# EDGAR Filing Document

**Accession Number:** 0001916331
**File Stem:** 0001213900-26-050005
**Filing Date:** 2026-4
**Character Count:** 449678
**Document Hash:** 134d911be15c46d03637ff7fd10a3918
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-050005.hdr.sgml**: 20260430

**ACCESSION NUMBER**: 0001213900-26-050005

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 122

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260430

**DATE AS OF CHANGE**: 20260430

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Neo-Concept International Group Holdings Ltd
- **CENTRAL INDEX KEY:** 0001916331
- **STANDARD INDUSTRIAL CLASSIFICATION:** APPAREL & OTHER FINISHED PRODS OF FABRICS & SIMILAR MATERIAL [2300]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** K3
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42016
- **FILM NUMBER:** 26922900

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 10/F SEAVIEW CENTRE
- **STREET 2:** 139-141 HOI BUN ROAD, KOWLOON TONG
- **CITY:** HONG KONG
- **PROVINCE COUNTRY:** K3
- **BUSINESS PHONE:** 852 2798 8639

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 10/F SEAVIEW CENTRE
- **STREET 2:** 139-141 HOI BUN ROAD, KOWLOON TONG
- **CITY:** HONG KONG
- **PROVINCE COUNTRY:** K3

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 20-F**

(Mark one)

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report:

For the transition period from __________ to ____________

Commission file number: 001-42016

**Neo-Concept International Group Holdings Limited**

(Exact name of the Registrant as specified in its charter)

N/A

(Translation of registrant's name into English)

Cayman Islands

(Jurisdiction of incorporation or organization)

10/F, Seaview Centre

No.139-141 Hoi Bun Road

Kwun Tong

Kowloon, Hong Kong

(Address of principal executive offices)

Patrick Kwok Fai Lau

Tel: (852) 2798-8639

Email: patrick.lau@neo-concept.com.hk

10/F, Seaview Centre

No.139-141 Hoi Bun Road

Kwun Tong Kowloon, Hong Kong

(Name, Telephone, E-mail and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

---

| | |
|:---|:---|
| Title of each class | Name of each exchange on which registered |
| Class A Ordinary Shares, par value $0.0003125 per share NCI | The Nasdaq Capital Market, LLC |

---

Securities registered or to be registered pursuant to Section 12(g) of the Act:

Warrants, each to purchase one ordinary share

Title of Class

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

The registrant had 3,464,018 Class A Ordinary Shares and 600,000 Class B Ordinary Shares issued and outstanding as of December 31, 2025

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☐ Yes ☒ No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

☐ Yes ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

☐ Large Accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer <br> ☒ Emerging growth company

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

† The
term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board
to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

☒ U.S. GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ Other

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

☐ Item 17 ☐ Item 18

If this is an Annual Report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [FORWARD-LOOKING STATEMENTS](#a_001) | iii |
| [DEFINITIONS](#a_002) | iv |
| [PART I](#a_003) | 1 |
| &nbsp;&nbsp;&nbsp;[ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS](#a_004) | 1 |
| &nbsp;&nbsp;&nbsp;[ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE](#a_005) | 1 |
| &nbsp;&nbsp;&nbsp;[ITEM 3. KEY INFORMATION](#a_006) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[B. Capitalization and Indebtedness.](#a_007) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[C. Reason for the Offer and Use of Proceeds.](#a_008) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[D. Risk Factors.](#a_009) | 1 |
| &nbsp;&nbsp;&nbsp;[ITEM 4. INFORMATION ON THE COMPANY](#a_010) | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[A. History and Development of the Company.](#a_011) | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[B. Business overview.](#a_012) | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[C. Organizational structure.](#a_013) | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[D. Property, plant and equipment.](#a_014) | 36 |
| &nbsp;&nbsp;&nbsp;[ITEM 4A. UNRESOLVED STAFF COMMENTS](#a_015) | 36 |
| &nbsp;&nbsp;&nbsp;[ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#a_016) | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[A. Results of operations.](#n_001) | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[B. Liquidity and capital resources.](#n_002) | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[C. Research and development, patents and licenses, etc.](#n_003) | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[D. Trend information.](#n_004) | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[E. Critical accounting estimates](#n_005) | 48 |
| &nbsp;&nbsp;&nbsp;[ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#a_022) | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[A. Directors and senior management.](#a_023) | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[B. Compensation.](#a_024) | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[C. Board Practices.](#a_025) | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[D. Employees.](#a_026) | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[E. Share Ownership.](#a_027) | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[F. Disclosure of a registrant's action to recover erroneously awarded compensation.](#a_028) | 55 |
| &nbsp;&nbsp;&nbsp;[ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#a_029) | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[A. Major Shareholders.](#a_030) | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[B. Related Party Transactions.](#a_031) | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[C. Interests of Experts and Counsel](#a_070) | 58 |
| &nbsp;&nbsp;&nbsp;[ITEM 8. FINANCIAL INFORMATION](#a_032) | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[A. Consolidated Statements and Other Financial Information.](#a_033) | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[B. Significant Changes.](#a_034) | 60 |
| &nbsp;&nbsp;&nbsp;[ITEM 9. THE OFFER AND LISTING](#a_035) | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[A. Offer and Listing Details.](#a_036) | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[B. Plan of Distribution.](#a_037) | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[C. Markets.](#a_038) | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[D. Selling Shareholders.](#a_039) | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[E. Dilution.](#a_040) | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[F. Expenses of the Issue.](#a_041) | 60 |

---

i

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;[ITEM 10. ADDITIONAL INFORMATION](#a_042) | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[A. Share Capital.](#a_043) | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[B. Memorandum and Articles of Association.](#a_044) | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[C. Material Contracts.](#a_045) | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[D. Exchange controls.](#a_046) | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[E. Taxation.](#a_047) | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[F. Dividends and paying agents.](#a_048) | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[G. Statement by experts.](#a_049) | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[H. Documents on display.](#a_050) | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[I. Subsidiary Information](#a_051) | 69 |
| &nbsp;&nbsp;&nbsp;[ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK](#a_052) | 69 |
| &nbsp;&nbsp;&nbsp;[ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#a_053) | 70 |
| [PART II](#a_054) | 71 |
| &nbsp;&nbsp;&nbsp;[ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#a_055) | 71 |
| &nbsp;&nbsp;&nbsp;[ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#a_056) | 71 |
| &nbsp;&nbsp;&nbsp;[ITEM 15. CONTROLS AND PROCEDURES](#a_057) | 71 |
| &nbsp;&nbsp;&nbsp;[ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT](#a_058) | 72 |
| &nbsp;&nbsp;&nbsp;[ITEM 16B. CODE OF ETHICS](#a_059) | 72 |
| &nbsp;&nbsp;&nbsp;[ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES](#a_060) | 72 |
| &nbsp;&nbsp;&nbsp;[ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES](#a_061) | 73 |
| &nbsp;&nbsp;&nbsp;[ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS](#a_062) | 73 |
| &nbsp;&nbsp;&nbsp;[ITEM 16F. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT](#a_063) | 73 |
| &nbsp;&nbsp;&nbsp;[ITEM 16G. CORPORATE GOVERNANCE](#a_064) | 73 |
| &nbsp;&nbsp;&nbsp;[ITEM 16H. MINE SAFETY DISCLOSURE](#a_065) | 73 |
| &nbsp;&nbsp;&nbsp;[ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTION THAT PREVENT INSPECTIONS](#a_071) | 73 |
| &nbsp;&nbsp;&nbsp;[ITEM 16J. INSIDER TRADING POLICIES](#z_001) | 74 |
| &nbsp;&nbsp;&nbsp;[ITEM 16K. CYBERSECURITY](#z_002) | 74 |
| [PART III](#a_066) | 75 |
| &nbsp;&nbsp;&nbsp;[ITEM 17. FINANCIAL STATEMENTS](#a_067) | 75 |
| &nbsp;&nbsp;&nbsp;[ITEM 18. FINANCIAL STATEMENTS](#a_068) | 75 |
| &nbsp;&nbsp;&nbsp;[ITEM 19. EXHIBITS](#a_069) | 75 |
| &nbsp;&nbsp;&nbsp;[REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS](#fin_001) | F-2 |
| &nbsp;&nbsp;&nbsp;[CONSOLIDATED BALANCE SHEETS](#fin_002) | F-3 |
| &nbsp;&nbsp;&nbsp;[CONSOLIDATED STATEMENTS OF OPERATIONS](#fin_003) | F-4 |
| &nbsp;&nbsp;&nbsp;[CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY](#fin_004) | F-5 |
| &nbsp;&nbsp;&nbsp;[CONSOLIDATED STATEMENTS OF CASH FLOWS](#fin_005) | F-6 |
| &nbsp;&nbsp;&nbsp;[NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](#fin_006) | F-7 |

---

ii

**FORWARD-LOOKING STATEMENTS**

This Annual Report contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by the words "may," "might," "will," "could," "would," "should," "expect," "intend," "plan," "goal," "objective," "anticipate," "believe," "estimate," "predict," "potential," "continue" and "ongoing," or the negative of these terms, or other comparable terminology intended to identify statements about the future. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. The forward-looking statements and opinions contained in this Annual Report are based upon information available to us as of the date of this Annual Report and, while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information.

Forward-looking statements include statements about:

● timing of the development of future business;

● capabilities of our business operations;

● expected future economic performance;

● competition in our market;

● continued market acceptance of our services and products;

● protection of our intellectual property rights;

● changes in the laws that affect our operations;

● inflation and fluctuations in foreign currency exchange rates;

● our ability to obtain and maintain all necessary government certifications, approvals, and/or licenses to conduct our business;

● continued development of a public trading market for our securities;

● the cost of complying with current and future governmental regulations and the impact of any changes in the regulations on our operations;

● managing our growth effectively;

● projections of revenue, earnings, capital structure and other financial items;

● fluctuations in operating results;

● dependence on our senior management and key employees; and

These statements are subjective. Therefore, they involve known and unknown risks.

iii

They are based largely on our current expectations and projections about future events and financial trends, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results to differ materially from any future results, performance or achievements described in or implied by such statements. Actual results may differ materially from expected results described in our forward-looking statements, for reasons connected with measuring future developments, including:

&nbsp;&nbsp;&nbsp;&nbsp;1. the correct measurement
 and identification of factors affecting our business;

2. the extent of their likely
 impact; and/or

3. the accuracy and completeness
 of the publicly available information regarding the factors upon which our business strategy is based.

Forward-looking statements should not be read as a guarantee of future performance or results. They will not necessarily be accurate indications of whether, or the times by which, our performance or results may be achieved. Forward-looking statements are based on information available at the time those statements are made and management's belief as of that time regarding future events. Consequently, they are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.

Important factors that could cause actual performance or results to differ materially from those contained in forward-looking statements include, but are not limited to, those factors discussed under Item 3.D. "Risk Factors," that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.

**DEFINITIONS**

Unless otherwise indicated and except where the context otherwise requires, the following definitions are used in this Annual Report:

"Memorandum", "Memorandum of Association", "Articles'' or "Articles of Association'' are to the second amended and restated memorandum of association and articles of association of our Company (as amended from time to time) effective on March 3, 2025, as amended, supplemented and/or otherwise modified from time to time.

● "BVI" are to the British Virgin Islands.

● "China" or "PRC" are to the People's Republic of China including Hong Kong, Macau and, excluding, for the purpose of this report, Taiwan.

● "Companies Act" are to the Companies Act (as revised) of the Cayman Islands, as amended, supplemented or otherwise modified from time to time.

● "Company", "we", "us", "our" and "NCI" are to Neo-Concept International Group Holdings Limited, an exempted company incorporated in the Cayman Islands with limited liability under the Companies Act on July 29, 2021,Ordinary Shares.

● "Controlling Shareholder" are to Ms. Eva Yuk Yin Siu, who beneficially owns 2,379,011 Class A Ordinary Shares and 526,260 Class B Ordinary Shares, resulting in an aggregate of 2,905,271 Ordinary Shares, or 15.36% of the total issued and outstanding Shares and 50.03% of total voting rights.

● "COVID-19" are to the Coronavirus Disease 2019.

● "Europe" are to the European Union, excluding the UK.

● "Exchange Act" are to the U.S. Securities Exchange Act of 1934, as amended.

iv

● "IPO" are to an initial public offering of securities by the Company of 2,320,000 Ordinary Shares, par value $0.0000625 per share.

● "HKD" or "HK$" are to Hong Kong dollar(s), the lawful currency of Hong Kong.

● "Hong Kong" are to the Hong Kong Special Administrative Region of the People's Republic of China.

● "GBP" or "£" are to pound sterling, the lawful currency of the UK.

● "Independent Third Party" are to a person or company who or which is independent of and is not a 5% owner of, does not control and is not controlled by or under common control with any 5% owner and is not the spouse or descendant (by birth or adoption) of any 5% owner of the Company.

● "Macau" are to the Macau Special Administrative Region of the People's Republic of China.

● "Mainland China" are to the PRC or China excluding, for the purpose of this report only, Hong Kong, Macau and Taiwan.

● Ordinary Shares

● "NCA" are to Neo-Concept Apparel Group Limited, a BVI business company limited by shares incorporated in the BVI, a direct wholly-owned subsidiary of NCI.

● "NCH" are to Neo-Concept (Holdings) Company Limited, a company incorporated in Hong Kong with limited liability in 1990 as a comprehensive garment service solution provider and which in 2021, pursuant to a plan of reorganization, spun off its subsidiaries Neo-Concept HK and Neo-Concept UK to NCI.

● "NCI Group" are to the Company and its subsidiaries, NCA, Neo-Concept HK and Neo-Concept UK.

● "Neo Concept Group" are to the Parent Group and its subsidiaries including NCH but excluding the NCI Group.

● "Neo-Concept (BVI) Limited" are to "Neo-Concept (BVI) Limited, a BVI business company limited by shares incorporated in the BVI, and the holding company of 12.84% of Class A Ordinary Shares and 100% of Class B Ordinary Shares as at the date of this report.

● "Neo-Concept HK" are to Neo-Concept International Company Limited, a company incorporated in Hong Kong with limited liability, an indirect wholly owned subsidiary of NCI and our key operating subsidiary in Hong Kong.

● "Neo-Concept UK" are to Neo-Concept (UK) Limited, a company incorporated in the UK with limited liability, an indirect wholly owned subsidiary of NCI and our operating subsidiary in the UK.

● "Operating Subsidiaries" are to Neo-Concept HK and Neo-Concept UK.

● "Class A Ordinary Shares" are to our Class A Ordinary Shares, par value $0.0003125 per share, carrying one vote per share.

● "Class B Ordinary Shares" are to our Class B Ordinary Shares, par value $0.0003125 per share, carrying thirty votes per share.

● "PRC" or "China" are to the People's Republic of China including Hong Kong, Macau and, excluding, for the purpose of this report, Taiwan.

● "Parent Group" are to Neo-Concept (BVI) Limited, Ample Excellence Limited, and Splendid Vibe Limited.

● "SEC" or "Securities and Exchange Commission" are to the United States Securities and Exchange Commission.

● "Securities Act" are to the U.S. Securities Act of 1933, as amended.

● "U.S. dollars" or "US$" or "USD" or "dollars" are to United States dollar(s), the lawful currency of the United States.

● "UK" are to the United Kingdom.

v

**PART I**

**ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS**

Not applicable.

**ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE**

Not applicable.

**ITEM 3. KEY INFORMATION**

**B. Capitalization and Indebtedness.**

Not applicable.

**C. Reason for the Offer and Use of Proceeds.**

Not applicable.

**D. Risk Factors.**

*You should carefully consider all the information in this Annual Report, including various changing regulatory, competitive, economic, political and social risks and conditions described below, before making an investment in our Class A Ordinary Shares. One or more of a combination of these risks could materially impact our business, results of operations and financial condition. In any such case, the market price of our Class A Ordinary Shares Ordinary Shares could decline, and you may lose all or part of your investments.*

**Risks Relating to Our Corporate Structure**

***Our transactions with NCH may be less favorable to us than similar agreements negotiated with unaffiliated third parties.***

During the three years ended December 31, 2025, 2024 and 2023, we entered into a series of transactions with an affiliated company under the control of our Controlling Shareholder, NCH. These transactions include engaging NCH as a contract manufacturer to produce certain apparel products for our customers. The terms of such transactions may be less favorable to us than would be the case if they were negotiated with unaffiliated third parties. Because we are a "controlled company" the terms of such future transactions will be reviewed by the Audit Committee to ensure that they will not be less favorable to us than would be the case if they were negotiated with unaffiliated third parties. Moreover, so long as we are under the control of the Controlling Shareholder, their influence may make it difficult for us to bring a legal claim against NCH in the event of contractual breach, notwithstanding our contractual rights under the transactions and other agreements we may enter into with NCH or other affiliated companies under the control of our Controlling Shareholder from time to time.

***Our business is in direct competition with NCH, an affiliated company.***

 ****

NCH also operates as a comprehensive apparel solutions services provider in North America and Europe principally. As such, NCH is in direct competition with our business in such regions. To address this, we entered into an Exclusive Territory and Non-Competition Agreement ("Agreement") with Neo-Concept (BVI) Limited, Ample Excellence Limited and Splendid Vibe Limited (collectively the "Parent Group"), the holding companies of NCH and other subsidiaries under the common control of our Controlling Shareholder. Under the Agreement we entered into with the Parent Group, we have agreed that during the non-competition period (which will end on the later of (1) two years after the first date when our Controlling Shareholder ceases to own in aggregate at least 20% of the voting power of our then outstanding securities and (2) the fifth anniversary of the completion of the Company's IPO) that the Parent Group and its subsidiaries, including NCH but excluding NCI Group) (the "Neo Concept Group"), will not compete with our Company in the businesses currently conducted by us through our Operating Subsidiaries in North America and Europe namely, in the businesses of apparel solution services in the UK, Europe and North America (the "Protected Territories") and retail sale of apparel products. However, since we are in the process of and have not yet obtained all of the certifications required by certain clients to guarantee that their raw material sourcing meets international standards we have agreed that the Neo Concept Group shall continue to service its existing portfolio of customers in the Protected Territories that require the additional certifications provided that once NCI Group obtains and provides documentation that the necessary certifications required by a Portfolio Customer have been secured, Neo Concept Group will use its best endeavors to transfer within 45 days the Portfolio Customers to NCI Group. In the event that Neo Concept Group is unable, unsuccessful or a Portfolio Customer is unwilling to transfer its account to NCI Group, then NCI Group shall be entitled to receive the economic benefit inuring to Neo Concept Group from that Portfolio Customer as measured by a royalty of 10% of all sales and services by Neo Concept Group to that Portfolio Customer.

As of the date of this report, we have a total of twenty customers which we provide apparel solution services to, each of which are not current clients of NCH and are therefore protected under the terms of the Agreement. Under the terms of the Agreement, we retain the right to sell to any of NCH's existing portfolio of customers.

However, so long as our Controlling Shareholder continue to control us, we may not be able to bring a legal claim against NCH in the event of contractual breach, notwithstanding our contractual rights under the Agreement described above and other inter-company transactions entered into from time to time.

***Our Controlling Shareholder has significant voting power and may take actions that may not be in the best interests of other shareholders.***

 ****

Our Controlling Shareholder, owns 15.36% of the total issued and outstanding Ordinary Shares, representing 50.03% of the total voting power. Because the Controlling Shareholder will control a majority of our outstanding voting power, we will be a "controlled company" under corporate governance rules for NASDAQ-listed companies. Therefore, the Controlling Shareholder will be able to exert significant control over our management and affairs requiring shareholder approval, including approval of significant corporate transactions. Since the Controlling Shareholder is also a Controlling Shareholder of NCH, which is in direct competition with our business in certain regions and creates potential conflicts of interest, this concentration of ownership may not be in the best interests of all of our shareholders.

***Our Controlling Shareholder's relationship with Neo-Concepts (BVI) Limited may result in strategic business decisions that favor our Controlling Shareholder rather than the interests of our other shareholders.***

 ****

Although our company is a stand-alone company, we expect to operate, for as long as our Controlling Shareholder is our controlling shareholder, as an affiliate of Neo-Concept (BVI) Limited. Our Controlling Shareholder may from time to time make strategic decisions that it believes are in the best interests of Neo-Concept (BVI) Limited as a whole, including our Company. These decisions may be different from the decision that we would have made on our own. Our Controlling Shareholder's decisions with respect to us or our business may be resolved in ways that favor our Controlling Shareholder, which may not coincide with the interests of our other shareholders. We may not be able to resolve any potential conflicts, and even if we do so, the resolution may be less favorable to us than if we were dealing with a non-controlling shareholder. Even if both parties seek to transact business on terms intended to approximate those that could have been achieved among unaffiliated parties, this may not succeed in practice.

***We may have conflicts of interest with our Controlling Shareholder, because of our Controlling Shareholder's controlling ownership interest in our Company, we may not be able to resolve such conflicts on terms favorable to us.***

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Our Controlling Shareholder beneficially owns 15.36% of our outstanding Ordinary Shares and 50.03% of the total voting power. Accordingly, our Controlling Shareholder may have significant influence in determining the outcome of any corporate actions or other matters that require shareholder approval, such as mergers, consolidations, change of our name, and amendments of our memorandum and articles of association.

The concentration of ownership and voting power may cause transactions to occur in a way that may not be beneficial to you as a holder of our Class A Ordinary Shares and may prevent us from doing transactions that would be beneficial to you. Conflicts of interest may arise between our Controlling Shareholder and us in a number of areas relating to our past and ongoing relationships. Potential conflicts of interest that we have identified include the following:

● New customer acquisition. Because both we and NCH, an affiliated company under the common control of our Controlling Shareholder, are engaged in providing apparel solutions services, this potential conflict of interest may limit our ability to attract new clients who are existing customers of NCH therefore impairing our ability to expand our market share which may not be in the best interest of our shareholders.

● Employee recruiting and retention. Because both we and NCH, which is an affiliated company under the common control of our Controlling Shareholder, are engaged in providing apparel solutions services out of Hong Kong, we may compete with our Controlling Shareholder in the hiring of new employees. We entered into an Agreement and have a non-solicitation arrangement that restricts NCH from hiring any of our employees.

● Our board members or executive officers may have conflicts of interest. Our chairlady of the board and chief executive officer, Ms. Eva Yuk Yin Siu and our director, Ms. Man Chi Wai, are also directors in other companies, which include but are not limited to NCH, and engage in businesses such as (i) apparel solution services for customers based in China, North America and Europe, (ii) textile and garment manufacturing, (iii) retail sales of apparel products in China and (iv) other non-apparel related businesses such as retail and wholesale of food and beverages. As a result, they may not have sufficient capacity to perform their duties in NCI. These overlapping relationships could create or appear to create conflicts of interest when these persons are faced with decisions with potentially different implications for our Controlling Shareholder and us.

● Non-competition arrangements with our Controlling Shareholder. We entered into an Exclusive Territory and Non-Competition Agreement with Neo-Concept (BVI) Limited, the holding company of NCH and other subsidiaries engaged in a competing business with our Company, under which Neo-Concept (BVI) Limited agrees not to compete with us in any territories that we operate in, except for owning non-controlling equity interest in any company competing with us and that they can continue to service existing clients during a transitional period.

● Developing business relationships with our NCH's competitors. So long as our Controlling Shareholder remains as our controlling shareholder, we may be limited in our ability to do business with NCH's competitors, such as other contract manufacturers. This may limit our ability to conduct our services for the best interests of NCI and our other shareholders.

***Our dual-class voting structure will limit your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders of our Class B ordinary shares may view as beneficial.***

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We have a dual-class voting structure consisting of Class A ordinary shares and Class B ordinary shares. Based on our dual-class voting structure, holders of Class A ordinary shares will be entitled to one (1) vote per share in respect of matters requiring the votes of shareholders, while holders of Class B ordinary shares will be entitled to thirty (30) votes per share. Due to the disparate voting powers associated with our two classes of ordinary shares, our Controlling Shareholder, Ms. Eva Yuk Yin Siu, who beneficially owns 2,379,011 Class A Ordinary Shares and 526,260 Class B Ordinary Shares, resulting in an aggregate of 2,905,271 Ordinary Shares, or 15.36% of the total issued and outstanding Shares and 50.03% of total voting rights. Their interests may not coincide with your interests, and they may make decisions with which you disagree, including decisions on important topics such as the composition of the board of directors, compensation, management succession, and our business and financial strategy.

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***Our directors and officers may allocate their time to other businesses, thereby causing conflicts of interest in their determination as to how much time to devote to our affairs.***

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Our directors and officers are not required to commit their full time to our affairs, which may result in a conflict of interest in allocating their time between our operations and their other businesses. Our directors and officers are engaged in several other business endeavors and may commit themselves to other entities. Our directors and officers are not obligated to contribute any specific number of hours per week to the Company's affairs. If the other business affairs of our directors and officers require them to devote substantial amounts of time to such affairs in excess of their current commitment levels, it could limit their ability to devote time to the affairs of the Company, which could have a negative impact on our ability to operate efficiently.

In particular, Ms. Siu and Ms. Wai are affiliated with other entities, namely NCH, engaged in business activities similar to those conducted by us. Due to their existing affiliations, Ms. Siu and Ms. Wai may have fiduciary obligations to present potential business opportunities to those entities before presenting them to us, which could cause additional conflicts of interest. We cannot assure you that these conflicts will be resolved in our favor.

You should refer to the section of this report entitled "Management — Conflicts of Interest/Duties of Directors." for a detailed discussion of our directors' other business affairs.

***We rely on dividends and other distributions on equity paid by our subsidiaries to fund our cash and financing requirements, and any limitation on the ability of our subsidiaries to make payments to us could have a material adverse effect on our ability to conduct our business.***

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NCI is a holding company, and we rely on dividends and other distributions on equity paid by our subsidiaries for our cash and financing requirements, including the funds necessary to pay dividends and other cash distributions to our shareholders and to service any debt we may incur. If any one of our subsidiaries incurs debt on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us.

There are no statutory prohibitions in the Cayman Islands on the granting of financial assistance by a company to another person for the purchase of, or subscription for, its own, its holding company's or a subsidiary's shares. Therefore, a company may provide financial assistance provided the directors of the company, when proposing to grant such financial assistance, discharge their duties of care and act in good faith, for a proper purpose and in the interests of the company. Such assistance should be on an arm's-length basis. Subject to a solvency test, as prescribed in the Companies Act, and the provisions, if any, of the company's memorandum and articles of association, a company may pay dividends and distributions out of its share premium account. In addition, based upon English case law which is likely to be persuasive in the Cayman Islands, dividends may be paid out of profits. The Cayman Islands does not impose a withholding tax on payments of dividends to shareholders in the Cayman Islands.

Under Hong Kong law, dividends could only be paid out of distributable profits (that is, accumulated realized profits less accumulated realized losses) or other distributable reserves, as permitted under Hong Kong law. Dividends cannot be paid out of share capital. There are no restrictions or limitation under the laws of Hong Kong imposed on the conversion of HK dollar into foreign currencies and the remittance of currencies out of Hong Kong, nor there is any restriction on foreign exchange to transfer cash between NCI and its subsidiaries, across borders and to U.S investors, nor there is any restrictions and limitations to distribute earnings from our business and subsidiaries to NCI and U.S. investors and amounts owed. Under the current practice of the Inland Revenue Department of Hong Kong, no tax is payable in Hong Kong in respect of dividends paid by us.

According to the BVI Business Companies Act 2004 (as amended), a British Virgin Islands company may make dividends distribution to the extent that immediately after the distribution, the value of the company's assets exceeds its liabilities and that such company is able to pay its debts as they fall due.

Under UK law, no dividend can be paid by a UK company unless (i) the company has sufficient profits available for distribution under the provisions of the UK Companies Act 2006 (as amended) and accounting principles generally accepted in the United Kingdom, and (ii) any applicable restriction(s) or requirement(s) set out in the company's constitution have been complied with.

Any limitation on the ability of our subsidiaries to pay dividends or make other distributions to us could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.

***Our lack of effective internal controls over financial reporting may affect our ability to accurately report our financial results or prevent fraud which may affect the market for and price of our Class A Ordinary Shares.***

Our independent registered public accounting firm is currently not required to conduct an audit of our internal control over financial reporting. In the course of auditing our consolidated financial statements as of December 31, 2025, our management has not received from our independent registered public accounting firm any report regarding deficiencies in our internal controls over financial reporting.

We have implemented measures designed to improve our internal control over financial reporting to address the underlying causes of these material weaknesses, including appointment of independent Directors and establishment of an audit committee aiming to strengthen corporate governance.

We will be subject to the requirement that we maintain internal controls and that management perform periodic evaluation of the effectiveness of our internal controls. Effective internal control over financial reporting is important to prevent fraud. As a result, our business, financial condition, results of operations and prospects, as well as the market for and trading price of our Class A Ordinary Shares, may be materially and adversely affected if we do not have effective internal controls. We may not discover any problems in a timely manner and in such an event our shareholders could lose confidence in our financial reporting, which would harm our business and the trading price of our Class A Ordinary Shares. The absence of internal controls over financial reporting may inhibit investors from purchasing our Class A Ordinary Shares and may make it more difficult for us to raise funds in debt or equity financing. Additional material weaknesses or significant deficiencies may be identified in the future. If we identify such issues or if we are unable to produce accurate and timely financial statements, our stock price may decline, and we may be unable to maintain compliance with the Nasdaq Listing Rules.

**Risks Relating to Doing Business in Jurisdictions in which the Operating Subsidiaries Operate**

***Our key operations are in Hong Kong. However, due to long arm provisions under the current PRC laws and regulations, the Chinese government may exercise significant oversight and discretion over the conduct of our business and may intervene in or influence our operations at any time, which could result in a material change in our operations and/or the value of our Class A Ordinary Shares. Changes in the policies, regulations, rules, and the enforcement of laws of the Chinese government may also be quick with little advance notice and our assertions and beliefs of the risk imposed by the PRC legal and regulatory system cannot be certain.***

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NCI is a holding company, and we conduct our operations in Hong Kong through our operating subsidiary, Neo-Concept HK. As at the date of this report, we are not materially affected by recent statements by the Chinese Government indicating an intention to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers. However, due to long arm provisions in the current PRC laws and regulations, there remains regulatory uncertainty with respect to the implementation and interpretation of laws in China as they may affect Hong Kong. The PRC government may choose to exercise additional oversight and discretion over Hong Kong, and the policies, regulations, rules, and the enforcement of laws of the Chinese government to which we are subject may change rapidly with little advance notice to us or our shareholders. As a result, the application, interpretation, and enforcement of new and existing laws and regulations in the PRC and our assertions and beliefs of the risk imposed by the PRC legal and regulatory system are by their very nature uncertain. In addition, these PRC laws and regulations may be interpreted and applied inconsistently by different agencies or authorities, which may result in inconsistency with our current policies and practices. New laws, regulations, and other government directives in the PRC may also be costly to comply with, and such compliance or any associated inquiries or investigations or any other government actions may:

● delay or impede our development;

● result in negative publicity or increase our operating costs;

● require significant management time and attention; and

● subject us to remedies, administrative penalties and even criminal liabilities that may harm our business, including fines assessed for our current or historical operations, or demands or orders that we modify or even cease our business practices.

We are aware that recently, the PRC government initiated a series of regulatory actions and statements to regulate business operations in certain areas in China with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas using a VIE structure, adopting new measures to extend the scope of cybersecurity reviews and expanding the efforts in anti-monopoly enforcement. Since these statements and regulatory actions are new, it is highly uncertain how soon the PRC legislative or administrative regulation making bodies will respond or what existing or new laws or regulations or detailed implementations and interpretations will be modified or promulgated, if any, or what the potential impact that any such modified or new laws and regulations would have on our daily business operation, the ability to accept foreign investments and list on an U.S. or other foreign exchange.

The Chinese government may intervene or influence our operations at any time and may exert more control over offerings conducted overseas and foreign investment in China-based issuers, which may result in a material change in our operations and/or the value of our Class A Ordinary Shares. The promulgation of new laws or regulations, or the new interpretation of existing laws and regulations, in each case, that restrict or otherwise unfavorably impact our ability to conduct our business could require us to change certain aspects of our business to ensure compliance, decrease demand for our services, reduce revenues, increase costs, require us to obtain more licenses, permits, approvals or certificates, or subject us to additional liabilities. To the extent any new or more stringent measures are implemented, our business, financial condition and results of operations could be adversely affected, and the value of our Class A Ordinary Shares could decrease or become worthless.

***If the Chinese government chooses to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China based issuers, such action may significantly limit or completely hinder our ability to offer or continue to offer Class A Ordinary Shares to investors and cause the value of our Class A Ordinary Shares to significantly decline or be worthless.***

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Recent statements by the Chinese government have indicated an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investments in China-based issuers. On July 6, 2021, the General Office of the Communist Party of China Central Committee and the General Office of the State Council jointly issued a document to crack down on illegal activities in the securities market and promote the high-quality development of the capital market, which, among other things, requires the relevant governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation, to enhance supervision over China-based companies listed overseas, and to establish and improve the system of extraterritorial application of the PRC securities laws. Furthermore, on December 28, 2021, the CAC jointly with the relevant authorities published the Measures for Cybersecurity Review (2021), or the "Review Measures 2021", which took effect on February 15, 2022, and replaced the Measures for Cybersecurity Review (2020) issued on April 13, 2020. Review Measures 2021 stipulates that operators of critical information infrastructure purchasing network products and services, and online platform operators carrying out data processing activities that affect or may affect national security, shall conduct a cybersecurity review, and any online platform operator who controls more than one million users' personal information must apply for a cybersecurity review by the cybersecurity review office if it seeks to be listed in a foreign country. Based on a set of Q&As published on the official website of the State Cipher Code Administration in connection with the issuance of the Review Measures 2021, an official of the said administration indicated that an online platform operator should apply for a cybersecurity review prior to the submission of its listing application with non-PRC securities regulators. Moreover, the CAC released the draft of the Regulations on Network Data Security Management in November 2021 for public consultation, which among other things, stipulates that a data processor listed overseas must conduct an annual data security review by itself or by engaging a data security service provider and submit the annual data security review report for the previous year to the municipal cybersecurity department before January 31 of the following year. Given the recency of the issuance of the Review Measures 2021 and the pending effectiveness of the Regulations on Network Data Security Management, there is a general lack of guidance and substantial uncertainties exist with respect to their interpretation and implementation.

It remains unclear whether a Hong Kong company shall be subject to the Review Measures 2021. But we believe our HK subsidiary is neither a "critical information infrastructure" operator nor an online platform operator as defined in the Review Measures 2021, that are required to file for cybersecurity review before listing in the U.S., because (i) Neo-Concept HK is incorporated and operating in Hong Kong and the Review Measures 2021 remains unclear whether it shall be applied to a Hong Kong company; (ii) Neo-Concept HK operates without any subsidiary or VIE structure in mainland China; (iii) as of date of this report, Neo-Concept HK has not collected and stored any personal information of PRC individual client; and (vi) as of the date of this report, Neo-Concept HK has not been informed by any PRC governmental authority of any requirement that it files for a cybersecurity review. However, there remains significant uncertainty in the interpretation and enforcement of relevant PRC cybersecurity laws and regulations. If Neo-Concept HK is deemed an "operator of critical information infrastructure" or an "online platform operator" as defined in the Review Measures 2021, Neo-Concept HK's operation and the listing of our Class A Ordinary Shares in the U.S. could be subject to CAC's cybersecurity review in the future.

On February 17, 2023, the CSRC released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies, or the Trial Measures, which came into effect on March 31, 2023. On the same date of the issuance of the Trial Measures, the CSRC circulated No. 1 to No. 5 Supporting Guidance Rules, the Notes on the Trial Measures, the Notice on Administration Arrangements for the Filing of Overseas Listings by Domestic Enterprises and the relevant CSRC Answers to Reporter Questions on the official website of the CSRC, or collectively, the Guidance Rules and Notice. The Trial Measures, together with the Guidance Rules and Notice, reiterate the basic supervision principles as reflected in the Draft Overseas Listing Regulations by providing substantially the same requirements for filings of overseas offering and listing by domestic companies, yet made the following updates compared to the Draft Overseas Listing Regulations: (a) further clarification of the circumstances prohibiting overseas issuance and listing; (b) further clarification of the standard of indirect overseas listing under the principle of substance over form, and (c) adding more details of filing procedures and requirements by setting different filing requirements for different types of overseas offering and listing. Pursuant to the Trial Measures, the Guidance Rules and Notice, domestic companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedure and report relevant information to the CSRC within three working days following its submission of initial public offerings or listing application. On December 28, 2021, the CAC jointly with the relevant authorities formally published Measures for Cybersecurity Review (2021) which took effect on February 15, 2022 and replaced the former Measures for Cybersecurity Review (2020) issued on April 13, 2020. Measures for Cybersecurity Review (2021) stipulates that operators of critical information infrastructure purchasing network products and services, and online platform operators carrying out data processing activities that affect or may affect national security, shall conduct a cybersecurity review, and any online platform operator who controls more than one million users' personal information must go through a cybersecurity review by the cybersecurity review office if it seeks to be listed in a foreign country.

The Company understands that as of the date of this report, the Group has no operations in Mainland China and is not required to complete filing procedures with the CSRC pursuant to the requirements of the Trial Measures. While the Group has no current operations in Mainland China, should we have any future operations in Mainland China and should we (i) fail to receive or maintain such permissions or approvals, (ii) inadvertently conclude that such permissions or approvals are not required, or (iii) applicable laws, regulations, or interpretations change and require us to obtain such permissions or approvals in the future, we may face sanctions by the CSRC, the Cyberspace Administration of China (the "CAC") or other PRC regulatory agencies. These regulatory agencies may also impose fines and penalties on our operations in China, as well as limit our ability to pay dividends outside of China, limit our operations in China, delay or restrict the repatriation of the proceeds from our IPO or other offerings into China or take other actions that could have a material adverse effect on our business as well as the trading price of our Class A Ordinary Shares. We may be required to restructure our operations to comply with such regulations or potentially cease operations in the PRC entirely. The CSRC, the CAC or other PRC regulatory agencies also may take actions requiring us, or making it advisable for us, to halt our future offerings before settlement and delivery of our Class A Ordinary Shares. In addition, if the CSRC, the CAC or other regulatory PRC agencies later promulgate new rules requiring that we obtain their approvals for our offerings, we may be unable to obtain a waiver of such approval requirements, if and when procedures are established to obtain such a waiver. Any action taken by the PRC government could significantly limit or completely hinder our operations in the PRC and our ability to offer or continue to offer securities to investors and could cause the value of such securities to significantly decline or be worthless.

As of the date of this report, neither NCI nor any of our subsidiaries are required to obtain any permission or approval from Hong Kong authorities to operate our business. Based on management's internal assessment that the Company and its subsidiaries currently have no material operations in the PRC, the Management understands that as of the date of this report, the Company is not required to obtain any permissions or approvals from PRC authorities before listing in the U.S. and to issue our Class A Ordinary Shares to foreign investors, including the CAC or the CSRC because (i) the CSRC currently has not issued any definitive rule or interpretation concerning whether offerings like our IPO are subject to this regulation; and (ii) the Company operates in Hong Kong and is not included in the categories of industries and companies whose foreign securities offerings are subject to review by the CSRC or the CAC. We also understand that NCA, Neo-Concept HK and Neo-Concept UK are not required to obtain any permissions or approvals from any Chinese authorities to operate their businesses as of the date of this report. No permissions or approvals have been applied for by the Company or denied by any relevant authorities. However, uncertainties still exist, due to the possibility that laws, regulations, or policies in the PRC could change rapidly in the future.

In the event that (i) the PRC government expanded the categories of industries and companies whose foreign securities offerings are subject to review by the CSRC or the CAC that we are required to obtain such permissions or approvals; or (ii) we inadvertently concluded that relevant permissions or approvals were not required or that we did not receive or maintain relevant permissions or approvals required, any action taken by the PRC government could significantly limit or completely hinder our operations in Hong Kong and our ability to offer or continue to offer securities to investors and could cause the value of such securities to significantly decline or become worthless.

