EX-99.1 2 ea022390501ex99-1_neoconcept.htm NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LTD ANNOUNCES FIRST HALF 2024 INTERIM FINANCIAL RESULTS

Exhibit 99.1

 

Neo-Concept International Group Holdings Limited Announces First Half 2024 Unaudited Financial Results

 

Hong Kong, December 19, 2024 (GLOBE NEWSWIRE) – Neo-Concept International Group Holdings Limited (“NCI” or the “Company”) (NASDAQ: NCI), today announced its unaudited financial results for the six months ended June 30, 2024.

 

Overview:

 

●Revenue was approximately HK$79.3 million (US$10.2 million) for the six months ended June 30, 2024, representing an increase of approximately 1.7% from the same period in 2023.

 

●Net income was approximately HK$1.4million (US$0.2 million) for the six months ended June 30, 2024 (2023: net losses approximately HK$5.2 million).

 

Six Month Financial Results Ended June 30, 2024

 

Revenue. Revenue increased by approximately 1.7% from approximately HK$78.0 million for the six months ended June 30, 2023 to approximately HK$79.3 million (approximately US$10.2 million) for the six months ended June 30, 2024. The increase was mainly caused by the increase in retail sales of owned-branded apparel products in the United Kingdom by 95.3% to HKD11.5 million (approximately US$1.5 million) for the six months ended June 30, 2024, from HKD5.9 million for the six months ended June 30, 2023 as a result of full period operation of new retail outlets in London. The increase in retail sales of owned-branded apparel products was offset by the decrease in sales of private-labelled apparel products, which decreased by approximately 5.9% to approximately HK$67.8 million (approximately US$4.3 million) for the six months ended June 30, 2024 from approximately HK$72.0 million for the six months ended June 30, 2023.

 

Selling, general and administrative expenses. Selling, general and administrative expenses increased by approximately 12.7% from approximately HK$13.9 million for the six months ended June 30, 2023 to approximately HK$15.9 million (US$2.0 million) for the six months ended June 30, 2024, which was mainly due to (i) increase in staff costs from increase in payroll to our staff and fees to our independent directors; (ii) increase in rental and office expenses due to operation expansion such as new retail outlets.

 

Other income, net. Other income representing agency fee received increased approximately HK$2.4 million (approximately US$0.3 million) for the six months ended June 30, 2024.

 

Income tax expense. Income tax expense was nil for the for the six months ended June 30, 2024 (six months ended June 30, 2023: nil) as we either incurred tax losses or we had available tax losses brought forward.

 

Net income. Net income increased by approximately HK$6.6 million to approximately HK$1.4 million (US$0.2 million) for the for the six months ended June 30, 2024 from net losses of approximately HK$5.2 million for the for the six months ended June 30, 2023, which was mainly due to the increase in both revenue and gross profit.

 

Basic and diluted EPS. Basic and diluted EPS were approximately HK$0.07 (US$0.01) per ordinary share for the six months ended June 30, 2024, as compared to loss per share of (HK$0.29) per ordinary share for the six months ended June 30, 2023, respectively.

 

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About Neo-Concept International Group Holdings Limited

 

Neo-Concept International Group Holdings Limited (“NCI”) is a one-stop apparel solution services provider. It offers a full suite of services in the apparel supply chain, including market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management serving customers located in the European and North American markets. It also sells its own branded apparel products under the brand “Les100Ciels” through retail stores in UK as well as the e-commerce platform www.les100ciels.com.

 

NCI is dedicated to minimizing its environmental footprint by implementing various eco-friendly practices. It prioritizes recycling, clean processes, and traceable sourcing as part of its commitment to reducing environmental impact. Additionally, NCI actively seeks sustainable solutions throughout the garment production process, aiming to meet the needs of its customers in an environmentally responsible manner.

 

Exchange Rate Information 

 

This announcement contains translations of certain HK$ amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from HK$ to US$ were made at the rate of HK$7.8083 to US$1.00, the exchange rate on June 28, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the HK$ or US$ amounts referred could be converted into US$ or HK$, as the case may be, at any particular rate or at all.

 

SAFE HARBOR STATEMENTS

 

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC, which are available for review at www.sec.gov.

