Cosmos Group Holdings Reports First Quarter 2025 Revenue of $19,281, Net Loss Reduced

Cosmos Group Holdings Inc. reported its financial results for the first quarter of 2025, revealing a net revenue of $19,281, a significant increase from zero revenue in the same period last year. The company, which operates primarily through its subsidiaries in Hong Kong and Singapore, attributed this revenue to consultancy services related to the sale and distribution of arts and collectibles. Despite this positive revenue figure, the company recorded a net loss of $51,148, a reduction from a net loss of $1,051,038 in the first quarter of 2024, indicating improved operational efficiency.

The financial performance reflects a notable shift in the company's operations, as it has transitioned from a period of no revenue generation to establishing a revenue stream. The cost of revenue for the quarter was $11,568, leading to a gross profit of $7,713. Operating expenses decreased significantly to $58,861 from $143,722 in the previous year, primarily due to reduced general and administrative costs. This reduction in expenses contributed to the smaller net loss compared to the prior year.

In terms of operational metrics, Cosmos Group Holdings maintained a consistent share count, with 4,585,963,082 shares of common stock outstanding as of March 31, 2025. The company has not made any transfers or distributions to shareholders and does not anticipate paying dividends in the foreseeable future, as it aims to retain earnings for business expansion. The company’s accumulated deficit stood at $200,806,742, highlighting ongoing challenges in achieving profitability.

Strategically, Cosmos Group Holdings is focused on leveraging blockchain technology to enhance its arts and collectibles business. The company has developed Digital Ownership Tokens (DOTs) to provide proof of ownership and provenance for art pieces, which it plans to market primarily in Hong Kong before expanding to other regions. However, the company faces significant risks associated with its operations in Hong Kong, particularly concerning regulatory changes from the People's Republic of China that could impact its business model and ability to attract foreign investments.

Looking ahead, Cosmos Group Holdings acknowledges the need for additional financing to support its operations and growth initiatives. The company is actively seeking financial support from existing shareholders and external sources to meet its obligations and fund anticipated operating losses. The management has expressed that the continuation of the company as a going concern is contingent upon improving profitability and securing necessary capital in the coming months.