***The Hong Kong legal system embodies uncertainties which could limit the legal protections available to Our Operating Subsidiaries.***

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Hong Kong is a Special Administrative Region ("SAR") of the PRC. Following British colonial rule from 1842 to 1997, China assumed sovereignty under the "one country, two systems" principle. The Hong Kong SAR's constitutional document, the Basic Law, ensures that the current political situation will remain in effect for 50 years. Hong Kong has enjoyed the freedom to function with a high degree of autonomy for its affairs, including currencies, immigration and customs operations, and its independent judiciary system and parliamentary system. On July 14, 2020, the United States signed an executive order to end the special status enjoyed by Hong Kong post-1997. As the autonomy currently enjoyed may be compromised, it could potentially impact Hong Kong's common law legal system and may, in turn, bring about uncertainty in, for example, the enforcement of our contractual rights. This could, in turn, materially and adversely affect our business and operations. Additionally, intellectual property rights and confidentiality protections in Hong Kong may not be as effective as in the United States or other countries. Accordingly, we cannot predict the effect of future developments in the Hong Kong legal system, including the promulgation of new laws, changes to existing laws or the interpretation or enforcement thereof, or the pre-emption of local regulations by national laws. These uncertainties could limit the legal protections available to us, including our ability to enforce our agreements with our clients.

***Although the audit report included in this report is prepared by U.S. auditors who are currently inspected by the PCAOB, there is no guarantee that future audit reports will be prepared by auditors inspected by the PCAOB and, as such, in the future, investors may be deprived of the benefits of such inspection. Furthermore, trading in our securities may be prohibited under the HFCAA if the SEC subsequently determines our audit work is performed by auditors that the PCAOB is unable to inspect or investigate completely, and as a result, U.S. national securities exchanges, such as the Nasdaq, may determine to delist our securities. Furthermore, on December 23, 2022, the Accelerating Holding Foreign Companies Accountable Act was enacted, which amended the HFCAA by requiring the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time before the securities may be prohibited from trading or delisted.***

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As an auditor of companies that are registered with the SEC and publicly traded in the United States and a firm registered with the PCAOB, our auditor is required under the laws of the United States to undergo regular inspections by the PCAOB to assess their compliance with the laws of the United States and professional standards. The PCAOB is currently unable to conduct inspections without the approval of the Chinese government authorities. Currently, our U.S. auditor is inspected by the PCAOB, and we have no operations in mainland China. However, if there is significant change to current political arrangements between mainland China and Hong Kong, companies operating in Hong Kong like us may face similar regulatory risks as those operated in PRC and we cannot assure you that our auditor's work will continue to be able to be inspected by the PCAOB.

Inspections of other auditors conducted by the PCAOB outside mainland China have at times identified deficiencies in those auditors' audit procedures and quality control procedures, which may be addressed as part of the inspection process to improve future audit quality. The lack of PCAOB inspections of audit work undertaken in mainland China prevents the PCAOB from regularly evaluating auditors' audits and their quality control procedures. As a result, if there is any component of our auditor's work papers become located in mainland China in the future, such work papers will not be subject to inspection by the PCAOB. As a result, investors would be deprived of such PCAOB inspections, which could result in limitations or restrictions to our access of the U.S. capital markets.

As part of a continued regulatory focus in the United States on access to audit and other information currently protected by national law, in particular mainland China's, in June 2019, a bipartisan group of lawmakers introduced bills in both houses of the U.S. Congress which, if passed, would require the SEC to maintain a list of issuers for which PCAOB is not able to inspect or investigate the audit work performed by a foreign public accounting firm completely. The proposed Ensuring Quality Information and Transparency for Abroad-Based Listings on our Exchanges ("EQUITABLE") Act prescribes increased disclosure requirements for these issuers and, beginning in 2025, the delisting from U.S. national securities exchanges, such as the Nasdaq, of issuers included on the SEC's list for three consecutive years. It is unclear if this proposed legislation will be enacted. Furthermore, there have been recent deliberations within the U.S. government regarding potentially limiting or restricting China-based companies from accessing U.S. capital markets.

On May 20, 2020, the U.S. Senate passed the HFCAA, which includes requirements for the SEC to identify issuers whose audit work is performed by auditors that the PCAOB is unable to inspect or investigate completely because of a restriction imposed by a non-U.S. authority in the auditor's local jurisdiction. The U.S. House of Representatives passed the HFCAA on December 2, 2020, and the HFCAA was signed into law on December 18, 2020. Additionally, in July 2020, the U.S. President's Working Group on Financial Markets issued recommendations for actions that can be taken by the executive branch, the SEC, the PCAOB or other federal agencies and department with respect to Chinese companies listed on U.S. stock exchanges and their audit firms, in an effort to protect investors in the United States. In response, on November 23, 2020, the SEC issued guidance highlighting certain risks (and their implications to U.S. investors) associated with investments in China-based issuers and summarizing enhanced disclosures the SEC recommends China-based issuers make regarding such risks.

On March 24, 2021, the SEC adopted interim final rules relating to the implementation of certain disclosure and documentation requirements in the HFCAA. On December 2, 2021, the SEC adopted amendments to finalize rules implementing the submission and disclosure requirements in the HFCAA. The rules apply to registrants that the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that PCAOB is unable to inspect or investigate. We will be required to comply with these rules if the SEC identifies us as having a "non-inspection" year under a process to be subsequently established by the SEC. The final amendments require any identified registrant to submit documentation to the SEC establishing that the registrant is not owned or controlled by a government entity in the public accounting firm's foreign jurisdiction, and also require, among other things, disclosure in the registrant's annual report regarding the audit arrangements of, and government influence on, such registrants. Under the HFCAA, our securities may be prohibited from trading on the Nasdaq or other U.S. stock exchanges if our auditor is not inspected by the PCAOB for three consecutive years, and this ultimately could result in our Class A Ordinary Shares being delisted.

On June 22, 2021, the U.S. Senate passed the AHFCAA, which was enacted on December 23, 2022, amending the HFCAA to require the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus, reducing the time before our Class A Ordinary Shares may be prohibited from trading or delisted. On December 29, 2022, legislation titled "Consolidated Appropriations Act, 2023" (the "Consolidated Appropriations Act"), was signed into law by President Biden. The Consolidated Appropriations Act contained, among other things, an identical provision to AHFCAA, which reduces the number of consecutive non-inspection years required for triggering the prohibitions under the HFCAA from three years to two.

On September 22, 2021, the PCAOB adopted a final rule implementing the HFCAA, which provides a framework for the PCAOB to use when determining, as contemplated under the HFCAA, whether the Board is unable to inspect or investigate completely registered public accounting firms located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction.

On November 5, 2021, the SEC approved the PCAOB's Rule 6100, Board Determinations Under the Holding Foreign Companies Accountable Act. Rule 6100 provides a framework for the PCAOB to use when determining, as contemplated under the HFCAA, whether it is unable to inspect or investigate completely registered public accounting firms located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction.

On December 2, 2021, the SEC issued amendments to finalize rules implementing the submission and disclosure requirements in the HFCAA. The rules apply to registrants that the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that PCAOB is unable to inspect or investigate completely because of a position taken by an authority in foreign jurisdictions ("Commission-Identified Issuers"). The final amendments require Commission-Identified Issuers to submit documentation to the SEC establishing that, if true, it is not owned or controlled by a governmental entity in the public accounting firm's foreign jurisdiction. The amendments also require that a Commission-Identified Issuer that is a "foreign issuer," as defined in Exchange Act Rule 3b-4, provide certain additional disclosures in its annual report for itself and any of its consolidated foreign operating entities. Further, the release provides notice regarding the procedures the SEC has established to identify issuers and to impose trading prohibitions on the securities of certain Commission-Identified Issuers, as required by the HFCAA. The SEC will identify Commission-Identified Issuers for fiscal years beginning after December 18, 2020. A Commission-Identified Issuer will be required to comply with the submission and disclosure requirements in the annual report for each year in which it was identified. If a registrant is identified as a Commission-Identified Issuer based on its annual report for the fiscal year ended December 31, 2021, the registrant will be required to comply with the submission or disclosure requirements in its annual report filing covering the fiscal year ended December 31, 2022. The final amendments became effective on January 10, 2022.

On December 16, 2021, the PCAOB issued a report on its determinations that it was unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in Mainland China and in Hong Kong, because of positions taken by PRC authorities in those jurisdictions. The PCAOB made its determinations pursuant to PCAOB Rule 6100, which provides a framework for how the PCAOB fulfills its responsibilities under the HFCAA. The report further listed in its Appendix A and Appendix B, Registered Public Accounting Firms Subject to the Mainland China Determination and Registered Public Accounting Firms Subject to the Hong Kong Determination, respectively. Our auditor, WWC, P.C. is headquartered in San Mateo, California, and did not appear as part of the report under the lists in its appendix A or appendix B.

On August 26, 2022, the CSRC, the MOF, and the PCAOB signed a Statement of Protocol (the "Protocol") to allow the PCAOB to inspect and investigate completely registered public accounting firms headquartered in mainland China and Hong Kong, consistent with the HFCAA, and the PCAOB will be required to reassess its determinations by the end of 2022. Pursuant to the fact sheet with respect to the Protocol disclosed by the SEC, the PCAOB shall have independent discretion to select any issuer audits for inspection or investigation and has the unfettered ability to transfer information to the SEC.

On December 15, 2022, the PCAOB announced that it was able to secure complete access to inspect and investigate PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong completely in 2022. The PCAOB Board vacated its previous 2021 determinations that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. However, whether the PCAOB will continue to be able to satisfactorily conduct inspections of PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong is subject to uncertainties and depends on a number of factors out of our and our auditor's control. The PCAOB continues to demand complete access in mainland China and Hong Kong moving forward and is making plans to resume regular inspections in early 2023 and beyond, as well as to continue pursuing ongoing investigations and initiate new investigations as needed. The PCAOB has also indicated that it will act immediately to consider the need to issue new determinations with the HFCAA if needed.

If the PCAOB is unable to inspect and investigate completely registered public accounting firms located in China in 2023 and beyond, or if we fail to, among others, meet the PCAOB's requirements, including retaining a registered public accounting firm that the PCAOB determines it is able to inspect and investigate completely, we will be identified as a "Commission-identified Issuer," and upon the expiration of the applicable years of non-inspection under the HFCAA and relevant regulations, the Class A Ordinary Shares will be delisted and will not be permitted for trading over the counter. Such a delisting or prohibition would substantially impair your ability to sell or purchase the Class A Ordinary Shares, and the risk and uncertainty associated with delisting would have a negative impact on the price of the Class A Ordinary Shares. Moreover, the HFCAA or other efforts to increase U.S. regulatory access to audit information could cause investor uncertainty for affected issuers, including us, and the market price of the Class A Ordinary Shares could be adversely affected. Such a prohibition would significantly affect our ability to raise capital on terms acceptable to us, or at all, which would have a material adverse impact on our business, financial condition, and prospects.

The SEC is assessing how to implement other requirements of the HFCAA, including the listing and trading prohibition requirements described above. Future developments in respect of increasing U.S. regulatory access to audit information are uncertain, as the legislative developments are subject to the legislative process and the regulatory developments are subject to the rule-making process and other administrative procedures.

While the CSRC, the MOF and the PCAOB have entered into the SOP Agreements regarding the inspection of PCAOB-registered accounting firms in mainland China, there can be no assurance that we will be able to comply with requirements imposed by U.S. regulators if there is significant change to current political arrangements between mainland China and Hong Kong, or if any component of our auditor's work papers become located in mainland China in the future. Delisting of our Class A Ordinary Shares would force holders of our Class A Ordinary Shares to sell their Class A Ordinary Shares. The market price of our Class A Ordinary Shares could be adversely affected as a result of anticipated negative impacts of these executive or legislative actions upon, regardless of whether these executive or legislative actions are implemented and regardless of our actual operating performance.

***The recent joint statement by the SEC, proposed rule changes submitted by Nasdaq, and an act passed by the U.S. Senate and the U.S. House of Representatives, all call for additional and more stringent criteria to be applied to emerging market companies. These developments could add uncertainties to our future offerings, business operations, share price and reputation.***

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U.S. public companies that have substantially all of their operations in China (including in Hong Kong) have been the subject of intense scrutiny, criticism and negative publicity by investors, financial commentators and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and negative publicity has centered on financial and accounting irregularities and mistakes, a lack of effective internal controls over financial accounting, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud.

On December 7, 2018, the SEC and the PCAOB issued a joint statement highlighting continued challenges faced by the U.S. regulators in their oversight of financial statement audits of U.S.-listed companies with significant operations in China. On April 21, 2020, SEC Chairman Jay Clayton and PCAOB Chairman William D. Duhnke III, along with other senior SEC staff, released a joint statement highlighting the risks associated with investing in companies based in or have substantial operations in emerging markets including China, reiterating past SEC and PCAOB statements on matters including the difficulty associated with inspecting accounting firms and audit work papers in China and higher risks of fraud in emerging markets and the difficulty of bringing and enforcing SEC, Department of Justice and other U.S. regulatory actions, including in instances of fraud, in emerging markets generally.

On May 20, 2020, the U.S. Senate passed the HFCAA, which includes requirements for the SEC to identify issuers whose audit work is performed by auditors that the PCAOB is unable to inspect or investigate completely because of a restriction imposed by a non-U.S. authority in the auditor's local jurisdiction. The U.S. House of Representatives passed the HFCAA on December 2, 2020, and the HFCAA was signed into law on December 18, 2020. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, enacted on December 23, 2022, amending the HFCAA to require the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time before our Class A Ordinary Shares may be prohibited from trading or delisted.

On May 21, 2021, Nasdaq filed three proposals with the SEC to (i) apply minimum offering size requirement for companies primarily operating in a "Restrictive Market", (ii) prohibit Restrictive Market companies from directly listing on Nasdaq Capital Market, and only permit them to list on Nasdaq Global Select or Nasdaq Global Market in connection with a direct listing and (iii) apply additional and more stringent criteria to an applicant or listed company based on the qualifications of the company's auditors.

As a result of these scrutiny, criticism and negative publicity, the publicly traded stock of many U.S. listed Chinese companies sharply decreased in value and, in some cases, has become virtually worthless. Many of these companies are now subject to shareholder lawsuits and SEC enforcement actions and are conducting internal and external investigations into the allegations. It is not clear what effect this sector-wide scrutiny, criticism and negative publicity will have on us, our future offerings, business and our share price. If we become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we will have to expend significant resources to investigate such allegations and/or defend our company. This situation will be costly and time consuming and distract our management from developing our growth. If such allegations are not proven to be groundless, we and our business operations will be severely affected and you could sustain a significant decline in the value of our share.

***The enactment of the Law of the PRC on Safeguarding National Security in the Hong Kong Special Administrative Region (the "Hong Kong National Security Law") could impact our Hong Kong subsidiary, which represents substantially all of our business.***

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On June 30, 2020, the Standing Committee of the PRC National People's Congress adopted the Hong Kong National Security Law. This law defines the duties and government bodies of the Hong Kong National Security Law for safeguarding national security and four categories of offenses — secession, subversion, terrorist activities, and collusion with a foreign country or external elements to endanger national security — and their corresponding penalties. On July 14, 2020, the former U.S. President Donald Trump signed the Hong Kong Autonomy Act, or HKAA, into law, authorizing the U.S. administration to impose blocking sanctions against individuals and entities who are determined to have materially contributed to the erosion of Hong Kong's autonomy. On August 7, 2020, the U.S. government imposed HKAA-authorized sanctions on eleven individuals, including former HKSAR chief executive Carrie Lam. On October 14, 2020, the U.S. State Department submitted to relevant committees of Congress the report required under HKAA, identifying persons materially contributing to "the failure of the Government of China to meet its obligations under the Joint Declaration or the Basic Law." The HKAA further authorizes secondary sanctions, including the imposition of blocking sanctions, against foreign financial institutions that knowingly conduct a significant transaction with foreign persons sanctioned under this authority. The imposition of sanctions may directly affect the foreign financial institutions as well as any third parties or customers dealing with any foreign financial institution that is targeted. It is difficult to predict the full impact of the Hong Kong National Security Law and HKAA on Hong Kong and companies located in Hong Kong, which represents substantially all of our business. If our subsidiaries are determined to be in violation of the Hong Kong National Security Law or the HKAA by competent authorities, our business operations, financial position, and results of operations could be materially and adversely affected.

***If we become subject to the recent scrutiny, criticism and negative publicity involving U.S.-listed China-based companies, we may have to expend significant resources to investigate and/or defend the matter which could harm our business operations, any future offerings and our reputation and could result in a loss of your investment in our Class A Ordinary Shares, in particular if such matter cannot be addressed and resolved favorably.***

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During the last several years, U.S. listed public companies that have substantially all of their operations in China have been the subject of intense scrutiny by investors, financial commentators and regulatory agencies. Much of the scrutiny has centered on financial and accounting irregularities and mistakes, lack of effective internal controls over financial reporting and, in many cases, allegations of fraud. As a result of the scrutiny, the publicly traded stock of many U.S.-listed Chinese companies that have been the subject of such scrutiny has sharply decreased in value. Many of these companies are now subject to shareholder lawsuits and/or SEC enforcement actions that are conducting internal and/or external investigations into the allegations.

If we become the subject of any such scrutiny, whether any allegations are true or not, we may have to expend significant resources to investigate such allegations and/or defend the Company. Such investigations or allegations would be costly and time-consuming and likely would distract our management from our normal business and could result in our reputation being harmed. Our stock price could decline because of such allegations, even if the allegations are false.

***There are political risks associated with conducting business in Hong Kong.***

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Any adverse economic, social and/or political conditions, material social unrest, strike, riot, civil disturbance, or disobedience, as well as significant natural disasters, may affect the market may adversely affect the business operations of the Company. Hong Kong is a special administrative region of the PRC and the basic policies of the PRC regarding Hong Kong are reflected in the Basic Law, namely, Hong Kong's constitutional document, which provides Hong Kong with a high degree of autonomy and executive, legislative and independent judicial powers, including that of final adjudication under the principle of "one country, two systems". However, there is no assurance that there will not be any changes in the economic, political, and legal environment in Hong Kong in the future. Since our operation is based in Hong Kong, any change of such political arrangements may pose immediate threat to the stability of the economy in Hong Kong, thereby directly and adversely affecting our results of operations and financial positions.

Under the Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China, Hong Kong is exclusively in charge of its internal affairs and external relations while the government of the PRC is responsible for its foreign affairs and defense. As a separate customs territory, Hong Kong maintains and develops relations with foreign states and regions. Based on certain recent development including the Hong Kong National Security Law issued by the Standing Committee of the PRC National People's Congress in June 2020, the U.S. State Department has indicated that the United States no longer considers Hong Kong to have significant autonomy from China and at the time President Trump signed an executive order and Hong Kong Autonomy Act, or HKAA, to remove Hong Kong's preferential trade status and to authorize the U.S. administration to impose blocking sanctions against individuals and entities who are determined to have materially contributed to the erosion of Hong Kong's autonomy. The United States may impose the same tariffs and other trade restrictions on exports from Hong Kong that it places on goods from mainland China. These and other recent actions may represent an escalation in political and trade tensions involving the U.S., China, and Hong Kong, which could potentially harm our business.

Given the relatively small geographical size of Hong Kong, any of such incidents may have a widespread effect on our business operations, which could in turn adversely and materially affect our business, results of operations and financial condition. It is difficult to predict the full impact of the HKAA on Hong Kong and companies with operations in Hong Kong like us. Furthermore, legislative, or administrative actions in respect of China-U.S. relations could cause investor uncertainty for affected issuers, including us, and the market price of our Class A Ordinary Shares could be adversely affected.

***Changes in international trade policies, trade disputes, barriers to trade, or the emergence of a trade war may dampen growth in markets where the majority of our customers reside.***

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Political events, international trade disputes, and other business interruptions could harm or disrupt international commerce and the global economy and could have a material adverse effect on us and our customers, our service providers, and our other partners. International trade disputes could result in tariffs and other protectionist measures which may materially and adversely affect our business.

Tariffs could increase the cost of the services and products which could affect customers' investment decisions. In addition, political uncertainty surrounding international trade disputes and the potential of their escalation to trade war and global recession could have a negative effect on customer confidence, which could materially and adversely affect our business. We may have also access to fewer business opportunities, and our operations may be negatively impacted as a result. In addition, the current and future actions, or escalations by either the United States or China that affect trade relations may cause global economic turmoil and potentially have a negative impact on our markets, our business, or our results of operations, as well as the financial condition of our clients, and we cannot provide any assurances as to whether such actions will occur or the form that they may take.

***Fluctuations in exchange rates could have a material and adverse effect on our results of operations and the value of your investment.***

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Our revenues and expenses will be denominated predominantly in Hong Kong dollars. Although the exchange rate between the Hong Kong dollar to the U.S. dollar has been pegged since 1983, we cannot assure you that the Hong Kong dollar will remain pegged to the U.S. dollar. Any significant fluctuations in the exchange rates between Hong Kong dollars to U.S. dollars may have a material adverse effect on our revenue and financial condition. We have not used any forward contracts, futures, swaps or currency borrowings to hedge our exposure to foreign currency risk.

**Risks Relating to Our Business and Industry**

***We rely on one major customer, and if we fail to attract new customers, retain existing customers, or maintain or increase sales to customers, our business, financial condition, results of operations, and growth prospects will be harmed.***

We rely on one major customer which contributed approximately 8.7%, 41.0% and 71.3% of our total revenues for the years ended December 31, 2025, 2024 and 2023, respectively. We do not have long-term agreements with any of our top five customers and their purchases are made on an order-by-order basis. Our business with our customers has been, and we expect it will continue to be, conducted based on the actual orders received from time to time. Our customers are not obligated in any way to continue placing orders with us at the same or increasing levels, or at all. Our customers level of demand for our apparel products may fluctuate significantly from period to period. Such fluctuation is attributable mainly to changes in customer demand, including their business strategies, operational needs, product portfolio and interpretation of fashion trends. The loss of our principal customer, or if we are unable to attract new customers or if our existing customers decrease their spending on the products we offer, fail to make repeat purchases of our products, will harm our business, financial condition, results of operations, and growth prospects.

***We may be unable to timely and accurately respond to changes in fashion trends and consumer preferences.***

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We are a provider of one-stop apparel solution services, and we offer in-house product design services to our customers. We also engage in the retail sales of apparel products to consumers. We must stay abreast of emerging consumer preferences and anticipate product trends that will appeal to existing and potential consumers. We believe that our success is, to an important extent, attributable to the ability of our design and product development personnel to design apparel products that are responsive to changes in consumer preferences. Due to the highly subjective nature of the fashion trends and the rapid change in fashion trends for apparels as well as the preferences of our customers and consumers, we may be unable to capture or predict the future fashion trend and continue to develop appealing designs for our customers. If we fail to capture, predict, or respond timely to changes in market preferences and introduce appealing and commercially viable apparel designs in a timely manner, our customers may choose to work with our competitors with market-sensitive designs or purchase products from our competitors.

***Our focus on using sustainable materials and environmentally friendly manufacturing processes and supply chain practices may increase our cost of doing business and hinder our growth.***

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We are dedicated to prioritizing sustainable materials, an environmentally friendly supply chain, and manufacturing processes that collectively limit our environmental footprint. As our business expands, it may be increasingly challenging to cost-effectively secure enough sustainably sourced materials to support our growth and achieve our sustainability goals while also achieving and maintaining profitability. In addition, our ability to expand into new product categories or expand our existing product mix with our core customers depends in part on our ability to identify new sustainable materials that are suitable for our products. Our inability to source materials that meet our sustainability requirements in sufficient volumes could result in slower growth, increased costs, and/or lower net profits. Additionally, as our business expands, we may not be able to identify suppliers and manufacturers with business practices that reflect our commitment to sustainability, which may harm our ability to expand our supply chain to meet the expected growth of our business. If any of these factors prevent us from meeting our sustainability goals or increase the carbon footprint of any our products, then it could have an adverse effect on our brand, reputation, results of operations, and financial condition.

***The enactment in the U.S. of the Uyghur Forced Labor Prevention Act (the "UFLPA") and similar pending legislation in the territories in which our subsidiaries operate could have material adverse effect on our ability to conduct our business.***

The UFLPA prohibits on the importation of goods into the United States manufactured wholly or in part with forced labor in the PRC, especially from the Xinjiang Uyghur Autonomous Region ("Xinjiang"). It establishes a rebuttable presumption that the importation of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in Xinjiang are not entitled to entry to the U.S. and requires the importer of record to comply with specified conditions and, by clear and convincing evidence, that the goods, wares, articles, or merchandise were not produced using forced labor. Our contract manufacturers are located in the PRC, and whereas 84% of Chinese cotton comes from Xinjiang.

Governments in the other territories where the company operates (the UK, the EU and Canada) are advancing similar measures to address the risk of goods produced from forced labor from any country from entering the global supply chains in order to ensure that their businesses are not complicit in forced labor in Xinjiang, there is an extraordinarily high risk that the yarn, textiles, and garments made with Chinese cotton are tainted with forced and prison labor. Violations of the UFLPA can empower U.S. Customs and Border Protection to detain, exclude or seize goods and assess monetary penalties.

The failure of the Company's supply chain management system to rebut the presumption that its products are tainted with forced or prison labor could materially and adversely affect our business operations, financial position, and results of operations.

***We rely on two principal suppliers for supplies of raw materials, manufacturing services and logistics services.***

The apparel products sold or sourced by us during the years ended December 31, 2025, 2024 and 2023, were mainly produced by two contract manufacturers, one of which is our affiliated company. During the years ended December 31, 2025, 2024 and 2023, our two contract manufacturers together accounted for 100.0%, 98.5% and 93.9% of our total purchases, respectively. We engage contract manufacturer on an individual project basis and rely on third party service providers for services including sourcing of materials and provision of logistics services for the finished goods. We do not enter into any long-term contracts with our suppliers, and the terms of services provided by them may be susceptible to fluctuations with regard to pricing, timing and quality. Business relationships with our key suppliers could deteriorate, and existing procurement arrangements could change without advance notice. Increases in raw material prices resulting in higher procurement costs being incurred by our contract manufacturer, may be passed onto us as part of the overall production service costs. Recent inflationary pressures have affected the procurement cost of certain raw materials used in our apparel products. While we have not faced any shortages or significant increases in prices that would have a material adverse effect on our operations, we have had to enact measures to mitigate fluctuations in the price of our key raw materials. These measures include, but are not limited to, placing bulk orders for a portion of our raw material requirements based on projections and sales estimates ahead of the production season and incorporating alternative materials into our products or modifying specifications of product designs. However, our ability to implement such measures are limited and we cannot guarantee that we will be able to successfully mitigate fluctuations or increases in the price of raw materials. We might have to accept substantial increment in price, or a substantial reduction of quantities supplied in some cases, especially when we are unable to locate alternative suppliers in a timely manner and/or on comparable commercial terms. In addition, we are not able to ensure our suppliers' compliance with applicable laws and regulations. Failure on the part of any of our suppliers to comply with applicable laws and regulations may damage our corporate image, and adversely affect our customer relationships.

***Our reliance on suppliers to produce our products could cause problems in our supply chain.***

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We do not manufacture our products or the raw materials for them and rely instead on suppliers. We have no long-term contracts with any of our suppliers or manufacturing sources for the production of our fabrics and garments, and we compete with other companies for production.

If we experience significant increased demand, or if we need to replace an existing supplier, we may be unable to locate additional manufacturing capacity on terms that are acceptable to us, or at all, or we may be unable to locate any supplier or manufacturer with sufficient capacity to meet our customer's requirements or to fill our orders in a timely manner. Even if we are able to expand existing or find new manufacturing, we may encounter delays in production and added costs as a result of the time it takes to train our suppliers and manufacturers in our methods, products, and quality control standards. Delays related to supplier changes could also arise due to an increase in shipping times if new suppliers are located farther away from our markets or from other participants in the supply chain. Any delays, interruption, or increased costs in manufacture of our products could have an adverse effect on our ability to meet customer demand for our products and result in lower net revenue and income from operations both in the short and long term.

***Customers may choose to do business with suppliers directly through online platforms.***

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Our customers pay for our services to leverage our industry knowledge, market connections and logistics management capability. However, it has been increasingly common for brand owners and retailers to place their orders directly to manufacturers through online platforms. If we are unable to provide other value-added services such as product design and development, production management and logistics management to our customers, we face the risk of losing our existing customers, especially those with the confidence and savviness to order apparel products online. With the internet becoming more common in the current economic environment, market demand for our services may decrease.

***Any negative publicity about our products or services could harm our business and reputation and could materially adversely affect our financial condition and results of operations.***

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An integral part of our value is our reputation as a sustainable and ethical brand and our customers expect a high standard from our products and services. Our ability to maintain this value and the reputation of our business is key to our continued success. Despite our commitment to product innovation, quality, and sustainability and our continuing investment in design (including materials), and quality control, we cannot assure you that our suppliers and manufacturers will adhere to the same commitment. Negative publicity regarding our suppliers or manufacturers could also adversely affect our reputation and sales and could force us to identify and engage alternative suppliers or manufacturers. Any actions or any negative publicity about us may adversely affect consumer perception of our brand, our products and our services. Any incidents involving our company, our suppliers or manufacturers, or the products we sell, could erode the trust and confidence of our customers, and damage the strength of our brand, especially if such incidents result in adverse publicity, governmental investigations, product recalls or litigation.

***We cannot guarantee that we are able to protect or enforce our intellectual property rights of the "les 100 ciels" trademark that would have a material adverse effect on our business and operations.***

Intellectual property protection may be unavailable or limited in the countries in which we operate where laws or law enforcement practices may not protect our intellectual property rights as fully as in the United States, and it may be more difficult for us to successfully challenge the use of our intellectual property rights by other parties in these countries. For instance, some of our trademark or trade dress applications may not be approved by the applicable governmental authorities because they are determined to lack sufficient distinctiveness, and, even if approved, may be challenged by third parties for this same reason. If we fail to protect and maintain our intellectual property rights, the value of our brand could be diminished, and our competitive position may suffer.

***We are exposed to credit risks of our customers.***

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We are exposed to credit risks of our customers. We do not have access to all the information necessary to form a comprehensive view on the creditworthiness. The complete financial and operational conditions of customers are not always available to us, and we may not be in any position to obtain such information. As a result, if any of our major customers experience any financial difficulty and fail to settle the outstanding amounts due to us in accordance with the agreed credit terms, our working capital position may be adversely affected.

***We face risks associated with seasonal fluctuations in demand.***

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Our sales of finished garment products are generally highest from August to December, and we expect to continue to experience seasonal fluctuations. Therefore, our operating results for a certain period within a calendar year, or between any interim periods, may not correctly indicate our performance for the entire calendar year. Prospective investors should be aware of this seasonal fluctuation when making any comparison of our operating results.

***Labor or other disruptions at ports or our suppliers or manufacturers may adversely affect our business.***

Our business depends on our ability to source and distribute products in a timely and cost-effective manner. As a result, we rely on the free flow of goods through open and operational ports worldwide and on a consistent basis from our suppliers and manufacturer. Labor disputes and disruptions at various ports or at our suppliers or manufacturer could create significant risks for our business, particularly if these disputes result in work slowdowns, decreased operations, lockouts, strikes or other disruptions during our peak importing or manufacturing seasons. For example, COVID-19 has resulted in delays and disruptions at ports due to workforce decreases, shipping backlogs and capacity constraints, container shortages and other disruptions. This has resulted, and may continue to result, in slower than planned deliveries of inventory and delayed sales to customers. If we experience significant delays or disruption in receiving and distributing our products, this could have an adverse effect on our business, potentially resulting in cancelled orders by customers, unanticipated inventory accumulation or shortages, increased expense (including air freight) to deliver our products and reduced net revenues and net income or higher net loss.

***Inconsistent quality control may adversely affect our reputation and customer relationships.***

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Our customers have specific requirements for their apparel products, and these requirements could change from one carton to another, even for the same types of products with the same design. We rely on our internal quality control personnel to inspect the finished goods and rectify any defectiveness so that the goods can be delivered to our customers in a form that would meet their quality expectations. If we fail to meet the specifications of our customers, we may not be able to monitor the quality of our suppliers at all times. For apparel products that do not satisfy the quality standards or our customers' specifications, we may be forced to provide products to our customers on a delayed basis or cancel their order, our reputation in the industry and customer relationships would be adversely affected, and we may suffer from loss of sales and be exposed to commercial claims.

***Our profit margin may be adversely affected by the increasing costs of raw materials and labor.***

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Changes in the costs of raw materials or labor indirectly affect our cost structure. We utilize third-party contract manufacturers to produce all of our apparel products. Any increase in production costs, including procurement costs for raw materials and increases in labor costs, may be passed on to us, while we may not be able to pass on all or any part of the subsequent increase in costs to our customers, which may have a material adverse effect on our financial performance.

We do not enter into long-term contracts with our suppliers. We usually enter into fixed-price contracts with our suppliers, including those for raw materials concurrently with our acceptance of each customer order, but in some cases a short time gap may be inevitable. In cases where we outsource procurement of raw materials to our contract manufacturers, rising raw material costs may be passed onto us by our contract manufacturers and put pressure on our profit margin. Any increase in the wage of workers in the apparel manufacturing industry and capital expenditures to enhance working conditions could increase the operating costs of our suppliers causing them to increase our contract prices. If we are not able to control our costs and/or pass on such additional costs to our customers or allocate such production work to other suppliers of similar quality at comparable terms, our profit margin could decrease, and we could record losses in some of our projects.

***We face keen competition from other players in the market.***

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The apparel supply chain services industry in Hong Kong and the apparel retail industry in the UK has a large number of participants, which makes the industry highly fragmented and competitive. We compete with other companies on the basis of service quality and pricing. Some of our competitors may have more variety of services, greater pricing flexibility, better in house technology, stronger brand recognition, longer operating history and a more established customer base. As a result, these competitors may have greater credibility with our potential customers in our target market segments. They may have greater resources to support their service and product offerings, such as better in-house technology infrastructure, stronger brand and pricing flexibility. Unless we remain competitive, we may face increasing pricing pressure and gradual loss of our orders and customers.

***We are dependent on our key executives, management team and professional staff.***

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We have a team of experienced and competent management who is responsible for overseeing financial condition and performance, allocating and budgeting human resources and formulating business strategies. For example, each of Ms. Eva Yuk Yin Siu and Ms. Man Chi Wai, the founders of Operating Subsidiaries, has over 30 years of experience in the fashion garment industry. Leveraging on their experience and network in the industry, we have been successfully expanding our client base and source of deals and transactions. However, we cannot assure you that we can retain the services of our key executives, personnel and members of our management team and find suitable replacements if any of them terminates his or her engagement with us, given the intense competition for experienced and competent personnel in the industry.

Apart from our senior management, we also rely on our professional staff in different business operations to implement our business strategies, provide quality services to clients, manage our compliance and risks, identify and capture business opportunities, maintain relationship with clients and procure new clients. Loss of our professional staff and failure to recruit replacement will materially and adversely affect our business operations.

***We may be unable to obtain sufficient funding on terms acceptable to us, or at all.***

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The future expansion of our business may require us to incur additional borrowings and diversify sources of funding. Whether we are able to raise additional capital at costs acceptable to us depends on the financial success of our current business and the successful implementation of our key strategic initiatives. This may be affected by various financial, economic and market conditions and other factors, some of which are beyond our control. If we are unable to obtain sufficient banking facilities on acceptable terms to meet our operational and expansion demands, this may put strains on our cash flow and our ability to successfully implement our expansion plans.

***Our insurance coverage may be inadequate to protect us from potential losses.***

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We may not be fully insured for our losses under our current insurance policies in place. We do not maintain any business interruption or key person life insurance. Our trade credit insurance may not be sufficient to cover all of our losses in the event of non-payment. There are certain types of losses, such as from war, acts of terrorism and certain natural disasters, for which we cannot obtain insurance at a reasonable cost, or at all. If any of these occurs, it may result in us incurring substantial losses and the diversion of our resources, which are not covered by our insurance. It may in turn materially and adversely affect our business and financial condition.

***We or our Operating Subsidiaries may be subject to litigation, arbitration, or other legal proceeding risk.***

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We or our Operating Subsidiaries may be subject to arbitration claims and lawsuits in the ordinary course of our business. As of the date of this report, neither we nor our Operating Subsidiaries are a party to, or are aware of any threat of, any legal proceeding that, in the opinion of our management, is likely to have a material adverse effect on our business, financial condition or operations. Actions brought against us may result in settlements, awards, injunctions, fines, penalties, and other results adverse to us. A substantial judgment, settlement, fine or penalty could be material to our operating results or cash flows for a particular period, depending on our results for that period, or could cause us significant reputational harm, which could harm our business prospects.

***Our services depend on the reliability of computer systems maintained by us and our outsourcing vendors and the ability to implement, maintain and upgrade our information technology and security measures.***

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Our services depend on the reliability of computer systems maintained by us and our outsourcing vendors to operate efficiently and reliably at all times. Certain emergencies or contingencies could occur, such as a natural disaster or a significant power outage, which could temporarily shut down our facilities and computer systems. Further, our Operating Subsidiaries' servers may be subject to computer viruses, hacking, vandalism, physical or electronic break-ins and other disruptions, which could lead to a loss of data. In addition, if the technological and operational platforms and capabilities become outdated, we will be at a disadvantage when competing with our competitors. In addition, our failure to back up our data and information in a timely manner may cause material disruption of our business operation and may therefore adversely affect our business and results of operations.

***We may be unable to successfully implement our future business plans and objectives.***

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Our success is dependent on, among other things, our proper and timely execution of our future business plans. Our future business plans may be hindered by factors beyond our control, such as competition within the industry we operate, our ability to cope with high exposure to financial risk, operational risk, market risk and credit risk as our business and customer base expands and our ability to provide, maintain and improve the level of human and other resources in servicing our customers. As such, we cannot assure that our future business plans will materialize, or that our objectives will be accomplished fully or partially, or our business strategies will generate the intended benefits to us as initially contemplated. If we fail to implement our business development strategies successfully, our business performance, financial condition and future prospects and growth could be materially and adversely affected.

We may in the future pursue acquisitions and joint ventures as part of our growth strategy. Any future acquisition or joint venture may result in exposure to potential liabilities of the acquired companies and significant transaction costs, and also may present new risks associated with entering additional markets or offering new products or services and integrating the acquired companies or newly established joint ventures. Moreover, we may not have sufficient management, financial and other resources to integrate companies we acquire or to successfully operate joint ventures, and we may be unable to profitably operate our expanded company structure. Additionally, any new business that we may acquire or joint ventures we may form, once integrated with our existing operations, may not produce expected or intended results.

***Our internal control system may become ineffective or inadequate.***

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We rely on our internal control system to ensure effective business operations. We have established, maintained and relied on an internal control system comprising a series of policies and procedures. There is no assurance that the internal control system in place will prove at all times adequate and effective to deal with all the possible risks given the fast changing financial and regulatory environment in which we operate. We cannot assure that our internal control system has no deficiencies or inherent limitations, or that it can fully prevent us from our employee misconduct. Such deficiencies or inherent limitations may adversely affect our financial condition and results of operations.

Furthermore, our results of operations have been severely affected by the COVID-19 outbreak. Due to the instability of global financial markets and other economic and financial challenges brought about by COVID-19, our businesses and clients have been adversely affected by travel restrictions preventing travel from and to Hong Kong. More broadly, the COVID-19 outbreak threatens global economies and has caused significant market volatility and declines in general economic activities. This may have severely dampened the confidence in global markets and potential clients.

Any future impact on our results of operations will depend on, to a large extent, future developments and new information that may emerge regarding the duration and severity of the COVID-19 pandemic and the actions taken by government authorities and other entities to contain the spread or treat its impact, almost all of which are beyond our control. Given the general slowdown in economic conditions globally, volatility in the capital markets as well as the general negative impact of the COVID-19 outbreak on the apparel solutions services market, we cannot assure you that we will be able to maintain the growth rate we have experienced or projected. We will continue to closely monitor the situation throughout 2023 and beyond.

***Global climate change and related legal and regulatory developments could negatively affect our business, results of operations, liquidity, and financial condition***

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The effects of climate change resulting from increased concentrations of carbon dioxide and other greenhouse gases in the atmosphere, such as droughts, heat waves, flooding, wildfires, increased storm severity, sea level rise, and power outages or shortages, particularly in certain regions in which we operate, may materially adversely impact our business. China, where a significant portion of our manufacturing operations are conducted through contract manufacturers, is presently undergoing the worst heat wave in 60 years while also contending with a prolonged drought drying up reservoirs and crippling hydropower stations. This has resulted in power shortages and factories having to cease or limit their production operations. While the Company has not experienced any disruptions in the operations of its contract manufactures, any such disruptions could have a material adverse effect on its business, operations, liquidity, and financial condition.

***A severe or prolonged downturn in the global economy, whether caused by economic or political instability, could materially and adversely affect our business and results of operations.***

There is continuing uncertainty over the long-term effects of the expansionary monetary and fiscal policies that have been adopted by the central banks and financial authorities of some of the world's leading economies, including Hong Kong's. There have also been concerns over unrest in several geographic areas, which may result in significant market volatility. Any prolonged slowdown in the global and/or Hong Kong economy may have a negative impact on our business, results of operations and financial condition, and continued turbulence in the international markets may adversely affect our ability to access the capital markets to meet liquidity needs.

