April 5, 2025
Fosrich Company Limited (FOSRICH)
Audited financials for the twelve months ended December 31, 2025:
Fosrich Company Limited (FOSRICH), for the twelve months ended December 31, 2025, reported a 22% decrease in Revenue totaling $2.86 billion compared to $3.68 billion in the corresponding period last year. Revenue for the fourth quarter amounted to approximately $437.28 million compared to $860.62 million for the comparable quarter of 2024, a decrease of 49%. The Group’s revenue performance throughout the year continued to be adversely impacted by protracted delays affecting international shipping, which constrained supplies of both finished goods and raw material and limited the Company’s ability to keep the market supplied.
Cost of Sales amounted to $1.93 billion (2024: $1.93 billion), broadly flat year over year despite the sharp drop in revenue, reflecting margin compression. Consequently, gross profit decreased by 47% to $924.77 million compared to $1.75 billion for the year ended December 31, 2024. The Company booked gross profit of $117.08 million for the fourth quarter versus $426.24 million reported for the similar quarter of 2024.
Other Operating Income increased by 130% to close at $34.56 million (2024: $15.02 million), supported by an adjustment write-off of $12.95 million arising from management’s reconciliation of outstanding receivable and payable balances. Administrative and operating expenses decreased by 5% from $1.43 billion in 2024 to $1.36 billion in the period under review. The Group also reported an impairment reversal on financial assets of $1.59 million (2024: impairment loss of $24.51 million) and recognised its share of losses of associate of $8.81 million (2024: $14.43 million loss). Notably, inventory write-offs totalling $331.13 million (2024: $6.41 million) were recorded during the year, relating primarily to obsolete, slow-moving and damaged inventory.
Consequently, Operating Loss for the twelve months ended December 31, 2025, amounted to $403.54 million, a 238% decrease relative to operating profit of $292.01 million reported in 2024. Operating loss for the fourth quarter amounted to $201.26 million, relative to an Operating loss of $53.10 million in the same quarter of 2024.
Finance costs, net totalled $260.66 million, a 9% increase from the corresponding period last year (2024: $239.78 million), driven by higher interest expense of $323.20 million (2024: $290.70 million) on the Group’s elevated debt position.
Loss before taxation for the twelve months ended December 31, 2025, amounted to $664.19 million, a 1,372% deterioration relative to Profit before taxation of $52.24 million reported in 2024. Loss before taxation for the fourth quarter amounted to $230.57 million (2024: Pre-tax loss of $41.31 million).
A taxation credit of $158.00 million was recognised in 2025, comprising deferred tax recognised on tax losses carried forward (2024: tax charge of $17.68 million). As such, Net loss for the twelve months amounted to $506.20 million, a 1,565% decline from the $34.55 million net profit reported in 2024. For the fourth quarter, Net loss was $72.58 million (2024: Net loss of $47.77 million).
Consequently, Loss Per Share for the twelve months amounted to $0.10 (2024: EPS: $0.01), while Loss Per Share for the quarter totalled $0.01 (2024: LPS: $0.01). The twelve-month trailing LPS was $0.10, and the number of shares used in these calculations was 5,078,485,197.
Notably, FOSRICH stock price closed the trading period on April 4, 2026, at a price of $2.00.
Balance Sheet Highlights
The Group’s total assets totalled $6.54 billion (2024: $7.28 billion), a 10% decrease year over year. The YoY movement in total assets was mainly influenced by a $757.04 million decrease in Inventories, a $183.71 million decrease in Receivables, and a $90.68 million decrease in Property, plant and equipment, partially offset by a $138.17 million increase in Deferred tax assets and a $107.81 million increase in amounts Due from related parties.
Total borrowings (long-term and short-term loans) stood at $2.92 billion (2024: $3.25 billion), representing 67% of total equity and debt (2024: 62%). The Group remains highly leveraged, with debt financing continuing as a significant component of its capital structure.
Shareholders’ equity was $1.49 billion (2024: $2.00 billion), representing a book value per share of $0.29 (2024: $0.39).
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