Neo-Concept International Delivers Surprising Net Income Gains Despite H1 2025 Revenue Pullback

Neo-Concept International Group Holdings (NCI) turned in mixed results for the first half of 2025, with the company posting a net income of HK$2.0 million, up from HK$1.4 million in the prior-year period—a notable bright spot given broader headwinds facing the business. However, the top line told a different story, with revenue contracting to HK$60.2 million from HK$79.3 million year-over-year, representing a 24 percent decline.

The revenue contraction was primarily driven by severe softness in private-label apparel operations, which saw sales plummet 51.7 percent as U.S.-China customs friction weighed on buyer demand. This segment remains under pressure as trade uncertainties continue to dampen purchasing appetite. On the flip side, the company’s owned-brand retail business proved to be a growth engine, expanding 138.8 percent to HK$27.5 million, fueled by new store launches and improved retail footprint penetration.

What stands out is how NCI managed to grow net income despite the revenue headwinds, signaling improved operational efficiency and cost management. EPS rose to HK$0.50 from HK$0.37, reflecting the stronger bottom-line performance. However, the company faced mounting cost pressures—selling, general and administrative expenses surged 48.33 percent to HK$23.5 million, partially offsetting margin gains. Other income declined 47.1 percent to HK$1.2 million due to reduced agency activities tied to U.K. operations.

The company’s tax bill also increased, with income tax expense reaching HK$0.9 million compared to nil in the prior year, a development that reflects improved profitability being taxed at higher rates. On the market front, NCI shares are trading at $1.01 on the Nasdaq, up $0.01 or 1.00 percent, as investors assess the trajectory of the company’s growth strategy amid bifurcated business performance.