The business of our Operating Subsidiaries is substantially concentrated in Canada and the U.S. and the U.K. and is therefore heavily dependent on the Canada, the U.S. and the U.K. economy. Economic conditions in Canada, the U.S. and the U.K. are sensitive to global economic conditions. If there is any significant decline in the Canada, the U.S. and the U.K. economy and we are unable to generate business in other geographic locations, our revenue, profitability, and business prospects will be materially affected. Also, major market disruptions and adverse changes in market conditions and uncertainty in the regulatory climate worldwide may adversely affect our business and industry or impair our ability to borrow or make any future financial arrangements.

The war in Ukraine has affected global economic markets, and the uncertain resolution of this conflict could result in protracted and/or severe damage to the global economy. Russia's military interventions in Ukraine have led to, and may lead to, additional sanctions being levied by the United States, European Union and other countries against Russia. Russia's military incursion and the resulting sanctions could adversely affect global energy and financial markets and thus could affect our client's business and our business, even though we do not have any direct exposure to Russia or the adjoining geographic regions. The extent and duration of the military action, sanctions, and resulting market disruptions are impossible to predict, but could be substantial. Any such disruptions caused by Russian military action or resulting sanctions may magnify the impact of other risks described in this section. We cannot predict the progress or outcome of the situation in Ukraine, as the conflict and governmental reactions are rapidly developing and beyond their control. Prolonged unrest, intensified military activities, or more extensive sanctions impacting the region could have a material adverse effect on the global economy, and such effect could in turn have a material adverse effect on the operations, results of operations, financial condition, liquidity, and business outlook of our business.

The ongoing military conflict involving Iran has created significant volatility in global economic markets, and any failure to reach a resolution could result in protracted or severe damage to the global economy. Military actions in the region have already prompted, and may continue to prompt, the imposition of expansive sanctions and export controls by the United States, the European Union, and other jurisdictions against Iran. Such measures, along with the underlying conflict, have the potential to adversely impact global energy prices and financial markets, which could materially affect our business operations and those of our clients, even in the absence of direct geographic exposure to the region. Because the duration and extent of military engagement and subsequent regulatory responses are inherently unpredictable, these disruptions may exacerbate other operational and financial risks. We cannot provide assurance regarding the outcome of the situation in the Middle East; any prolonged unrest or intensification of military activities could result in a material adverse effect on our financial condition, results of operations, liquidity, and overall business outlook.

**ITEM 4. INFORMATION ON THE COMPANY**

**A. History and Development of the Company.**

***Historical Structure***

NCI, incorporated in July 2021 under the laws of the Cayman Islands, is the holding company of our Operating Subsidiaries, Neo-Concept HK, and Neo-Concept UK. Through our Operating Subsidiaries, NCI is a one-stop apparel solution services provider, offering a full suite of services in the apparel supply chain, including market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management serving the European and North American markets.

Prior to a restructuring in 2021, our Operating Subsidiaries were part of NCH, a consortium of vertically integrated companies that provide a full range of garment supply chain services including but not limited to garment trading and manufacturing, retail, and apparel solution services. With operations across Hong Kong, China, East Asia, UK, Europe, and North America, NCH was and still is under the common control of our Controlling Shareholder, who both restructured the business of NCH and founded NCI. To avoid any potential conflicts of interest due to the common control, NCI, Splendid Vibe Limited, Ample Excellence Limited and Neo-Concept (BVI) Limited, the holding companies of NCH, have entered into an Exclusive Territory and Non-Competition Agreement ("Agreement") which identifies their respective exclusive geographic areas of operations and addresses NCH's existing customers. See "Corporate History and Structure — Exclusive Territory and Non-Competition Agreement."

As part of the reorganization prior to the listing, on October 29, 2021, NCI acquired all the shares of NCA from the Controlling Shareholder and Ms. Man Chi Wai and became the holding company of NCA, Neo-Concept HK, Neo-Concept (NY) Corporation and Neo-Concept UK. Neo-Concept (NY) Corporation, a wholly owned subsidiary of Neo-Concept HK, had no significant operations during the two years ended December 31, 2020, and 2021 and on November 12, 2021, Neo-Concept HK disposed of all the shares of Neo-Concept (NY) Corporation to Neo-Concept (BVI) Limited, an affiliated company controlled by the Controlling Shareholder.

***Share re-designation and Share Consolidation***

On March 3, 2025, the shareholders of the Company resolved and approved the following resolutions:

&nbsp;&nbsp;&nbsp;&nbsp;a) the authorized share capital of the Company shall be re-classified by
re-classifying 780,000,000 shares of a par value of US$0.0000625 each as 780,000,000 class A ordinary shares of a par value
of US$0.0000625 each (the "Class A Shares", each such share carrying one (1) vote per share with all rights, restrictions
and privileges remaining identical to the existing shares of the Company) and 20,000,000 shares of a par value of US$0.0000625 each
as 20,000,000 class B shares of US$0.0000625 each (the "Class B Shares", each such share carrying thirty (30) votes
per share with such rights, restrictions and privileges as set out in the New M&A (as defined below))(the Class A Shares together
with the Class B Shares, the "Shares") (the "Reclassification") so that the authorized share capital of
the Company shall be changed from US$50,000 divided into 800,000,000 shares of a par value of US$0.0000625 each to US$50,000 divided
into 800,000,000 shares of a par value of US$0.0000625 each comprised of 780,000,000 Class A Shares of a par value of US$0.0000625
each and 20,000,000 Class B Shares of a par value of US$0.0000625 each, such shares having the rights, restrictions and privileges
as set out in the New M&A (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;b) (i) contemporaneously upon the Reclassification taking effect, each issued share of a par value of US$0.0000625 each of the Company shall
be re-designated as an issued Class A Share (the "Re-designation") with all rights, restrictions and privileges remaining
identical to the existing issued shares of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately following the Re-designation, 3,000,000 Class
A Shares then held by Neo-Concept (BVI) Limited ("NCBVI") shall be repurchased and cancelled by the Company and in consideration,
the Company shall allot and issue to NCBVI (or such other person as directed) 3,000,000 Class B Shares, credited as fully paid-up;

&nbsp;&nbsp;&nbsp;&nbsp;c) the second amended and restated memorandum of association
and articles of association of the Company containing the amendments to the existing amended and restated memorandum of association and
articles of association in the form set out in Annex I be and are approved and adopted as the new memorandum of association and articles
of association of the Company in substitution for and to the exclusion of the existing amended and restated memorandum of association
and articles of association of the Company;

On May 9, 2025, the shareholders of the Company resolved and approved that with effect from such date and time to be determined by the board of directors of the Company which in any event shall not be later than 1 July 2025:

● every five issued and unissued shares (namely, both class A ordinary shares of par value US$0.0000625 each and class B ordinary shares of par value US$0.0000625 each) in the share capital of the Company be consolidated into one (1) share of par value US$0.0003125 each (the "Share Consolidation") so that the authorised share capital of the Company shall be changed from US$50,000 consisting of 800,000,000 shares of par value US$0.0000625 each comprised of 780,000,000 class A ordinary shares of par value US$0.0000625 each and 20,000,000 class B ordinary shares of par value US$0.0000625 each to US$50,000 consisting of 160,000,000 shares of par value US$0.0003125 each comprised of 156,000,000 class A ordinary shares of par value US$0.0003125 each and 4,000,000 class B ordinary shares of par value US$0.0003125 each;

The Share Consolidation was approved by the Board on June 13, 2026, and reflected with the Nasdaq Capital Market and in the marketplace at the open of business on June 16, 2025.

***Offering of 14,850,000 Class A Ordinary Shares.***

 

On February 9, 2026, Neo-Concept International Group Holdings Ltd (the "Company") entered into Securities Purchase Agreements (the "Securities Purchase Agreements") with several investors named therein (the "Purchasers"), pursuant to which the Company agreed to issue and sell, in a best effort offering (the "Offering"), a total of 14,850,000 Class A Ordinary Shares of par value $0.0003125 per share (the "Class A Ordinary Shares") at the price of $0.5454 per Class A Ordinary Share. The Securities Purchase Agreement contains customary representations and warranties and agreements of the Company and the Purchasers and customary indemnification rights and obligations of the parties. The Offering was closed on February 11, 2026.

The Class A Ordinary Shares were offered pursuant to a registration statement on Form F-1, as amended (Registration No. 333-288993, "Form F-1") originally filed with the U.S. Securities and Exchange Commission (the "SEC") on July 28, 2025. The Form F-1 was declared effective on February 9, 2026. The final prospectus was filed on February 11, 2026.

The Company engaged D. Boral Capital LLC ("D. Boral") as the lead placement agent and uSmart Securities Limited as the joint placement agent ("uSmart," together with D. Boral, the "Placement Agents") in the Offering pursuant to a Placement Agency Agreement dated February 9, 2026 (the "Placement Agency Agreement"), by and between the Company and the Placement Agents. The Company agreed to pay D. Boral a cash fee equal to five percent (5.0%) of the gross proceeds raised in the Offering. The Company also agreed to reimburse the Placement Agents for its reasonable and documented out-of-pocket costs and expenses of up to $100,000. The Placement Agency Agreement contains customary conditions to closing, representations and warranties of the Company, and termination rights of the parties, as well as certain indemnification obligations of the Company and ongoing covenants for the Company.

***Neo-Concept International Group Holdings Limited's Offices***

Our principal executive office is located at 10/F, Seaview Centre, No.139-141 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong. Our telephone number is (+852) 2798 8639. Our registered office in the Cayman Islands is located at the office of Osiris International Cayman Limited, Suite #4-210, Governors Square, 23 Lime Tree Bay Avenue, PO Box 32311, Grand Cayman KY1-1209, Cayman Islands.

Our agent for service of process in the United States is Cogency Global Inc., located at 122 East 42<sup>nd</sup> Street, 18<sup>th</sup> Floor New York, NY 10168. Our website is located at *http://www.neo-ig.com*. Information contained on, or that can be accessed through, our website is not a part of, and shall not be incorporated by reference into, this report.

**B. Business overview**

**Overview**

NCI is a one-stop apparel solution services provider. We offer a full suite of services in the apparel supply chain, including market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management serving customers located in the European, and North American markets through Neo-Concept HK. As we are involved from the initial stages of the development process, we strive to use sustainable solutions to fulfill our customers' needs. Our process begins by conducting market trend analysis to identify changes in fashion trends. We discuss with customers their requirements for the upcoming season and pitch various designs having considered emerging trends and our customer's needs. We utilize technology to iterate samples which both reduces waste and allows us to speed up the overall development process. We engage a contract manufacturer to produce prototypes and once a design is finalized, we proceed to bulk production. During production, we closely monitor the production schedule and conduct quality control on the finished product before it is finally delivered to our customer.

We are committed to reducing our environmental impact through recycling, clean processes, traceable sourcing and other eco-friendly practices.

In 2000, Neo-Concept UK began to sell apparel products in the UK under the brand "*les 100 ciels*" through its retail stores.

In 2024, our group formed a joint venture with a company in the United Arabs Emirates for the purpose of selling our own-branded products under the brand "les 100 ciels" in the Middle East and Northern African regions.

In March 2025, the first Middle East "les 100 ciels" shop was opened in Abu Dhabi, the United Arabs Emirates.

**Our Competitive Strengths**

We believe that the following strengths distinguish us from our competitors and have contributed to our success:

 

*A focus on sustainability*

Our founders, Ms. Siu and Ms. Wai, have decades of experience creating sustainable apparel which we believe sets us apart and grants us unique expertise in the apparel services industry. We have a strong commitment to sustainable practices. For example, we require raw material suppliers to implement clean and ethical processes for sourcing and producing natural fibers such as merino wool and cashmere.

We have also focused on creating a cleaner and more ethical process for the production of our cashmere products. We require our cashmere fibers to be sourced from ethical farms in Inner Mongolia and for each step in the production to be documented for maximum transparency amidst growing concerns of worker abuse. To reduce chemical dyeing and clean water consumption in our processes, we also advocate for the use of recycled cashmere and undyed cashmere. We are a member of the Textile Exchange, a non-profit organization based in the U.S., with the mission to promote the sustainable development of the entire textile value chain, and strictly observe the technical and social compliance global standards in all the factories and partner facilities we utilize. We have been certified by the Textile Exchange under the Responsible Wool Standard (RWS) for our supply chain. This standard is used to track the wool used in our products through the chain of custody in order to preserve the identity of the material and its movements through our supply chain up to the final product.

Given the recent emphasis on climate change and sustainability, green brands are thriving, and more retailers are incorporating sustainable practices into their production. This is a trend that we believe will continue across the North American, UK and European markets. As a result, demand for our services has grown and we have developed various lines of products with our customers utilizing eco-friendly materials and processes. To showcase our commitment to sustainable practices, we have also applied for and received certifications/registrations under the:

● Global Recycled Standard 4.0 (a global product standard primarily related to tracking and verifying the content of recycled raw materials through the supply chain);

● Organic Content Standard 3.0 (an international standard that provides chain of custody verification for materials originating on a farm certified to recognized national organic standards);

● Global Organic Textile Standard 6.0 (a global standard with requirements to ensure organic status of textiles from harvest of raw materials, to manufacturing and labelling, up to the product reaching the end customer); and

● Better Cotton Initiative Platform (an online system owned by the Better Cotton Initiative used to electronically document volumes of cotton sourced as "Better Cotton" as they pass through the supply chain).

We believe our certifications will increase our favorability with and ability to attract a wider spectrum of customers in the future. See "Business — Our Business Operations — Raw Material Sourcing" for further details. These certifications will also facilitate the transition by NCH to us of existing NCH clients that are within our exclusive territory and that require such certifications for us to provide products and services to them. See "Corporate History and Structure — Exclusive Territory and Non-Competition Agreement".

 

*Close relationships with our major customers and strategic partners*

Our relationship with our top customer, a prominent retailer based in Canada, has been crucial to our current success. We have worked with this customer on a recurring basis since 2012. As they have grown, we have been able to increase both the scale and volume of the services and products provided to them.

 

As a strategic partner to our core customers, we provide brands with a variety of affordable luxury apparel products and the full spectrum of apparel supply chain solution services.

In addition, by working closely with our core customers, we are able to push forward otherwise unfeasible initiatives. For example, one of our top customers is cooperating with us on a new recycling project to recover boiled wool waste during production and recycle this into material that can be used in new production runs. By creating a circular production process, we have reduced waste and helped the customer meet their sustainable growth goals. We have also worked with various brands as an original design manufacturer to help them meet their sustainability goals.

 

*We provide one-stop apparel solution services*

Our strength as a one stop apparel solution services provider is our ability to offer our customers a simplified and comprehensive supply chain experience. Our services cover every step from initial design concepts, sourcing, manufacturing, to quality assurance, packaging, and logistics. With the design, planning, execution, control, and monitoring of supply chain activities we offer a competitive infrastructure for customers. Customers are provided with solutions along the supply chain in an efficient and cost-effective manner, so they are able to prioritize their own core competencies and business objectives.

 

*Our management members have deep industry knowledge and proven track records*

Our management members bring with them an average of over 30 years of experience in the apparel industry having co-founded NCH in 1990. Ms. Siu, the co-founder of our Operating Subsidiaries, chairlady of our board of directors, and our chief executive officer, focuses on our development plan and business strategy. She has over 30 years of management, business and marketing and operating experience in apparel manufacturing and trading. Ms. Wai, the co-founder of our Operating Subsidiaries, is mainly responsible for operational efficiency and achievement. She has over 30 years of experience in the garment industry and is actively involved in the garment sourcing and trading business. We believe that our cohesive corporate culture inspires innovation, motivates quality service and encourages collaboration. The collective industry knowledge and skills of our management give us the capability to manage risks, respond timely to market trends, and capture lucrative market opportunities. We believe the in-depth industry experience, knowledge of supply chain management and established connections with customers of our management differentiate us from our competitors.

**Our Strategies**

Our aim is to further strengthen our market position and continue to be a competitive apparel solution services business by pursuing the following key strategies:

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***Strengthen our design and development capabilities***

We consider our ability to develop designs according to the latest fashion trends and styles crucial to our success in the industry. Our design and development team conducts market trend analysis on the latest fashion trends and works with our customers to produce custom designs. To further enhance our design and development capabilities, we intend to expand our design and development team. By strengthening our design and development capabilities, we aim to incorporate more sustainable materials into product components in our design and development stage in the future.

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***Integrate sustainability into product sourcing and environmental marketing***

One of our goals is to integrate sustainability into every aspect of our business model. We have had success adopting innovative sustainability concepts, for instance, requiring manufacturers to use recycled materials in the production line, such as wastage from spinning and production processes. We will seek to identify opportunities to further reduce our environmental footprint, especially in areas that are in sync with the priorities of our customers. In addition, we integrate environmental marketing into consultations with customers, providing guidance and recommendations on how to meet sustainability goals. We have had success in offering eco-friendly yarn compositions and using recycled, regenerated, and traceable yarn products that fall within customers' budgets and specification.

To showcase our commitment to sustainable practices, we have also applied for certifications under the Global Recycled Standard 4.0, the Organic Content Standard 3.0, the Global Organic Textile Standard 6.0, and have been registered as a user of the Better Cotton Platform. We believe this will increase our appeal and ability to attract a wider spectrum of customers in the future.

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***Broaden our customer base and work together with our customers to expand our product mix and maintain customer relationships***

We expect demand for our apparel services to continue to grow as retailers and consumers are increasingly conscious of ethical consumerism and environmental, social and governance ("ESG"). Our goal is to position ourselves as a leading provider of sustainable apparel solution services and be the first choice for brands seeking to "go-green" in North America and Europe. As our customers continue to grow, we will bring our expertise and creative vision to enhance and expand our existing product mix. We will also increase the frequency of our liaison with existing customers to better understand their needs and enhance our tailor-made apparel solution services. We will continue to broaden the range of apparel products handled by us and strengthen our design and development capabilities in different categories, so that we can tap into new markets and attract new customers.

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***Acquisition of companies and/or formation of joint ventures***

We intend to acquire stakes in companies and/or forming joint ventures with potential business partners, with a view to support the business growth of our Group and diversify our revenue sources. We have not identified any targets for the potential acquisition or joint ventures as of the as of the date of this report.

While we have not identified any specific targets, we plan to selectively pursue acquisitions and formation of joint ventures that complement our existing operations, facilitate our business strategies as well as strengthening our products, enhancing our production capabilities and/or expanding our market presence in our core markets, in order to maximize the potential value and capability of our Company. Our potential targets for acquisition and formation of joint venture will focus on companies with business and products that will enhance our market share and bring synergic effect to our business. We will select potential targets based on various factors including each candidate's market share, reputation and customer base.

**OUR BUSINESS OPERATIONS**

We are a one-stop apparel solution services provider. We offer a full suite of services in the apparel supply chain, including market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management. Through Neo-Concept HK, our Operating Subsidiary established in Hong Kong, we provide our apparel solution services to our customers located in North America and Europe. Our 360 degree supply chain services deliver value at each stage of the process.

The following diagram illustrates the operation flow of our 360 degree supply chain services:

![](ea028605201_img1.jpg)

We handle a wide range of apparel products which can be categorized as finished garments. Each series of apparel products handled by us is arguably unique, as they are manufactured according to our customers' specifications.

**Market Trend Analysis**

Our goal is to keep abreast of the changes in global fashion trends and the local market response to different styles. We meet with online fashion retailers, textile manufacturers and apparel sourcing agents regularly to deepen our understanding of the market, budgets, and seasonal designs.

We capitalize on our market intelligence to formulate our business plan for seasons ahead. Our seasonal business plan usually involves strategic procurement of raw materials, especially natural fibers, and creation of design sketches responsive to consumer preferences for the season.

**Product Design and Development**

We have an in-house design team with in-depth technical apparel know-how and experience in the fashion industry. They produce seasonal collections to inspire customers with ideas on design, trends, materials, and techniques that fit a customer's brand ethos. Alternatively, we work to meet the specifications of a customer's own designs to deliver products based on the customer's budget and timeframe.

We typically go through a process of using software to render virtual samples to our customers and through a number of iterations identify a product design that fits their needs and specifications. Alternatively, customers can submit their own design, in which case we will make modifications so that the apparel product can be produced within their budget and other specifications, such as incorporating the use of sustainable materials. Some customers present their concept to us, and we collaboratively generate the design based on their concept and make modifications to the design together.

**Raw Material Sourcing**

We require our contract manufacturers to source raw materials from select third party vendors that possess certain certifications to guarantee they meet international standards and individual customer needs. Neo-Concept HK has obtained the following industry certifications:

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| | | |
|:---|:---|:---|
| **Certification** | **Validity** | **Description** |
| Responsible Wool Standard ("RWS") | March 11, 2027 | RWS is a tool to ensure that wool comes from sheep that have been raised with respect to the 'Five Freedoms', that the land has been managed responsibly, and to provide a robust chain of custody system to validate the source of the material for all product claims.<br>The Five freedoms:<br>1. The freedom from hunger and thirst;<br> 2. The freedom from discomfort;<br> 3. The freedom from pain, injury or distress;<br> 4. The freedom to express normal behavior; and<br> 5. The freedom from fear and distress. |
| Global Recycled Standard ("GRS") 4.0 | March 11, 2027 | The GRS is a full product standard to verify and track recycled raw materials through the supply chain. It also includes processing criteria to prevent the use of potentially hazardous chemicals and verifies positive social or environmental production at the facilities. The GRS uses the chain of custody requirements of the Content Claim Standard ("CCS").<br> The goal of the GRS is to increase the use of recycled materials in products and reduce/eliminate the harm caused by its production. |
| Organic Content Standard ("OCS") 3.0 | March 11, 2027 | OCS is an international, voluntary standard that sets requirements for third-party certification of certified organic input and chain of custody. The goal of the OCS is to increase organic agriculture production. |
| Global Organic Textile Standard ("GOTS") 6.0 | June 29, 2025 | GOTS was developed by leading standard setters to define world-wide recognized requirements for organic textiles. From the harvesting of the raw materials, environmentally and socially responsible manufacturing, to labelling, textiles certified to GOTS provide a credible assurance to the consumer. |
| Better Cotton Platform ("BCP") | April 10, 2029 | BCP is an online system owned by the Better Cotton Initiative (a cotton sustainability program aiming to transform cotton production by developing Better Cotton as a sustainable mainstream commodity) used by more than 9,000 ginners, raders, spinners, fabric mills, garment and end product manufacturers, sourcing agents and retailers to electronically document volumes of cotton sourced as "Better Cotton" as they pass through the supply chain. Access to the BCP allows organizations to participate electronically in the Better Cotton Chain of Custody by recording information about cotton-containing orders sourced as Better Cotton, managing the required documentation, and recording information about cotton-containing sales to customers. |

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We have quality control procedures in place to evaluate the performance of raw materials used by our contract manufacturers throughout the production process. Our evaluation is based on a number of factors, including sustainability efforts, technical capabilities, quality, manufacturing capacity, industry reputation, years of experience, timely delivery records, costs and payment terms. We perform laboratory tests on random samples and perform on-site inspections on the raw materials used in the manufacturing process to ensure they comply with international standards as well as our customer specifications.

The raw materials used in our products consist of merino wool, cashmere, cotton, leather, and other synthetic materials, including a variety of sustainable, innovative, and ethically sourced materials such as recycled nylon. Recycled nylon is made from the wasted fishing nets from deep-sea fishing activities and reused as raw material for textiles. The ghost fishing nets are regenerated and produced by zero-carbon factories, which can be applied to all types of yarns and fabric. It can be recycled physically and chemically, also being proven its biodegradability.

![](ea028605201_img2.jpg)

**Production Management and Quality Control**

We do not own or operate any manufacturing operations and all of our apparel products (including sample products and finished goods) are produced by contract manufacturers. As part of our apparel solution services, we are responsible for the overall production management, monitoring of production schedule, evaluation of manufacturing services and conducting quality control on finished goods. During the production process, we regularly communicate with manufacturers and check their production schedule to ensure that they are able to deliver the finished goods on time. We also perform on-site quality inspections regularly on raw materials, semi-finished products, and finished products for quality control purposes.

We have stringent quality control procedures throughout the supply chain. Our staff are trained to implement our Total Quality Management System (TQM). This system is integrated with InspectLink software to ensure that garments are inspected throughout the entire manufacturing process, from material development and sampling to production and the final garments. If any defect is found, we will require suppliers to rectify the defects.

As part of our sustainability efforts, we monitor the market to identify new innovative materials and processes that can help to reduce the environmental footprint of our production, whether it be carbon emissions, water consumption or waste pollution.

For example, by adopting processes such as the Dry Dye™ (also known as ZERO-D® dyeing solution) we can achieve a water-based printing solution for a number of our textiles with zero polluted water discharge and reduction of water usage by over 99%.

**Logistics Management**

Our logistics management services cover every movement of inventory in our customers' supply chain. We rely on third party service providers or our contract manufacturer for transportation services to the port of destination or our customers warehouse and keep track of the process to monitor the whereabouts of the inventory to ensure it is delivered within the timeline specified by the customer.

**RETAIL SALES OF BRANDED APPAREL PRODUCTS**

Our own brand of apparel products mainly consists of knitwear sold under the licensed brand "les 100 ciels." We drive sales through a mix of digital and physical retail locations. Our retail operations in the UK are conducted through Neo-Concept UK, our Operating Subsidiary established in the UK, and our retail operations in the UAE are conducted through Lineowa Fashion and Life Style L.L.C., our Operating Subsidiary established in the UAE.

![](ea028605201_img3.jpg)

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| | |
|:---|:---|
| ![](ea028605201_img13.jpg) | ![](ea028605201_img14.jpg) |
| ***79 Knightsbrigde Store*** | ***The Galleria, Al Maryah Island, Abu Dhabi Store*** |

---

In addition to our five physical stores in the UK, one in the UAE and our website, we also sell our apparel products through third party online platforms to leverage our digital exposure. We utilize Wolf & Badger, which is based in the UK, to help drive growth in the UK. Our apparel products sold under the "les 100 ciels" brand consists mainly of knitwear made from cashmere.

![](ea028605201_img4.jpg)

les 100 ciels womenswear

By selling direct to consumer we can also avoid the costs associated with traditional wholesalers, creating a more efficient cost structure and higher gross margin, which we believe allows us to deliver more affordable products and a better experience to customers. We believe our model enables us to provide high-quality products priced lower compared to a traditional wholesale model.

**CUSTOMERS**

Our customers mainly include brand owners, apparel sourcing agents and online fashion retailers, primarily located in North America and Europe. We have a particularly strong customer base in Canada and the U.S. which accounts for over 33.4% of total revenues for year ended December 31, 2025, and we maintain stable and ongoing business relationships with all our major customers.

Our top five customers are based in Canada and the U.S which contributed approximately 43.8% and 73.8% of our revenue for the years ended December 31, 2025 and 2024, respectively. Neo-Concept HK has been providing our apparel solution services to our top customer since 2012. During this time, it has expanded the service scope to cover a wider range of products. We currently work with seven brands/sub-brands of our top customer, each with its distinct brand identity and which spans across different product categories, including knitwear, woven, cut, and sewn fine knits and a variety of accessories. Although our customer concentration is extremely high, we believe this is a natural result of our business strategy to grow and expand our product offerings organically along with our customers.

Our goal is to work collaboratively with our customers on a long-term basis to create and expand our product offering and position ourselves as a vital partner in the development process. We will continue to strengthen our design and development capabilities and expand our product and service offerings to our customers for every new season. We will also aim to diversify our customer base and revenue source, by expanding both online and offline retail sales of the "les 100 ciels" products.

We do not enter into long-term agreements with our customers, which we believe is in line with market practice.

**SUPPLIERS**

We have two principal suppliers, (i) NCH, an affiliated company controlled by our Controlling Shareholder, and (ii) an independent third party based in Hong Kong with manufacturing facilities in Mainland China, which we have engaged to produce the majority of apparel products for and arrange delivery to our customers during the years ended December 31, 2025 and 2024. We selected these suppliers due to their performance based on a pre-defined set of criteria, including size, quality, reputation, price, and on-time delivery records.

For the years ended December 31, 2025 and 2024 our two principal suppliers together accounted for 100% and 98.5% of our total purchases, respectively. We believe it is common for market participants in the apparel supply chain industry to establish reliance on a few suppliers. Establishing and maintaining long-term strategic partnership with strong suppliers with proven capability and the capability to handle a breadth of product categories allow us to enhance our own product offerings and be more competitive in the market.

We do not enter into any long-term supply agreements with our suppliers, which we believe is in line with market practice.

**PRICING**

Our revenue is mainly generated from North America and Europe, and our products are quoted in US$. We usually adopt a cost-plus pricing strategy and generally price our apparel services based on the following factors: (i) nature of raw material; (ii) complexity of design; (iii) quotations from third party suppliers, such as costs of raw materials, contract manufacturing services and transportation; (iv) volume of order; (v) timing requirements; (vi) retail price of similar apparel products in the market; and (vii) profit margin within the industry.

Our retail sales of branded products are also priced based a cost-plus pricing model.

**PRODUCT RETURN**

 

*Sales of private-labelled apparel products*

We do not have a product return or warranty policy for our finished garments. Customers have the right to inspect the finished goods before delivery for defects and deviation from specifications. We do not assume the risk of damages or losses after the finished goods are delivered to the place designated by our customers. To maintain long-term business relationship with our customers, we follow up after completion of a given project to solicit feedback.

 

*Retail sales of own-branded apparel products*

For sales of our "*les 100 ciels*" products through our physical and digital channels, we provide a 28 day return window to our customer for unworn apparel, and a credit note to the value of the items for up to 35 days.

For the years ended December 31, 2023, 2024 and 2025, the provision for material claims against in relation to defective products, or any material product returns from the customers were nil, nil and HKD24,042 (US$3,089), respectively.

**MARKETING**

We implement a number of marketing and promotion measures to source new customers. Our new customers are primarily referrals from our existing customers which, in our view, is a reflection of their satisfaction with our services. We also utilize our business network for introductions to new partners and customers. Our strategy is to fully understand our customers product and services requirements and work together to achieve their needs in a cost-effective way. Our marketing activities also involve creating seasonal sales tools to demonstrate our capabilities, as well as inspire our customers with trend infographics and an in-house collection demonstrating our technical ability and designs. We use these during face-to-face meetings, to allow our customer to understand our latest design collections and significantly enhance customer experience with us.

**SEASONALITY**

The apparel market exhibits seasonality with dynamic changes in trends and consumers' preferences depending on the time of year. Apparel sales are generally highest from July to September, mainly attributable to climate and frequent online sales events during these months. The aggregate sales generated in these months accounted for approximately 39.1% of our total revenue for the year ended December 31, 2025.

**COMPETITION**

The industry in which we operate is large, fragmented and highly competitive. We face fierce competition among service providers in terms of the product design, price, quality control and delivery of products. Our competitors include other apparel service providers and one-stop garment manufacturers including our affiliate, NCH who also provides apparel solutions services to customers in North America and Europe. To avoid any potential conflicts of interest due to the common control, we have entered into an Agreement with Neo-Concept (BVI) Limited, Ample Excellence Limited, and Splendid Vibe Limited, the holding companies of NCH. Please see "Corporate History and Structure — Exclusive Territory and Non-Competition Agreement" for further details.

While the market is fragmented, many of our direct competitors operate at a larger scale and have substantially greater resources than us. Access to offshore manufacturing and the growth of ecommerce have made it easier for new companies to enter the markets in which we compete, further increasing competition in the already competitive apparel industry.

Despite the intense competition, we believe our provision of integrated supply chain solutions and value-added services places us in a strong position. Our focus on sustainable practices, innovative materials and products, and collaborative partnerships with core customers allows us to successfully compete in the industry.

**Regulations**

**Regulations Related to our Business Operations in Hong Kong**

 ****

***Hong Kong Regulations Related to Services Providers***

 

*Business registration requirement*

The Business Registration Ordinance (Chapter 310 of the Laws of Hong Kong) requires every person carrying on any business to make an application to the Commissioner of Inland Revenue in the prescribed manner for the registration of that business. The Commissioner of Inland Revenue must register each business for which a business registration application is made and as soon as practicable after the prescribed business registration fee and levy are paid and issue a business registration certificate or branch registration certificate for the relevant business or the relevant branch, as the case may be.

As of the date of this report, Neo-Concept HK holds a valid business registration certificate.

 ****

***Regulations related to employment and labor protection***

 

*Employment Ordinance (Chapter 57 of the Laws of Hong Kong)*

The Employment Ordinance (Chapter 57 of the Laws of Hong Kong), or the EO, is an ordinance enacted for, amongst other things, the protection of the wages of employees and the regulation of the general conditions of employment and employment agencies. Under the EO, an employee is generally entitled to, amongst other things, notice of termination of his or her employment contract; payment in lieu of notice; maternity protection in the case of a pregnant employee; not less than one rest day in every period of seven days; severance payments or long service payments; sickness allowance; statutory holidays or alternative holidays; and paid annual leave of up to 14 days depending on the period of employment.

As of the date of this report, Neo-Concept HK has complied with the provisions under the EO.

 

*Employees' Compensation Ordinance (Chapter 282 of the Laws of Hong Kong)*

The Employees' Compensation Ordinance (Chapter 282 of the Laws of Hong Kong), or the ECO, is an ordinance enacted for the purpose of providing for the payment of compensation to employees injured in the course of employment. As stipulated by the ECO, no employer shall employ any employee in any employment unless there is in force in relation to such employee a policy of insurance issued by an insurer for an amount not less than the applicable amount specified in the Fourth Schedule of the ECO in respect of the liability of the employer. According to the Fourth Schedule of the ECO, the insured amount shall be not less than HKD 100,000,000 per event if a company has no more than 200 employees. Any employer who contravenes this requirement commits a criminal offence and is liable on conviction to a fine and imprisonment. An employer who has taken out an insurance policy under the ECO is required to display a prescribed notice of insurance in a conspicuous place on each of its premises where any employee is employed.

As of the date of this report, employee compensation insurance has been obtained for all employees of Neo-Concept HK.

 ****

 ****

*Mandatory Provident Fund Schemes Ordinance (Chapter 485 of the Laws of Hong Kong)*

The Mandatory Provident Fund Schemes Ordinance (Chapter 485 of the Laws of Hong Kong), or the MPFSO, is an ordinance enacted for the purposes of providing for the establishment of non-governmental mandatory provident fund schemes, or the MPF Schemes. The MPFSO requires every employer of an employee of 18 years of age or above but under 65 years of age to take all practical steps to ensure the employee becomes a member of a registered MPF Scheme. Subject to the minimum and maximum relevant income levels, it is mandatory for both employers and their employees to contribute 5% of the employee's relevant income to the MPF Scheme. Any employer who contravenes this requirement commits a criminal offence and is liable on conviction to a fine and imprisonment.

As of the date of this report, the Company believes it has made all contributions required under the MPFSO.

 ****

***Regulations related to Personal Data***

 

*Personal Data (Privacy) Ordinance (Chapter 486 of the Laws of Hong Kong)*

The Personal Data (Privacy) Ordinance (Chapter 486 of the Laws of Hong Kong), or the PDPO, imposes a statutory duty on data users to comply with the requirements of the six data protection principles (the "Data Protection Principles") contained in Schedule 1 to the PDPO. The PDPO provides that a data user shall not do an act, or engage in a practice, that contravenes a Data Protection Principle unless the act or practice, as the case may be, is required or permitted under the PDPO. The six Data Protection Principles are:

● Principle 1 — purpose and manner of collection of personal data;

● Principle 2 — accuracy and duration of retention of personal data;

● Principle 3 — use of personal data;

● Principle 4 — security of personal data;

● Principle 5 — information to be generally available; and

● Principle 6 — access to personal data.

Non-compliance with a Data Protection Principle may lead to a complaint to the Privacy Commissioner for Personal Data (the "Privacy Commissioner"). The Privacy Commissioner may serve an enforcement notice to direct the data user to remedy the contravention and/or instigate prosecution actions. A data user who contravenes an enforcement notice commits an offense which may lead to a fine and imprisonment.

The PDPO also gives data subjects certain rights, inter alia:

● the right to be informed by a data user whether the data user holds personal data of which the individual is the data subject;

● if the data user holds such data, to be supplied with a copy of such data; and

● the right to request correction of any data they consider to be inaccurate.

The PDPO criminalizes, including but not limited to, the misuse or inappropriate use of personal data in direct marketing activities, non-compliance with a data access request and the unauthorized disclosure of personal data obtained without the relevant data user's consent. An individual who suffers damage, including injured feelings, by reason of a contravention of the PDPO in relation to his or her personal data may seek compensation from the data user concerned.

As of the date of this report, Neo-Concept HK is in compliance with the provisions of the PDPO.

**Regulations Related to our Business Operations in UK**

 ****

***United Kingdom Regulations Related to Retail Sales of Products***

**Sale of Goods**

Sale of Goods Act 1979 ("SoGA") implies a number of important terms into business to business sale of goods contracts, particularly in relation to the title to the goods and the quality of the goods. It also lays down a large number of presumptions, which, in the absence of express drafting to the contrary, apply to a business to business sale of goods contract. The key terms implied by SoGA are: (a) That the seller has the right to sell the goods (i.e. good title); (b) That the goods are free from undisclosed charges or encumbrances and that the buyer will enjoy quiet possession of the goods; (c) Where goods are sold by description, that the goods will correspond with that description; (d) Where goods are sold in the course of a business, that the goods are of satisfactory quality; and (e) Where goods are sold in the course of a business and the buyer, expressly or by implication, makes known to the seller the purpose for which they want the goods, that the goods will be reasonably fit for that purpose. SoGA entitles buyers to reject non-conforming goods and reclaim the purchase price (where already paid). Certain other provisions of SoGA will apply to business to consumer sale of goods contracts (for example regarding the point at which a contract is made under English law), but the implied terms discussed above are now included as mandatory standards in specific consumer rights legislation as set out below.

**Consumer Rights**

There are an extensive range of UK laws and regulations concerning consumer rights in the UK that are applicable to retail sales, including the Consumer Rights Act 2015 ("CRA"), the Electronic Commerce (EC Directive) Regulations 2002 ("E-Commerce Regs"), Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 ("CCRs") and Consumer Protection from Unfair Trading Regulations 2008 ("CPUT"). These regulations govern the sale of goods and services to UK consumers, both online and in-stores. They grant consumers a minimum standard of rights (including with regard to title, fitness for purpose, cooling-off periods, product delivery & returns and defective or misleadingly described goods) as well as imposing requirements on businesses with regard to the information that must be provided to a consumer, both prior to and after entering into a contract. The regulations also govern the way businesses market and promote consumer products, as well as their communications with consumers across all formats (whether online or in-store).

**Data Protection**

The key relevant regulations applicable to the processing of the data of UK citizens are the UK Data Protection Act 2018 (the "DPA") and the retained UK version of the EU General Data Protection Regulation (the "UK GDPR") (collectively referred to as the "DP Legislation"). The purpose of the DP Legislation is to ensure the protection of personal data of living individuals in the UK (e.g., employees, customers), to ensure such data is processed securely, fairly and transparently and to restrict the way such data is shared with third parties, including internationally. The DP Legislation also enshrines certain rights for individuals, which may be enforced against companies, including rights to access their data or have it deleted.

The DP Legislation includes robust penalties for non-compliance, including fines of up to 4% of an organization's global annual turnover. The legislation requires those entities subject to it to give specific types of information and notices to data subjects (which will include customers, suppliers and its own staff) and in some cases seek consent from such data subjects before collecting or using their data for certain purposes, including but not limited to some marketing activities.

**Electronic Communications**

The Privacy and Electronic Communications Regulations 2003 ("PECR") impose obligations on businesses with regard to any electronic communications with UK consumers. PECR sits alongside the DPA and grants individuals in the UK specific privacy rights in relation to electronic communications, including imposing specific rules on marketing calls, emails, texts, and faxes; the placing of cookies (pixels, tags and similar technologies); keeping communications services secure; and customer privacy as regards traffic and location data, itemized billing, line identification, and directory listings. The aim of the regulation is to protect consumers from unsolicited marketing and to give them greater control over the receipt of electronic marketing communications.

 ****

***Other Key United Kingdom Regulations Applicable to UK Companies***

**Anti-Bribery & Corruption**

The Bribery Act 2010 of the United Kingdom (the "BA") imposes obligations on UK businesses with the aim of preventing bribery and corruption. The BA has "extra-territorial" effect with the aim of preventing the giving or receiving of bribes (including low level facilitation or "grease" payments) regardless of where such acts take place — i.e. whether in the UK or any other country in the world.

