Company: FGI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052375
Chunk: 2

Company: FGI Industries Ltd.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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Foremost”), and its affiliates, pursuant to which, among other actions, Foremost contributed all of its equity interests in FGI Industries Inc. (“FGI Industries”), FGI Europe Investment Limited, an entity formed in the British Virgin Islands, and FGI International, Limited, an entity formed under the laws of Hong Kong, each a wholly-owned subsidiary of Foremost, to the newly formed FGI Industries Ltd. Foremost was established in 1987 and has become a global leader in kitchen and bath design, indoor and outdoor furniture, food service equipment, and manufacturing.

Reverse Stock Split

On July 28, 2025, the Company filed an amendment (the “Amendment”) to the Company’s Amended and Restated Memorandum and Articles of Association with the Registrar of Companies in the Cayman Islands to effect a 1-for-5 reverse share split (the “Reverse Share Split”) of the Company’s ordinary shares, which was effected on July 31, 2025. Unless otherwise noted, the share and per share information in this Quarterly Report on Form 10-Q have been adjusted to give effect to the Reverse Stock Split.

Results of Operations

The following table summarizes the results of our operations for the three and nine months ended September 30, 2025 and 2024 and provides information regarding the dollar and percentage increase (decrease) during such periods.

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For the Three and Nine Months Ended September 30, 2025 and 2024

For the Three Months EndedSeptember 30,Change20252024AmountPercentageUSD%Revenue$35,848,861 $36,099,179 $(250,318)(0.7)Cost of revenue26,350,193 26,790,957 (440,764)(1.6)Gross profit9,498,668 9,308,222 190,446 2.0 Selling and distribution expenses6,060,571 6,284,932 (224,361)(3.6)General and administrative expenses2,784,507 2,637,141 147,366 5.6 Research and development expenses283,867 451,975 (168,108)(37.2)Income (loss) from operations369,723 (65,826)435,549 (661.7)Operating margins (%)1.0 (0.2)120 bpsTotal other expenses, net(438,190)(364,