 

Enquiries:

Neo-Concept International Group Holdings Limited Investor Relations Contact:

 

10/F, Seaview Centre

No.139-141 Hoi Bun Road

Kwun Tong, Kowloon, Hong Kong

(+852) 2798-8639

Email: ir@neo-ig.com

 

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NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

   December 31,   As of June 30, 
   2023   2024   2024 
   HKD   HKD   US$ 
ASSETS            
CURRENT ASSETS            
Cash and cash equivalents   5,849,306    4,673,976    598,591 
Accounts receivable, net   32,343,592    21,542,687    2,758,947 
Other current assets, net   20,225,722    53,316,186    6,828,143 
Inventories, net   5,320,199    5,462,892    699,626 
Total current assets   63,738,819    84,995,741    10,885,307 
                
OTHER ASSETS               
Property and equipment, net   1,297,682    2,690,729    344,599 
Right-of-use assets, net   23,884,854    24,513,952    3,139,474 
Intangible assets, net   —    15,391,236    1,971,138 
Other non-current assets, net   1,695,473    2,406,626    308,214 
Tax recoverable   —    1,704,657    218,313 
Total non-current assets   26,878,009    46,707,200    5,981,738 
Total assets   90,616,828    131,702,941    16,867,045 
                
LIABILITIES AND SHAREHOLDERS’ DEFICIT               
CURRENT LIABILITIES               
Bank borrowings   30,753,400    51,047,760    6,537,628 
Accruals and other payables   3,205,704    6,261,628    801,919 
Due to related parties   34,243,244    49,087    6,287 
Operating lease liabilities   708,829    1,622,876    207,840 
Tax payable   916,436    —    — 
Total current liabilities   69,827,613    58,981,351    7,553,674 
                
NON-CURRENT LIABILITIES               
Operating lease liabilities   23,176,025    22,891,076    2,931,634 
Total non-current liabilities   23,176,025    22,891,076    2,931,634 
Total liabilities   93,003,638    81,872,427    10,485,308 
                
COMMITMENTS AND CONTINGENCIES   —    —    — 
                
SHAREHOLDERS’ (DEFICIT) EQUITY               
Ordinary shares: US$0.0000625 par value, 800,000,000 shares authorized as of December 31, 2023 and June 30, 2024, 18,000,000 shares and 20,320,000 issued and outstanding as of December 31, 2023 and June 30, 2024, respectively   8,775    9,906    1,269 
Additional paid-in capital   55,091,225    105,776,106    13,546,624 
Accumulated other comprehensive income   844,791    963,495    123,394 
Accumulated losses   (58,331,601)   (56,918,993)   (7,289,550)
Total shareholders’ (deficit) equity   (2,386,810)   49,830,514    6,381,737 
Total liabilities and shareholders’ (deficit) equity   90,616,828    131,702,941    16,867,045 

 

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NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED

UNAUDITED CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

 

   For the six months ended June 30, 
   2023   2024   2024 
   HKD   HKD   US$ 
REVENUES, NET   77,915,027    79,256,623    10,150,305 
                
COST OF REVENUES   　    　    　 
- Related parties   (22,713,298)   (21,206,685)   (2,715,916)
- External   (43,040,030)   (41,690,622)   (5,339,270)
    (65,753,328)   (62,897,307)   (8,055,186)
Gross profit   12,161,699    16,359,316    2,095,119 
                
EXPENSES   　    　    　 
Selling and marketing   (1,232,254)   (2,045,399)   (261,952)
General and administrative   (12,618,644)   (13,827,207)   (1,770,834)
Total expenses   (13,850,898)   (15,872,606)   (2,032,786)
(LOSS) INCOME FROM OPERATION   (1,689,199)   486,710    62,333 
                
OTHER (EXPENSES) INCOME   　    　    　 
Interest income   10,038    49,895    6,390 
Interest expense   (3,478,595)   (1,460,788)   (187,081)
Other income   —    2,361,596    302,447 
Other loss, net   (20,063)   (24,805)   (3,177)
Total other (expenses) and income, net   (3,488,620)   925,898    118,579 
(LOSS) INCOME BEFORE INCOME TAXE EXPENSES   (5,177,819)   1,412,608    180,912 
INCOME TAX EXPENSES   —    —    — 
NET (LOSS) INCOME   (5,177,819)   1,412,608    180,912 
FOREIGN CURRENCY TRANSLATION ADJUSTMENT   (1,230,850)   118,704    15,202 
TOTAL COMPREHENSIVE (LOSS) INCOME   (6,408,669)   1,531,312    196,114 
Weighted average number of ordinary shares:               
Basic and diluted   18,000,000    18,892,308    18,892,308 
(LOSS) EARNINGS PER SHARE   (0.29)   0.07    0.01 

 

 

 

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