The BA includes a corporate offence of "failure to prevent bribery" which puts an onus on companies to have in place a set of "adequate procedures" to prevent bribery within their organization and supply chain globally — such procedures may include staff and supplier training; policies; senior level commitment; and due diligence on suppliers and associated parties. The BA creates both civil and criminal offences, while penalties for breaching the legislation include fines and imprisonment (including for directors, where a company is liable for failure to prevent bribery).

**Modern Slavery**

The Modern Slavery Act 2015 (the "MSA") imposes obligations on UK businesses with the aim of preventing modern slavery both within UK businesses and their global supply chains. The MSA requires certain large organizations (with a turnover of £36 million or more) to publish an annual Modern Slavery Act Transparency Statement, the purpose of which is for such organizations to, in summary, set out the measures they have in place and provide a detailed picture of all the steps they are taking, to ensure that their business and supply chains are free of modern slavery.

 ****

***United Kingdom Regulations Relating to Employment***

The Employment Rights Act 1996 ("ERA") is the primary piece of legislation which governs the relationship between Neo-Concept UK and those of its employees who work in England and Wales. The ERA regulates matters such as particulars of employment, protection of wages, whistleblowing, protection from detriment in employment, time off work, leave for maternity, paternity, and adoption, shared parental leave and parental leave, flexible working, termination of employment, unfair dismissal, redundancy and redundancy payments.

**C. Organizational structure.**

The chart below illustrates our corporate structure and identifies our subsidiaries as of the date of this report:

![](ea028605201_img5.jpg)

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| | | |
|:---|:---|:---|
| **Name** | **Background** | **Ownership** |
| Neo-Concept Apparel Group Limited ("NCA") | - A BVI company<br> - Incorporated in August 2008<br> - Issued Share Capital of US$100<br> - Intermediate holding company | 100% owned by NCI |
| Neo-Concept <br> International Company Limited ("Neo-Concept HK") | - A Hong Kong company<br> - Incorporated in October 1992<br> - Issued Share Capital of HKD 100,000<br> - Provision of one-stop apparel solution services | 100% owned by NCA |
| Neo-Concept (UK) Limited ("Neo-Concept UK") | - A UK company<br> - Incorporated in August 2000<br> - Issued Share Capital of GBP100<br> - Provision of online and offline retail sales of apparel products | 100% owned by Neo-Concept HK |
| Neo-Concept Exquisite Couture Limited ("NCEC") | - A BVI company<br> - Incorporated in May 2024<br> - Issued Share Capital of US$100<br> - Intermediate holding company | 100% owned by NCA |
| &nbsp;&nbsp;&nbsp; NC Asia International Company Limited ("NCAIL")<br>| - A Hong Kong company<br> - Incorporated in April 2026<br> - Issued Share Capital of HKD 10,000<br> - Provision of online and offline sales of apparel products | 100% owned by NCA |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Name** | **Background** | **Ownership** |
| NC ASIA Investment Company Limited ("NCAIS") | - A Hong Kong company<br> - Incorporated in April 2026<br> - Issued Share Capital of HKD 10,000<br> - Intermediate holding company | 100% owned by NCA |
| &nbsp;&nbsp;&nbsp; Neo Concept Elite Fashion Company L.L.C. ("NCEF")<br>| - A UAE company<br> - Incorporated in May 2024<br> - Issued Share Capital of AED100,000<br> - Intermediate holding company | 100% owned by NCEC |
| &nbsp;&nbsp;&nbsp; Lineowa Fashion and Life Style L.L.C. ("Lineowa")<br>| - A UAE company<br> - Incorporated in October 2024<br> - Issued Share Capital of AED100<br> - Provision of online and offline retail sales of apparel products  | 50% owned by NCEF |

---

We are a "controlled company" as defined under the Nasdaq Stock Market Rules because our Controlling Shareholder owns 15.36% of our total issued and outstanding Class A Ordinary Shares, representing 50.03% of the total voting power.

At each general meeting, each shareholder who is present in person or by proxy (or, in the case of a shareholder being a corporation, by its duly authorized representative) will have one vote for each Class A Ordinary Share which such shareholder holds. There are no prohibitions to cumulative voting under the laws of the Cayman Islands, but our Memorandum and Articles of Association do not provide for cumulative voting.

**Exclusive Territory and Non-Competition Agreement**

NCH also operates as a comprehensive apparel solutions services provider in North America and Europe principally. As such, NCH is in direct competition with our business in such regions. To address this, we entered into an Exclusive Territory and Non-Competition Agreement ("Agreement") with Neo-Concept (BVI) Limited, Ample Excellence Limited and Splendid Vibe Limited (collectively the "Parent Group"), the holding companies of NCH and other subsidiaries under the common control of our Controlling Shareholder.

Under the Agreement we entered into with the Parent Group, we have agreed that during the non-competition period (which will end on the later of (1) two years after the first date when our Controlling Shareholder ceases to own in aggregate at least 20% of the voting power of our then outstanding securities and (2) the fifth anniversary of the completion of our IPO) that the Parent Group and its subsidiaries, including NCH but excluding NCI Group) (the "Neo Concept Group"), will not compete with our Company in the businesses currently conducted by us through our Operating Subsidiaries in North America and Europe namely, the businesses of apparel solution services in the UK, Europe and North America (the "Protected Territories") and retail sale of apparel products. However, since we are in the process of and have not yet obtained all of the certifications required by certain clients to guarantee that their raw material sourcing meets international standards we have agreed that Neo Concept Group shall continue to service its existing portfolio of customers in the Protected Territories that require the additional certifications provided that once NCI Group obtains and provides documentation that the necessary certifications required by a Portfolio Customer have been secured, Neo Concept Group will use its best endeavors to transfer within 45 days the Portfolio Customers to NCI Group. In the event that Neo Concept Group is unable, unsuccessful or a Portfolio Customer is unwilling to the transfer of its account to NCI Group, then NCI Group shall be entitled to receive the economic benefit inuring to Neo Concept Group from that Portfolio Customer as measured by a royalty of 10% of all sales and services by Neo Concept Group to that Portfolio Customer.

As of the date of this report, we have a total of 11 customers which we provide apparel solution services, each of which are not current clients of NCH and are therefore protected under the terms of the Agreement. Under the terms of the Agreement, we retain the right to sell to any of NCH's existing portfolio of customers.

The Agreement also provides for a non-solicitation obligation so that NCH may not, during the non-competition period, hire, or solicit for hire, any active employees of, or individuals providing consulting services to NCI or its subsidiaries, or any former employees of, or individuals providing consulting services to NCI or its subsidiaries within six months of the termination of their employment or consulting services, without NCI's consent, except for solicitation activities through generalized non-targeted advertisement not directed to such employees or individuals that do not result in a hiring within the non-competition period.

**D. Property, plant and equipment.**

We do not own any real property.

Our principal executive office is located at 10/F, Seaview Centre, No.139-141 Hoi Bun Road, Kwun Tong, Hong Kong. The office has a size of approximately 10,700 square feet. We lease our office in Hong Kong from our affiliated company, NCH. We entered into official rental agreement for the premises and accounted for the relevant cost as rental expense. See "Related Party Transactions" for details.

We currently lease five retail shops in London, UK, totaling approximately 4,100 square feet, a retail shop in Abu Dhabi, the United Arabs Emirates totaling approximately 1,969 square feet and an office with a size of approximately 700 square feet.

We believe that our facilities are adequate to meet our needs for the immediate future, and that, should it be needed, suitable additional space will be available on commercially reasonable terms to accommodate any expansion of our operations.

**ITEM 4A. UNRESOLVED STAFF COMMENTS**

None.

**ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

*The following discussion should be read in conjunction with the audited consolidated financial statements and related notes which appear elsewhere in this Annual Report. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed elsewhere in this Annual Report, including those set forth under "Item 3. Key Information — D. Risk Factors."*

***Exchange rate information***

NCI is a holding company with operations conducted in Hong Kong through its key operating subsidiary in Hong Kong, Neo-Concept HK, using Hong Kong dollars. Neo-Concept HK's reporting currency is Hong Kong dollars. Translations of amounts from HKD into US$ are solely for the convenience of the reader and were calculated at the noon buying rate of US$1 = HKD 7.7833, as published in H.10 statistical release of the United States Federal Reserve Board. No representation is made that the HKD amounts could have been, or could be, converted, realized, or settled into US$ at such rate or at any other rate. We make no representation that the HKD or U.S. dollar amounts referred to in this report could have been or could be converted into U.S. dollars or HKD, as the case may be, at any particular rate.

**A. Results of operations**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| **REVENUES, NET** | 174202627 | 235667734 | 137247341 | 17633567 |
| **COST OF REVENUES** |  |  |  |  |
| - Related parties | (34213521) | (7915189) | (73417725) | (9432724) |
| - External | (104940795) | (178307992) | (13143967) | (1688740) |
|  | (139154316) | (186223181) | (86561692) | (11121464) |
| Gross profit | 35048311 | 49444553 | 50685649 | 6512103 |
| **EXPENSES** |  |  |  |  |
| Selling and marketing | (3132277) | (4392521) | (6568144) | (843877) |
| General and administrative: |  |  |  |  |
| Depreciation | (33091) | (685245) | (1735470) | (222974) |
| Amortization | (112049) | (1481738) | (2497004) | (320816) |
| Staff cost | (13260898) | (18486483) | (21755401) | (2795138) |
| Operating leases expenses | (2507182) | (3146322) | (6720152) | (863407) |
| Operating lease expenses – related party | (720000) | (720000) | (720000) | (92506) |
| Professional fee | (2204622) | (2840139) | (3615272) | (464491) |
| (Provision for) reversal of expected credit losses | (1383316) | (1253368) | 2143178 | 275356 |
| Government rates | (453748) | (1272186) | (2138370) | (274738) |
| Office general expenses | (453551) | (752507) | (1263880) | (162384) |
| Others | (1741052) | (2842620) | (4010155) | (515224) |
| Total expenses | (26001786) | (37873129) | (48880670) | (6280199) |
| **INCOME FROM OPERATION** | 9046525 | 11571424 | 1804979 | 231904 |
| **OTHER INCOME (EXPENSES)** |  |  |  |  |
| Interest income | 92951 | 31954 |  |  |
| Interest expense | (5759182) | (3759032) | (1349488) | (173382) |
| Agency income – related party | 2662034 | 1170664 | 1475466 | 189568 |
| Other income | 326 | 134230 | 42447 | 5454 |
| Other expense | (302784) |  | (195094) | (25066) |
| Total other expenses, net | (3306655) | (2422184) | (26669) | (3426) |
| Income before tax expenses | 5739870 | 9149240 | 1778310 | 228478 |
| Income tax expenses | (1325137) | (1085909) | (1446631) | (185863) |
| **NET INCOME** | 4414733 | 8063331 | 331679 | 42615 |

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**Year ended December 31, 2025 compared with year ended December 31, 2024**

***Revenue***

 ****

For the years ended December 31, 2025 and 2024, we generated our revenue through two revenue streams: sales of private -labelled apparel products and retail sales of own -branded apparel products.

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| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Private-labelled apparel products | 196736307 | 66685405 | 8567755 |
| Own-branded apparel products | 38931427 | 70561936 | 9065812 |
| Total | 235667734 | 137247341 | 17633567 |

---

Our revenue decreased by 41.8% to HKD137,247,341 (US$17,633,567) for the year ended December 31, 2025, from HKD235,667,734 for the year ended December 31, 2024. The decrease was mainly caused by the decrease in sales of private-labelled apparel products by 66.1% to HKD66,685,405 (US$8,567,755) for the year ended December 31, 2025, from HK$196,736,307 for the year ended December 31, 2024, which was mainly due to decrease in number of commercial customers from 20 in 2024 to 10 customers in 2025 as, reflecting the challenges faced in maintaining customer relationships and market demand amid increased competition and changing consumer preferences during the year and partially offset against the increase in sales of own-branded apparel products by 81.2% to HKD70,561,936 (US$9,065,812) for the year ended December 31, 2025, from HK$38,931,427 for the year ended December 31, 2024, which was mainly due to successful business expansion by establishment more retail shops in London in 2024, the new retail outlets enhanced the company's market presence, improved brand visibility, and attracted a broader customer base and allowed for better product accessibility and customer engagement, which collectively led to the significant growth in retail sales of own-branded apparel products during the year.

 ****

***Cost of revenue***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Private-labelled apparel products | 178307992 | 59768785 | 7679106 |
| Own-branded apparel products | 7915189 | 26792907 | 3442358 |
| Total | 186223181 | 86561692 | 11121464 |

---

Our cost of revenue decreased by 53.5% to HKD86,561,692 (US$11,121,464) for the year ended December 31, 2025, from HKD186,223,181 for the year ended December 31, 2024. The decrease was in correspondence to our decrease of sales in revenue.

***Gross profit and gross profit margin***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
| | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** |
| <br>**Product category** | **Revenue** | **Cost of <br> revenue** | **Gross <br> profit** | **Gross <br> profit <br> margin** | **Revenue** | **Cost of <br> revenue** | **Gross <br> profit** | **Gross <br> profit <br> margin** |
|  | **HKD** | **HKD** | **HKD** | **%** | **HKD** | **HKD** | **HKD** | **%** |
| Private-labelled apparel products | 196736307 | 178307992 | 18428315 | 9.4% | 66685405 | 59768785 | 6916620 | 10.4% |
| Own-branded apparel products | 38931427 | 7915189 | 31016238 | 79.7% | 70561936 | 26792907 | 43769029 | 62.0% |
| Total | 235667734 | 186223181 | 49444553 | 21.0% | 137247341 | 86561692 | 50685649 | 37.0% |

---

Our overall gross profit increased by 2.5% to HKD50,685,649 (US$6,512,103) for the year ended December 31, 2025, from HKD49,444,553 for the year ended December 31, 2024, primarily due to the increase in our revenue in sales of own-branded apparel products in UK as the Company newly established retail shops in 2024. Our overall gross profit margin increased by 16.0 percentage points to 37.0% for the year ended December 31, 2025, from 21.0% for the year ended December 31, 2024, mainly due to increase in sales of our own-branded apparel products which gross profit margin is relatively higher.

Our gross profit for private-labelled apparel products decreased by 62.5% to HKD6,916,620 (US$888,649) for the year ended December 31, 2025, from HKD18,428,315 for the year ended December 31, 2024. The decrease was principally due to the decrease in demand in private-labelled apparel products, the number of commercial customers decreased from 21 in 2024 to 12 customers in 2025. Our gross profit margin for private-labelled apparel products slightly increased by 1.0 percentage points to 10.4% for the year ended December 31, 2025, from 9.4% for the year ended December 31, 2024. This marginal improvement can be attributed to the Company's efforts to optimize cost management and production efficiency during this period.

Our gross profit for own-branded apparel products increased by 41.1% to HKD43,769,029 (US$5,623,454) for the year ended December 31, 2025, from HKD31,016,238 for the year ended December 31, 2024. The increase was mainly due to business expansion including open-up of new retail shops in the UK in mid of 2024. However, our gross profit margin for own-branded apparel products decreased by 17.7 percentage points to 62.0% for the year ended December 31, 2025, from 79.7% for the year ended December 31, 2024. The decrease was mainly due to increase overall cost of purchase from suppliers in 2025.

***Selling and marketing expenses***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Transportation costs | 1177462 | 1372915 | 176393 |
| Marketing and displaying expenses | 3215059 | 5195229 | 667484 |
| Total | 4392521 | 6568144 | 843877 |

---

Our selling and marketing expenses increased by 49.5% to HKD6,568,144 (US$843,877) for the year ended December 31, 2025, from HKD4,392,521 for the year ended December 31, 2024, primarily due to increase in marketing and displaying expenses due to business expansion including open up of new retail shops in the UK in mid of 2024 as a result of increase in sales.

 ****

 ****

***General and administrative expenses***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Depreciation | 685245 | 1735470 | 222974 |
| Amortization | 1481738 | 2497004 | 320816 |
| Staff costs | 18486483 | 21755401 | 2795138 |
| Operating lease expense | 3146322 | 6720152 | 863407 |
| Operating lease expenses – related party | 720000 | 720000 | 92506 |
| Professional fee | 2840139 | 3615272 | 464491 |
| Provision for (reversal of) expected credit losses | 1253368 | (2143178) | (275356) |
| Government rates | 1272186 | 2138370 | 274738 |
| Office general expenses | 752507 | 1263880 | 162384 |
| Others | 2842620 | 4010155 | 515224 |
| Total | 33480608 | 42312526 | 5436322 |

---

Our general and administrative expenses increased by 26.4% to HKD42,312,526 (US$5,436,322) for the year ended December 31, 2025, from HKD33,480,608 for the year ended December 31, 2024, the increase was principally due to (i) the business expansion including open-up of four new retail shops in the UK in mid of 2024 which led to the increase in staff cost, lease expenses, and overall general administrative expenses, (ii) increase in depreciation due to the addition of the leasehold improvement, furniture and fixture and office equipment for open-up of four new retail shops in the UK in mid of 2024, (iii) increase in amortization of intangible assets as acquisition of trademarks in May 2024 and (iv) increase in legal and professional fee for the audit fee and business expansion consultation and partially offset against the reversal of expected credit losses as the decrease in overall account receivable as of December 31, 2025.

 ****

***Interest expense***

Our interest expense represented factoring charges and interest expense for our bank borrowings, it decreased by 64.1% to HKD1,349,488 (US$173,382) for the year ended December 31, 2025 from HKD3,759,032 for the year ended December 31, 2024. The primary reason for this decrease was the decline in sales of private-labelled apparel products, which consequently led to a decreased need for financing through factoring. The Company required less working capital support from factoring arrangements, resulting in lower interest expenses.

***Other income***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Agency income | 1170664 | 1475466 | 189568 |
| Other | 134230 | 42447 | 5454 |
| Total | 1304894 | 1517913 | 195022 |

---

Our agency income representing service fee charged to a related party, NCH, for promoting NCH's products in UK, it increased by 26.0% to HKD1,475,466 (US$189,568) for the year ended December 31, 2025 from HKD1,170,664 for the year ended December 31, 2024. The increase was principally in correspondence with the increase in the discretionary income from Neo-Concept UK in 2025.

***Other expenses***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Exchange loss, net |  | (25605) | (3290) |
| Penalty |  | (125404) | (16112) |
| Over-provision of claims from insurance |  | (44085) | (5664) |
| Total |  | (195094) | (25066) |

---

Our other expenses increased by 100.0% to HKD195,094 (US$25,066) for the year ended December 31, 2025, from nil for the year ended December 31, 2024, the increase was principally due to (i) increase in exchange loss, net due to the depreciation of GBP against US$, (ii) increase in penalty arising in the normal course of business and (iii) the over-provision of claims from insurance in prior years.

***Provision for income tax expense***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years ended December 31,** | **For the Years ended December 31,** | **For the Years ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Current: |  |  |  |
| Hong Kong | 348835 |  |  |
| UK |  | 310430 | 39883 |
| Deferred: |  |  |  |
| Hong Kong | (206806) | 134213 | 17244 |
| UK | 943880 | 1001988 | 128736 |
| Total | 1085909 | 1446631 | 185863 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **HKD** | | **HKD** | **US$** | |
| Income before tax | 9149240 |  | 1778310 | 228478 |  |
| Income tax rate in the Cayman Islands, permanent tax holiday |  |  |  |  |  |
| Hong Kong statutory income tax rate | 1509625 | 16.5% | 293421 | 37699 | 16.5% |
| Effect of different tax rates | 1383890 | 15.1% | 699819 | 89912 | 39.4% |
| Income not taxable | (4219) |  | (367658) | (47237) | (20.7)% |
| Expense not deductible | 164216 | 1.8% | 18259 | 2346 | 1.0% |
| Temporary not recognized | 52472 | 0.6% | 1921169 | 246832 | 108.0% |
| Utilization of tax loss | (1849075) | (20.2)% | (1621122) | (208282) | (91.2)% |
| Under provision of tax in prior years |  |  | 502743 | 64593 | 28.3% |
| Tax concession | (171000) | (1.9)% |  |  |  |
| Effective tax rate | 1085909 | 11.9% | 1446631 | 185863 | 81.3% |

---

Provision for income tax expense represents current profit tax. Current profit tax represented tax recorded in Hong Kong.

Hong Kong current profit tax arose from the operation of Neo-Concept HK in Hong Kong and its applicable tax rate is 16.5%. From year of assessment of 2019/2020 onwards, Hong Kong profits tax rates are 8.25% on assessable profits up to HKD2,000,000, and 16.5% on any part of assessable profits over HKD2,000,000.

Our income tax expense increased by 33.2% to HKD1,446,631 (US$185,863) for the year ended December 31, 2025 from HKD1,085,909 for the year ended December 31, 2024, mainly due to the increase in income before tax in the Company's subsidiary, Neo-Concept (UK) Limited.

Our effective tax rate increased by 69.4 percentage points to 81.3% for the year ended December 31, 2025, from 11.9% for the year ended December 31, 2024. The primary reason for this increase was the rise in profit before tax in our subsidiary, Neo-Concept (UK) Limited, which resulted in higher tax expenses. This increase was partially offset by the loss before tax incurred by our other subsidiary, Neo-Concept International Company Limited, which reduced the overall taxable income of the Group. As a result, the change in the profitability mix among the subsidiaries contributed to increase in income tax expenses and decrease in profit before tax and led to the significant fluctuation in our effective tax rate during the year.

 ****

***Net income***

Our net income decreased by 95.9% to HKD331,679 (US$42,615) for the year ended December 31, 2025, from HKD8,063,331 for the year ended December 31, 2024. The decrease in net income was predominantly due to the decrease in our revenue in 2025.

**Year ended December 31, 2024 compared with year ended December 31, 2023**

***Revenue***

For the years ended December 31, 2024 and 2023, we generated our revenue through two revenue streams: sales of private -labelled apparel products and retail sales of own -branded apparel products.

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **HKD** | **HKD** | **US$** |
| Private-labelled apparel products | 156316352 | 196736307 | 25327485 |
| Own-branded apparel products | 17886275 | 38931427 | 5011963 |
| Total | 174202627 | 235667734 | 30339448 |

---

Our revenue increased by 35.3% to HKD235,667,734 (US$30,339,448) for the year ended December 31, 2024, from HKD174,202,627 for the year ended December 31, 2023. The increase was mainly caused by the increase in sales of private-labelled apparel products by 25.9% to HKD196,736,307 (US$25,327,485) for the year ended December 31, 2024, from HK$156,316,352 for the year ended December 31, 2023, which was mainly due to increase in number of commercial customers from 18 in 2023 to 21 customers in 2024 by the successful marking and promotional strategies such has social media marketing and promotional events and increase in sales of own-branded apparel products by 117.7% to HKD38,931,427 (US$5,011,963) for the year ended December 31, 2024, from HK$17,886,275 for the year ended December 31, 2023, which was mainly due to business expansion including establishment four more retail shops in London and led to increase in retail sales.

 ****

***Cost of revenue***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **HKD** | **HKD** | **US$** |
| Private-labelled apparel products | 134239759 | 178307992 | 22955056 |
| Own-branded apparel products | 4914557 | 7915189 | 1018987 |
| Total | 139154316 | 186223181 | 23974043 |

---

Our cost of revenue increased by 33.8% to HKD186,223,181 (US$23,974,043) for the year ended December 31, 2024, from HKD139,154,316 for the year ended December 31, 2023. The increase was in correspondence to our increase of sales in revenue.

***Gross profit and gross profit margin***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
| | **2023** | **2023** | **2023** | **2023** | **2024** | **2024** | **2024** | **2024** |
| <br>**Product category** | **Revenue** | **Cost of <br> revenue** | **Gross <br> profit** | **Gross <br> profit <br> margin** | **Revenue** | **Cost of <br> revenue** | **Gross <br> profit** | **Gross <br> profit <br> margin** |
|  | **HKD** | **HKD** | **HKD** | **%** | **HKD** | **HKD** | **HKD** | **%** |
| Private-labelled apparel products | 156316352 | 134239759 | 22076593 | 14.1% | 196736307 | 178307992 | 18428315 | 9.4% |
| Own-branded apparel products | 17886275 | 4914557 | 12971718 | 72.5% | 38931427 | 7915189 | 31016238 | 79.7% |
| Total | 174202627 | 139154316 | 35048311 | 20.1% | 235667734 | 186223181 | 49444553 | 21.0% |

---

Our overall gross profit increased by 41.1% to HKD49,444,553 (US$6,365,405) for the year ended December 31, 2024, from HKD35,048,311 for the year ended December 31, 2023, primarily due to the increase in our revenue in sales of own-branded apparel products in UK as the Company newly established 4 retail shops. Our overall gross profit margin increased by 0.9 percentage points to 21.0% for the year ended December 31, 2024, from 20.1% for the year ended December 31, 2023, mainly due to our increase in sales of products with higher margin.

Our gross profit for private-labelled apparel products decreased by 16.5% to HKD18,428,315 (US$2,372,429) for the year ended December 31, 2024, from HKD22,076,593 for the year ended December 31, 2023. The decrease was principally due to the increase in the cost of purchase from suppliers. Our gross profit margin for private-labelled apparel products decreased by 4.7 percentage points to 9.4% for the year ended December 31, 2024, from 14.1% for the year ended December 31, 2023 as overall cost of purchase from suppliers increased in 2024.

Our gross profit for own-branded apparel products increased by 139.1% to HKD31,016,238 (US$3,992,976) for the year ended December 31, 2024, from HKD12,971,718 for the year ended December 31, 2023. The increase was mainly due to business expansion including open-up of new retail shops in the UK. Our gross profit margin for own-branded apparel products increased by 7.2 percentage points to 79.7% for the year ended December 31, 2024, from 72.5% for the year ended December 31, 2023. The increase was mainly due to the increase in sales of products with higher margin.

***Selling and marketing expenses***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **HKD** | **HKD** | **US$** |
| Transportation costs | 333257 | 1177462 | 151584 |
| Marketing and displaying expenses | 2799020 | 3215059 | 413902 |
| Total | 3132277 | 4392521 | 565486 |

---

Our selling and marketing expenses increased by 40.2% to HKD4,392,521 (US$565,485) for the year ended December 31, 2024, from HKD3,132,277 for the year ended December 31, 2023, primarily due to increase in marketing and displaying expenses due to business expansion including open up of new retail shops in the UK as a result of increase in sales.

 ****

***General and administrative expenses***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **HKD** | **HKD** | **US$** |
| Staff costs | 13260898 | 18486483 | 2379917 |
| Depreciation | 3260273 | 4551567 | 585961 |
| Amortization | 112049 | 1481738 | 190756 |
| Provision for expected credit losses | 1383316 | 1253368 | 161356 |
| Professional fee | 2204622 | 2840139 | 365634 |
| Others | 2648351 | 4867313 | 626610 |
| Total | 22869509 | 33480608 | 4310234 |

---

Our general and administrative expenses increased by 46.4% to HKD33,480,608 (US$4,310,234) for the year ended December 31, 2024, from HKD22,869,509 for the year ended December 31, 2023, the increase was principally due to (i) the business expansion including open-up of four new retail shops in the UK which led to the increase in staff cost, lease expenses and overall general administrative expenses, (ii) increase in amortization of intangible assets as acquisition of trademarks in 2024, (iii) increase in expected credit loss and impairment losses on receivables and (iv) increase in legal and professional fee for the audit fee and business expansion consultation.

 ****

***Interest expense***

Our interest expense represented factoring charges and interest expense for our bank borrowings, it decreased by 34.7% to HKD3,759,032 (US$483,931) for the year ended December 31, 2024 from HKD5,759,182 for the year ended December 31, 2023. The decrease was mainly due to (i) repayment of bank borrowings and (ii) decrease in weighted average interest rate.

***Other income***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **HKD** | **HKD** | **US$** |
| Agency income | 2662034 | 1170664 | 150709 |
| Other | 326 | 134230 | 17280 |
| Total | 2662360 | 1304894 | 167989 |

---

Our agency income representing service fee charged to a related party, NCH, for promoting NCH's products in UK, it decreased by 56.0% to HKD1,170,664 (US$150,709) for the year ended December 31, 2024 from HKD2,662,034 for the year ended December 31, 2023. The decrease was principally in correspondence with the decrease in the discretionary income from Neo-Concept UK in 2024.

***Other expenses***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **HKD** | **HKD** | **US$** |
| Exchange loss, net | (168356) |  |  |
| Penalty | (134428) |  |  |
| Total | (302784) |  |  |

---

Our other expenses decreased by 100% to nil for the year ended December 31, 2024, from HKD302,784 for the year ended December 31, 2023.

 ****

***Provision for income tax expense***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years ended December 31,** | **For the Years ended December 31,** | **For the Years ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **HKD** | **HKD** | **US$** |
| Current: |  |  |  |
| Hong Kong | 928973 | 348835 | 44908 |
| UK | 388288 |  |  |
|  | 1317261 | 348835 | 44908 |
| Deferred: |  |  |  |
| Hong Kong | 7876 | (206806) | (26623) |
| UK |  | 943880 | 121513 |
| Total | 1325137 | 1085909 | 139798 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **HKD** | | **HKD** | |
| Profit before tax | 5739870 |  | 9149240 |  |
| Income tax rate in the Cayman Islands, permanent tax holiday |  | 0.0% |  | 0.0% |
| Hong Kong statutory income tax rate | 947079 | 16.5% | 1509625 | 16.5% |
| Effect of different tax rates | 120537 | 2.1% | 1383890 | 15.1% |
| Income not taxable |  | 0.0% | (4219) | 0.0% |
| Expense not deductible | 401791 | 7.0% | 164216 | 1.8% |
| Temporary not recognized | 22959 | 0.4% | 52472 | 0.6% |
| Utilization of tax loss |  | 0.0% | (1849075) | (20.2)% |
| Tax concession | (167229) | (2.9)% | (171000) | (1.9)% |
| Effective tax rate | 1325137 | 23.1% | 1085909 | 11.9% |

---

Provision for income tax expense represents current profit tax. Current profit tax represented tax recorded in Hong Kong.

Hong Kong current profit tax arose from the operation of Neo-Concept HK in Hong Kong and its applicable tax rate is 16.5%. From year of assessment of 2019/2020 onwards, Hong Kong profits tax rates are 8.25% on assessable profits up to HKD2,000,000, and 16.5% on any part of assessable profits over HKD2,000,000.

Our income tax expense decreased by 18.1% to HKD1,085,909 (US$139,798) for the year ended December 31, 2024 from HKD1,325,137 for the year ended December 31, 2023, mainly due to the tax loss utilization by the subsidiary, Neo-Concept (UK) Limited.

Our effective tax rate increased by 11.2 percentage points to 11.9% for the year ended December 31, 2024 from 23.1% for the year ended December 31, 2023. The decrease in effective tax rate was mainly due to the tax loss utilization by the subsidiary, Neo-Concept (UK) Limited.

 ****

***Net income***

Our net income increased by 82.6% to HKD8,063,331 (US$1,038,059) for the year ended December 31, 2024, from HKD4,414,733 for the year ended December 31, 2023. The increase in net income was predominantly due to the increase in our revenue in 2024.

**B. Liquidity and capital resources**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| **CURRENT ASSETS** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 9166020 | 2332891 | 299730 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 34169661 | 7285278 | 936014 |
| &nbsp;&nbsp;&nbsp;Prepayment and other current assets | 24387730 | 29390571 | 3776107 |
| &nbsp;&nbsp;&nbsp;Other receivables, net – related party |  | 1443971 | 185522 |
| &nbsp;&nbsp;&nbsp;Tax recoverable | 994950 |  |  |
| &nbsp;&nbsp;&nbsp;Inventories, net | 3616821 | 12114712 | 1556501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 72335182 | 52567423 | 6753874 |
| **CURRENT LIABILITIES** |  |  |  |
| &nbsp;&nbsp;&nbsp;Bank borrowings | 27105722 | 4756671 | 611138 |
| &nbsp;&nbsp;&nbsp;Accruals and other payables | 7292824 | 9380281 | 1205180 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 638243 | 480183 | 61695 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 3890482 | 4810410 | 618042 |
| &nbsp;&nbsp;&nbsp;Tax payable | 372485 | 718388 | 92299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 39299756 | 20145933 | 2588354 |
| **Net current assets** | 33035426 | 32421490 | 4165520 |

---

**Accounts receivable, net**

Accounts receivable represented receivables from our customers arising from our sales. We generally grant our customers a credit period ranging from 30 to 60 days, depending on their reputation, transaction history and the products purchased. Our accounts receivable decreased by 78.7% to HKD7,285,278 (US$936,014) as of December 31, 2025, from HKD34,169,661 as of December 31, 2024, the decrease in sales of private-labelled apparel products by 66.1% to HKD66,685,405 (US$8,567,755) for the year ended December 31, 2025, from HK$196,736,307 for the year ended December 31, 2024, which consequently led to a decreased in account receivable in 2025.

**Prepayment and other current assets, net**

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Prepayments to suppliers | 24384141 | 29385651 | 3775475 |
| Other receivables – related party |  | 1504691 | 193323 |
| Others | 3589 | 4920 | 632 |
| Total | 24387730 | 30895262 | 3969430 |
| Allowance for expected credit losses |  | (60720) | (7801) |
| Total, net | 24387730 | 30834542 | 3961629 |

---

Our prepayment and other current assets increased by 26.4% to HKD30,834,542 (US$3,961,629) as of December 31, 2025, from HKD24,387,730 as of December 31, 2024. The increase was primarily attributable to the increase in prepayments to suppliers to secure our supplies for production and business and increase in other receivable for agency income from our related party, NCH, for promoting NCH's products in UK.

**Inventories**

Our inventories represented own-branded apparel products at our retail shops in London. Our inventories increased by 235.0% to HKD12,114,712 (US$1,556,501) as of December 31, 2025 from HKD3,616,821 as of December 31, 2024. This increase was driven by our strategy to expand inventory levels in response to growing demand in the UK market, as the Company opened additional retail shops in mid-2024 to support sales growth and meet customer demand.

We review our inventory levels on a regular basis. We believe that maintaining appropriate levels of inventories can help us better plan raw material procurement and deliver our products to meet customer demand in a timely manner without straining our liquidity.

During the years ended December 31, 2023, 2024 and 2025, our obsolete and slow-moving inventories amounted to HKD68,536, HKD23,585 and HKD27,655 (US$3,553), respectively.

**Accruals and other payables**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Accruals | 1087478 | 1148365 | 147542 |
| Payroll payable | 2366113 | 3832185 | 492360 |
| VAT | 2435091 | 3195520 | 410561 |
| Deposit received | 814863 | 774081 | 99454 |
| Others | 589279 | 430130 | 55263 |
| Total | 7292824 | 9380281 | 1205180 |

---

Our accruals and other payables increased by 28.6% to HKD9,380,281 (US$1,205,180) as of December 31, 2025, from HKD7,292,824 as of December 31, 2024, principally due to (i) the increase of accruals for audit fee, (ii) increase in payroll payable resulting from higher staff costs associated with the Company's business expansion in the UK and (iii) increase in VAT due to increase in cost of purchases resulting from business expansion in the UK.

**Operating lease liabilities**

Our operating lease liabilities mainly related to our office in Hong Kong and retail shops in the UK.

**Cash Flows**

Our use of cash primarily related to operating activities and payment of dividends. We have historically financed our operations primarily through our cash flow generated from our operations and advances from related parties.

The following table sets forth a summary of our cash flows information for the years indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| Cash and cash equivalents at the beginning of the year | 8593063 | 5849306 | 9166020 | 1177652 |
| Net cash (used in) generated from operating activities | (49014516) | 428243 | 21374779 | 2746238 |
| Net cash used in investing activities | (1275847) | (19167148) | (4007964) | (514944) |
| Net cash generated from (used from) financing activities | 47546606 | 21891118 | (22825245) | (2932593) |
| Effect of foreign currency translation on cash and cash equivalents |  | 164501 | (1347699) | (176623) |
| Cash and cash equivalents at the end of the year | 5849306 | 9166020 | 2332891 | 299730 |

---

***Cash (used in) generated from operating activities***

Our cash inflow from operating activities was principally from receipt of sales. Our cash outflow used in operating activities was principally for payment of purchases of raw materials, staff costs and other operating expenses.

For the year ended December 31, 2023, we had net cash used in operating activities of HKD49,014,516 (US$6,275,143) mainly arising from net income from our operation of HK$4,414,733 (US$565,202), as adjusted for non-cash items and changes in operating assets and liabilities. Adjustments for non-cash items consisted of (i) depreciation of property and equipment of HKD33,091 (US$4,237); (ii) amortization of intangible assets of HKD112,049 (US$14,345); inventory provision of HKD68,536 (US$8,774); and allowance for expected credit loss of HKD1,383,316 (US$177,101). Changes in operating assets and liabilities mainly include (i) increase in trade receivable of HKD23,387,722 (US$2,994,242) because we utilized less factoring of accounts receivable; (ii) increase of prepayment and other current assets of HKD14,332,426 (US$1,834,926) due to increase in prepayments to suppliers to secure our supplies for production and business; (iii) the increase in inventories of HKD4,088,840 (US$523,479) to cope with the increase in retail sales as we opened an additional retail shop in London in 2024; and (iv) the decrease in accounts payable of HKD10,429,941 (US$1,335,306) as we increased our prepayment to secure our production; and (v) decrease in tax payable of HKD3,969,112 (US$508,150) as our assessable profit reduced in 2023, and partially offset by (i) increase in accruals and other payables of HKD1,173,924 (US$150,293) principally due to the increase of payroll payable as a result of headcount increase and value added tax payable principally resulting from business expansion in the UK.

For the year ended December 31, 2024, we had net cash generated from operating activities of HKD428,243 (US$55,131) mainly arising from net income from our operation of HKD8,063,331 (US$1,038,059), as adjusted for non-cash items and changes in operating assets and liabilities. Adjustments for non-cash items consisted of (i) depreciation of property and equipment of HKD685,245 (US$88,217); (ii) amortization of intangible assets of HKD1,481,738 (US$190,756) and allowance for expected credit loss of HKD1,253,368 (US$161,356). Changes in operating assets and liabilities mainly include (i) increase in trade receivable of HKD3,079,437 (US$396,441) mainly due to increase in revenue of the Company; (ii) increase of prepayment and other current assets of HKD12,940,934 (US$1,665,992) due to increase in prepayments to suppliers to secure our supplies for production and business and rental deposits for four new retail shops in UK; (iii) decrease in lease liabilities due to the lease payment and (iv) decrease in tax payable of HKD543,951 (US$70,027) as the Company made the prepayment of income tax in 2025, and partially offset by (i) decrease in inventories of HKD1,679,793 (US$216,254) due to the establishment of four new retail shops in UK led to increase in inventory turnover days and (ii) increase in accruals and other payables of HKD4,087,119 (US$526,168) principally due to the increase of accruals for audit fee, VAT as increase in cost of purchases resulting from business expansion in the UK and increase in deposit received from customer.

For the year ended December 31, 2025, we had net cash generated from operating activities of HKD21,374,779 (US$2,746,238) mainly arising from net income from our operation of HKD331,679 (US$42,615), as adjusted for non-cash items and changes in operating assets and liabilities. Adjustments for non-cash items consisted of (i) depreciation of property and equipment of HKD1,735,470 (US$222,974); (ii) amortization of intangible assets of HKD2,497,004 (US$320,816), (iii) inventory provision of HKD27,655 (US$3,553), (iv) reversal of allowance for expected credit loss of HKD2,143,178 (US$275,356) and (v) deferred tax expenses of HKD1,136,205 (US$145,980). Changes in operating assets and liabilities mainly include (i) increase of prepayment and other current assets of HKD6,506,352 (US$835,937) due to increase in prepayments to suppliers to secure our supplies for production and increase other receivable for agency income from its related party; and (ii) increase in inventories of HKD8,081,271 (US$1,038,283) due to increase in inventory level to cope with the future demand in UK market, and partially offset by (i) decrease in account receivable of HKD29,132,720 (US$3,742,978) mainly due to decrease in revenue of the Company, (ii) increase in accruals and other payables of HKD1,939,466 (US$249,183) principally due to the increase of accruals for audit fee, payroll payable resulting from higher staff costs associated with the Company's business expansion in the UK and VAT as increase in cost of purchases resulting from business expansion in the UK and (iii) increase in tax payable of HKD310,431 (US$39,884) and decrease in tax recoverable of HKD994,950 (US$127,831) as our income tax expense increased by 33.2% to HKD1,446,631 (US$185,863) for the year ended December 31, 2025 from HKD1,085,909 for the year ended December 31, 2024, mainly due to the increase in income before tax in the Company's subsidiary, Neo-Concept (UK) Limited.

