue of $5.7M. This represents a 92.1% decline compared to $71.7M in 2021.
New Century Logistics (BVI) Limited (NCEW) reported a net loss of $1.4M for the fiscal year ending 2025.
New Century Logistics (BVI) Limited (NCEW) reported an operating income of $-1.4M, resulting in an operating profit margin of -24.5%. This margin reflects the operational efficiency of the business before interest and taxes.
New Century Logistics (BVI) Limited (NCEW) generated $0.0M in gross profit for the year, representing a gross profit margin of 0.3%. This demonstrates the company's core pricing power and production efficiency.