August 18, 2025

FosRich Company Limited (FOSRICH)
Unaudited financials for the six months ended June 30, 2026:

FosRich Company Limited (FOSRICH) for the six months ended June 30, 2026, reported a 49% decrease in Turnover totalling $812.34 million compared to $1.59 billion for the corresponding period of 2025. Turnover for the second quarter declined 46% to close at $397.16 million relative to $734.40 million for the comparable quarter of 2025. Management noted that turnover continues to be affected by the substantial fall in solar panel costs on world markets, while global partners, amid continuing uncertainties in the United States market, have offered more favourable credit terms as they seek to deepen relationships with non-US customers.

Cost of Sales amounted to $509.45 million (2025: $1.01 billion), a decrease of 50% year over year, while cost of sales for the quarter fell 49% to $235.55 million (2025: $463.30 million). Consequently, Gross Profit declined 48% to $302.89 million compared with $576.67 million for the six months ended June 30, 2025. The Company booked Gross Profit of $161.61 million for the second quarter, a 40% reduction versus $271.11 million reported for the similar quarter of 2025. Gross profit margin improved to 37.3% from 36.3% in 2025, while the quarterly margin strengthened to 40.7% from 36.9%. The main revenue drivers were Solar, Hardware, LED, PVC and Wiring Devices.

Other Income advanced to $17.38 million (2025: $5.95 million), while for the quarter it rose 86% to $9.64 million (2025: $5.18 million).

Administrative expenses were broadly flat at $680.31 million (2025: $677.81 million), with increases in amortisation of right-of-use assets, irrecoverable GCT, legal and professional fees and rent offset by reductions in advertising, depreciation, insurance, security and staff costs. For the quarter, administrative expenses rose 10% to $373.29 million (2025: $340.44 million). The Expected Credit Loss Adjustment reflected a gain of $32.56 million (2025: gain of $8.90 million), while the Share of Results of Investment in Associate was a loss of $7.67 million (2025: loss of $2.11 million).

Consequently, Operating Loss for the six months ended June 30, 2026, amounted to $335.15 million relative to an operating loss of $88.39 million reported in 2025. Operating loss for the second quarter amounted to $198.55 million (2025: $64.02 million).

Finance Cost, net increased 4% to $105.53 million (2025: $101.17 million), while for the quarter it rose 11% to $63.32 million (2025: $56.94 million).

As such, Loss before Taxation for the six months amounted to $440.68 million relative to $189.56 million in 2025, while for the quarter the loss before taxation was $261.87 million (2025: $120.96 million). After a taxation charge of $1.90 million (2025: nil), Net Loss for the six months ended June 30, 2026, amounted to $442.58 million (2025: Net Loss of $189.56 million)

Net Loss Attributable to Stockholders for the six months amounted to $444.00 million relative to $189.56 million reported in 2025, while for the second quarter it was $265.19 million (2025: $120.96 million).

Consequently, Loss Per Share for the six months amounted to $0.09 (2025: LPS: $0.04), while Loss Per Share for the quarter totalled $0.05 (2025: LPS: $0.02). The twelve-month trailing LPS was $0.15, and the number of shares used in these calculations was 5,078,485,197.

Notably, FOSRICH’s stock price closed the trading period on August 17, 2026, at a price of $1.21.

Balance Sheet Highlights

The Group’s assets totalled $8.69 billion (2025: $6.72 billion), an increase of 29% or $1.97 billion. Notably, Right-of-use Assets led the growth in total assets with an increase of $1.42 billion to close at $1.98 billion on account of the new Molynes superstore. Property, plant and equipment advanced $467.98 million or 31% to $1.97 billion, reflecting a revaluation of real estate of $543.31 million recognised during the period. Deferred Tax assets of $112.74 million were recognised (2025: nil), Receivables rose $91.46 million or 19% to $585.11 million, Due From Related Parties increased $111.00 million or 8% to $1.56 billion, current Associated Company balances rose $42.89 million to $113.97 million, and Cash, cash equivalents and short-term deposits advanced $12.60 million or 10% to $134.26 million. These increases were partly offset by a $274.74 million or 13% reduction in Inventories to $1.92 billion as the Company continues to optimise inventory levels, a $14.37 million or 7% decline in Investment in Associated Company to $195.09 million, and a $3.15 million reduction in Goodwill to $59.89 million.

Total Liabilities amounted to $7.09 billion (2025: $4.91 billion), up 44%. Non-current liabilities increased $1.78 billion, driven by a $1.40 billion increase in the non-current Right-of-use Liability to $1.86 billion and a $386.89 million or 18% increase in Long-term liabilities to $2.60 billion. Payables rose 30% to $1.74 billion (2025: $1.34 billion), while Short Term Financing declined 15% to $163.57 million (2025: $193.52 million).

Shareholder’s equity was $1.59 billion (2025: $1.81 billion), a decline of 12%, representing a book value per share of $0.31 (2025: $0.36). Equity was $99.31 million above the $1.49 billion reported at December 31, 2025, as the revaluation of real estate of $543.31 million outweighed the net loss for the period.