China Foods Holdings Reports $142.2M Revenue, $97.4M Net Loss for Q2 2025

China Foods Holdings Ltd. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated net revenues of $142.2 million for the three months ended June 30, 2025, a substantial increase from $3.8 million in the same period last year. For the six months ending June 30, 2025, revenues reached $142.3 million, compared to $27.6 million in the prior year. This growth is attributed to heightened demand for healthcare products, which the company has been actively promoting.

Despite the increase in revenue, the company experienced a net loss of $97.4 million for the three months and $200.9 million for the six months ended June 30, 2025, compared to losses of $108.3 million and $170.0 million, respectively, in the previous year. The rise in losses is primarily due to a significant increase in the cost of revenue, which rose to approximately 89% of net revenue, up from 39% and 27% in the same periods last year. This increase in costs is attributed to supply chain inefficiencies and inflationary pressures.

Operationally, China Foods Holdings has made strides in its healthcare segment, which accounted for the majority of its revenue. The company reported a gross profit of $15.6 million for the three months ended June 30, 2025, down from $2.3 million in the same period last year, reflecting a gross profit margin decrease from 61% to 11%. The company’s total operating expenses also increased slightly to $112.9 million for the quarter, compared to $111.1 million in the previous year, driven by higher selling and administrative costs.

As of June 30, 2025, the company reported total assets of $350.6 million, a decrease from $435.0 million at the end of 2024. Current liabilities increased to $1.4 billion, primarily due to higher customer deposits and amounts due to directors and related parties. The company’s stockholders’ deficit widened to $1.1 billion, up from $850.8 million at the end of 2024. The company continues to rely on financial support from its shareholders to meet its obligations, with management expressing confidence in the ability to sustain operations for at least the next 12 months.

Looking ahead, China Foods Holdings aims to enhance its product offerings and expand its market presence in the health and wellness sector. The company is focused on mitigating risks associated with supply chain disruptions and inflation through strategies such as supplier diversification and local sourcing. Management remains optimistic about future revenue growth, driven by ongoing demand for health-related products and services.