Revenue volatility and pricing pressure are evident as gross margins compressed significantly from 39.4% in 2025Q2 to 29.5% in 2025Q4.
Neo-Concept International Group Holdings Limited (NCI) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 231.83M | 137.25M | 235.67M | 174.2M | 347.45M | 240.54M | 182.58M |
| Revenue Growth % | - | -41.76% | 35.28% | -49.86% | 44.45% | 31.74% | - |
| Cost of Goods Sold | 152.45M | 86.56M | 186.22M | 139.15M | 305.62M | 217.94M | 170.93M |
| COGS % of Revenue | - | 63.07% | 79.02% | 79.88% | 87.96% | 90.61% | 93.62% |
| Gross Profit | 79.38M | 50.69M | 49.44M | 35.05M | 41.83M | 22.59M | 11.65M |
| Gross Margin % | - | 36.93% | 20.98% | 20.12% | 12.04% | 9.39% | 6.38% |
| Gross Profit Growth % | - | 2.51% | 41.08% | -16.22% | 85.17% | 93.85% | - |
| Operating Expenses | 88.23M | 48.88M | 37.87M | 26M | 22.9M | 12.9M | 15.31M |
| OpEx % of Revenue | - | 35.62% | 16.07% | 14.93% | 6.59% | 5.36% | 8.38% |
| Selling, General & Admin | 87.14M | 46.79M | 30.59M | 21.36M | 22.75M | 17.83M | 14.63M |
| SG&A % of Revenue | - | 34.09% | 12.98% | 12.26% | 6.55% | 7.41% | 8.01% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 2.09M | 7.29M | 4.64M | 148.47K | -4.93M | 678.69K |
| Operating Income | -8.85M | 1.8M | 11.57M | 9.05M | 18.94M | 9.69M | -3.65M |
| Operating Margin % | - | 1.32% | 4.91% | 5.19% | 5.45% | 4.03% | -2% |
| Operating Income Growth % | - | -84.4% | 27.91% | -52.22% | 95.39% | 365.49% | - |
| EBITDA | -1.32M | 6.04M | 13.75M | 12.45M | 19.08M | 9.98M | -3.33M |
| EBITDA Margin % | - | 4.4% | 5.83% | 7.15% | 5.49% | 4.15% | -1.82% |
| EBITDA Growth % | - | -56.09% | 10.43% | -34.75% | 91.24% | 399.63% | - |
| D&A (Non-Cash Add-back) | 7.53M | 4.23M | 2.18M | 3.41M | 148.47K | 287.87K | 319.74K |
| EBIT | -7.56M | 3.13M | 12.91M | 11.5M | 21.51M | 9.68M | -324.67K |
| Net Interest Income | -2.01M | -1.35M | -3.73M | -5.67M | -6.13M | -2.49M | -2.87M |
| Interest Income | 0 | 0 | 31.95K | 92.95K | 0 | 0 | 0 |
| Interest Expense | 2.01M | 1.35M | 3.76M | 5.76M | 6.13M | 2.49M | 2.87M |
| Other Income/Expense | 437.37K | -26.67K | -2.42M | -3.31M | -3.55M | -2.5M | 455.44K |
| Pretax Income | -8.41M | 1.78M | 9.15M | 5.74M | 15.38M | 7.19M | -3.19M |
| Pretax Margin % | - | 1.3% | 3.88% | 3.29% | 4.43% | 2.99% | -1.75% |
| Income Tax | 1.2M | 1.45M | 1.09M | 1.33M | 2.98M | 1.74M | 133.48K |
| Effective Tax Rate % | -14.25% | 81.35% | 11.87% | 23.09% | 19.37% | 24.22% | -4.18% |
| Net Income | -9.61M | 331.68K | 8.06M | 4.41M | 12.4M | 5.45M | -3.33M |
| Net Margin % | - | 0.24% | 3.42% | 2.53% | 3.57% | 2.27% | -1.82% |
| Net Income Growth % | - | -95.89% | 82.65% | -64.4% | 127.51% | 263.77% | - |
| Net Income (Continuing) | -9.61M | 331.68K | 8.06M | 4.41M | 12.4M | 5.45M | -3.33M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | - | 0.65 | 3.20 | 1.76 | 4.96 | 2.16 | -1.76 |
| EPS Growth % | - | -79.69% | 81.82% | -64.52% | 129.63% | 222.73% | - |
| EPS (Basic) | - | 0.65 | 3.20 | 1.76 | 4.96 | 2.16 | -1.76 |
| Diluted Shares Outstanding | 1.93M | 508K | 2.54M | 2.5M | 2.5M | 2.5M | 1.88M |
| Basic Shares Outstanding | 1.93M | 508K | 2.54M | 2.5M | 2.5M | 2.5M | 1.88M |
| Dividend Payout Ratio | - | - | - | - | - | 4.89% | - |
Quick answers to the most common questions about buying NCI stock.
For fiscal year 2025, Neo-Concept International Group Holdings Limited (NCI) reported total revenue of $137.2M. This represents a 24.8% decline compared to $182.6M in 2020.
Neo-Concept International Group Holdings Limited (NCI) is profitable, generating $0.3M in net income for the fiscal year ending 2025 with a net profit margin of 0.2%.
Neo-Concept International Group Holdings Limited (NCI) reported an operating income of $1.8M, resulting in an operating profit margin of 1.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Neo-Concept International Group Holdings Limited (NCI) generated $50.7M in gross profit for the year, representing a gross profit margin of 36.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Severe revenue concentration risk
Revenue Contraction Signals Structural Headwinds
As reported in recent financial filings, NCI experienced a significant shift in top-line performance, with revenue volatility highlighting the fragility of its project-based wholesale model against a backdrop of weakening demand from key Western retail partners in the competitive apparel manufacturing and design sector.
The sharp decline in revenue suggests that the company's design-led sourcing model may be losing its competitive edge as clients potentially shift toward larger, more resilient supply chain partners. This contraction appears to be more than a seasonal fluctuation, indicating a potential erosion of the firm's core wholesale order book.
Gross Margin Volatility Reflects Pricing Pressure
Based on the provided income statement data, NCI's gross margin compressed from 39.4% in 2025Q2 to 29.5% in 2025Q4, suggesting that the company is struggling to maintain pricing power while absorbing rising input costs within its specialized knitwear and apparel manufacturing operations.
The nearly 10 percentage point drop in gross margin indicates that the company's value-added design services are failing to insulate it from broader industry pricing pressures. Investors should monitor whether this margin compression is a permanent shift or a temporary result of aggressive discounting to clear inventory.
Operating Leverage Impaired by Fixed Costs
According to the latest income statement, NCI's operating income swung from a $2.3M profit to a $453.6K loss, demonstrating that the company's fixed overhead, particularly within its retail segment, is not scaling efficiently against a shrinking revenue base in the current fiscal environment.
The inability to maintain positive operating income as revenue fluctuates suggests that the company's cost structure is overly rigid. This lack of operating leverage implies that the retail brand's fixed lease and staffing obligations are currently acting as a significant drag on overall profitability.
Retail Diversification Risks Undermining Core
Financial data indicates that NCI's attempt to diversify through the les 100 ciels retail brand may be a source of instability, as the high customer acquisition costs and inventory risks associated with this segment appear to be eroding the firm's thin net margins.
Short-sellers would likely focus on the potential for 'diworsification,' where the retail arm consumes capital that the core sourcing business requires to remain competitive. The transition from a profitable quarter to a net loss of $1.7M warrants further investigation into whether the retail segment is structurally viable.