***Cash used in investing activities***

  ****

For the year ended December 31, 2023, net cash used in investing activities was HKD1,275,847 (US$163,342) which related to the acquisition of computer and office equipment and leasehold improvement.

For the year ended December 31, 2024, net cash used in investing activities was HKD19,167,148 (US$2,467,545) which related to the acquisition of computer and office equipment, leasehold improvement and trademarks.

For the year ended December 31, 2025, net cash used in investing activities was HKD4,007,964 (US$514,944) which related to the acquisition of leasehold improvement, furniture and fixture and office equipment during the year.

***Net cash generated from (used in) financing activities***

For the year ended December 31, 2023, net cash generated from financing activities of HKD47,546,606 (US$6,087,213) consisted of (i) proceeds from bank borrowings of HKD115,018,274 (US$14,725,356); and (ii) advance from related parties of HKD101,130,691 (US$12,947,380), the effects of which were partially offset by (i) repayment for bank borrowings of HKD168,602,359 (US$21,585,523).

For the year ended December 31, 2024, net cash generated from financing activities of HKD21,891,118 (US$2,818,224) consisted of (i) proceeds from bank borrowings of HKD222,497,624 (US$28,643,951); and (ii) proceeds from initial public offering HKD65,641,784 (US$8,450,607), the effects of which were partially offset by (i) repayment for bank borrowings of HKD226,145,302 (US$29,113,547); and (ii) repayment to related parties of HKD40,102,988 (US$5,162,788).

For the year ended December 31, 2025, net cash used in financing activities of HKD22,825,245 (US$2,932,593) consisted of (i) proceeds from bank borrowings of HKD67,242,051 (US$8,639,272) and (ii) advance from related parties of HKD46,824,002 (US$6,015,957) the effects of which were partially offset by (i) repayment for bank borrowings of HKD89,591,102 (US$11,510,683); and (ii) repayment to related parties of HKD47,300,196 (US$6,077,139).

**Cash Flow Sufficiency**

In order to meet the debt obligations and operating needs of our business, our management expects to satisfy the cash flow needs through (i) maintaining stable relationships with banks in order to renew the bank loans upon maturity or to arrange for additional banking facilities for use when necessary; (ii) closely monitoring the collection status of account receivables and actively following up with our customers for settlements; (iii) continuing to speed up the collection of account receivables by way of factoring to strengthen our cash position; (iv) diversifying and broadening our customer base to avoid reliance on particular customers and to expand our sources of revenue and cash flow; and (v) effectively managing accounts payable and negotiating for longer credit periods from suppliers, when necessary.

We believe that, taking into consideration the financial resources presently available, including the current levels of cash and cash flows from operations, and the measures mentioned above, will be sufficient to meet its anticipated cash needs for at least the next twelve months from the date of this report.

**Capital Expenditures**

We incurred capital expenditures of HKD1,275,847, HKD19,167,148 and HKD4,007,964 (US$514,944) for the years ended December 31, 2023, 2024 and 2025, respectively, which related to the acquisition of computer and office equipment and leasehold improvement and acquisition of trademarks.

**Contractual Obligations**

The following table summarized our undiscounted contractual obligations as of December 31, 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** |
|  | **Less than <br> 1 year** | **2 to 3 <br> years** | **4 to 5 <br> years** | **More than <br> 5 years** | **Total** |
|  | **HK$** | **HK$** | **HK$** | **HK$** | **HK$** |
| Contractual Obligations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease obligation | 7884001 | 16454173 | 13054111 | 17293790 | 54686075 |

---

**Off-Balance Sheet Arrangements**

We have no off-balance sheet arrangements, including arrangements that would affect its liquidity, capital resources, market risk support, and credit risk support or other benefits.

**C. Research and development, patents and licenses**

To date, we owned certain patents, copyrights, or trademarks, including Les100Ciels and ![](ea028605201_img6.jpg). We, through our Operating Subsidiaries, own and maintain the registered domains *www.les100ciels.com* and *www.neo-ig.com*

**D. Trend information**

See ITEM 5.A "operating results" above for our trend information.

**E. Critical Accounting Estimates**

We prepare our consolidated financial statements in accordance with U.S. GAAP, which requires us to make judgments, estimates and assumptions that affect (i) the reported amounts of our assets and liabilities; (ii) the disclosure of our contingent assets and liabilities at the end of each reporting period; and (iii) the reported amounts of revenues and expenses during each reporting period. We continually evaluate these judgments, estimates and assumptions based on our own historical experience, knowledge and assessment of current business and other conditions and our expectations regarding the future based on available information, which together form our basis for making judgments about matters that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment than others in their application.

When reading our consolidated financial statements, you should consider our selection of critical accounting policies, the judgment and other uncertainties affecting the application of such policies and the sensitivity of reported results to changes in conditions and assumptions. Our critical accounting policies and practices include the following: (i) revenue recognition; (ii) operating leases; and (iii) long-term investment. See Note 2 — Summary of Significant Accounting Policies to our consolidated financial statements for the disclosure of these accounting policies. We believe the following accounting estimates involve the most significant judgments used in the preparation of our consolidated financial statements.

***Intangible assets, net***

Intangible assets are primarily purchased from third parties and Neo-Concept (Holdings) Company Limited, a company under common control of the Controlling Shareholder. Purchased intangible assets are initially recognized and measured at cost upon acquisition. Intangible assets that have determinable lives are amortized over their estimated useful lives based upon the usage of the asset, which is approximated using a straight-line method as follows:

Computer software – Point-of-sale system 10 years <br> Trademarks 6 years

*Impairment of long-lived assets*

The Group evaluates the recoverability of its long-lived assets (asset groups), including property and equipment and operating lease right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of its asset (asset group) may not be fully recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to the estimated undiscounted future cash flows expected to result from the use of the asset (asset group) and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the asset (asset group), the Group recognizes an impairment loss based on the excess of the carrying amount of the asset (asset group) over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the asset (asset group), when the market prices are not readily available. The adjusted carrying amount of the asset is the new cost basis and is depreciated over the asset's remaining useful life. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For the years ended December 31, 2025, 2024 and 2023, no impairment of long-lived assets was recognized.

**Recent accounting pronouncements**

See the discussion of the recent accounting pronouncements contained in Note 2 to the consolidated financial statements, "Summary of Significant Accounting Policies".

**ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES**

**A. Directors and senior management.**

The following table provides information regarding the executive officers and directors of the Company as of the date of this report:

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| | | |
|:---|:---|:---|
| **Directors and Executive officers** | **Age** | **Position** |
| Ms. Eva Yuk Yin Siu | 64 | Director, Chairlady of the Board, Chief Executive Officer |
| Mr. Pengfei Jiang | 29 | Director |
| Mr. Patrick Kwok Fai Lau | 53 | Chief Financial Officer |
| Mr. Billy Chun Fai Tang | 52 | Independent Director |
| Mr. Chun Kwok Wong | 43 | Independent Director |
| Ms. Josephine Yan Yeung | 43 | Independent Director |

---

***Ms. Eva Yuk Yin Siu*** served as Chairlady of the Board and Director of NCI since July 2021. In May 2022, she was appointed CEO. She is responsible for NCI's overall management, operations, planning, and business development. In October 1992, she co-founded Neo-Concept International Company Limited and has been its director since December 1992. In August 2000, she also co-founded Neo-Concept (UK) Limited. These subsidiaries combine fashion, function, creativity, innovation and craftsmanship. Ms. Siu is also the founder and director of Neo-Concept (Holdings) Company Limited and some of its garment manufacturing subsidiaries. Ms. Siu has more than 30 years of experience in the fashion garment industry and her fashion sense and insight into fashion trends have laid a strong foundation for our business.

***Mr. Pengfei Jiang*** has been serving as Director since December 2025, with a primary focus on investor relations. He is currently the General Manager of Guangzhou Nanbeiji Technology Development Co., Ltd., a position he has held since May 2024, where he leads corporate strategy, industry research, and investment project evaluation, and oversees due diligence, risk assessment, and resource integration for growth. Mr. Jiang previously served as Investment Manager at Guangdong Rongda Investment Development Co., Ltd. from November 2023 to April 2024. Prior to that, he was Administrative Manager at Wuhan Keji Yanzhuang Co., Ltd. from May 2019 to October 2023. Mr. Jiang obtained a diploma in Automobile Testing and Maintenance Technology from Wuhan Institute of Technology in 2019.

 ****

***Mr. Patrick Kwok Fai Lau*** has served as our Chief Financial Officer since May 2022. Mr. Lau has been serving as the chief financial officer of Neo-Concept HK since December 2021. From September 2020 to November 2021, Mr. Lau was the chief financial officer of our affiliated company, NCH. Mr. Lau possesses extensive expertise in accounting, auditing, financial advisory, and corporate governance. Between 1996 and 2011, he garnered valuable experience working in various international accounting firms, where he provided audit and financial advisory services. From 2011 to 2019, Mr. Lau held several key positions at BII Railway Transportation Technology Holdings Company Limited (HKSE: 1522) and International Alliance Financial Leasing Co., Ltd. (HKSE: 1563) respectively.

Mr. Lau earned a Master of Science degree in Corporate Governance and Directorship (Distinction) from Hong Kong Baptist University in November 2014. He also obtained the HKICPA Diploma in Insolvency from The Hong Kong Institute of Certified Public Accountants in June 2004. Mr. Lau has been a member of The Hong Kong Institute of Certified Public Accountants since July 2003 and a fellow member of the Association of Chartered Certified Accountants since December 2007. He is a member of Beta Gamma Sigma Hong Kong since April 2014.

Mr. Lau has been an independent non-executive director of Numans Health Food Holdings Company Limited (HKSE: 2530) since December 2024, Ximei Resources Holding Limited (HKSE: 9936) since February 2020 and Zhongtian Construction (Hunan) Group Limited (HKSE: 2433) since March 2023. Mr. Lau was also an independent non-executive director of Jinhai International Group Holdings Limited (HKSE: 2225) from September 2017 to June 2020, Sundy Service Group Co. Ltd (HKSE: 9608) from December 2020 to January 2024 and FDB Holdings Limited (HKSE: 1826) from January 2018 to January 2025.

 ****

***Mr. Billy Chun Fai Tang*** served as independent Director, Chairman of the Compensation Committee and member of the Audit Committee and Nominating and Corporate Governance Committees of the Company. Mr. Tang is an executive Director of LFG Investment Holdings Limited (3938.hk), a company of which is listed on the Hong Kong Stock Exchange. He was appointed as the executive Director on 1 April 2020. Mr. Tang joined LFG Investment Holdings Limited in December 2018 and is currently the managing director of Lego Corporate Finance Limited. Since June 2019, Mr. Tang has acted as a Responsible Officer of Lego Corporate Finance Limited for Type 6 (advising on corporate finance) regulated activity under the SFO and a Licensed Representative of Lego Securities Limited for Type 1 (dealing in securities) regulated activity under the SFO.

Mr. Tang has over 25 years of experience in the accounting and investment banking profession. Prior to joining the Group, he worked at Goldin Financial Limited from July 2009 to December 2018 and his last position was the director of investment banking division and a Responsible Officer for Type 6 (advising on corporate finance) regulated activity. Prior to that, he had worked at Optima Capital Limited as a Responsible Officer for Type 6 (advising on corporate finance) regulated activity. He had also worked at BOCOM International Holdings Company Limited, Deloitte & Touche Corporate Finance Limited and PricewaterhouseCoopers.

Mr. Tang obtained a bachelor's degree in business administration from The University of Massachusetts at Amherst, United States, in May 1996.

 ****

***Mr. Wong Chun Kwok*** has over 19 years of experience in accounting and finance. Mr. Wong currently serves as an Executive Director of Universe Printshop Holdings Limited, the shares of which are listed on the GEM Board of the Hong Kong Stock Exchange (stock code: 8448), an independent director of Datasea Inc. (NASDAQ: DTSS) and a non-executive director of DW Consulting Corporation Limited. He was the chief financial officer of Huisen Shares Group Limited (formerly known as Huisen Household International Group Limited), the shares of which are listed on the Main Board of the Hong Kong Stock Exchange (stock code: 2127), from October 2021 to June 2024. He served as the financial controller from February 2017 to January 2018, and the chief financial officer from January 2018 to August 2020 of Fitness World (Group) Limited. He was a senior associate in the assurance practice of PricewaterhouseCoopers Limited (PwC) from January 2016 to January 2017. He worked at Moore Stephens Associates Limited (Hong Kong) as an audit senior associate from October 2010 to December 2015. He worked at KLC CPA Limited from October 2005 to August 2010, with his last position being a supervisor. Mr. Wong obtained his Bachelor of Commerce degree in Accounting from Macquarie University, Australia, in 2005. Mr. Wong is a fellow member of the Association of Chartered Certified Accountants and an affiliate member of The Society of Chinese Accountants and Auditors.

 ****

 ****

***Ms. Josephine Yan Yeung*** served as independent Director, Chairlady of the Audit Committee and member of the Compensation Committee and Nominating and Corporate Governance Committees of the Company. Ms. Yeung has approximately 19 years of experience in auditing, financial management, internal control, and corporate governance. From September 2003 to July 2009, Ms. Yeung held various positions in Ernst & Young Hong Kong, where she last served as manager in the assurance and advisory business services department, specializing in auditing listed companies in Hong Kong. From August 2009 to May 2017, Ms. Yeung worked at Verdant Group Ltd, a China focused private investment firm based in Hong Kong with her last position as a group finance director. She is a practicing member of The Hong Kong Institute of Certified Public Accountants and has been practicing in Noble Partners CPA Company, a Hong Kong-based audit firm since May 2017.

Ms. Yeung graduated from The Hong Kong University of Science and Technology in November 2003 with a Bachelor of Business Administration in Accounting degree. She was admitted as a member and fellow of the Association of Chartered Certified Accountants in the UK in February 2007 and February 2012, respectively. She was admitted as a member and fellow of The Hong Kong Institute of Certified Public Accountants in February 2008 and October 2017, respectively. She is currently a practicing certified public accountant in Hong Kong. Ms. Yeung served as a joint company secretary member of Sunlight (1977) Holdings Limited (HKSE: 8451) from April 2018 to May 2019. She also served as a company secretary of Tu Yi Holding Company Limited (HKSE: 1701) from June 2019 to June 2020.

**Family Relationships**

Save as disclosed above, none of our directors or executive officers has a family relationship as defined in Item 401 of Regulation S-K.

**B. Compensation.**

For the year ended December 31, 2025, we paid an aggregate of HKD4,073,626 in cash (including salaries and mandatory provident fund) to our directors. Our Hong Kong subsidiaries are required by law to make contributions equal to certain percentages of each employee's salary for his or her mandatory provident fund. We have not made any agreements with our directors or executive officers to provide benefits upon termination of employment.

**Equity Compensation Plan Information**

We have not adopted any equity compensation plans.

**Outstanding Equity Awards at Fiscal Year-End**

As of December 31, 2025, December 31, 2024 and December 31, 2023, we had no outstanding equity awards.

**C. Board Practices.**

Our board of directors will consist of five directors, comprising two executive directors and three independent directors, upon the SEC's declaration of effectiveness of the registration statement of which this report is a part. A director is not required to hold any shares in our Company to qualify to serve as a director. Subject to making appropriate disclosures to the board of directors in accordance with our post-offering Amended and Restated Memorandum and Articles of Association, a director may vote with respect to any contract, proposed contract, or arrangement in which he or she is interested, in voting in respect of any such matter, such director should take into account his or her director's duties. A director may exercise all the powers of the company to borrow money, mortgage its business, property and uncalled capital, and issue debentures or other securities whenever money is borrowed or as security for any obligation of the company or of any third party.

**Board diversity**

We seek to achieve board diversity through the consideration of a number of factors when selecting the candidates to our Board, including but not limited to gender, skills, age, professional experience, knowledge, cultural, education background, ethnicity and length of service. The ultimate decision of the appointment will be based on merit and the contribution which the selected candidates will bring to our Board.

Our directors have a balanced mix of knowledge and skills. We have three independent directors with different industry backgrounds, representing a majority of the members of our board. We also achieved gender diversity by having one female independent director out of the total of three independent directors. Our board is well balanced and diversified in alignment with the business development and strategy of NCI and our subsidiaries.

**Committees of the Board of Directors**

We established an audit committee, a compensation committee, and a nominating and corporate governance committee under the board of directors. We adopted a charter for each of the three committees. Each committee's members and functions are described below.

 

*Audit Committee*

Our audit committee consisted of Ms. Josephine Yan Yeung, Mr. Mark Gary Singer and Mr. Billy Chun Fai Tang and is chaired by Ms. Josephine Yan Yeung. We have determined that each of these three director nominees satisfies the "independence" requirements of the Nasdaq Listing Rules and meet the independence standards under Rule 10A-3 under the Securities Exchange Act of 1934, as amended. We have determined that Ms. Josephine Yan Yeung qualifies as an "audit committee financial expert." The audit committee oversees our accounting and financial reporting processes and the audits of our financial statements. The audit committee is responsible for, among other things:

● selecting the independent registered public accounting firm and pre-approving all auditing and non-auditing services permitted to be performed by the independent registered public accounting firm;

● reviewing with the independent registered public accounting firm any audit problems or difficulties and management's responses;

● reviewing and approving all proposed related party transactions, as defined in Item 404 of Regulation S-K under the Securities Act;

● discussing the annual audited financial statements with management and the independent registered public accounting firm;

● reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any special steps taken to monitor and control major financial risk exposures;

● annually reviewing and reassessing the adequacy of our audit committee charter;

● meeting separately and periodically with management and the independent registered public accounting firm;

● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance; and

● reporting regularly to the board.

 

 

*Compensation Committee*

Our compensation committee consists of Mr. Billy Chun Fai Tang, Mr. Mark Gary Singer and Ms. Josephine Yan Yeung and is chaired by Mr. Billy Chun Fai Tang. We have determined that each of these directors satisfies the "independence" requirements of the Nasdaq Listing Rules. The compensation committee assists the board in reviewing and approving the compensation structure, including all forms of compensation, relating to our directors and executive officers. Our chief executive officer may not be present at any committee meeting during which their compensation is deliberated upon. The compensation committee is responsible for, among other things:

● reviewing and approving, or recommending to the board for its approval, the compensation for our chief executive officer and other executive officers;

● reviewing and recommending to the board for determination with respect to the compensation of our non-employee directors;

● reviewing periodically and approving any incentive compensation or equity plans, programs or other similar arrangements, annual bonuses, and employee pension and welfare benefit plans; and

● selecting compensation consultant, legal counsel or other adviser only after taking into consideration all factors relevant to that person's independence from management.

 

*Nominating and Corporate Governance Committee*

Our nominating and corporate governance committee will consist of Mr. Billy Chun Fai Tang, Mr. Mark Gary Singer and Ms. Josephine Yan Yeung and is chaired by Mr. Mark Gary Singer. We have determined that each of these directors satisfies the "independence" requirements of the Nasdaq Listing Rules. The nominating and corporate governance committee assists the board in selecting individuals qualified to become our directors and in determining the composition of the board and its committees. The nominating and corporate governance committee is responsible for, among other things:

● recommending nominees to the board for election or re-election to the board, or for appointment to fill any vacancy on the board;

● reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills, experience, expertise, diversity and availability of service to us;

● selecting and recommending to the board the names of directors to serve as members of the audit committee and the compensation committee, as well as of the nominating and corporate governance committee itself;

● developing, reviewing the corporate governance principles adopted by the board and advising the board with respect to significant developments in the law and practice of corporate governance and our compliance with such laws and practices;

● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance; and

● evaluating the performance and effectiveness of the board as a whole.

**Board Diversity Matrix (As of April 30, 2026)**

---

| | |
|:---|:---|
| Country of Principal Executive Offices | Hong Kong |
| Foreign Private Issuer | Yes |
| Disclosure Prohibited Under Home Country Law | No |
| Total Number of Directors | 5 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Part I: Gender Identity** | **Female** | **Female** | **Male** | **Male** | **Non-Binary** | **Non-Binary** | **Did Not<br> Disclose<br> Gender** | **Did Not<br> Disclose<br> Gender** |
| Directors |  | 2 |  | 3 |  | 0 |  | 0 |
| **Part II: Demographic Background** |  |  |  |  |  |  |  |  |
| Underrepresented Individual in Home Country Jurisdiction |  | 0 |  | 0 |  | 0 |  | 0 |
| LGBTQ+ |  | 0 |  | 0 |  | 0 |  | 0 |

---

**Foreign Private Issuer Exemption**

We are a "foreign private issuer," as defined by the SEC. As a result, in accordance with the rules and regulations of Nasdaq, we may choose to comply with home country governance requirements and certain exemptions thereunder rather than complying with Nasdaq corporate governance standards. We may choose to take advantage of the following exemptions afforded to foreign private issuers:

● Exemption from filing quarterly reports on Form 10-Q, from filing proxy solicitation materials on Schedule 14A or 14C in connection with annual or special meetings of shareholders, or from providing current reports on Form 8-K disclosing significant events within four (4) days of their occurrence, and from the disclosure requirements of Regulation FD.

● Exemption from Section 16 rules regarding sales of Class A Ordinary Shares by insiders, which will provide less data in this regard than shareholders of U.S. companies that are subject to the Exchange Act.

● Exemption from the Nasdaq rules applicable to domestic issuers requiring disclosure within four (4) business days of any determination to grant a waiver of the code of business conduct and ethics to directors and officers. Although we will require board approval of any such waiver, we may choose not to disclose the waiver in the manner set forth in the Nasdaq rules, as permitted by the foreign private issuer exemption.

Furthermore, Nasdaq Rule 5615(a)(3) provides that a foreign private issuer, such as us, may rely on our home country corporate governance practices in lieu of certain of the rules in the Nasdaq Rule 5600 Series and Rule 5250(d), provided that we nevertheless comply with Nasdaq's Notification of Noncompliance requirement (Rule 5625), the Voting Rights requirement (Rule 5640) and that we have an audit committee that satisfies Rule 5605(c)(3), consisting of committee members that meet the independence requirements of Rule 5605(c)(2)(A)(ii). If we rely on our home country corporate governance practices in lieu of certain of the rules of Nasdaq, our shareholders may not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of Nasdaq. If we choose to do so, we may utilize these exemptions for as long as we continue to qualify as a foreign private issuer.

**Equity Compensation Plan Information**

We have not adopted any equity compensation plans.

**Outstanding Equity Awards at Fiscal Year-End**

As of December 31, 2025, December 31, 2024 and December 31, 2023, we had no outstanding equity awards.

**Clawback Policy**

On December 1, 2023, our board of directors adopted a clawback policy (the "Clawback Policy") permitting the Company to seek the recoupment of incentive compensation received by any of the Company's current and former executive officers (as determined by the board in accordance with Section 10D of the Exchange Act and the Nasdaq rules) and such other senior executives/employees who may from time to time be deemed subject to the Clawback Policy by the board (collectively, the "Covered Executives"). The amount to be recovered will be the excess of the incentive compensation paid to the Covered Executive based on the erroneous data over the incentive compensation that would have been paid to the Covered Executive had it been based on the restated results, as determined by the board. If the board cannot determine the amount of excess incentive compensation received by the Covered Executive directly from the information in the accounting restatement, then it will make its determination based on a reasonable estimate of the effect of the accounting restatement. Refer to Exhibit 97.1 of this Annual Report for the Company's Clawback Policy.

**D. Employees.**

As of December 31, 2025, we employed a total number of 24 full-time employees, 13 of whom are based in Hong Kong and 11 of whom are based in the UK. Our employees are employed in the areas of human resources and administration, management, product design and development, sourcing and logistics, and quality control. The remuneration package offered to our employees generally includes basic salary, bonuses and cash allowances or subsidies. We provide our employees with social security benefits in accordance with all applicable regulations and internal policies.

**E. Share Ownership.**

The following table sets forth information regarding the beneficial ownership of our Class A Ordinary Shares as of the date of this report by our officers, directors, and 5% or greater beneficial owners of Class A Ordinary Shares. There is no other person or group of affiliated persons known by us to beneficially own more than 5% of our Class A Ordinary Shares. Holders of our Class A Ordinary Shares are entitled to one (1) vote per share and vote on all matters submitted to a vote of our shareholders, except as may otherwise be required by law.

We have determined beneficial ownership in accordance with the rules of the SEC. These rules generally attribute beneficial ownership of securities to persons who possess sole or shared voting power or investment power with respect to those securities. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Unless otherwise indicated, the person identified in this table has sole voting and investment power with respect to all shares shown as beneficially owned by him, subject to applicable community property laws.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class B** | **Class B** |
| | **Ordinary Shares** | **Ordinary Shares** | **Ordinary Shares** | **Ordinary Shares** |
| | **beneficially held** | **beneficially held** | **beneficially held** | **beneficially held** |
| <br>**Directors** |<br><br>**Number of**<br>**Ordinary<br> Shares** | **Approximate**<br>**percentage of**<br>**outstanding**<br>**Class A**<br>**Ordinary<br> Shares** |<br><br>**Number of**<br>**Ordinary<br> Shares** | **Approximate**<br>**percentage of**<br>**outstanding**<br>**Class B**<br>**Ordinary<br> Shares** |
| *Directors and executive officers<sup>(1)</sup>* |  |  |  |  |
| Ms. Eva Yuk Yin Siu<sup>(2)</sup> | 2379011 | 12.99% | 526260 | 87.71% |
| Mr. Pengfei Jiang<sup>(3)</sup> |  |  |  |  |
| Mr. Patrick Kwok Fai Lau |  |  |  |  |
| Mr. Chun Kwok Wong<sup>(3)</sup> |  |  |  |  |
| Mr. Billy Chun Fai Tang<sup>(3)</sup> |  |  |  |  |
| Ms. Josephine Yeung Yan<sup>(3)</sup> |  |  |  |  |
| All directors and executive officers as a group (6 individuals) | 2379011 | 12.99% | 526260 | 87.71% |
| *5% principal shareholders:* |  |  |  |  |
| Ms. Eva Yuk Yin Siu<sup>(2)</sup> | 2379011 | 12.99% | 526260 | 87.71% |
| Asset Empire International Limited<sup>(2)(6)</sup> | 2379011 | 12.99% | 526260 | 87.71% |
| Splendid Vibe Limited<sup>(2)(6)</sup> | 2712360 | 14.81% | 600000 | 100.00% |
| Neo-concept (BVI) Limited<sup>(4)(6)</sup> | 2352360 | 12.84% | 600000 | 100.00% |
| Ample Excellence Limited<sup>(5)(6)</sup> | 360000 | 1.97% |  |  |

---

(1) Except as otherwise indicated below, the business address for our directors and executive officers is 10/F, Seaview Centre, No.139-141 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong.

(2) Ms. Eva Yuk Yin Siu, the chairlady of the Board, Chief Executive Officer, and a Director of the Company, owns the entire issued share capital of Asset Empire International Limited. Asset Empire International Limited, a company incorporated in the BVI with limited liability, holds 87.71% of the issued shares of Splendid Vibe Limited. Splendid Vibe Limited, a company incorporated in the BVI with limited liability, owns the entire issued share capital of Ample Excellence Limited and Neo-Concept (BVI) Limited.

(3) Mr. Pengfei Jiang has been appointed as our director on December 16, 2025. Mr. Chun Kwok Wong, Mr. Billy Chun Fai Tang and Ms. Josephine Yan Yeung has been appointed as our independent director on April 1, 2024, January 22, 2025 and March 9, 2026 respectively.

(4) Neo-Concept (BVI) Limited, a company incorporated in the BVI with limited liability, owns 15.61% of the issued Shares of the Company.

(5) Ample Excellence Limited, a company incorporated in the BVI with limited liability, owns 1.97% of the issued Shares of the Company.

(6) The registered office address of each of these entities listed is Aegis Chambers, 1st Floor, Ellen Skelton Building, 3076 Sir Francis Drake's Highway, Road Town, Tortola, VG1110, British Virgin Islands.

**F. Disclosure of a registrant's action to recover erroneously awarded compensation.**

Not applicable.

**ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

**A. Major Shareholders.**

Please refer to "Item 6. Directors, Senior Management and Employees — E. Share Ownership."

**B. Related Party Transactions.**

We have adopted an audit committee charter, which requires the committee to review all related-party transactions on an ongoing basis and all such transactions be approved by the committee.

**List of Related Parties**

---

| | |
|:---|:---|
| **Name of related parties** | **Relationship with the Company** |
| Ms. Eva Yuk Yin Siu ("**Ms. Siu**") | Chairman of the Board, Director, the Controlling Shareholder |
| Neo-Concept (Holdings) Company Limited ("**NCH**") | A company under common control of the Controlling Shareholder |

---

**Amounts Due From (To) Related Parties**

The following table set forth the breakdown of our balances due from related parties as of the dates indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | <br>**Relationship** | **2023** | **2024** | **2025** | **2025** |
|  |  | **HKD** | **HKD** | **HKD** | **US$** |
| Due from (to) Ms. Siu | Controlling Shareholder | (59106) |  |  |  |
| Other receivables from NCH | Common controlled by Ms. Siu |  |  | 1443971 | 185522 |
| Due from (to) NCH | Common controlled by Ms. Siu | (34184138) | (638243) | (480183) | (61695) |

---

The amounts due from (to) the related parties are unsecured, interest free with no specific repayment terms. Neo-Concept (Holdings) Company Limited ("NCH") is a company incorporated in Hong Kong and controlled by Ms. Siu, the controlling shareholder of the Company. As of December 31, 2023, 2024 and 2025, the amount due to NCH and Ms. Siu was non-trade nature, being fund advance from NCH and Ms. Siu for general operation of the Company. Other receivables from NCH represented the agency income receivable, it was interest-free, non-secured and repayable within 30 days upon billing.

On June 30, 2023, NCH agreed to forgive HKD 55 million (US$7.02 million) due to NCH by the Company. The amount was credited to additional paid-in capital. The amount forgiven represented funds transferred from NCH to the Company to support the general operation of the Company during year ended December 31, 2023.

During the year ended December 31, 2023, the largest amount outstanding with the related parties was HK$55,002 from Ms. Siu and HK$33,086,018 due to NCH. During the year ended December 31, 2024 and 2025, the largest amount outstanding with the related parties was HK$638,243 due to NCH.

**Transactions with Related Parties**

*Related party transactions during the three years ended December 31, 2023, 2024 and 2025*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| Neo-Concept (Holdings) Company Limited<sup>(1)</sup> Operating lease expense<sup>(2)</sup> | 720000 | 720000 | 720000 | 92506 |
| Neo-Concept (Holdings) Company Limited<sup>(1)</sup> Purchase of apparel products<sup>(3)</sup> | 34213521 | 7915189 | 34846523 | 4477089 |
| Neo-Concept (Holdings) Company Limited<sup>(1)</sup> Purchase of intangible assets<sup>(4)</sup> |  | 15023180 |  |  |
| Neo-Concept (Holdings) Company Limited<sup>(1)</sup> Agency income received<sup>(5)</sup> | 2662034 | 1170664 | 1475466 | 189568 |

---

(1) An
affiliate company incorporated in Hong Kong indirectly wholly-owned by the Controlling Shareholders.

(2) Operating lease expenses were paid by Neo-Concept HK for the lease of office premises located at 10/F, Seaview Centre, No.139-141 Hoi Bun Road, Kwun Tong, Hong Kong.

(3) During the normal course of business, Neo-Concept HK engaged NCH as supplier to produce and arrange delivery of products for its customers. The rates charged by NCH is consistent with the standard rates charged by Neo-Concept HK's independent third-party supplier. We are of the opinion that the service fees paid to NCH, and the terms of service were negotiated at arm's length.

(4) On May 29, 2024, the Company entered into assets purchase agreement with a company controlled by Ms. Siu, Neo-Concept (Holdings) Company Limited, to purchase the trademark at a consideration of HK$15,023,180 (US$1,931,000). The trademarks are brand names which filed in Hong Kong, the Mainland China, the European Union, the US, Qatar and the United Arab Emirates.

(5) Agency income refers to other income received from NCH, which was a discretionary payment made to Neo-Concept UK for promoting NCH's products in the UK upon a pre-determined yearly sale target being achieved.

**Bank Facilities and Other Borrowing**

Bank borrowings as of December 31, 2024 and 2025 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | **As of December 31,** | **As of December 31,** | **As of December 31,** |
| <br>**Lender** | <br>**Type** | **Maturity**<br>**date** | <br>**Currency** | **Interest<br> rate as of<br> December 31,**<br>**2024** | **Interest<br> rate as of<br> December 31,**<br>**2025** | **2024** | **2025** | **2025** |
|  |  |  |  |  |  | **HKD** | **HKD** | **US$** |
| The Hongkong and Shanghai Banking Corporation Limited (i) | Trading finance | Within 1 year | HKD | 6.05% |  | 8579162 |  |  |
| OCBC (i) | Trading finance | Within 1 year | HKD | 7.40% |  | 2400446 |  |  |
| China Construction Asia Bank (i) | Trading finance | Within 1 year | HKD | 6.29% | 5.94% | 10645199 | 4753714 | 610758 |
| Citibank, N.A., Hong Kong Branch (ii) | Trading finance | Within 1 year | HKD | 7.44% |  | 5480915 |  |  |
| Citibank, N.A., Hong Kong Branch | Bank overdraft | On demand | HKD |  | 14.75% |  | 2957 | 380 |
| Total |  |  |  |  |  | 27105722 | 4756671 | 611138 |
| Less: current maturities |  |  |  |  |  | (27105722) | (4756671) | (611138) |
| Non-current maturities |  |  |  |  |  |  |  |  |

---

(i) In connection with our operations in Hong Kong, Neo-Concept
HK, together with a related company, Neo-Concept (Holdings) Company Limited ("NCH"), a company incorporated in Hong Kong
and controlled by Ms. Siu, entered into (as renewed or supplemented yearly where required) several banking facilities with banks in Hong Kong
for combined banking facilities which were shared by Neo-Concept HK and NCH combinedly. The banking facilities were secured, details
of which are set out as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Unlimited personal guarantee by Ms. Siu;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Ms. Siu being a subordinated lender towards all sums of money
owed by Neo-Concept HK and NCH;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Legal charge over certain properties and car parking spaces
owned by Ms. Siu and an immediate family member of Ms. Siu and also assignment of rental from the properties and the car parking spaces;

&nbsp;&nbsp;&nbsp;&nbsp;(d) Legal charge over certain deposits accounts held by NCH at
the relevant banks;

&nbsp;&nbsp;&nbsp;&nbsp;(e) Legal charge over certain investment funds held by NCH at
the relevant banks;

&nbsp;&nbsp;&nbsp;&nbsp;(f) Assignment of benefit from life insurances premium assets
held by NCH at the relevant banks;

&nbsp;&nbsp;&nbsp;&nbsp;(g) Assignment of benefit from life insurances premium assets
held by Pure Diamond Limited, a related company in which Ms. Siu has interests, at a relevant bank;

&nbsp;&nbsp;&nbsp;&nbsp;(h) Indemnity granted by NCH to relevant banks;

&nbsp;&nbsp;&nbsp;&nbsp;(i) Guaranteed by Neo-Concept Fashion (Zhongshan) Co., Ltd, a
subsidiary company of NCH, amounting to HKD131 million; and

&nbsp;&nbsp;&nbsp;&nbsp;(j) Cross-corporate guaranteed by Neo-Concept HK and NCH;

(ii) The banking facilities were secured, details of which are set
out as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Personal guarantee by Ms. Siu and an immediate family member
of Ms. Siu;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Cross-corporate guaranteed by Neo-Concept HK, Neo-Concept
(BVI) Limited, a company controlled by Ms. Siu, and NCH; and

&nbsp;&nbsp;&nbsp;&nbsp;(c) Legal charge over certain deposits accounts held by NCH at
the relevant banks;

**Policies and Procedures for Related Party Transactions**

Our board of directors has created an audit committee and adopted an audit committee charter, which requires the committee to review and approve of all related party transactions.

**C. Interests of Experts and Counsel**

Not applicable.

**ITEM 8. FINANCIAL INFORMATION**

**A. Consolidated Statements and Other Financial Information.**

See "Item 18. Financial Statements" for our audited consolidated financial statements.

***Legal Proceedings***

As of the date of this report, we and our subsidiaries are not a party to, and we are not aware of any threat of, any legal proceeding that, in the opinion of our management, is likely to have a material adverse effect on our or our subsidiaries business, financial condition or operations.

From time to time, we may become involved in legal proceedings arising in the ordinary course of business. Other than the civil proceeding mentioned above, we are not involved in any litigation, arbitration or claim of material importance, nor any material impact non-compliance incidents or systemic non-compliance incidents in respect of applicable laws and regulations.

***Dividend Policy***

We currently intend to retain all available funds and future earnings, if any, for the operation and expansion of our business, and we do not anticipate declaring or paying any dividends in the foreseeable future. Any future determination related to our dividend policy will be made at the discretion of our board of directors after considering our financial condition, results of operations, capital requirements, contractual requirements, business prospects and other factors the board of directors deems relevant, and subject to the restrictions contained in any future financing instruments.

During the years ended December 31, 2025 and 2024, NCI did not declare or pay any other dividends and there were no transfer of assets among NCI and its subsidiaries. During the years ended December 31, 2025 and 2024 NCI and its subsidiaries did not declare or pay any dividends or distributions to U.S. investors.

The declaration, amount and payment of any future dividends will be at the sole discretion of our board of directors, subject to compliance with applicable Cayman Islands laws regarding solvency. Our board of directors will take into account general economic and business conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions and other implications on the payment of dividends by us to our shareholders or by our subsidiaries to us, and such other factors as our board of directors may deem relevant.

Subject to the Companies Act and our Memorandum and Articles of Association, our Company in general meeting may declare dividends in any currency to be paid to the members but no dividend shall be declared in excess of the amount recommended by our board of directors. Subject to a solvency test, as prescribed in the Companies Act, and the provisions of our Memorandum and Articles of Association, a company may pay dividends and distributions out of its share premium account. In addition, based upon English case law which is likely to be persuasive in the Cayman Islands, dividends may be paid out of profits.

As we are a holding company, we rely on dividends paid to us by our subsidiaries for our cash requirements, including funds to pay any dividends and other cash distributions to our shareholders, service any debt we may incur and pay our operating expenses. Our ability to pay dividends to our shareholders will depend on, among other things, the availability of dividends from our subsidiaries.

Cash dividends, if any, on our Class A Ordinary Shares will be paid in U.S. dollars.

Under the current practice of the Inland Revenue Department of Hong Kong, no tax is payable in Hong Kong in respect of dividends paid by us.

**B. Significant Changes.**

Except as disclosed elsewhere in this Annual Report, we have not experienced any significant changes since the date of our audited consolidated financial statements included in this Annual Report.

**ITEM 9. THE OFFER AND LISTING**

**A. Offer and Listing Details.**

Not applicable.

**B. Plan of Distribution.**

Not applicable.

**C. Markets.**

Not applicable.

**D. Selling Shareholders.**

Not applicable.

**E. Dilution.**

Not applicable.

**F. Expenses of the Issue.**

Not applicable.

**ITEM 10. ADDITIONAL INFORMATION**

**A. Share Capital.**

As of the date of this Report, the authorised share capital of the Company is US$50,000 consisting of 160,000,000 shares of a par value US$0.0003125 each comprised of 156,000,000 class A ordinary shares of par value of US$0.0003125 each and 4,000,000 class B ordinary shares of par value of US$0.0003125 each, provided always that subject to the Companies Act (as revised) and the Articles, the Company shall have power to redeem or purchase any of its shares and to sub-divide or consolidate the said shares or any of them and to issue all or any part of its capital whether original, redeemed, increased or reduced with or without any preference, priority, special privilege or other rights or subject to any postponement of rights or to any conditions or restrictions whatsoever and so that unless the conditions of issue shall otherwise expressly provide every issue of shares whether stated to be , preference or otherwise shall be subject to the powers on the part of the Company hereinbefore provided.

**B. Memorandum and Articles of Association.**

The following are summaries of material provisions of our Second Amended and Restated Memorandum and Articles of Association as they relate to the material terms of our Class A Ordinary Shares.

**Ordinary Shares**

 ****

***General***

The authorised share capital of the Company on the date of the adoption of these Articles is US$50,000 divided into 160,000,000 shares of a par value US$0.0003125 each. comprised of 156,000,000 Class A Ordinary Shares of par value of US$0.0003125 each and 4,000,000 Class B Ordinary Shares of par value of US$0.0003125 each. The holders of the Class A Ordinary Shares and/or Class B Ordinary Shares shall, subject to the Articles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be entitled to one vote per share, save that each Class B Ordinary Share carries thirty (30) votes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be entitled to such dividends as the Board may from time to time declare;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the event of a winding-up or dissolution of the Company, whether voluntary or involuntary or for the purpose of a reorganisation or otherwise or upon any distribution of capital, be entitled to the surplus assets of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) generally be entitled to enjoy all of the rights attaching to shares.

Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof. In no event shall Class A Ordinary Shares be convertible into Class B Ordinary Shares.

Upon any direct or indirect sale, transfer, assignment or disposition of Class B Ordinary Shares or the direct or indirect transfer or assignment of the voting power attached to such number of Class B Ordinary Shares through voting proxy or otherwise by a holder thereof to any person or entity which is neither ultimately controlled by the Founder nor another holder of Class B Ordinary Shares or an Affiliate of such another holder, all Class B Ordinary Shares held by a holder thereof shall be automatically and immediately converted into an equal number of Class A Ordinary Shares.

Upon any direct or indirect sale, transfer, assignment or disposition of a majority of the issued and outstanding voting securities of, or the direct or indirect transfer or assignment of the voting power attached to such voting securities through voting proxy or otherwise, or the direct or indirect sale, transfer, assignment or disposition of all or substantially all of the assets of, a holder of Class B Ordinary Shares that is an entity to any person or entity which is neither ultimately controlled by the Founder nor another holder of Class B Ordinary Shares or an Affiliate of such another holder, all Class B Ordinary Shares held by a holder thereof shall be automatically and immediately converted into an equal number of Class A Ordinary Shares

For the avoidance of doubt, a transfer shall be effective upon the Company's registration of such transfer in its Register.

Any conversion of Class B Ordinary Shares into Class A Ordinary Shares shall be effected by means of the re-designation and re-classification of the relevant Class B Ordinary Share as a Class A Ordinary Share or subject to compliance with the Act, a redemption or repurchase of the relevant Class B Ordinary Share and issue of Class A Ordinary Shares as consideration. Such conversion shall become effective forthwith upon entries being made in the register of members of the Company to record the re-designation and re-classification of the relevant Class B Ordinary Shares as Class A Ordinary Shares or the redemption of repurchase of the relevant Class B Ordinary Shares and issue of Class A Ordinary Shares as consideration.

Upon conversion, the Company shall enter or procure the entry of the name of the relevant holder of Class B Ordinary Shares as the holder of the relevant number of Class A Ordinary Shares resulting from the conversion of the Class B Ordinary Shares in, and make any other necessary and consequential changes to, the register of members of the Company and shall procure that certificates in respect of the relevant Class A Ordinary Shares, together with a new certificate for any unconverted Class B Ordinary Shares comprised in the certificate(s) surrendered by the holder of the Class B Ordinary Shares, are issued to the holders of the Class A Ordinary Shares and Class B Ordinary Shares, as the case may be.

Save and except expressly provided in the Articles, including Article 6, the Class A Ordinary Shares and the Class B Ordinary Shares shall rank pari passu and shall have the same rights, preferences, privileges and restrictions, and shall at all times vote as one class on all resolutions submitted to a vote by the Shareholders.

**Dividends**

Subject to the Companies Act and our Memorandum and Articles of Association, our Company in general meeting may declare dividends in any currency to be paid to the members but no dividend shall be declared in excess of the amount recommended by our board of directors.

Except in so far as the rights attaching to, or the terms of issue of, any share may otherwise provide:

&nbsp;&nbsp;&nbsp;&nbsp;(i) all
dividends shall be declared and paid according to the amounts paid up on the shares in respect of which the dividend is paid, although
no amount paid up on a share in advance of calls shall for this purpose be treated as paid up on the share;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) all
dividends shall be apportioned and paid pro rata in accordance with the amount paid up on the shares during any portion(s) of the period
in respect of which the dividend is paid; and

&nbsp;&nbsp;&nbsp;&nbsp;(iii) our
board of directors may deduct from any dividend or other monies payable to any member all sums of money (if any) presently payable by
him to our Company on account of calls, instalments or otherwise.

Where our board of directors or our Company in general meeting has resolved that a dividend should be paid or declared, our board of directors may resolve:

&nbsp;&nbsp;&nbsp;&nbsp;(aa) that
such dividend be satisfied wholly or in part in the form of an allotment of shares credited as fully paid up, provided that the members
entitled to such dividend will be entitled to elect to receive such dividend (or part thereof) in cash in lieu of such allotment; or

&nbsp;&nbsp;&nbsp;&nbsp;(bb) that
the members entitled to such dividend will be entitled to elect to receive an allotment of shares credited as fully paid up in lieu of
the whole or such part of the dividend as our board of directors may think fit.

Upon the recommendation of our board of directors, our Company may by ordinary resolution in respect of any one particular dividend of our Company determine that it may be satisfied wholly in the form of an allotment of shares credited as fully paid up without offering any right to members to elect to receive such dividend in cash in lieu of such allotment.

Any dividend, bonus, or other sum payable in cash to the holder of shares may be paid by cheque or warrant sent through the post. Every such cheque or warrant shall be made payable to the order of the person to whom it is sent and shall be sent at the holder's or joint holders' risk and payment of the cheque or warrant by the bank on which it is drawn shall constitute a good discharge to our Company. Any one of two or more joint holders may give effectual receipts for any dividends or other monies payable or property distributable in respect of the shares held by such joint holders.

Whenever our board of directors or our Company in general meeting has resolved that a dividend be paid or declared, our board of directors may further resolve that such dividend be satisfied wholly or in part by the distribution of specific assets of any kind.

Our board of directors may, if it thinks fit, receive from any member willing to advance the same, and either in money or money's worth, all or any part of the money uncalled and unpaid or instalments payable upon any shares held by him, and in respect of all or any of the monies so advanced may pay interest at such rate (if any) not exceeding 20% per annum, as our board of directors may decide, but a payment in advance of a call shall not entitle the member to receive any dividend or to exercise any other rights or privileges as a member in respect of the share or the due portion of the shares upon which payment has been advanced by such member before it is called up.

All dividends, bonuses, or other distributions unclaimed for one year after having been declared may be invested or otherwise used by our board of directors for the benefit of our Company until claimed and our Company shall not be constituted a trustee in respect thereof. All dividends, bonuses, or other distributions unclaimed for six years after having been declared may be forfeited by our board of directors and, upon such forfeiture, shall revert to our Company.

No dividend or other monies payable by our Company on or in respect of any share shall bear interest against our Company.

Our Company may exercise the power to cease sending cheques for dividend entitlements or dividend warrants by post if such cheques or warrants remain uncashed on two consecutive occasions or after the first occasion on which such a cheque or warrant is returned undelivered.

 ****

***Voting Rights***

Subject to any special rights, restrictions or privileges as to voting for the time being attached to any class or classes of shares at any general meeting: (a) on a poll every member present in person or by proxy or, in the case of a member being a corporation, by our duly authorized representative shall have one vote for every Class A share or thirty votes for every Class B share which is fully paid or credited as fully paid registered in his name in the register of members of our Company but so that no amount paid up or credited as paid up on a share in advance of calls or instalments is treated for this purpose as paid up on the share; and (b) on a show of hands every member who is present in person (or, in the case of a member being a corporation, by our duly authorized representative) or by proxy shall have one vote for every Class A share or thirty votes for every Class B share. Where more than one proxy is appointed by a member which is a Clearing House (as defined in the Articles) (or its nominee(s)) or a central depository house (or its nominee(s)), each such proxy shall have one vote on a show of hands. On a poll, a member entitled to more than one vote need not use all his votes or cast all the votes he does use in the same way.

 ****

***Transfer of Ordinary Shares***

Subject to the Companies Act and our Articles of Association, all transfers of shares shall be effected by an instrument of transfer in the usual or common form or in such other form as our board of directors may approve and may be under hand or, if the transferor or transferee is a Clearing House (as defined in the Articles) (or its nominee(s)) or a central depository house (or its nominee(s)), under hand or by machine imprinted signature, or by such other manner of execution as our board of directors may approve from time to time.

Execution of the instrument of transfer shall be by or on behalf of the transferor and the transferee, provided that our board of directors may dispense with the execution of the instrument of transfer by the transferor or transferee or accept mechanically executed transfers. The transferor shall be deemed to remain the holder of a share until the name of the transferee is entered in the register of members of our Company in respect of that share.

Our board of directors may, in our absolute discretion, at any time and from time to time remove any share on the principal register to any branch register or any share on any branch register to the principal register or any other branch register. Unless our board of directors otherwise agrees, no shares on the principal register shall be removed to any branch register nor shall shares on any branch register be removed to the principal register or any other branch register. All removals and other documents of title shall be lodged for registration and registered, in the case of shares on any branch register, at the registered office and, in the case of shares on the principal register, at the place at which the principal register is located.

Our board of directors may, in our absolute discretion, decline to register a transfer of any share (not being a fully paid up share) to a person of whom it does not approve or on which our Company has a lien. It may also decline to register a transfer of any share issued under any share option scheme upon which a restriction on transfer subsists or a transfer of any share to more than four joint holders.

Our board of directors may decline to recognize any instrument of transfer unless a certain fee, up to such maximum sum as Nasdaq may determine to be payable, is paid to our Company, the instrument of transfer is properly stamped (if applicable), is in respect of only one class of share and is lodged at our registered office or the place at which the principal register is located accompanied by the relevant share certificate(s) and such other evidence as our board of directors may reasonably require is provided to show the right of the transferor to make the transfer (and if the instrument of transfer is executed by some other person on his behalf, the authority of that person so to do).

The registration of transfers of shares or of any class of shares may, after compliance with any notice requirement of Nasdaq, be suspended at such times and for such periods (not exceeding in the whole thirty days in any year) as our board of directors may determine.

Fully paid shares shall be free from any restriction on transfer (except when permitted by Nasdaq) and shall also be free from all liens.

 ****

***Procedures on liquidation***

A resolution that our Company be wound up by the court or be wound up voluntarily shall be a special resolution of our shareholders.

Subject to any special rights, privileges, or restrictions as to the distribution of available surplus assets on liquidation for the time being attached to any class or classes of shares:

&nbsp;&nbsp;&nbsp;&nbsp;(i) if
our Company is wound up, the surplus assets remaining after payment to all creditors shall be divided among the members in proportion
to the capital paid up on the shares held by them respectively; and

&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
our Company is wound up and the surplus assets available for distribution among the members are insufficient to repay the whole of the
paid-up capital, such assets shall be distributed, subject to the rights of any shares which may be issued on special terms and conditions,
so that, as nearly as may be, the losses shall be borne by the members in proportion to the capital paid up on the shares held by them,
respectively.

If our Company is wound up (whether the liquidation is voluntary or compelled by the court), the liquidator may, with the sanction of a special resolution and any other sanction required by the Companies Act, divide among the members in specie or kind the whole or any part of the assets of our Company, whether the assets consist of property of one kind or different kinds, and the liquidator may, for such purpose, set such value as he deems fair upon any one or more class or classes of property to be so divided and may determine how such division shall be carried out as between the members or different classes of members and the members within each class. The liquidator may, with the like sanction, vest any part of the assets in trustees upon such trusts for the benefit of members as the liquidator thinks fit, but so that no member shall be compelled to accept any shares or other property upon which there is a liability.

 ****

***Calls on Ordinary Shares and Forfeiture of Ordinary Shares***

Subject to these Articles and to the terms of allotment, our board of directors may, from time to time, make such calls as it thinks fit upon the members in respect of any monies unpaid on the shares held by them respectively (whether on account of the nominal value of the shares or by way of premium) and not by the conditions of allotment of such shares made payable at fixed times. A call may be made payable either in one sum or by instalments. If the sum payable in respect of any call or instalment is not paid on or before the day appointed for payment thereof, the person or persons from whom the sum is due shall pay interest on the same at such rate not exceeding 20% per annum as our board of directors shall fix from the day appointed for payment to the time of actual payment, but our board of directors may waive payment of such interest wholly or in part. Our board of directors may, if it thinks fit, receive from any member willing to advance the same, either in money or money's worth, all or any part of the money uncalled and unpaid or instalments payable upon any shares held by him, and in respect of all or any of the monies so advanced our Company may pay interest at such rate (if any) not exceeding 20% per annum as our board of directors may decide.

If a member fails to pay any call or instalment of a call on the day appointed for payment, our board of directors may, for so long as any part of the call or instalment remains unpaid, serve not less than 14 days' notice on the member requiring payment of so much of the call or instalment as is unpaid, together with any interest which may have accrued and which may still accrue up to the date of actual payment. The notice shall name a further day (not earlier than the expiration of 14 days from the date of the notice) on or before which the payment required by the notice is to be made and shall also name the place where payment is to be made. The notice shall also state that, in the event of non-payment at or before the appointed time, the shares in respect of which the call was made will be liable to be forfeited.

If the requirements of any such notice are not complied with, any share in respect of which the notice has been given may at any time thereafter, before the payment required by the notice has been made, be forfeited by a resolution of our board of directors to that effect. Such forfeiture will include all dividends and bonuses declared in respect of the forfeited share and not actually paid before the forfeiture.

A person whose shares have been forfeited shall cease to be a member in respect of the forfeited shares but shall, nevertheless, remain liable to pay to our Company all monies which, at the date of forfeiture, were payable by him to our Company in respect of the shares together with (if our board of directors shall in our discretion so require) interest thereon from the date of forfeiture until payment at such rate not exceeding 20% per annum as our board of directors may prescribe.

 ****

***Redemption of Ordinary Shares***

Subject to the Companies Act, our Articles of Association, and, where applicable, the Nasdaq listing rules or any other law or so far as not prohibited by any law and subject to any rights conferred on the holders of any class of Shares, any power of our Company to purchase or otherwise acquire all or any of its own Shares (which expression as used in this Article includes redeemable Shares) be exercisable by our board of directors in such manner, upon such terms and subject to such conditions as it thinks fit.

Subject to the Companies Act, our Articles of Association, and to any special rights conferred on the holders of any Shares or attaching to any class of Shares, Shares may be issued on the terms that they may, at the option of our Company or the holders thereof, be liable to be redeemed on such terms and in such manner, including out of capital, as our board of directors may deem fit.

 ****

***Variations of Rights of Shares***

Subject to the Companies Act and without prejudice to our Articles of Association, if at any time the share capital of our Company is divided into different classes of shares, all or any of the special rights attached to any class of shares may (unless otherwise provided for by the terms of issue of the shares of that class) be varied, modified or abrogated with the sanction of a special resolution passed at a separate general meeting of the holders of the shares of that class. The provisions of the Articles relating to general meetings shall mutatis mutandis apply to every such separate general meeting, but so that the necessary quorum (whether at a separate general meeting or at its adjourned meeting) shall be not less than a person or persons together holding (or, in the case of a member being a corporation, by our duly authorized representative) or representing by proxy not less than one-third in nominal value of the issued shares of that class. Every holder of shares of the class shall be entitled on a poll to one vote for every such share held by him, and any holder of shares of the class present in person or by proxy may demand a poll.

Any special rights conferred upon the holders of any shares or class of shares shall not, unless otherwise expressly provided in the rights attaching to the terms of issue of such shares, be deemed to be varied by the creation or issue of further shares ranking pari passu therewith.

 ****

***General Meetings of Shareholders***

Our Company must hold an annual general meeting each fiscal year other than the fiscal year of our Company's adoption of our Articles of Association.

Extraordinary general meetings may be convened on the requisition of one or more members holding, at the date of deposit of the requisition, not less than one tenth of the paid-up capital of our Company having the right of voting at general meetings. Such requisition shall be made in writing to our board of directors or the secretary of our Company for the purpose of requiring an extraordinary general meeting to be called by our board of directors for the transaction of any business specified in such requisition. Such meeting shall be held within two months after the deposit of such requisition. If within 21 days of such deposit, our board of directors fails to proceed to convene such meeting, the requisitionist(s) himself (themselves) may do so in the same manner, and all reasonable expenses incurred by the requisitionist(s) as a result of the failure of our board of directors shall be reimbursed to the requisitionist(s) by our Company.

Every general meeting of our Company shall be called by at least 10 clear days' notice in writing. The notice shall be exclusive of the day on which it is served or deemed to be served and of the day for which it is given, and must specify the time, place and agenda of the meeting and particulars of the resolution(s) to be considered at that meeting and the general nature of that business.

Although a meeting of our Company may be called by shorter notice than as specified above, such meeting may be deemed to have been duly called if it is so agreed:

&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of an annual general meeting, by all members
of our Company entitled to attend and vote thereat; and

&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of any other meeting, by a majority in number
of the members having a right to attend and vote at the meeting holding not less than 95% of the total voting rights at the meetings
of all our shareholders.

All business transacted at an extraordinary general meeting shall be deemed special business. All business shall also be deemed special business where it is transacted at an annual general meeting, with the exception of the election of Directors which shall be deemed ordinary business.

No business other than the appointment of a chairman of a meeting shall be transacted at any general meeting unless a quorum is present when the meeting proceeds to business and continues to be present until the conclusion of the meeting.

The quorum for a general meeting shall be two members entitled to vote and present in person (or in the case of a member being a corporation, by our duly authorized representative) or by proxy representing not less than one-third (1/3) in nominal value of the total issued voting shares in our Company throughout the meeting.

 ****

***Inspection of Books and Records***

Our shareholders have no general right to inspect or obtain copies of the register of members or corporate records of our company. They will, however, have such rights as may be set out in our Articles of Association.

 ****

***Changes in Capital***

Subject to the Companies Act, our shareholders may, by ordinary resolution:

&nbsp;&nbsp;&nbsp;&nbsp;(a) increase our share capital by new shares of the amount fixed
by that ordinary resolution and with the attached rights, priorities and privileges set out in that ordinary resolution;

&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of our share capital into
shares of larger amount than our existing shares;

&nbsp;&nbsp;&nbsp;&nbsp;(c) sub-divide our shares or any of them into our shares of smaller
amount than is fixed by our Company's Memorandum of Association, so, however, that in the subdivision the proportion between the
amount paid and the amount, if any, unpaid on each reduced our shares shall be the same as it was in case of the share from which the
reduced our shares is derived;

&nbsp;&nbsp;&nbsp;&nbsp;(d) cancel any shares which, at the date of the passing of that
ordinary resolution, have not been taken or agreed to be taken by any person and diminish the amount of our share capital by the amount
of the shares so cancelled; and

&nbsp;&nbsp;&nbsp;&nbsp;(e) convert all or any of our paid-up shares into stock and reconvert
that stock into paid up shares of any denomination.

Subject to the Companies Act and to any rights for the time being conferred on the shareholders holding a particular class of shares, our shareholders may, by special resolution, reduce our share capital or any capital redemption reserve in any way.

**C. Material Contracts.**

We have not entered into any material contracts other than in the ordinary course of business and other than those described in this Annual Report.

**D. Exchange controls.**

There is no exchange control regulations or currency restrictions in effect in the Cayman Islands.

**E. Taxation.**

The following is a discussion on certain Cayman Islands and Hong Kong income tax consequences of an investment in the Class A Ordinary Shares. The discussion is a general summary of present law, which is subject to prospective and retroactive change. It is not intended as tax advice, does not consider any investor's particular circumstances, and does not consider tax consequences other than those arising under Cayman Islands and Hong Kong laws.

**Hong Kong Taxation**

The following summary of certain relevant taxation provisions under the laws of Hong Kong is based on current law and practice and is subject to changes therein. This summary does not purport to address all possible tax consequences relating to purchasing, holding, or selling our Class A Ordinary Shares, and does not take into account the specific circumstances of any particular investors, some of whom may be subject to special rules. Accordingly, holders or prospective purchasers (particularly those subject to special tax rules, such as banks, dealers, insurance companies and tax-exempt entities) should consult their own tax advisers regarding the tax consequences of purchasing, holding or selling our Class A Ordinary Shares. Under the current laws of Hong Kong:

● No profit tax is imposed in Hong Kong in respect of capital gains from the sale of the Class A Ordinary Shares.

● Revenues gains from the sale of our Class A Ordinary Shares by persons carrying on a trade, profession or business in Hong Kong where the gains are derived from or arise in Hong Kong from the trade, profession or business will be chargeable to Hong Kong profits tax, which is currently imposed at the rate of 16.5% on corporations and at a maximum rate of 15% on individuals and unincorporated businesses.

● Gains arising from the sale of Class A Ordinary Shares, where the purchases and sales of the Class A Ordinary Shares are effected outside of Hong Kong such as, for example, in the Cayman Islands, should not be subject to Hong Kong profits tax.

According to the current tax practice of the Hong Kong Inland Revenue Department, dividends paid on the Class A Ordinary Shares would not be subject to any Hong Kong tax.

No Hong Kong stamp duty is payable on the purchase and sale of the Class A Ordinary Shares.

**BVI Taxation**

All distributions, interest and other amounts paid by NCA to persons who are not resident in the BVI are exempt from the Income Tax Ordinance in the BVI. No estate, inheritance, succession or gift tax, rate, duty, levy or other charge is payable by persons who are not resident in the BVI with respect to any shares, debt obligation or other securities of NCA. All instruments relating to transfers of property to or by NCA and all instruments relating to transactions in respect of the shares, debt obligations or other securities of NCA and all instruments relating to other transactions relating to the business of NCA are exempt from payment of stamp duty in the BVI provided that they do not relate to real estate in the BVI. There are currently no withholding taxes or exchange control regulations in the BVI applicable to NCA or its shareholders.

**UK Taxation**

The following statements are of a general nature and do not purport to be a complete analysis of all potential UK tax consequences of acquiring, holding, and disposing of our Class A Ordinary Shares. They are based on current UK tax law and on the current published practice of His Majesty's Revenue and Customs ("HMRC"), as of the date of this report, all of which are subject to change, possibly with retrospective effect. They are intended to address only certain United Kingdom tax consequences for holders of our Class A Ordinary Shares who are tax resident in (and only in) the United Kingdom, and in the case of individuals, domiciled in (and only in) the United Kingdom who are the absolute beneficial owners of our Class A Ordinary Shares and any dividends paid on them and who hold our Class A Ordinary Shares as investments (other than in an individual savings account or a self-invested personal pension). They do not address the UK tax consequences which may be relevant to certain classes of holders of our Class A Ordinary Shares such as traders, brokers, dealers, banks, financial institutions, insurance companies, investment companies, collective investment schemes, tax-exempt organizations, trustees, persons connected with us or a member of our group, persons holding our Class A Ordinary Shares as part of hedging or conversion transactions, holders of our Class A Ordinary Shares who have (or are deemed to have) acquired our Class A Ordinary Shares by virtue of an office or employment. The statements do not apply to any holder of our Class A Ordinary Shares who either directly or indirectly holds or controls 10% or more of our share capital (or class thereof), voting power or profits.

This summary is written on the basis that the Company is and remains resident for tax purposes outside the UK and will therefore not be subject to the UK tax regime (save as in respect of any UK source income). Any dividends paid by the Company will, on this basis, not be regarded as UK dividends.

The following is intended only as a general guide and is not intended to be, nor should it be considered to be, legal or tax advice to any particular prospective subscriber for, or purchaser of, our Class A Ordinary Shares. **Accordingly, prospective subscribers for, or purchasers of, our Class A Ordinary Shares who are in any doubt as to their tax position regarding the acquisition, ownership, and disposition of our Class A Ordinary Shares or who are subject to tax in a jurisdiction other than the United Kingdom should consult their own tax advisers.**

**Taxation of dividends**

 ****

***Withholding tax***

We will not be required to withhold UK tax at source when paying dividends on our Class A Ordinary Shares.

 ****

***Income tax***

An individual holder of our Class A Ordinary Shares who is resident for tax purposes in the UK may, depending on his or her particular circumstances, be subject to UK tax on dividends received from us.

All dividends received by a UK resident individual holder of our Class A Ordinary Shares from us or from other sources will form part of that holder's total income for income tax purposes and will constitute the top slice of that income. A nil rate of income tax will apply to the first £1,000 of taxable dividend income received by the holder of our Class A Ordinary Shares in the tax year ending 5 April 2024. The amount of dividend income subject to this nil rate (the "dividend allowance") will reduce to £500 from 6 April 2024. Income within the nil rate dividend allowance will be taken into account in determining whether income in excess of the dividend allowance falls within the basic rate, higher rate or additional rate tax bands. Where the dividend income is above the dividend allowance, an amount of dividend income equal to the dividend allowance will be charged at the nil rate and any excess amount will be taxed at 8.75 per cent. to the extent that the excess amount falls within the basic rate tax band, 33.75 per cent. to the extent that the excess amount falls within the higher rate tax band and 39.35 per cent. to the extent that the excess amount falls within the additional rate tax band.

 ****

***Corporation tax***

Corporate holders of our Class A Ordinary Shares that are resident for tax purposes in the UK should not be subject to UK corporation tax on any dividend received from us so long as the dividends qualify for exemption and certain conditions are met (including anti-avoidance conditions).

**Taxation of disposals**

A disposal or deemed disposal of our Class A Ordinary Shares by an individual or corporate holder of such shares who is tax resident in the United Kingdom may, depending on that holder's circumstances and subject to any available exemptions or reliefs (including, for example, the annual exempt amount for individuals which is currently £6,000, but will reduce to £3,000 from 6 April 2024), give rise to a taxable chargeable gain or allowable loss for the purposes of UK taxation of chargeable gains.

Any chargeable gain (or allowable loss) will generally be calculated by reference to the consideration received for the disposal of our Class A Ordinary Shares less the allowable cost to the holder of acquiring such shares.

The applicable tax rates for individual holders of our Class A Ordinary Shares realizing a gain on the disposal of such shares is, broadly, 10% for basic rate taxpayers and 20% for higher and additional rate taxpayers. The applicable tax rate for corporate holders of our Class A Ordinary Shares realizing a gain on the disposal of such shares is currently 25 per cent. where the corporate holder has profits over £250,000 in the relevant period.

**UK stamp duty ("Stamp Duty") and UK stamp duty reserve tax ("SDRT")**

No UK Stamp Duty or SDRT should arise on the issue of our Class A Ordinary Shares.

Subject to any available exemptions, UK Stamp Duty at a rate of 0.5% will in principle be payable on any instrument of transfer of Class A Ordinary Shares that is executed in the United Kingdom or that relates to any property situated, or to any matter or thing done or to be done, in the United Kingdom.

Provided that Class A Ordinary Shares are not registered in any register maintained in the United Kingdom by or on behalf of us and are not paired with any shares issued by a UK incorporated company, any agreement to transfer Class A Ordinary Shares will not be subject to SDRT.

**F. Dividends and paying agents.**

Not applicable.

**G. Statement by experts.**

Not applicable.

**H. Documents on display.**

We are subject to the periodic reporting and other informational requirements of the Exchange Act. Under the Exchange Act, we are required to file reports and other information with the SEC. Specifically, we are required to file annually a Form 20-F no later than four months after the close of each fiscal year and submit other information under cover of Form 6-K. Annual Reports and other information we file with the SEC may be inspected at the public reference facilities maintained by the SEC at Room 1024, 100 F. Street, N.E., Washington, D.C. 20549, and copies of all or any part thereof may be obtained from such offices upon payment of the prescribed fees. You may call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference rooms and you can request copies of the documents upon payment of a duplicating fee, by writing to the SEC. In addition, the SEC maintains a web site that contains reports and other information regarding registrants (including us) that file electronically with the SEC which can be accessed at *www.sec.gov*.

Our Internet website is *www.neo-ig.coma*. We make our Annual Reports on Form 20-F and any amendments to such reports available free of charge on our website as soon as reasonably practicable following the electronic filing of each report with the SEC. In addition, we provide copies of our filings free of charge upon request. The information contained on our website is not part of this or any other report filed with or furnished to the SEC.

As a foreign private issuer, we are exempt from the proxy requirements of Section 14 of the Exchange Act and our officers, directors and principal shareholders will be exempt from the insider short-swing disclosure and profit recovery rules of Section 16 of the Exchange Act.

**I. Subsidiary Information**

See ITEM 4.C and Exhibit 8.1 for our list of subsidiaries.

**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK**

**Credit risk**

Our assets that potentially subject to a significant concentration of credit risk primarily consist of cash and accounts receivable.

We believe that there is no significant credit risk associated with cash in Hong Kong, which were held by reputable financial institutions in the jurisdiction where Neo-Concept HK is located. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD800,000 (approximately US$102,784) if the bank with which an individual/a company hold its eligible deposit fails. As of December 31, 2025, cash balance of HKD48,853 (approximately US$6,277) was maintained at financial institutions in Hong Kong and approximately HKD48,853 (approximately US$6,277) was insured by the Hong Kong Deposit Protection Board.

We have designed credit policies with an objective to minimize their exposure to credit risk. Our accounts receivable is short term in nature and the associated risk is minimal. We conduct credit evaluations on our clients and generally do not require collateral or other security from such clients. We periodically evaluate the creditworthiness of the existing clients in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific clients.

We are also exposed to risk from account receivables. These assets are subjected to credit evaluations. An allowance, where applicable, would make for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.

**Customer concentration risk**

Information as to the revenue derived from those customers that accounted for more than 10% of total revenue for the years ended December 31, 2023, 2024 and 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** |
| Percentage of total revenue |  |  |  |
| Customer A | 71.3% | 41.0% | \* |
| Customer B | \* | 13.4% | \* |
| Customer C | \* | \* | 13.1% |
| Customer E | \* | \* | 10.3% |

---

\* Customer B accounted for less than 10% of total revenue for the years ended December 31, 2023 and 2025. Customer C and E accounted for less than 10% of total revenue for the years ended December 31, 2023 and 2024. Customer A accounted for less than 10% of total revenue for the year ended December 31, 2025.

Information as to the revenue derived from those customers that accounted for more than 10% of total accounts receivable for the years ended December 31, 2024 and 2025 are as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2025** |
| Percentage of total accounts receivables |  |  |
| Customer A | 24.7% | 21.2% |
| Customer B | 30.1% | 64.2% |
| Customer C | 15.8% |  |
| Customer D | 12.4% |  |

---

**Vendor concentration risk**

Information as to the revenue derived from those vendors that accounted for more than 10% of total purchases for the years ended December 31, 2023, 2024 and 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** |
| Percentage of total purchase |  |  |  |
| Vendor A | 69.3% | 60.9% | 85.7% |
| Vendor B | 24.6% | 37.6% | 14.3% |

---

For details of the vendor concentration risk, please refer to the section headed "Risk Factors — Risks Relating to Our Business and Industry — We rely on two principal suppliers for supplies of raw materials, manufacturing services and logistics services." for additional information.

**Interest rate risk**

Our exposure on fair value interest rate risk mainly arises from our fixed deposits with bank. We also have exposure on cash flow interest rate risk which is mainly arising from our deposits with banks and bank borrowings.

In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative financial instruments held by us, such as cash deposits and bank borrowings, at the end of the reporting period, we are not exposed to significant interest rate risk as the interest rates are not expected to change significantly.

**Foreign currency risk**

We are exposed to foreign currency risk primarily through sales that are denominated in a currency other than the functional currency of the operations to which they relate. The currencies giving rise to this risk are primarily US$. As HKD is currently pegged to US$, our exposure to foreign exchange fluctuations is minimal.

**ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

Not applicable.

**PART II**

**ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

We have not had a default of any indebtedness, and there has not been any arrearage in the payment of dividends.

**ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS**

See "Item 10. Additional Information" for a description of the rights of shareholders, which remain unchanged.

**Use of Proceeds** 

On February 9, 2026, Neo-Concept International Group Holdings Ltd (the "Company") entered into Securities Purchase Agreements (the "Securities Purchase Agreements") with several investors named therein (the "Purchasers"), pursuant to which the Company agreed to issue and sell, in a best effort offering (the "Offering"), a total of 14,850,000 Class A Ordinary Shares of par value $0.0003125 per share (the "Class A Ordinary Shares") at the price of $0.5454 per Class A Ordinary Share. The Securities Purchase Agreement contains customary representations and warranties and agreements of the Company and the Purchasers and customary indemnification rights and obligations of the parties. The Offering was closed on February 11, 2026.

The Class A Ordinary Shares were offered pursuant to a registration statement on Form F-1, as amended (Registration No. 333-288993, "Form F-1") originally filed with the U.S. Securities and Exchange Commission (the "SEC") on July 28, 2025. The Form F-1 was declared effective on February 9, 2026. The final prospectus was filed on February 11, 2026.

The Company engaged D. Boral Capital LLC ("D. Boral") as the lead placement agent and uSmart Securities Limited as the joint placement agent ("uSmart," together with D. Boral, the "Placement Agents") in the Offering pursuant to a Placement Agency Agreement dated February 9, 2026 (the "Placement Agency Agreement"), by and between the Company and the Placement Agents. The Company agreed to pay D. Boral a cash fee equal to five percent (5.0%) of the gross proceeds raised in the Offering. The Company also agreed to reimburse the Placement Agents for its reasonable and documented out-of-pocket costs and expenses of up to $100,000. The Placement Agency Agreement contains customary conditions to closing, representations and warranties of the Company, and termination rights of the parties, as well as certain indemnification obligations of the Company and ongoing covenants for the Company.

As disclosed in the registration statement on Form F-1, we plan to use the net proceeds of the offering as follows:

● Approximately 70% for expansion of business;

● Approximately 30% for working capital and other general corporate purposes;

**ITEM 15. CONTROLS AND PROCEDURES**

***a. Disclosure Controls and Procedures***

Our management, with the participation of our chief executive officer and chief financial officer, has performed an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this Annual Report, as required by Rule 13a-15(b) under the Exchange Act.

Based upon that evaluation, our management has concluded that, as of December 31, 2025, our disclosure controls and procedures were effective.

***b. Management's Annual Report on Internal Control Over Financial Reporting***

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15 (f) under the Exchange Act. Our management, with the participation of our chief executive officer and our chief financial officer, evaluated the effectiveness of our internal control over financial reporting based on criteria established in the framework in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management has concluded that our internal control over financial reporting was effective as of December 31, 2025.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

***c. Attestation report of the registered public accounting firm***

This Annual Report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to the rules of the SEC.

***d. Changes in internal control over financial reporting***

Except for the matters described above, there have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the year ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

**ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT**

Our Board of Directors has determined that Ms. Josephine Yan Yeung qualifies as an "audit committee financial expert", and is independent for the purposes of the Nasdaq Listing Rules and Rule 10A-3 under the Exchange Act.

**ITEM 16B. CODE OF BUSINESS CONDUCT AND ETHICS**

We have adopted a Code of Business Conduct and Ethics that applies to our directors, officers and employees. The Code of Business Conduct and Ethics is designed to deter wrongdoing and to promote ethical conduct and full, fair, accurate, timely and understandable reports that the Company files or submits to the SEC and others. We have filed our Code of Business Conduct and Ethics as an exhibit to this Annual Report.

**ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

The following table sets forth the aggregate fees by categories specified below in connection with certain professional services rendered by our principal external independent registered public accountant firms in 2024 and 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | **2025** | **2025** |
|  | HK$ | HK$ | US$ |
| Audit Fees | 1089662 | 1479662 | 190108 |
| Audit-Related Fees |  |  |  |
| Tax Fees |  |  |  |
| All Other Fees |  |  |  |
| **Total** | 1089662 | 1479662 | 190108 |

---

*Audit Fees*

Audit fees represent the aggregate fees billed for the audit or review of our financial statements.

*Audit-Related Fees*

There were no other audit-related fees billed by the principal accountant during the last two fiscal years for assurance and related services that were reasonably related to the performance of the audit not reported under "Audit Fees" above.

***Audit Committee Pre-Approval Policies and Procedures***

The Audit Committee of the Board of Directors on an annual basis reviews audit and non-audit services performed by the independent auditors. All audit and non-audit services are pre-approved by the Audit Committee, which considers, among other things, the possible effect of the performance of such services on the auditors' independence.

**ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES**

None.

**ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS**

Not applicable.

**ITEM 16F. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT**

None.

**ITEM 16G. CORPORATE GOVERNANCE**

There are no material differences in our corporate governance practices from those of U.S. domestic companies under the listing standards of NASDAQ.

**ITEM 16H. MINE SAFETY DISCLOSURE**

Not applicable.

**ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTION THAT PREVENT INSPECTIONS**

Not applicable.

I**TEM 16J. INSIDER TRADING POLICIES**

The Company has adopted the "Statement of Policy Concerning Trading in Company Securities" governing the purchase, sale, and other dispositions of its securities by directors, senior management, and employees that are reasonably designed to promote compliance with applicable insider trading laws, rules and regulations, and any Nasdaq rules applicable to the Company upon its listing on April 23, 2024.

**ITEM 16K. CYBERSECURITY**

The Company recognizes the importance of assessing, identifying and managing material risks associated with cybersecurity threats. These risks include, among other things: operational risks, intellectual property theft, fraud, extortion, harm to employees or customers and violation of data privacy and security laws.

We maintain various cybersecurity measures and protocols to safeguard our systems and data and continuously monitor and assess potential threats to pre-emptively address any emerging cyber risks. We have implemented various processes for assessing, identifying, and managing material risks from cybersecurity threats, which are integrated into our overall risk management framework. These processes include access controls to organizational systems, data encryption, and security awareness campaigns, and are designed to systematically evaluate potential vulnerabilities and cybersecurity threats and minimize their potential impact on our organization's operations, assets, and stakeholders. Our cybersecurity risk management processes share common methodologies, reporting channels and governance processes with our broader risk management processes. By embedding cybersecurity risk management into and aligning it with our broader risk management processes, we aim to ensure a comprehensive and proactive approach to safeguarding our assets and operations.

We engage consultants and specialists to enhance the effectiveness of our cybersecurity processes, augment our internal capabilities, validate our controls, and stay abreast of evolving cybersecurity risks and best practices.

For the year ended December 31, 2024, we did not detect any cybersecurity incidents that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition.

Responsibility for overseeing cybersecurity risks is integrated into our management team, which includes our directors and chief financial officer. We will consider utilizing third-party service providers to monitor, detect and assess cybersecurity risks and incidents if the need arises. These third-party service providers are also used for certain IT-related services, where appropriate, to assess, test or otherwise assist with aspects of our security controls. Accordingly, we also implement processes to oversee and identify material cybersecurity risks associated with our utilization of third-party service providers on whom we have a material dependency.

Our service providers currently comprise IT professionals with expertise in risk management, cybersecurity, and information technology. These individuals have, and any future individuals are expected to have credentials relevant to their role, which includes prior experience working in similar roles and formal education. The service providers are also expected to keep abreast of cybersecurity best practices and procedures. The service providers are responsible for assessing, identifying and mitigating material cybersecurity risks, including at a strategic level, monitoring for, defending against and remediating cybersecurity incidents and implementing and making improvements to our overall cybersecurity strategy.

As we do not have a dedicated board committee solely focused on cybersecurity, our full board oversees the implementation of our cybersecurity strategy, as well as cybersecurity risks, with the aim of protecting our interests and assets. Our cybersecurity strategy was developed by our management team, the service providers and approved by our management. The board receives reports from our service providers should any irregularities relating to cybersecurity noted.

**PART III**

**ITEM 17. FINANCIAL STATEMENTS**

We have elected to provide financial statements pursuant to Item 18.

**ITEM 18. FINANCIAL STATEMENTS**

Our consolidated financial statements are included at the end of this Annual Report.

