Mr. Kung Lok Chiu, Chief Executive Officer and Director of the Company, commented, "The six months ended September 30, 2025 demonstrated the resilience of our business and the continued strength of our core operations. During the period, we maintained a gross profit margin of 29.2%, supported by cost management across our operations. Cost of revenue and operating expenses both declined compared to the prior year, reflecting our continued focus on operational efficiency and expense control.
In October 2025, we completed a US$7.06 million follow-on public offering, which provided the resources to advance our long-term growth strategy. Building on this momentum, we plan to commence construction of our new supply chain management center in Serbia in January 2026, and we currently expect to complete the project in the fourth quarter of 2026. Once completed, this center is expected to serve as a logistics and manufacturing hub for our supply chain operations in Europe and to enhance our ability to support customers across the region with greater efficiency and responsiveness.
Looking ahead, we aim to remain focused on product innovation, operational execution, and disciplined investment, and we are committed to delivering high quality, customized interconnect solutions to our customers."
Six Months Ended September 30, 2025 Financial Summary
Revenue was US$8.47 million for the six months ended September 30, 2025, compared to US$9.22 million for the same period of last year.
Gross profit was US$2.48 million for the six months ended September 30, 2025, compared to US$2.75 million for the same period of last year.
Gross profit margin was 29.2% for the six months ended September 30, 2025, compared to 29.8% for the same period of last year.
Net loss was US$0.97 million for the six months ended September 30, 2025, compared to US$0.74 million for the same period of last year.
Basic and diluted loss per share was US$0.08 for the six months ended September 30, 2025, compared to US$0.06 for the same period of last year.
Six Months Ended September 30, 2025 Financial Results
Revenue
Total revenue was US$8.47 million for the six months ended September 30, 2025, which decreased by 8.2% from US$9.22 million for the same period of last year.
The following table sets forth revenue by interconnect products:
For the six months ended September 30,
Change
2025
%
2024
%
Amount
%
(Amounts expressed in U.S. dollars)
Cable and wire harness
$
7,830,157
92.5
$
8,604,502
93.3
$
(774,345)
(9.0)
Connectors
635,431
7.5
613,957
6.7
21,474
3.5
Total
$
8,465,588
100.0
$
9,218,459
100.0
$
(752,871)
(8.2)
Revenue generated from cables and wire harnesses decreased by 9.0%, to US$7.83 million for the six months ended September 30, 2025, from US$8.60 million for the same period of last year. Revenue generated from connectors increased by 3.5%, to US$0.64 million for the six months ended September 30, 2025, from US$0.61 million for the same period of last year.
The decrease in revenue was primarily attributable to the decrease of sales volume, which was partially offset by an increase of the overall average selling prices of the Company's cables and wire harness products. The reduction in demand was principally attributable to a major customer's reduced order volumes during its transition from discontinued product models to new products that remain in the development phase, as the Company's cables and wire harnesses are customized to the customer's product designs. The Company's subsidiaries manufacture cables and wire harnesses based on customer-specific orders. Our subsidiaries do not have a practice of holding excessive levels of inventory related to the customer's discontinued products, and do not have manufacturing assets or production lines that have been established solely for any specific product specification. Accordingly, we concluded that no indicators of inventory obsolescence or asset impairment existed as of September 30, 2025.
The following table sets forth the disaggregation of revenue by regions:
For the six months ended September 30,
Change
2025
%
2024
%
Amount
%
(Amounts expressed in U.S. dollars)
Europe
$
4,971,949
58.8
$
5,626,272
61.0
$
(654,323)
(11.6)
Asia
2,896,950
34.2
2,736,289
29.7
160,661
5.9
Americas
596,689
7.0
855,847
9.3
(259,158)
(30.3)
Others
-
-
51
-
(51)
(100.0)
Total
$
8,465,588
100.0
$
9,218,459
100.0
$
(752,871)
(8.2)
Revenue generated from Europe decreased by 11.6%, to US$4.97 million for the six months ended September 30, 2025, from US$5.63 million for the same period of last year. The decrease was primarily due to a decrease of sales in Denmark of US$0.69 million and Bulgaria of US$0.19 million, partially offset by an increase of sales in the U.K. of US$0.14 million and Hungary of US$0.12 million. The decline in Denmark was mainly attributable to a major customer placing fewer orders while transitioning from discontinued products to new products still under development, with the Company's cables and wire harnesses customized for the customer's products.
Revenue generated from Asia increased by 5.9%, to US$2.90 million for the six months ended September 30, 2025, from US$2.74 million for the same period of last year. The increase was primarily driven by a sales increase in Mainland China of US$0.35 million, a sales increase in Association of Southeast Asian Nations of US$0.10 million, mainly due to higher demand from certain customers in Malaysia for components used in automation products, and partially offset by a sales decrease in Hong Kong, China of US$0.28 million.
Revenue generated from the Americas decreased by 30.3%, to US$0.60 million for the six months ended September 30, 2025, from US$0.86 million for the same period of last year, which was primarily due to a sales decrease in North America of US$0.27 million. The decline was largely attributable to higher U.S. tariffs, which led certain customers to gradually shift to local suppliers in order to mitigate their tax exposure.
Revenue from other regions was mainly derived from Australia.
Cost of Revenue
Cost of revenue decreased by 7.4%, to US$5.99 million for the six months ended September 30, 2025, from US$6.47 million for the same period of last year. The decrease was primarily due to a decrease in inventory costs and labor costs.
Inventory costs amounted to US$4.14 million for the six months ended September 30, 2025, compared to US$4.44 million for the same period of last year. The decrease in inventory costs was primarily due to a 14.1% decrease in the total sales volume and partially offset by an 8.8% increase in inventory cost per unit.
Labor costs amounted to US$1.37 million for the six months ended September 30, 2025, compared to US$1.52 million for the same period of last year. The decrease in labor costs was mainly attributable to lower production volumes driven by decreased sales.
Gross Profit and Gross Profit Margin
Gross profit decreased by 9.9%, to US$2.48 million for the six months ended September 30, 2025, from US$2.75 million for the same period of last year.
Gross profit margin was 29.2% for the six months ended September 30, 2025, compared with 29.8% for the same period of last year. The decrease was primarily due to an increase in fixed cost per unit as a result of a decrease in total sales volume.
Operating Expenses
Operating expenses decreased by 3.3%, to US$3.44 million for the six months ended September 30, 2025, from US$3.55 million for the same period of last year. The decrease was mainly due to (i) a decrease of US$0.08 million in selling expenses, including a decrease of US$0.09 million in exhibition expenses, as the Company reduced exhibition activities and focused on direct customer outreach to develop the market, partially offset by an increase of US$0.03 million in travelling expenses, reflecting additional on-site customer visits to support market development, and (ii) a decrease of US$0.03 million in general and administrative expenses, including a decrease of US$0.06 million in salaries and benefits due to the absence of non-recurring initial public offering-related bonus and celebration expenses incurred in the prior period, partially offset by an increase of US$0.02 million in depreciation and amortization.
Other Expenses
Other expenses decreased by 9.9%, to US$0.12 million for the six months ended September 30, 2025, from US$0.13 million for the same period of last year, primarily attributable to a decrease of US$0.14 million in government subsidy resulting from the absence of the non-recurring "Little Giant" award received in the prior period, and partially ...