**ITEM 19. EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit<br> Number** | **Description of Exhibit** |
| 1.1\*\* | [Second amended and restated memorandum of association and articles of association of the Company](http://www.sec.gov/Archives/edgar/data/1916331/000121390025043533/ea023890301ex1-1_neoconcept.htm) |
| 2.1\*\* | [Specimen certificate evidencing Class A Ordinary Shares](http://www.sec.gov/Archives/edgar/data/1916331/000121390025043533/ea023890301ex2-1_neoconcept.htm) |
| 2.3\*\* | [Description of Securities](http://www.sec.gov/Archives/edgar/data/1916331/000121390025043533/ea023890301ex2-3_neoconcept.htm) |
| 4.1\*\* | [Form of Executive Officer Agreement, by and between the registrant and Eva Yuk Yin Siu](http://www.sec.gov/Archives/edgar/data/1916331/000121390023096748/ff12023a3ex10-1_neoconcept.htm) |
| 4.2\*\* | [Form of Executive Officer Agreement, by and between the registrant and Patrick Kok Fai Lau](http://www.sec.gov/Archives/edgar/data/1916331/000121390023096748/ff12023a3ex10-2_neoconcept.htm) |
| 4.3\*\* | [Form of Director Agreement, by and between the registrant and Eva Yuk Yin Siu](http://www.sec.gov/Archives/edgar/data/1916331/000121390023096748/ff12023a3ex10-3_neoconcept.htm) |
| 4.4\*\* | [Form of Director Agreement, by and between the registrant and Man Chi Wai](http://www.sec.gov/Archives/edgar/data/1916331/000121390023096748/ff12023a3ex10-4_neoconcept.htm) |
| 4.5\*\* | [Form of Independent Director Agreement by and between the registrant and its independent Directors](http://www.sec.gov/Archives/edgar/data/1916331/000121390023096748/ff12023a3ex10-5_neoconcept.htm) |
| 4.6\*\* | [Form of Indemnification Agreement](http://www.sec.gov/Archives/edgar/data/1916331/000121390023096748/ff12023a3ex10-6_neoconcept.htm) |
| 4.7\*\* | [Office Lease Contract, by and between Neo-Concept (Holdings) Company Limited and Neo-Concept International Company Limited, dated as of January 1, 2022](http://www.sec.gov/Archives/edgar/data/1916331/000121390023082081/ff12023ex10-4_neoconcept.htm) |
| 4.8\*\* | [Trademark licensing agreement, by and between Neo-Concept (Holdings) Company Limited and the registrant, dated as of January 1, 2022](http://www.sec.gov/Archives/edgar/data/1916331/000121390023082081/ff12023ex10-5_neoconcept.htm) |
| 4.9\*\* | [Exclusive Territory and Non-Competition Agreement, by and between Neo-Concept (BVI) Limited, Splendid Vibe Limited, Ample Excellence Limited and the registrant, dated as of July 14, 2022](http://www.sec.gov/Archives/edgar/data/1916331/000121390023082081/ff12023ex10-6_neoconcept.htm) |
| 4.10\*\* | [Bank facility letter dated February 15, 2022 between Neo-Concept (Holdings) Company Limited, Neo-Concept HK and DBS Bank (Hong Kong) Limited](http://www.sec.gov/Archives/edgar/data/1916331/000121390023082081/ff12023ex10-7_neoconcept.htm) |
| 4.11\*\* | [Bank facility letter dated September 24, 2021 between Neo-Concept (Holdings) Company Limited, Neo-Concept HK and The Hongkong and Shanghai Banking Corporation Limited](http://www.sec.gov/Archives/edgar/data/1916331/000121390023082081/ff12023ex10-8_neoconcept.htm) |
| 4.12\*\* | [Placement Agency Agreement dated February 9, 2026](http://www.sec.gov/Archives/edgar/data/1916331/000121390026014932/ea027593801ex10-1_neoconcept.htm) |
| 4.13\*\* | [Form of Securities Purchase Agreements](http://www.sec.gov/Archives/edgar/data/1916331/000121390026005177/ea024420107ex10-13_neo.htm) |
| 8.1\*\* | [List of Subsidiaries](http://www.sec.gov/Archives/edgar/data/1916331/000121390023082081/ff12023ex21-1_neoconcept.htm) |
| 11.1\*\* | [Code of Business Conduct and Ethics](https://www.sec.gov/Archives/edgar/data/1916331/000121390023082081/ff12023ex99-4_neoconcept.htm) |
| 12.1\* | [Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea028605201ex12-1.htm) |
| 12.2\* | [Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea028605201ex12-2.htm) |
| 13.1\* | [Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea028605201ex13-1.htm) |
| 97.1\*\* | [Clawback Policy](https://www.sec.gov/Archives/edgar/data/1916331/000121390024036609/ea020456201ex99-7_neoconcept.htm) |
| 101 \* | The following financial information from the Annual Report on Form 20-F for the fiscal year ended December 31, 2025, formatted in XBRL (Extensible Business Reporting Language) and filed electronically herewith: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Changes in Shareholders' Equity; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to the Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

\* Filed herewith

\*\* Previously filed

**SIGNATURE**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Annual Report on its behalf.

---

| | | |
|:---|:---|:---|
|  | NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED | NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED |
| Date: April 30, 2026 | By: | */s/ Eva Yuk Yin Siu* |
|  | Name: | Eva Yuk Yin Siu |
|  | Title: | Chief Executive Officer and Director<br> (Principal Executive Officer) |

---

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm (PCAOB ID: 1171)](#fin_001) | F-2 |
| [Consolidated Balance Sheets as of December 31, 2024 and 2025](#fin_002) | F-3 |
| [Consolidated Statements of Income and Comprehensive Income (Loss) for the Years Ended December 31, 2023, 2024 and 2025](#fin_003) | F-4 |
| [Consolidated Statements of Changes of Shareholders' Equity for the Years Ended December 31, 2023, 2024 and 2025](#fin_004) | F-5 |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2024 and 2025](#fin_005) | F-6 |
| [Notes to Consolidated Financial Statements](#fin_006) | F-7 |

---

![](ea028605201_img10.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To: The Board of Directors and Shareholders of Neo-Concept International Group Holdings Limited

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Neo-Concept International Group Holdings Limited and its subsidiaries (collectively the "Company") as of December 31, 2024 and 2025, and the related consolidated statements of income and comprehensive income (loss), changes of shareholders' equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2025, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on our consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of our internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](ea028605201_img11.jpg)

WWC, P.C.

Certified Public Accountants

PCAOB ID: 1171

We have served as our auditor since 2023.

San Mateo, California

April 30, 2026

![](ea028605201_img12.jpg)

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND 2025**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| **ASSETS** |  |  |  |
| **CURRENT ASSETS** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 9166020 | 2332891 | 299730 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance of HKD2,668,186 and HKD465,974 as of December 31, 2024 and 2025, respectively | 34169661 | 7285278 | 936014 |
| &nbsp;&nbsp;&nbsp;Prepayment and other current assets | 24387730 | 29390571 | 3776107 |
| &nbsp;&nbsp;&nbsp;Other receivables, net – related party |  | 1443971 | 185522 |
| &nbsp;&nbsp;&nbsp;Tax recoverable | 994950 |  |  |
| &nbsp;&nbsp;&nbsp;Inventories, net | 3616821 | 12114712 | 1556501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 72335182 | 52567423 | 6753874 |
| **NON-CURRENT ASSETS** |  |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 4746078 | 7437231 | 955537 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets, net | 42491805 | 41682405 | 5355364 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 13541442 | 11044438 | 1418992 |
| &nbsp;&nbsp;&nbsp;Investment in a joint venture |  | 318134 | 40874 |
| &nbsp;&nbsp;&nbsp;Other non-current assets, net | 2326379 | 2509532 | 322425 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | 206806 | 72592 | 9327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-current assets** | 63312510 | 63064332 | 8102519 |
| **Total assets** | 135647692 | 115631755 | 14856393 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |
| **CURRENT LIABILITIES** |  |  |  |
| &nbsp;&nbsp;&nbsp;Bank borrowings | 27105722 | 4756671 | 611138 |
| &nbsp;&nbsp;&nbsp;Accruals and other payables | 7292824 | 9380281 | 1205180 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 638243 | 480183 | 61695 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 3890482 | 4810410 | 618042 |
| &nbsp;&nbsp;&nbsp;Tax payable | 372485 | 718388 | 92299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 39299756 | 20145933 | 2588354 |
| **NON-CURRENT LIABILITIES** |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 38601323 | 36871995 | 4737322 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | 920142 | 2014423 | 258813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-current liabilities** | 39521465 | 38886418 | 4996135 |
| **Total liabilities** | 78821221 | 59032351 | 7584489 |
| **COMMITMENTS AND CONTINGENCIES** |  |  |  |
| **SHAREHOLDERS' EQUITY** |  |  |  |
| &nbsp;&nbsp;&nbsp;Class A Ordinary shares US$0.0003125 par value, 156,000,000 Class A shares authorized, and 3,464,018 shares issued and outstanding as of December 31, 2024 and 2025\* | 8443 | 8443 | 1085 |
| &nbsp;&nbsp;&nbsp;Class B Ordinary shares, US$0.0003125 par value, 4,000,000 shares authorized, and 600,000 shares issued and outstanding as of December 31, 2024 and 2025\* | 1463 | 1463 | 188 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 106085870 | 106085870 | 13629935 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 998965 | 440219 | 56559 |
| &nbsp;&nbsp;&nbsp;Accumulated losses | (50268270) | (49936591) | (6415863) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity** | 56826471 | 56599404 | 7271904 |
| **Total liabilities and shareholders' equity** | 135647692 | 115631755 | 14856393 |

---

\* Giving retroactive effect to (i) a share re-classification to 780,000,000 Class A ordinary shares and 20,000,000 Class B ordinary shares on March 3, 2025 and (ii) share consolidation of 5 to 1 on June 16, 2025.

The accompanying notes are an integral part of these consolidated financial statements.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) FOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| **REVENUES, NET** | 174202627 | 235667734 | 137247341 | 17633567 |
| **COST OF REVENUES** |  |  |  |  |
| - Related parties | (34213521) | (7915189) | (73417725) | (9432724) |
| - External | (104940795) | (178307992) | (13143967) | (1688740) |
|  | (139154316) | (186223181) | (86561692) | (11121464) |
| Gross profit | 35048311 | 49444553 | 50685649 | 6512103 |
| **EXPENSES** |  |  |  |  |
| Selling and marketing | (3132277) | (4392521) | (6568144) | (843877) |
| General and administrative: |  |  |  |  |
| Depreciation | (33091) | (685245) | (1735470) | (222974) |
| Amortization | (112049) | (1481738) | (2497004) | (320816) |
| Staff cost | (13260898) | (18486483) | (21755401) | (2795138) |
| Operating lease expenses | (2507182) | (3146322) | (6720152) | (863407) |
| Operating lease expenses – related party | (720000) | (720000) | (720000) | (92506) |
| Professional fee | (2204622) | (2840139) | (3615272) | (464491) |
| (Provision for) reversal of expected credit losses | (1383316) | (1253368) | 2143178 | 275356 |
| Government rates | (453748) | (1272186) | (2138370) | (274738) |
| Office general expenses | (453551) | (752507) | (1263880) | (162384) |
| Others | (1741052) | (2842620) | (4010155) | (515224) |
| Total expenses | (26001786) | (37873129) | (48880670) | (6280199) |
| **INCOME FROM OPERATION** | 9046525 | 11571424 | 1804979 | 231904 |
| **OTHER INCOME (EXPENSES)** |  |  |  |  |
| Interest income | 92951 | 31954 |  |  |
| Interest expense | (5759182) | (3759032) | (1349488) | (173382) |
| Agency income – related party | 2662034 | 1170664 | 1475466 | 189568 |
| Other income | 326 | 134230 | 42447 | 5454 |
| Other expense | (302784) |  | (195094) | (25066) |
| Total other expenses, net | (3306655) | (2422184) | (26669) | (3426) |
| Income before tax expenses | 5739870 | 9149240 | 1778310 | 228478 |
| Income tax expenses | (1325137) | (1085909) | (1446631) | (185863) |
| **NET INCOME** | 4414733 | 8063331 | 331679 | 42615 |
| Foreign currency translation adjustment | (1125947) | 154174 | (558746) | (71789) |
| **TOTAL COMPREHENSIVE INCOME (LOSS)** | 3288786 | 8217505 | (227067) | (29174) |
| Weighted average number of ordinary shares\*: |  |  |  |  |
| **Basic and diluted** | 3600018 | 3920743 | 4064018 | 4064018 |
| **Earnings per share – basic and diluted** | 1.23 | 2.06 | 0.08 | 0.01 |

---

\* Giving retroactive effect to (i) a share re-classification to 780,000,000 Class A ordinary shares and 20,000,000 Class B ordinary shares on March 3, 2025 and (ii) share consolidation of 5 to 1 on June 16, 2025.

The accompanying notes are an integral part of these consolidated financial statements.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES OF SHAREHOLDERS' (DEFICIT) EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A<br> Ordinary<br> shares<br> no. of shares\*** | **Par value\*** | **Class B<br> Ordinary<br> shares<br> no. of shares\*** | **Par value\*** | **Additional<br> paid-in capital** | **Accumulated<br> other<br> comprehensive income** | **Accumulated losses** | **Total<br> shareholders' (deficit) equity** |
|  | | **HKD** | | **HKD** | **HKD** | **HKD** | **HKD** | **HKD** |
| BALANCE, January 1, 2023 | 3000018 | 7312 | 600000 | 1463 | 91225 | 1970738 | (62746334) | (60675596) |
| Net income |  |  |  |  |  |  | 4414733 | 4414733 |
| Forgiveness of related party balance |  |  |  |  | 55000000 |  |  | 55000000 |
| Foreign currency translation |  |  |  |  |  | (1125947) |  | (1125947) |
| BALANCE, January 1, 2024 | 3000018 | 7312 | 600000 | 1463 | 55091225 | 844791 | (58331601) | (2386810) |
| Net income |  |  |  |  |  |  | 8063331 | 8063331 |
| Proceeds from initial public offering | 464000 | 1131 |  |  | 50994645 |  |  | 50995776 |
| Foreign currency translation |  |  |  |  |  | 154174 |  | 154174 |
| BALANCE, January 1, 2025 | 3464018 | 8443 | 600000 | 1463 | 106085870 | 998965 | (50268270) | 56826471 |
| Net income |  |  |  |  |  |  | 331679 | 331679 |
| Foreign currency translation |  |  |  |  |  | (558746) |  | (558746) |
| BALANCE, December 31, 2025 | 3464018 | 8443 | 600000 | 1463 | 106085870 | 440219 | (49936591) | 56599404 |
| BALANCE, December 31, 2025 (US$) | 3464018 | 1085 | 600000 | 188 | 13629935 | 56559 | (6415863) | 7271904 |

---

\* Giving retroactive effect to (i) a share re-classification to 780,000,000 Class A ordinary shares and 20,000,000 Class B ordinary shares on March 3, 2025 and (ii) share consolidation of 5 to 1 on June 16, 2025.

The accompanying notes are an integral part of these consolidated financial statements.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| **Cash flows from operating activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | 4414733 | 8063331 | 331679 | 42615 |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation of property and equipment | 33091 | 685245 | 1735470 | 222974 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 112049 | 1481738 | 2497004 | 320816 |
| &nbsp;&nbsp;&nbsp;Inventory provision | 68536 | 23585 | 27655 | 3553 |
| &nbsp;&nbsp;&nbsp;Provision for (reversal of) expected credit loss | 1383316 | 1253368 | (2143178) | (275356) |
| &nbsp;&nbsp;&nbsp;Deferred tax expense | 7876 | 713336 | 1136205 | 145980 |
| Changes in operating assets and liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | (23387722) | (3079437) | 29132720 | 3742978 |
| &nbsp;&nbsp;&nbsp;Prepayment, other receivables and other current assets | (14332426) | (12940934) | (6506352) | (835937) |
| &nbsp;&nbsp;&nbsp;Tax recoverable |  | (994950) | 994950 | 127831 |
| &nbsp;&nbsp;&nbsp;Inventories | (4088840) | 1679793 | (8081271) | (1038283) |
| &nbsp;&nbsp;&nbsp;Accounts payable | (10429941) |  |  |  |
| &nbsp;&nbsp;&nbsp;Accruals and other payables | 1173924 | 4087119 | 1939466 | 249183 |
| &nbsp;&nbsp;&nbsp;Tax payable | (3969112) | (543951) | 310431 | 39884 |
| Cash (used in) generated from operating activities | (49014516) | 428243 | 21374779 | 2746238 |
| **Cash flows from investing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (1275847) | (4143968) | (4007964) | (514944) |
| &nbsp;&nbsp;&nbsp;Purchase of intangible assets |  | (15023180) |  |  |
| Cash used in investing activities | (1275847) | (19167148) | (4007964) | (514944) |
| **Cash flows from financing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from bank borrowings | 115018274 | 222497624 | 67242051 | 8639272 |
| &nbsp;&nbsp;&nbsp;Repayment for bank borrowings | (168602359) | (226145302) | (89591102) | (11510683) |
| &nbsp;&nbsp;&nbsp;Proceeds from initial public offerings |  | 65641784 |  |  |
| &nbsp;&nbsp;&nbsp;Repayment to related parties |  | (40102988) | (47300196) | (6077139) |
| &nbsp;&nbsp;&nbsp;Repayment from related parties | 16272733 |  |  |  |
| &nbsp;&nbsp;&nbsp;Advance from related parties | 84857958 |  | 46824002 | 6015957 |
| Cash generated from (used in) financing activities | 47546606 | 21891118 | (22825245) | (2932593) |
| **Net increase (decrease) in cash and cash equivalents** | (2743757) | 3152213 | (5458430) | (701299) |
| Effect of foreign currency translation on cash and cash equivalents |  | 164501 | (1374699) | (176623) |
| **Cash and cash equivalents at the beginning of the year** | 8593063 | 5849306 | 9166020 | 1177652 |
| **Cash and cash equivalents at the end of the year** | 5849306 | 9166020 | 2332891 | 299730 |
| **Supplementary cash flow information** |  |  |  |  |
| Interest received | 92951 | 31954 |  |  |
| Interest paid | (6134748) | (3314316) | (1349488) | (173383) |
| Tax (paid) refund | (3314625) | (1887737) | 80932 | 10398 |
| **Non-cash investing and financing activities: Supplemental schedule of non-cash investing and financing activities:** |  |  |  |  |
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 23153141 | 21089828 |  |  |

---

The accompanying notes are an integral part of these consolidated financial statements.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1. organization and principal activities**

***<u>Business</u>***

Neo-Concept International Group Holdings Limited (the "Company" or "NCI"), through its wholly-owned subsidiaries is engaged in one-stop apparel solution services, offering a full suite of services in the apparel supply chain, including market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management serving the European, and North American markets. In addition, the Company sells apparel products in the United Kingdom ("UK") under the licensed brand "*les 100 ciels*" through its retail stores since 2000. NCI and its subsidiaries are thereafter referred as the "Group" hereafter.

***<u>Organization and reorganization</u>***

NCI, incorporated in July 2021 under the laws of the Cayman Islands, is the holding company of the Group.

Neo-Concept Apparel Group Limited ("NCA"), a British Virgin Islands ("BVI") business company limited by shares incorporated in August 2008, is the immediate holding company of Neo-Concept International Company Limited ("Neo-Concept HK"). The equity interest of NCA was ultimately held as to 94% by Ms. Eva Yuk Yin Siu (the "Controlling Shareholder", or "Ms. Siu") and 6% by Ms. Man Chi Wai ("Ms. Wai") through certain intermediate holding companies prior to the Group Reorganization (see below).

Neo-Concept HK, a company incorporated in Hong Kong with limited liability in October 1992, is the immediate holding company of Neo-Concept (UK) Limited, and is the operating subsidiary in Hong Kong.

Neo-Concept (UK) Limited ("Neo-Concept UK"), a company incorporated in the UK with limited liability in August 2000, is a direct wholly owned subsidiary of Neo-Concept HK, and is the operating subsidiary in the UK.

Neo-Concept Exquisite Couture Limited ("NCEC"), a company incorporated in BVI with limited liability in May, 2024, was a direct wholly owned subsidiary of NCA.

Neo-Concept Elite Fashion Co., LLC, a company incorporated in Dubai with limited liability in May, 2024, was a direct wholly owned subsidiary of NCEC.

Pursuant to a group reorganization (the "Group Reorganization") to rationalize the structure of the Company and its subsidiary companies in preparation for the listing of the shares, the Company became the holding company of the Group on October 29, 2021, which involved the transfer of 100 shares of NCA (representing 100% of the issued shares of NCA) by Ms. Siu and Ms. Wai to the Company in exchange for 100 shares of Neo-Concept (BVI) Limited ("NC (BVI)") (representing 100% of the issued shares of NC (BVI)), a then 100% held subsidiary of the Company, to be transferred to Splendid Vibe Limited, a company incorporated in BVI and was held as to 94% by Ms. Siu and 6% by Ms. Wai ultimately. The Company, together with its wholly owned subsidiaries, are effectively controlled by the same shareholders, i.e., ultimately held as to 94% by Ms. Siu and 6% by Ms. Wai, before and after the Group Reorganization and therefore the Group Reorganization is considered as a recapitalization of entities under common control. The consolidation of the Company and its subsidiaries has been accounted for at historical cost. No amount is recognized in respect of goodwill or excess of acquirer's interest in the net fair value of acquiree's identifiable assets, liabilities and contingent liabilities over cost at the time of common control combination.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1. organization and principal activities** (cont.)

As of December 31, 2025, details of the subsidiary companies are as follows:

---

| | | |
|:---|:---|:---|
| **Name** | **Background** | **Ownership** |
| Neo-Concept Apparel Group Limited ("NCA") | ● A BVI company<br>● Incorporated in August 2008<br>● Issued share capital of US$100<br>● Intermediate holding company | 100% owned by NCI |
| Neo-Concept International Company Limited ("Neo-Concept HK") | ● A Hong Kong company<br>● Incorporated in October 1992<br>● Issued share capital of HKD100,000<br>● Provision of one-stop apparel solution services | 100% owned by NCA |
| Neo-Concept (UK) Limited | ● A UK company<br>● Incorporated in August 2000<br>● Issued share capital of GBP100<br>● Provision of online and offline retail sales of<br> &nbsp;&nbsp;&nbsp;&nbsp;apparel products | 100% owned by Neo-Concept HK |
| Neo-Concept Exquisite Couture Limited ("NCEC") | ● A BVI company<br>● Incorporated in May 2024<br>● Issued share capital of US$100<br>● Investment holdings | 100% owned by NCA |
| Neo-Concept Elite Fashion Co., LLC | ● A Duibai company<br>● Incorporated in May 2024<br>● Issued share capital of United Arab <br> &nbsp;&nbsp;&nbsp;&nbsp;Emirates Dirham ("AED")100,000<br>● Investment holdings | 100% owned by NCEC |

---

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2. Summary of Significant Accounting Policies**

***Basis of presentation***

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for information pursuant to the rules and regulations of the Securities and Exchange Commission.

***Principles of consolidation***

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.

***Use of estimates and assumptions***

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to allowance for uncollectible accounts receivable, inventory valuation, impairment of intangible assets, useful lives and impairment for property and equipment, valuation allowance for deferred tax assets, fair value of financial instruments and contingencies. Actual results could vary from the estimates and assumptions that were used.

***Reclassifications***

Certain prior period amounts have been reclassified to conform with the current period presentation. The reclassification had no impact on net income and financial position.

***Functional currency and foreign currency translation***

The Company uses Hong Kong dollars ("HKD") as the reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands and BVI is the United States dollar ("US$") and the functional currency of its Hong Kong subsidiary is the Hong Kong dollar ("HKD"), and its UK subsidiary is the Pound Sterling ("GBP"). The determination of the respective functional currency is based on the criteria of Accounting Standards Codification ("ASC") 830, Foreign Currency Matters.

Transactions denominated in currencies other than functional currency are translated into functional currency at the exchange rates quoted by authoritative banks prevailing at the dates of the transactions. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded as other income (expense), net in the consolidated statements of comprehensive income (loss).

The consolidated financial statements of the Group are translated from the functional currency into HKD. Assets and liabilities are translated at the exchange rates at the balance sheet date. Equity accounts other than earnings generated in the current period are translated into HKD using the appropriate historical rates. Revenues and expenses, gains and losses are translated into HKD using the periodic average exchange rate for the year. Translation adjustments are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income (expense) in the consolidated statements of comprehensive income (loss).

***Convenience translation***

Translations of amounts in the consolidated balance sheet, consolidated statements of income and consolidated statements of cash flows from HKD into US$ as of and for the year ended December 31, 2025, are solely for the convenience of the reader and were calculated at the noon buying rate of US$1 = HKD 7.7833, as published in H.10 statistical release of the United States Federal Reserve Board. No representation is made that the HKD amounts could have been, or could be, converted, realized, or settled into US$ at such rate or at any other rate.

***Cash and cash equivalents***

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

***Accounts receivable and allowance for expected credit losses***

Accounts receivable, net are stated at the original amount less an allowance for expected credit loss on such receivables. The allowance for expected credit losses is estimated based upon the assessment of various factors including historical experience, the age of the accounts receivable balances, current general economic conditions, future expectations and customer specific quantitative and qualitative factors that may affect the customers' ability to pay. An allowance is also made when there is objective evidence for us to reasonably estimate the amount of probable loss. The Company regularly reviews the adequacy and appropriateness of the allowance for doubtful accounts. The receivables are written off after all collection efforts have ceased.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2. Summary of Significant Accounting Policies** (cont.)

***Other non-current assets***

Other non-current assets are rental deposits.

***Prepayment, other receivables and other current assets, net***

Prepayment, other receivables and other current assets, net primarily include prepayments to suppliers, other receivables from agency income and others.

***Inventories, net***

Inventories, net, representing finished goods for sale, are stated at the lower of cost or net realizable value, using the weighted average method. The Company evaluates the need for impairment associated with obsolete, slow-moving, and non-saleable inventory by reviewing net realizable value on a periodic basis but at least annually. Only defective products are eligible for returning to the materials suppliers. For the years ended December 31, 2023, 2024 and 2025, HKD68,536, HKD23,585 and HKD27,655 (US$3,553) of impairment for inventories was recognized, respectively.

***Property and equipment, net***

Property and equipment are stated at cost less accumulated depreciation and any impairment losses. Major renewals, betterments, and improvements are capitalized to the asset accounts while replacements, maintenance, and repairs, which do not improve or extend the lives of the respective assets, are expensed to operations. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation are relieved of the applicable amounts. Gains or losses from retirements or sale are credited or charged to operations.

The Company depreciates property and equipment using the straight-line method as follows:

Leasehold improvement Over the shorter of the terms of leases or 5 years when the renewal of leases is unconditional <br>Furniture, fixtures, and office equipment 6 years to 7 years

 ****

***Intangible assets, net***

Intangible assets are primarily purchased from third parties and Neo-Concept (Holdings) Company Limited, a company control by Ms. Siu. Purchased intangible assets are initially recognized and measured at cost upon acquisition. Intangible assets that have determinable lives are amortized over their estimated useful lives based upon the usage of the asset, which is approximated using a straight-line method as follows:

Computer software – Point-of-sale system 10 years <br> Trademarks – brand name 6 years

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2. Summary of Significant Accounting Policies** (cont.)

***Impairment for long-lived assets***

Long-lived assets, representing property and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2024 and 2025, no impairment of long-lived assets was recognized.

***Investment in equity investees***

 ****

Equity investment represents the Company's investment in privately held company. If it is determined that the Company has significant influence but does not own a majority equity interest or otherwise control over the equity investee, the equity method of accounting is used. Under this method, the investment, originally recorded at cost, is adjusted to recognize share of results of the equity investee as they occur, with losses limited to the extent of interest in the equity investee. The Company has elected the fair value option allowed by ASC 825-10-15-4, for its equity method investments because management believes this approach will better reflect the economics of its equity interest. Under the fair value option, the investment is remeasured at fair value (level 3) at each reporting period, if any, recorded in the consolidated statements of income and comprehensive income (loss).

***Fair value measurement***

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by us.

The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

Unless otherwise disclosed, fair values of the Company's other financial instruments including cash and cash equivalents, accounts receivable, net, prepayment, other current assets, amounts due to related parties, accruals and other payables, tax recoverable, tax payable are approximated to their recorded values due to their short-term maturities.

***Accruals and other payables***

Accruals and other payables primarily include payroll payable, interest payable, VAT and other accruals and payables.

***Leases***

The Company adopted ASC 842, "Leases" ("ASC 842") on January 1, 2020, using the modified retrospective transition method through a cumulative-effect adjustment in the period of adoption rather than retrospectively adjusting prior periods and the package of practical expedient. The Company categorized leases with contractual terms longer than twelve months as either operating or finance lease. The adoption of ASC 842 resulted in recognition of Operating Right-of-use ("ROU") assets of HKD541,625 and operating lease liabilities of and HKD541,625 as of January 1, 2020. There is no impact to accumulated deficit at adoption.

ROU assets represent the rights to use underlying assets for the lease terms and lease liabilities represent the obligation to make lease payments arising from the leases. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term, reduced by lease incentives received, plus any initial direct costs, using the discount rate for the lease at the commencement date. If the implicit rate in lease is not readily determinable for the operating leases, the Company generally uses the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company elected not to separate non-lease components from lease components; therefore, it will account for lease component and the non-lease components as a single lease component when there is only one vendor in the lease contract for the office leases. Lease payments are fixed.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2. Summary of Significant Accounting Policies** (cont.)

For operating leases, lease expense is recognized on a straight-line basis in operations over the lease term.

Any lease with a term of 12 months or less is considered short-term. As permitted by ASC 842, short-term leases are excluded from the ROU assets and lease liabilities on the consolidated balance sheets.

Lease payments that depend on the future use of the leased property, such as sales volume during the lease term, are contingent rentals and, accordingly, are excluded from minimum lease payments in their entirety in accordance with ASC 840-10-25-5. Accordingly, these contingent rentals are excluded from the ROU assets and lease liabilities on the consolidated balance sheets. Lease payments of the Group's retail stores located in the UK are charged based on the sales volume during the lease terms and therefore they are excluded from the recognition of ROU assets and lease liabilities on the consolidated balance sheets.

***Bank borrowings***

Borrowings are initially recognized at fair value, net of upfront fees incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method.

***Employee benefit plan***

Payments to the Mandatory Provident Fund Scheme under the Hong Kong Mandatory Provident Fund Schemes Ordinance and state-managed retirement benefit schemes in other jurisdictions are recognized as an expense when employees have rendered service entitling them to the contributions.

***Related parties***

The Company adopted ASC 850, "Related Party Disclosures", for the identification of related parties and disclosure of related party transactions.

The details of related party transactions during the year ended December 31, 2023, 2024 and 2025, and balances as at December 31, 2024 and 2025 are set out in note 13.

***Revenue recognition***

The Company adopted ASC Topic 606, "Revenue from Contracts with Customers", and all subsequent ASUs that modified ASC 606 on April 1, 2017, using the full retrospective method which requires us to present the financial statements for all periods as if Topic 606 had been applied to all prior periods. The Company derives revenue principally from sales of private-labelled apparel products and sales of own-branded apparel products in the retail stores. Revenue from contracts with customers is recognized using the following five steps:

&nbsp;&nbsp;&nbsp;&nbsp;1. Identify
the contract(s) with a customer;

&nbsp;&nbsp;&nbsp;&nbsp;2. Identify the performance
 obligations in the contract;

&nbsp;&nbsp;&nbsp;&nbsp;3. Determine the transaction
 price;

&nbsp;&nbsp;&nbsp;&nbsp;4. Allocate the transaction
 price to the performance obligations in the contract; and

&nbsp;&nbsp;&nbsp;&nbsp;5. Recognize revenue when
 (or as) the entity satisfies a performance obligation.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2. Summary of Significant Accounting Policies** (cont.)

A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services.

The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent distinct performance obligations. The Company applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations.

The revenues from sales of private-labelled apparel products and sales of own-branded apparel products in the retail stores and digital channels are recognized at a point in time.

The transaction price is allocated to each performance obligation in the contract on the basis of the relative stand-alone selling prices of the promised goods or services. The individual standalone selling price of a good or service that has not previously been sold on a stand-alone basis, is determined based on the residual portion of the transaction price after allocating the transaction price to goods and/or services with observable stand-alone selling price.

Transaction price is the amount of consideration in the contract to which the Company expects to be entitled in exchange for transferring the promised goods or services. The transaction price is fixed and is adjusted for time value of money if the contract includes a significant financing component. Consideration payable to a customer is deducted from the transaction price if the Company does not receive a separate identifiable benefit from the customer. Revenue is recognized at a point in time. Typically, performance obligation for products where the process is described as below, the performance obligation is satisfied at point in time.

The Company currently generates its revenue from the following main sources:

*Sale of private-labelled apparel products-customized original design manufacturer*

The Company currently generates revenue from the sale of private-labelled apparel products. The Company is an original design manufacturer. The Company offers customized design and manufacturing services to customers. The Company typically receives purchase orders from customers who operate retail stores, which will set forth the terms and conditions including the transaction price, products to be delivered, terms of delivery, and terms of payment. The terms serve as the basis of the performance obligations that the Company must fulfil in order to recognize revenue. There is only one performance obligation as a series of services of this revenue stream are interrelated and are not separable or distinct as the customers cannot benefit from the standalone task (i.e. customers do not obtain any benefits other than the finished products). The key performance obligation is the delivery of the finished product to the customer at their specified location at which point title to that asset passes to the customer. The completion of this earning process is evidenced by a written customer acceptance indicating receipt of the product. Typical payment terms set forth in the purchase order ranges from 30 to 90 days from invoice date.

The transaction price does not include variable consideration provision for right of return as the Company does not have sales return policy and no sales return is offered. No right of return is included in the revenue of the Company.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2. Summary of Significant Accounting Policies** (cont.)

*Retail sale of own-branded apparel products - **"les 100 ciels"***

The Company currently generate revenue from the sale of own-branded apparel products through the physical and digital channels. Retail revenue at a point of sale is measured at the fair value of the consideration received at the time the sale is made to the customer, net of discounts. Customers settle the consideration by cash or credit cards. For online sales, the Company has elected to treat shipping and handling as fulfillment activities and not a separate performance obligation. Accordingly, the Company recognizes revenue for the single performance obligation related to online sales at the time control of the merchandise passes to the customer, which is generally at the time of shipment.

The transaction price includes variable consideration provision for right of return as the Company has sales return policy. The Company records an allowance for estimated merchandise returns based on the historical return patterns and various other assumptions that management believes to be reasonable. For the years ended December 31, 2023, 2024 and 2025, the provision for material claims against in relation to defective products, or any material product returns from the customers were nil, nil and HKD24,042 (US$3,089), respectively.

Following the adoption of ASC 606, the Company considered the guidance set forth in ASC 340-40, and determined that an asset would be recognized from costs incurred to fulfill a contract under ASC 340-40-25-5 only if those costs meet all of the following criteria:

● The costs relate directly to a contract or an anticipated contract that the entity can specifically identify (for example, costs relating to services to be provided under the renewal of an existing contract or costs of designing an asset to be transferred under a specific contract that has not yet been approved).

● The costs generate or enhance resources of the entity that will be used in satisfying (or continuing to satisfy) performance obligations in the future.

● The costs are expected to be recovered.

The Company elected to apply the practical expedient to recognize the incremental costs of obtaining a contract as an expense if the amortization period of the asset would have been one year or less.

Costs that relate directly to a contract include cost of purchasing of private-labelled and own-branded apparel products from suppliers.

The Company elected to treat shipping and handling costs undertaken by the Company after the customer has obtained control of the related goods as a fulfillment activity and present as transportation costs in selling and marketing expenses.

Costs associated with the production of advertising, such as writing, printing, and other costs, are expensed as incurred. Costs associated with communicating advertising that has been produced, such as magazine costs, are expensed when the advertising event takes place.

***Cost of revenues***

Cost of revenues of private-labelled apparel products and cost of revenues of own-branded apparel products in the retail stores, which are directly related to revenue-generating transactions, primarily consist of cost of purchasing of private-labelled and own-branded apparel products from suppliers, and inbound shipping and handling cost.

***Selling and marketing expenses***

Selling and marketing expenses consist primarily of transportation and distribution expenses and marketing and displaying expenses.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2. Summary of Significant Accounting Policies** (cont.)

***General and administrative expenses***

General and administrative expenses primarily consist of personnel-related compensation expenses, including salaries and related social insurance costs for the operations and supporting personnel, office rental and office expenses, insurance, amortization of intangible assets, write-down of inventories, allowance for expected credit losses, depreciation, professional services fees, and other expenses related to general operations.

*Shipping and handling costs*

Shipping and handling costs are expensed as incurred. Inbound shipping and handling costs associated with bringing the products from suppliers to the Company's retail stores are included in cost of revenues. Outbound shipping and handling costs associated with shipping and delivery the products to customers are included in selling and marketing expenses.

***Income taxes***

The Company accounts for income taxes pursuant to ASC Topic 740, "Income Taxes". Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. ASC Topic 740 also requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the consolidated financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including those related to the U.S. net operating loss carry-forwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain.

The Company adopted ASC Topic 740-10-05, "Income Tax", which provides guidance for recognizing and measuring uncertain tax positions, it prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the consolidated financial statements. It also provides accounting guidance on derecognizing, classification, and disclosure of these uncertain tax positions.

The policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expenses.

 ****

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2. Summary of Significant Accounting Policies** (cont.)

***Value added tax ("VAT")***

The subsidiary in UK is subject to VAT and related surcharges on revenue generated from sale of products. The Group records revenue net of VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT, paid to suppliers against their output VAT liabilities. The primary applicable rate of the United Kingdom VAT is 20% for the years ended December 31, 2023, 2024 and 2025.

***Comprehensive income***

The Company presents comprehensive income in accordance with ASC Topic 220, "Comprehensive Income". ASC Topic 220 states that all items that are required to be recognized under accounting standards as components of comprehensive income (loss) be reported in the consolidated financial statements. The components of comprehensive income (loss) were the net income for the years and the foreign currency translation adjustments.

***Commitments and contingencies***

In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred, and a reasonable estimate of the loss can be made. The Company may considers many factors in making these assessments including historical and the specific facts and circumstances of each matter.

***Segment reporting***

ASC 280, Segment Reporting, ("ASC 280"), establishes standards for companies to report in their consolidated financial statements information about operating segments, products, services, geographic areas, and major customers.

Based on the criteria established by ASC 280, the chief operating decision maker ("CODM") has been identified as the Company's Chief Executive Officer. The CODM has determined that the Company operates as a single operating segment and uses net income (loss) as measures of profit or loss when making decisions regarding resource allocation and performance assessment.

***Earnings per share***

The Company computes earnings per share ("EPS") in accordance with ASC 260, "Earnings per Share". ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2023, 2024 and 2025, there were no dilutive shares.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2. Summary of Significant Accounting Policies** (cont.)

**New and amended standards adopted by the Company**

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires the annual financial statements to include consistent categories and greater disaggregation of information in the rate reconciliation, and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024, and interim periods within those annual periods; early adoption is permitted. Adoption is either with a prospective method or a fully retrospective method of transition. The Company has adopted ASU 2023-09 for the year beginning on January 1, 2025, which was applied retrospectively to all prior periods presented.

**New accounting standards that have not yet been adopted**

On November 4, 2024, the FASB issued ASU No. 2024-03, Expense Disaggregation Disclosures ("ASU 2024-03"). ASU 2024-03 amends ASC 220, Comprehensive Income to expand income statement expense disclosures and require disclosure in the notes to the financial statements of specified information about certain costs and expenses. ASU 2024-03 is required to be adopted for fiscal years commencing after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard on the Consolidated Financial Statements.

In January 2025, the FASB issued ASU 2025-01 Income Statement-Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40). The FASB issued ASU 2024-03 on November 4, 2024-03 states that the amendments are effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Following the issuance of ASU 2024-03, the FASB was asked to clarify the initial effective date for entities that do not have an annual reporting period that ends on December 31 (referred to as non-calendar year-end entities). Because of how the effective date guidance was written, a non-calendar year-end entity may have concluded that it would be required to initially adopt the disclosure requirements in ASU 2024-03 in an interim reporting period, rather than in annual reporting period. The FASB's intent in the basis for conclusions of ASU 2024-03 is clear that all public business entities should initially adopt the disclosure requirements in the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact that the adoption of ASU 2025-01 will have on its consolidated financial statement presentation or disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments provide a practical expedient and, if applicable, an accounting policy election to simplify the measurement of credit losses for certain receivables and contract assets. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in any interim or annual period in which financial statements have not been issued or made available for issuance. The Company is currently evaluating the impact of this amendment and does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations, or cash flows.

Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated balance sheets, statements of income and comprehensive income (loss) and cash flows.

**3. Segment information**

The Company has one reportable segment: sale of apparel products. Segment was identified based on the Company's internal reporting and how the CODM assesses the performance of the business. The CODM review net income to assess the performance of the business. The sale of apparel products segment generated revenue by providing one-stop apparel solution service and sales of own-branded apparel products through retail stores. All assets of the Company are located in Hong Kong and the UK and revenues are generated based on the geographical locations.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**3. Segment information** (cont.)

Key financial performance measures of the segments are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| **REVENUES, NET** | 174202627 | 235667734 | 137247341 | 17633567 |
| **COST OF REVENUES** |  |  |  |  |
| - Related parties | (34213521) | (7915189) | (73417725) | (9432724) |
| - External | (104940795) | (178307992) | (13143967) | (1688740) |
|  | (139154316) | (186223181) | (86561692) | (11121464) |
| Gross profit | 35048311 | 49444553 | 50685649 | 6512103 |
| **EXPENSES** |  |  |  |  |
| Selling and marketing | (3132277) | (4392521) | (6568144) | (843877) |
| General and administrative: |  |  |  |  |
| Depreciation | (33091) | (685245) | (1735470) | (222974) |
| Amortization | (112049) | (1481738) | (2497004) | (320816) |
| Staff cost | (13260898) | (18486483) | (21755401) | (2795138) |
| Operating leases expenses | (2507182) | (3146322) | (6720152) | (863407) |
| Operating lease expenses – related party | (720000) | (720000) | (720000) | (92506) |
| Professional fee | (2204622) | (2840139) | (3615272) | (464491) |
| (Provision for) reversal of expected credit losses | (1383316) | (1253368) | 2143178 | 275356 |
| Government rates | (453748) | (1272186) | (2138370) | (274738) |
| Office general expenses | (453551) | (752507) | (1263880) | (162384) |
| Others | (1741052) | (2842620) | (4010155) | (515224) |
| Total expenses | (26001786) | (37873129) | (48880670) | (6280199) |
| **INCOME FROM OPERATION** | 9046525 | 11571424 | 1804979 | 231904 |
| **OTHER INCOME (EXPENSES)** |  |  |  |  |
| Interest income | 92951 | 31954 |  |  |
| Interest expense | (5759182) | (3759032) | (1349488) | (173382) |
| Agency income – related party | 2662034 | 1170664 | 1475466 | 189568 |
| Other income | 326 | 134230 | 42447 | 5454 |
| Other expense | (302784) |  | (195094) | (25066) |
| Total other expenses, net | (3306655) | (2422184) | (26669) | (3426) |
| Income before tax expenses | 5739870 | 9149240 | 1778310 | 228478 |
| Income tax expenses | (1325137) | (1085909) | (1446631) | (185863) |
| **NET INCOME** | 4414733 | 8063331 | 331679 | 42615 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| **Total assets** | 135647692 | 115631755 | 14856393 |
| **Total liabilities** | (78821221) | (59032351) | (7584489) |
| **Net assets** | 56826471 | 56599404 | 7271904 |

---

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**4. INVENTORIES, NET**

Inventories, net are comprised of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Own-branded apparel products | 3708942 | 12242282 | 1572891 |
| Less: inventory provision | (92121) | (127570) | (16390) |
| Total | 3616821 | 12114712 | 1556501 |

---

Inventory write-down expense was HKD68,536, HKD23,585 and HKD27,655 (US$3,553) for the years ended December 31, 2023, 2024, and 2025, respectively.

**5. ACCOUNTS RECEIVABLE, NET**

Accounts receivable, net is comprised of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Accounts receivable | 36837847 | 7751252 | 995882 |
| Allowance for expected credit losses | (2668186) | (465974) | (59868) |
| Total | 34169661 | 7285278 | 936014 |

---

Allowance for expected credit losses, net consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Beginning balance, January 1 | 1414818 | 2668186 | 342809 |
| Addition (reversal) | 1253368 | (2202718) | (283006) |
| Exchange realignment |  | 506 | 65 |
| Ending balance, December 31 | 2668186 | 465974 | 59868 |

---

**6. PREPAYMENT, OTHER RECEIVABLES AND OTHER CURRENT ASSETS, NET**

Prepayment, other receivables and other current assets, net consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Prepayments to suppliers | 24384141 | 29385651 | 3775475 |
| Other receivables – related party |  | 1504691 | 193323 |
| Others | 3589 | 4920 | 632 |
| Total | 24387730 | 30895262 | 3969430 |
| Allowance for expected credit losses |  | (60720) | (7801) |
| Total, net | 24387730 | 30834542 | 3961629 |

---

Allowance for expected credit losses, net consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Beginning balance, January 1 |  |  |  |
| Addition |  | 59540 | 7650 |
| Exchange realignment |  | 1180 | 151 |
| Ending balance, December 31 |  | 60720 | 7801 |

---

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**7. PROPERTY AND EQUIPMENT, NET**

Property and equipment, net consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Furniture, fixtures, and office equipment | 858303 | 3726179 | 478740 |
| Leasehold improvement | 5999129 | 7758478 | 996811 |
| Total | 6857432 | 11484657 | 1475551 |
| Less: accumulated depreciation | (2111354) | (4047426) | (520014) |
| Property and equipment, net | 4746078 | 7437231 | 955537 |

---

Depreciation expenses recognized for the years ended December 31, 2023, 2024 and 2025 were HKD33,091, HKD685,245 and HKD1,735,470 (US$222,974), respectively.

**8. INTANGIBLE ASSETS, NET**

Intangible assets, net consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Software | 1277753 | 1277753 | 164166 |
| Trademarks (note (a)) | 15023180 | 15023180 | 1930181 |
| Total | 16300933 | 16300933 | 2094347 |
| Less: accumulated amortization | (2759491) | (5256495) | (675355) |
| Intangible assets, net | 13541442 | 11044438 | 1418992 |

---

---

| | |
|:---|:---|
| Note (a): | <br> On May 29, 2024, the Company entered into assets purchase agreement with a company controlled by Ms. Siu, Neo-Concept (Holdings) Company Limited, to purchase the trademark at a consideration of HKD15,023,180 (US$1,930,181). The trademarks are brand names which filed in Hong Kong, the Mainland China, the European Union, the US, Qatar and the United Arab Emirates. |

---

Amortization recognized for the years ended December 31, 2023, 2024, and 2025 were HKD112,049, HKD1,481,738 and HKD2,497,004 (US$320,816), respectively.

**9. INVESTMENT IN A JOINT VENTURE**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of December 31, <br> 2024** | **As of December 31, <br> 2024** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **HKD** | **Equity <br> interest** | **HKD** | **US$** | **Equity <br> interest** |
| Lineowa Fashion and Life Style L.L.C |  |  | 318134 | 40874 | 50.0% |

---

The Company has elected to measure the investment in joint venture using the fair value option at each reporting date. Under the fair value option, all related gains and losses on investment in joint venture due to change in the fair value will be reflected in other income (expenses) in the consolidated statements of income.

The Company used the income approach based on discounted cash flow ("DCF"). Cash flow assumptions used in income approach consider historical and forecasted revenue, earnings before interest, taxes, depreciation and amortization (EBITDA) and other relevant factors. The company classifies the income approach that use these inputs as Level 3 of fair value measurement.

The following table presents the assumptions used for the investment in a joint venture for the year ended December 31, 2025:

---

| | | |
|:---|:---|:---|
| Weighted average cost of capital | 14.17 | % |

---

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUB SIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**9. INVESTMENT IN A JOINT VENTURE** (cont.)

Lineowa Fashion and Life Style L.L.C ("Lineowa") is engaged in trade and business operation encompassing retail, wholesale, distribution and e-commerce platform for apparel products that was established in United Arab Emirates on October 14, 2024. The Company recognized the investment in Lineowa in January 2025, as the commercial registration certificate for amendment of share capital of Lineowa was issued on January 23, 2025. The Company has jointly control over Lineowa, as it jointly owns 50% of the shareholding of Lineowa. Lineowa did not distribute dividends to the Company during the year ended December 31, 2025. As of December 31, 2025, the investment in Lineowa consists of the cost of HKD318,134 (US$40,874) and no fair value changes for the year ended December 31, 2025.

The following table illustrates the summarized financial information of the Company's joint venture as of December 31, 2025 (and not the Company's share of those amounts), adjusted for difference in accounting policies between the Company and the joint venture, if any.

---

| | | |
|:---|:---|:---|
|  | **As of <br> December 31, <br> 2025** | **As of <br> December 31, <br> 2025** |
|  | **HKD** | **USD** |
| Current assets | 3901815 | 501306 |
| Non-current assets | 4522800 | 581090 |
| Current liabilities | (3842472) | (493682) |
| Non-current liabilities | (2708593) | (348001) |
| Net assets of the joint venture | 1873550 | 240713 |
| Revenue | 6881692 | 884161 |
| Profit for the year | 1237730 | 159024 |

---

**10. ACCRUALS AND OTHER PAYABLES**

Accruals and other payables consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Accruals | 1087478 | 1148365 | 147542 |
| Payroll payable | 2366113 | 3832185 | 492360 |
| VAT | 2435091 | 3195520 | 410561 |
| Deposit received | 814863 | 774081 | 99454 |
| Others | 589279 | 430130 | 55263 |
| Total | 7292824 | 9380281 | 1205180 |

---

**11. BANK BORROWINGS**

Outstanding balances of bank borrowings as of December 31, 2024, and 2025 consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Bank overdraft |  | 2957 | 380 |
| Bank borrowings: |  |  |  |
| Collateralized and guaranteed | 27105722 | 4753714 | 610758 |
|  | 27105722 | 4756671 | 611138 |
| Less: current maturities | (27105722) | (4756671) | (611138) |
| Non-current maturities |  |  |  |

---

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**11. BANK BORROWINGS** (cont.)

Bank borrowings as of December 31, 2024 and 2025 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | **As of December 31,** | **As of December 31,** | **As of December 31,** |
| <br>**Lender** | <br>**Type** | **Maturity**<br>**date** | <br>**Currency** | **Interest rate<br> as of<br> December 31,**<br>**2024** | **Interest rate<br> as of<br> December 31,**<br>**2025** | **2024** | **2025** | **2025** |
|  |  |  |  |  |  | **HKD** | **HKD** | **US$** |
| The Hongkong and Shanghai Banking Corporation Limited (i) | Trading finance | Within 1 year | HKD | 6.05% |  | 8579162 |  |  |
| Oversea-Chinese Banking Corporation Limited ("OCBC") (i) | Trading finance | Within 1 year | HKD | 7.40% |  | 2400446 |  |  |
| China Construction Bank (Asia) Corporation Limited (i) | Trading finance | Within 1 year | HKD | 6.29% | 5.94% | 10645199 | 4753714 | 610758 |
| Citibank, N.A., Hong Kong Branch (ii) | Trading finance | Within 1 year | HKD | 7.44% |  | 5480915 |  |  |
| Citibank, N.A., Hong Kong Branch | Bank overdraft | On demand | HKD |  | 14.75% |  | 2957 | 380 |
| Total |  |  |  |  |  | 27105722 | 4756671 | 611138 |
| Less: current maturities |  |  |  |  |  | (27105722) | (4756671) | (611138) |
| Non-current maturities |  |  |  |  |  |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) In connection with the operations in Hong Kong, Neo-Concept HK, together
with a related company, Neo-Concept (Holdings) Company Limited ("NCH"), a company incorporated in Hong Kong and controlled
by Ms. Siu, entered into (as renewed or supplemented yearly where required) several banking facilities with banks in Hong Kong for
combined banking facilities which were shared by Neo-Concept HK and NCH combinedly. The banking facilities were secured, details of which
are set out as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unlimited personal guarantee by Ms. Siu;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Ms. Siu being a subordinated lender towards all sums of money owed by Neo-Concept HK and NCH;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Legal charge over certain properties and car parking spaces owned by Ms. Siu and an immediate family member of Ms. Siu and also assignment of rental from the properties and the car parking spaces;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Legal charge over certain deposits accounts held by NCH at the relevant banks;

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**11. BANK BORROWINGS** (cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Legal charge over certain investment funds held by NCH at the relevant banks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Assignment of benefit from life insurances premium assets held by NCH at the relevant banks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Assignment of benefit from life insurances premium assets held by Pure Diamond Limited, a related company in which Ms. Siu has interests, at a relevant bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Indemnity granted by NCH to relevant banks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Guaranteed by Neo-Concept Fashion (Zhongshan) Co., Ltd, a subsidiary company of NCH, amounting to HKD131 million; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Cross-corporate guaranteed by Neo-Concept HK and NCH;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) The banking facilities were secured, details of which are set out as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Personal guarantee by Ms. Siu and an immediate family member of Ms. Siu;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Cross-corporate guaranteed by Neo-Concept HK, Neo-Concept (BVI) Limited, a company controlled by Ms. Siu, and NCH; and

(c) Legal charge over certain deposits accounts held by NCH at the relevant banks;

**12.** **RIGHT-OF-USE ASSETS AND LEASE LIABILITIES**

The operating leases primarily consist of leases of office premises and showrooms. The recognition of whether a contract arrangement contains a lease is made by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all the economic benefits from and has the ability to direct the use of the asset.

Operating lease assets and liabilities are included in the items of operating lease right-of-use assets, net, operating lease liabilities, current portion, and operating lease liabilities, non-current portion on the consolidated balance sheets.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**12.** **RIGHT-OF-USE ASSETS AND LEASE LIABILITIES** (cont.)

The Company adopted ASU No. 2016-02 and related standards (collectively ASC 842, Leases), which replaced previous lease accounting guidance, on January 1, 2020, using the modified retrospective method of adoption. The Company elected the transition method expedient which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, prior periods have not been restated. In addition, adoption of the new standard resulted in the recording of right-of-use assets and associated lease liabilities of approximately HKD541,625 and HKD541,625, respectively, as of January 1, 2020.

Supplemental balance sheet information related to operating leases was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| **Operating lease:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 42491805 | 41682405 | 5355364 |
| &nbsp;&nbsp;&nbsp;Current operating lease obligation | 3890482 | 4810410 | 618042 |
| &nbsp;&nbsp;&nbsp;Non-current operating lease obligation | 38601323 | 36871995 | 4737322 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating lease obligation | 42491805 | 41682405 | 5355364 |

---

Operating lease expense for the year ended December 31, 2023, 2024 and 2025 was HKD3,227,182, HKD3,866,322 and HKD7,440,152 (US$955,913), respectively.

The undiscounted future minimum lease payment schedule as follows:

---

| | | |
|:---|:---|:---|
| **For the years ending December 31,** | **HKD** | **US$** |
| 2026 | 7884001 | 1012938 |
| 2027 | 8091703 | 1039624 |
| 2028 | 8362470 | 1074412 |
| 2029 | 7076873 | 909238 |
| 2030 or after | 23271028 | 2989867 |
| Total lease payments | 54686075 | 7026079 |
| Less: imputed interest | (13003670) | (1670715) |
| Total operating lease liabilities | 41682405 | 5355364 |

---

Other supplemental information about the Company's operating lease as of:

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31, <br> 2024** | **As of<br> December 31, <br> 2025** |
| Weighted average discount rate\* | 7.71% | 7.93% |
| Weighted average remaining lease term (years) | 6.1 | 6.7 |

---

\* The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments as the implicit rate cannot be readily determined.

The right-of-use assets and relevant lease liabilities originated from the rented premises for office premises in Hong Kong and retail shops in the UK.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**13. Related party balances and transactions**

Related party balances consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | <br>**Relationship** | **2024** | **2025** | **2025** |
|  |  | **HKD** | **HKD** | **US$** |
| Other receivables from NCH | Common controlled by Ms. Siu |  | 1443971 | 185522 |
| Due to NCH | Common controlled by Ms. Siu | (638243) | (480183) | (61695) |

---

The amounts due to the related parties are unsecured, interest free with no specific repayment terms. The amounts due to NCH were non-trade nature, representing fund advances to NCH for its operation.

In addition to the transactions and balances detailed elsewhere in these consolidated financial statements, the Company also had the following transactions with related parties:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| Agency income received by Neo-Concept UK from NCH | 2662034 | 1170664 | 1475466 | 189568 |
| Purchase of apparel products from NCH | 34213521 | 7915189 | 34846523 | 4477089 |
| Purchase of intangible assets from NCH |  | 15023180 |  |  |
| Operating lease expense paid to NCH | 720000 | 720000 | 720000 | 92506 |

---

**14.** **DISSAGREGGATED REVENUE**

The following table shows disaggregated revenue by major product categories for the years ended December 31, 2023, 2024 and 2025, respectively:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| Private-labelled apparel products | 156316352 | 196736307 | 66685405 | 8567755 |
| Own-branded apparel products | 17886275 | 38931427 | 70561936 | 9065812 |
| Total | 174202627 | 235667734 | 137247341 | 17633567 |

---

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**14.** **DISSAGREGGATED REVENUE** (cont.)

The following table shows disaggregated cost of revenues by major product categories for the years ended December 31, 2023, 2024 and 2025, respectively:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| Private-labelled apparel products | 134239759 | 178307992 | 59768785 | 7679106 |
| Own-branded apparel products | 4914557 | 7915189 | 26792907 | 3442358 |
| Total | 139154316 | 186223181 | 86561692 | 11121464 |

---

The following table sets forth a breakdown of the gross profit and gross profit margin for years ended December 31, 2023, 2024 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** |
| <br>**Product category** | **Revenue** | **Cost of<br> revenue** | **Gross <br> profit** | **Gross <br> profit<br> margin** |
|  | **HKD** | **HKD** | **HKD** | **%** |
| Private-labelled apparel products | 66685405 | 59768785 | 6916620 | 10.4% |
| Own-branded apparel products | 70561936 | 26792907 | 43769029 | 62.0% |
| Total | 137247341 | 86561692 | 50685649 | 37.0% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** |
| <br>**Product category** | **Revenue** | **Cost of<br> revenue** | **Gross <br> profit** | **Gross <br> profit<br> margin** |
|  | **HKD** | **HKD** | **HKD** | **%** |
| Private-labelled apparel products | 196736307 | 178307992 | 18428315 | 9.4% |
| Own-branded apparel products | 38931427 | 7915189 | 31016238 | 79.7% |
| Total | 235667734 | 186223181 | 49444553 | 21.0% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** |
| <br>**Product category** | **Revenue** | **Cost of<br> revenue** | **Gross <br> profit** | **Gross <br> profit<br> margin** |
|  | **HKD** | **HKD** | **HKD** | **%** |
| Private-labelled apparel products | 156316352 | 134239759 | 22076593 | 14.1% |
| Own-branded apparel products | 17886275 | 4914557 | 12971718 | 72.5% |
| Total | 174202627 | 139154316 | 35048311 | 20.1% |

---

In the following table, revenue is disaggregated by the geographical locations of customers:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| Geographical locations: |  |  |  |  |
| The United States and Canada | 132124783 | 171354373 | 45875807 | 5894133 |
| The UK | 17898073 | 39906752 | 70561936 | 9065812 |
| Others | 24179771 | 24406609 | 20809598 | 2673622 |
| Total | 174202627 | 235667734 | 137247341 | 17633567 |

---

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**15. OTHER INCOME**

Other income consists of the followings:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| Agency income | 2662034 | 1170664 | 1475466 | 189568 |
| Others | 326 | 134230 | 42447 | 5454 |
| Total | 2662360 | 1304894 | 1517913 | 195022 |

---

Agency income refers to other income from NCH, which was a discretionary payment made to Neo-Concept UK for promoting NCH's products in UK upon a pre-determined yearly sale target was achieved. There are no enforceable rights and obligations, and the amount is recorded at a point in time.

**16. TAXES**

**Income tax**

*Cayman Islands*

The Cayman Islands currently levy no taxes on individuals or corporations based upon profits, income, gains or appreciations and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to the Company levied by the Government of the Cayman Islands save for certain stamp duties which may be applicable, from time to time, on certain instruments.

*BVI*

NCA is incorporated in the BVI and is not subject to tax on income or capital gains under current BVI law. In addition, upon payments of dividends by these entities to their shareholders, no BVI withholding tax will be imposed.

*Hong Kong*

Neo-Concept HK is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. From year of assessment of 2019/2020 onwards, Hong Kong profits tax rates are 8.25% on assessable profits up to HKD2,000,000, and 16.5% on any part of assessable profits over HKD2,000,000. Under Hong Kong tax law, Neo-Concept HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

*Other jurisdictions*

Taxation arising in other jurisdictions such as the UK and the USA is calculated at the rates prevailing in the relevant jurisdictions.

With effect from 1 April 2024, the current main rate of corporation tax in the UK is 25%.

Significant components of the provision for income taxes are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| Current: |  |  |  |  |
| Hong Kong | 928973 | 348835 |  |  |
| The UK | 388288 |  | 310430 | 39883 |
| Deferred: |  |  |  |  |
| Hong Kong | 7876 | (206806) | 134213 | 17244 |
| The UK |  | 943880 | 1001988 | 128736 |
| Total provision for income taxes | 1325137 | 1085909 | 1446631 | 185863 |

---

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**16. TAXES** (cont.)

The following table reconciles Hong Kong statutory rates to the effective tax rate:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **HKD** | | **HKD** | | **HKD** | **US$** | |
| Income before tax | 5739870 |  | 9149240 |  | 1778310 | 228478 |  |
| Income tax rate in the Cayman Islands, permanent tax holiday |  |  |  |  |  |  |  |
| Hong Kong statutory income tax rate | 947079 | 16.5% | 1509625 | 16.5% | 293421 | 37699 | 16.5% |
| Effect of different tax rates | 120537 | 2.1% | 1383890 | 15.1% | 699819 | 89912 | 39.4% |
| Income not taxable (a) |  |  | (4219) |  | (367658) | (47237) | (20.7)% |
| Expense not deductible | 401791 | 7.0% | 164216 | 1.8% | 18259 | 2346 | 1.0% |
| Temporary not recognized | 22959 | 0.4% | 52472 | 0.6% | 1921169 | 246832 | 108.0% |
| Utilization of tax loss |  |  | (1849075) | (20.2)% | (1621122) | (208282) | (91.2)% |
| Under provision of tax in prior years |  |  |  |  | 502743 | 64593 | 28.3% |
| Tax concession | (167229) | (2.9)% | (171000) | (1.9)% |  |  |  |
| Effective tax rate | 1325137 | 23.1% | 1085909 | 11.9% | 1446631 | 185863 | 81.3% |

---

(a) The amount for the year ended December 31, 2025 is fully
represented to reversal of expected credit losses of HKD2,228,229.

**Deferred tax assets (liabilities)**

Deferred tax assets (liabilities) as of December 31, 2024 and 2025 consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| **Deferred tax assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Tax loss | 2456246 | 1173027 | 150711 |
| &nbsp;&nbsp;&nbsp;Allowance for expected credit losses | 440251 | 72592 | 9327 |
| &nbsp;&nbsp;&nbsp;Total deferred tax assets | 2896497 | 1245619 | 160038 |
| &nbsp;&nbsp;&nbsp;Valuation allowance | (2689691) | (1173027) | (150711) |
| &nbsp;&nbsp;&nbsp;Deferred tax assets, net of valuation allowance | 206806 | 72592 | 9327 |
| &nbsp;&nbsp;&nbsp;**Deferred tax liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | (920142) | (2014423) | (258813) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax liabilities | (920142) | (2014423) | (258813) |

---

As of December 31, 2024 and 2025, the Group had tax loss amounting to HKD9,824,984 and nil, respectively carry forwards. For financial reporting purposes, the amount of the net deferred tax assets has been partially offset by a valuation allowance due to uncertainty regarding the realization of the assets. The management evaluated position taken by the company will "more likely than not" be sustained upon examination by the appropriate tax authority. The Company believes that its income tax filing positions and deductions would be sustained and does not anticipate any adjustments that would result in a material change to its financial position. Therefore, no reserves for uncertain tax positions have been recorded.

**17. riskS AND UNCERTAINTIES**

**Credit risk**

The assets that potentially subject to a significant concentration of credit risk primarily consist of cash and cash equivalents, accounts receivables and other receivables.

The Company believes that there is no significant credit risk associated with cash in Hong Kong, which were held by reputable financial institutions in the jurisdiction where Neo-Concept HK is located. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD800,000 (approximately US$102,784) if the bank with which an individual/a company hold its eligible deposit fails. As of December 31, 2025, cash balance of HKD48,853 (approximately US$6,277) was maintained at financial institutions in Hong Kong and approximately HKD48,853 (approximately US$6,277) was insured by the Hong Kong Deposit Protection Board.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**17. riskS AND UNCERTAINTIES** (cont.)

The Company believes that there is no significant credit risk associated with cash in the UK, which were held by reputable financial institutions in the jurisdiction where Neo-Concept UK is located. The Financial Services Compensation Scheme pays compensation up to a limit of GBP 120,000 (approximately US$164,280) if the bank with which an individual/a company hold its eligible deposit fails. As of December 31, 2025, cash balance of HKD2,275,065 (approximately US$292,301) was maintained at financial institutions in the UK and approximately HKD2,275,065 (approximately US$292,301) was insured by the Financial Services Compensation Scheme.

The Company has designed credit policies with an objective to minimize their exposure to credit risk. The accounts receivable is short term by nature and the associated risk is minimal. The Company conducts credit evaluations on the clients and generally do not require collateral or other security from such clients. The Company periodically evaluates the creditworthiness of the existing clients in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific clients.

The Company is also exposed to risk from account receivables. These assets are subjected to credit evaluations. An allowance, where applicable, would make for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.

**Customer concentration risk**

Information as to the revenue derived from those customers that accounted for more than 10% of total revenue for the years ended December 31, 2023, 2024 and 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** |
| Percentage of total revenue |  |  |  |
| Customer A | 71.3% | 41.0% | \* |
| Customer B | \* | 13.4% | \* |
| Customer C | \* | \* | 13.1% |
| Customer E | \* | \* | 10.3% |

---

\* Customer B accounted for less than 10% of total revenue for the years ended December 31, 2023 and 2025. Customer C and E accounted for less than 10% of total revenue for the years ended December 31, 2023 and 2024. Customer A accounted for less than 10% of total revenue for the year ended December 31, 2025.

Information as to the revenue derived from those customers that accounted for more than 10% of total accounts receivable for the years ended December 31, 2024 and 2025 are as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2025** |
| Percentage of total accounts receivables |  |  |
| Customer A | 24.7% | 21.2% |
| Customer B | 30.1% | 64.2% |
| Customer C | 15.8% |  |
| Customer D | 12.4% |  |

---

**Vendor concentration risk**

Information as to the revenue derived from those vendors that accounted for more than 10% of total purchases for the years ended December 31, 2023, 2024 and 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** |
| Percentage of total purchase |  |  |  |
| Vendor A | 69.3% | 60.9% | 85.7% |
| Vendor B | 24.6% | 37.6% | 14.3% |

---

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**17. RISKS AND UNCERTAINTIES** (cont.)

No accounts payables as of December 31, 2024 and 2025.

The Company focus on diversification of suppliers so as to minimize the vendor concentration risk.

<u>Interest rate risk</u>

The exposure on fair value interest rate risk mainly arises from the fixed deposits with bank. The Company also has exposure on cash flow interest rate risk which is mainly arising from the deposits with banks and bank borrowings.

In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative financial instruments held by the Company, such as cash deposits and bank borrowings, at the end of the reporting period, the Company is not exposed to significant interest rate risk as the interest rates are not expected to change significantly.

<u>Foreign currency risk</u>

The Company is exposed to foreign currency risk primarily through sales that are denominated in a currency other than the functional currency of the operations to which they relate. The currencies giving rise to this risk are primarily US$. As HKD is currently pegged to US$, the exposure to foreign exchange fluctuations is minimal.

<u>Market and geographic risk</u>

The Company's operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong's economy may influence the Company's business, financial condition, and results of operations.

The President of the United States issued executive orders in early 2025, instructing the United States to implement new tariffs on imports from Canada, Mexico, and China. The effects of these tariffs on the Company's operations are still uncertain. The Company's sales of apparel products to the US companies could be significantly affected by new or increased tariffs, export controls, or other measures that discourage contracts with Chinese companies. As this situation progresses, the Company is evaluating the direct and indirect effects of trade protectionist measures on operations.

**18. Shareholders' equity**

**Ordinary shares**

For the sake of undertaking a public offering of the Company's ordinary shares, the Company has performed a series of re-organizing transactions resulting in 11,250,000 shares of ordinary shares issued and outstanding that have been retroactively restated to the beginning of the first period presented. The Company only has one single class of ordinary shares that are accounted for as permanent equity.

On July 14, 2023, The Company effected a share split at a ratio of 1-to-1.6. As a result of the share split, the Company now has 800,000,000 authorized ordinary shares with a par value of US$0.0000625 per ordinary share and 18,000,000 ordinary shares issued and outstanding as of the date hereof.

On April 22, 2024, the Company announced the closing of its IPO of 2,320,000 ordinary shares, US$0.0000625 par value per share at an offering price of US$4.00 per share for a total of US$9,280,000 in gross proceeds. The Company raised total net proceeds of HKD50,995,776 (US$6,565,106), which was reflected in the consolidated statements of cash flows, after deducting underwriting discounts and commissions and offering expenses. The ordinary shares of the Company began trading on the Nasdaq Stock Market in the United States on April 23, 2024 under the Symbol "NCI".

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**18. Shareholders' equity** (cont.)

On March 3, 2025, the Company held an Extraordinary General Meeting and approved the authorized share capital of the Company shall be re-classified by re-classifying 780,000,000 shares of a par value of US$0.0000625 each as 780,000,000 class A ordinary shares of a par value of US$0.0000625 each (the "Class A Shares", each such share carrying one (1) vote per share with all rights, restrictions and privileges remaining identical to the existing shares of the Company) and 20,000,000 shares of a par value of US$0.0000625 each as 20,000,000 class B shares of US$0.0000625 each (the "Class B Shares", each such share carrying thirty (30) votes per share with such rights, restrictions and privileges as set out in the second amended and restated memorandum of association and articles of association of the Company so that the authorized share capital of the Company shall be changed from US$50,000 divided into 800,000,000 shares of a par value of US$0.0000625 each to US$50,000 divided into 800,000,000 shares of a par value of US$0.0000625 each comprised of 780,000,000 Class A Shares of a par value of US$0.0000625 each and 20,000,000 Class B Shares of a par value of US$0.0000625 each, such shares having the rights, restrictions and privileges as set out in the second amended and restated memorandum of association and articles of association of the Company.

On May 9, 2025, the Company held the Company's Extraordinary General Meeting and approved every five issued and unissued shares (namely, both class A ordinary shares of par value US$0.0000625 each and class B ordinary shares of par value US$0.0000625 each) in the share capital of the Company be consolidated into one (1) share of par value US$0.0003125 each (the "Share Consolidation") so that the authorized share capital of the Company shall be changed from US$50,000 consisting of 800,000,000 shares of par value US$0.0000625 each comprised of 780,000,000 class A ordinary shares of par value US$0.0000625 each and 20,000,000 class B ordinary shares of par value US$0.0000625 each to US$50,000 consisting of 160,000,000 shares of par value US$0.0003125 each comprised of 156,000,000 class A ordinary shares of par value US$0.0003125 each and 4,000,000 class B ordinary shares of par value US$0.0003125 each. As resolved by the board of directors of the Company, the Share Consolidation became effective on June 16, 2025.

On February 9, 2026, the Company entered into Securities Purchase Agreements (the "Securities Purchase Agreements") with several investors named therein (the "Purchasers"), pursuant to which the Company agreed to issue and sell, in a best effort offering (the "Offering"), a total of 14,850,000 Class A Ordinary Shares of par value $0.0003125 per share (the "Class A Ordinary Shares") at the price of $0.5454 per Class A Ordinary Share. The Securities Purchase Agreement contains customary representations and warranties and agreements of the Company and the Purchasers and customary indemnification rights and obligations of the parties. The Offering was closed on February 11, 2026.

**19. COMMITMENTS AND CONTINGENCIES**

**Litigation**

From time to time, the Company is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, the Company does not believe that the ultimate outcome of any unresolved matters, individually and in aggregate, are reasonably possible to have a material adverse effect on the financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the view of these matters may change in the future. The Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company reviews the need for any such liabilities on a regular basis.

**20. SUBSEQUENT EVENTS**

The Company has assessed all events from December 31, 2025, up through April 30, 2026, which is the date of these consolidated financial statements are available to be issued, except as disclosed below, there are no other material subsequent events that require disclosure in these consolidated financial statements.

On February 9, 2026, the Company entered into Securities Purchase Agreements (the "Securities Purchase Agreements") with several investors named therein (the "Purchasers"), pursuant to which the Company agreed to issue and sell, in a best effort offering (the "Offering"), a total of 14,850,000 Class A Ordinary Shares of par value $0.0003125 per share (the "Class A Ordinary Shares") at the price of $0.5454 per Class A Ordinary Share. The Securities Purchase Agreement contains customary representations and warranties and agreements of the Company and the Purchasers and customary indemnification rights and obligations of the parties. The Offering was closed on February 11, 2026.

In March 2026, an escalation of military conflict in the Middle East, involving Iran, the United States, and Israel, led to severe disruptions in maritime shipping across the Persian Gulf and the effective closure of the Strait of Hormuz. These geopolitical developments have triggered a sharp increase in global energy prices and raised significant market concerns regarding prolonged constraints on the supply of crude oil, petroleum products, and liquefied natural gas. The ultimate impact of these events on the Company's business, financial condition, results of operations, and cash flows will depend on future developments, which remain highly uncertain and unpredictable. Consequently, the Company cannot reasonably estimate the financial impact of this subsequent event at this time.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**21. PARENT ONLY FINANCIAL INFORMATION**

The following presents condensed parent company only financial information of Neo-Concept International Group Holdings Limited.

<u>Condensed balance sheets</u>

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **US$** |
| Current assets |  |  |  |
| Amount due from subsidiaries | 35644714 | 34168088 | 4389924 |
| Cash and cash equivalents | 15851 |  |  |
|  | 35660565 | 34168088 | 4389924 |
| Non-current assets |  |  |  |
| Intangible assets | 13541442 | 11044438 | 1418992 |
| Interests in a subsidiary | 780 | 780 | 100 |
|  | 13542222 | 11045218 | 1419092 |
| Total assets | 49202787 | 45213306 | 5809016 |
| Liabilities and shareholders' equity |  |  |  |
| Current liabilities |  |  |  |
| Accrual | 1087478 | 1089662 | 140000 |
| Total liabilities | 1087478 | 1089662 | 140000 |
| Shareholders' equity |  |  |  |
| Class A Ordinary shares US$0.0003125 par value, 156,000,000 Class A shares authorized, and 3,464,018 shares issued and outstanding as of December 31, 2024 and 2025\* | 8443 | 8443 | 1085 |
| Class B Ordinary shares, US$0.0003125 par value, 4,000,000 shares authorized, and 600,000 shares issued and outstanding as of December 31, 2024 and 2025\* | 1463 | 1463 | 188 |
| Additional paid-up capital | 50994645 | 50994645 | 6551803 |
| Accumulated losses | (2889242) | (6880907) | (884060) |
| Total shareholders' equity | 48115309 | 44123644 | 5669016 |
| Total liabilities and shareholders' equity | 49202787 | 45213306 | 5809016 |

---

\* Giving retroactive effect to (i) a share re-classification to 780,000,000 Class A ordinary shares and 20,000,000 Class B ordinary shares on March 3, 2025 and (ii) share consolidation of 5 to 1 on June 16, 2025.

<u>Condensed statements of loss</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| Operating expenses |  |  |  |  |
| Amortization |  | 1481738 | 2497003 | 320815 |
| Professional fee |  | 1087478 | 1479662 | 190108 |
| Other general and administrative expenses | 77088 | 170939 | 15000 | 1927 |
| Total operating expenses | 77088 | 2740155 | 3991665 | 512850 |
| Loss before income taxes | (77088) | (2740155) | (3991665) | (512850) |
| Income taxes |  |  |  |  |
| Net loss | (77088) | (2740155) | (3991665) | (512850) |

---

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**21. PARENT ONLY FINANCIAL INFORMATION** (cont.)

Condensed statements of cash flows

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **HKD** | **HKD** | **HKD** | **US$** |
| Cash flows from operating activities |  |  |  |  |
| Net loss | (77088) | (2740155) | (3991665) | (512850) |
| Adjustments to reconcile net loss to net cash used in operating activities |  |  |  |  |
| Amortization of intangible assets |  | 1481738 | 2497003 | 320815 |
| Changes in operating liability |  |  |  |  |
| Accrual |  | 1087478 | 2184 | 281 |
| Cash used in operating activities | (77088) | (170939) | (1492478) | (191754) |
| Cash flows from investing activities |  |  |  |  |
| Purchase of intangible assets |  | (15023180) |  |  |
| Cash (used in) generated from investing activities |  | (15023180) |  |  |
| Cash flows from financing activities |  |  |  |  |
| Proceeds from initial public offerings |  | 65641784 |  |  |
| Advanced from the shareholder |  | 8775 |  |  |
| Repayment from subsidiaries |  |  | 1476627 | 189717 |
| Advance to subsidiaries |  | (50440589) |  |  |
| Amount due to a related party | 77088 |  |  |  |
| Cash generated from financing activities | 77088 | 15209970 | 1476627 | 189717 |
| Net increase (decrease) in cash and cash equivalents |  | 15851 | (15851) | (2037) |
| Cash and cash equivalents at the beginning of the year |  |  | 15851 | 2037 |
| Cash and cash equivalents at the end of the year |  | 15851 |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Basis of presentation

The Company was incorporated under the laws of the Cayman Islands as an exempted company with limited liability on July 29, 2021 and as a holding company.

Neo-Concept Apparel Group Limited ("NCA"), a British Virgin Island business company limited by shares, is the immediate holding company of Neo-Concept International Company Limited, which, in turn, holds the entire equity interests in Neo-Concept International Company Limited, a company incorporated in Hong Kong with limited liability, and Neo-Concept (UK) Limited, a company incorporated in the UK with limited liability.

**NEO-CONCEPT INTERNATIONAL GROUP HOLDINGS LIMITED AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**21. PARENT ONLY FINANCIAL INFORMATION** (cont.)

In the condensed parent-company-only financial statements, the Company's investment in NCA is stated at cost.

The condensed parent-company-only financial statements are presented as if the incorporation of the Company and its acquisition of NCA had taken place at January 1, 2020 and throughout the period as at the date before the Group Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Restricted Net Assets

Schedule I of Rule 5-04 of Regulation S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant's proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender, regulatory agency, foreign government, etc.).

The condensed parent company financial statements have to be prepared in accordance with Rule 12-04, Schedule I of Regulation S-X if the restricted net assets of the subsidiaries of the Company exceed 25% of the consolidated net assets of the Company. The abilities of the Company's subsidiaries in Hong Kong and the United Kingdom to pay dividends are not restricted. In this connection, the restricted net assets of the subsidiaries of the Company does not exceed 25% of the consolidated net assets of the Company and accordingly the above condensed parent company only financial information of Neo-Concept International Group Holdings Limited is presented for the supplementary reference.

As of December 31, 2024 and 2025, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any.

## Exhibit 12.1

**Exhibit 12.1**

**CERTIFICATION**

I, Eva Yuk Yin Siu, Chief Executive Officer, certify that:

1. I have reviewed this Annual Report on Form 20-F of Neo-Concept International Group Holdings Limited.;

2. Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading regarding the period covered by this Annual Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Annual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this Annual Report;

4. The Company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this Annual Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Annual Report based on such evaluation; and

(d) Disclosed in this Annual Report any change in the Company's internal control over financial reporting that occurred during the period covered by the Annual Report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

5. The Company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's Board of Directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Dated: April 30, 2026 | By: | */s/ Eva Yuk Yin Siu* |
|  | Name: | Eva Yuk Yin Siu |
|  | Title: | Chief Executive Officer |

---

Signature Page to Form 20-F

## Exhibit 12.2

**Exhibit 12.2**

**CERTIFICATION**

I, Patrick Kwok Fai Lau, Chief Financial Officer, certify that:

1. I have reviewed this Annual Report on Form 20-F of Neo-Concept International Group Holdings Limited;

2. Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading regarding the period covered by this Annual Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Annual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this Annual Report;

4. The Company's other certifying officer(s)
 and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
 and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company
 and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this Annual Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Annual Report based on such evaluation; and

(d) Disclosed in this Annual Report any change in
 the Company's internal control over financial reporting that occurred during the period covered by the Annual Report that has materially
 affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

5. The Company's other certifying officer(s)
 and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors
 and the audit committee of the Company's Board of Directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Dated: April 30, 2026 | By: | */s/ Patrick Kwok Fai Lau* |
|  | Name: | Patrick Kwok Fai Lau |
|  | Title: | Chief Financial Officer |

---

Signature Page to Form 20-F

## Exhibit 13.1

**Exhibit 13.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Neo-Concept International Group Holdings Limited (the "Company") on Form 20-F for the year ended December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Annual Report"), I, Eva Yuk Yin Siu, Chief Executive Officer, and I, Patrick Kwok Fai Lau, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Annual Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Annual Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

---

| | | |
|:---|:---|:---|
| Dated: April 30, 2026 | By: | */s/ Eva Yuk Yin Siu* |
|  | Name: | Eva Yuk Yin Siu |
|  | Title: | Chief Executive Officer |

---

---

| | | |
|:---|:---|:---|
| Dated: April 30, 2026 | By: | */s/ Patrick Kwok Fai Lau* |
|  | Name: | Patrick Kwok Fai Lau |
|  | Title: | Chief Financial Officer |

---

Signature Page to Form 20-F