OSR Holdings Reports 29% Sales Increase but Faces Rising Costs and Operating Losses in Q2 2025

OSR Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a net sales increase of 29% to $1.14 million compared to $881,829 in the same period last year. However, the company experienced a significant rise in costs, with cost of sales escalating by 70% to $1.10 million, leading to a gross profit decline of 86% to $32,782. For the first half of 2025, net sales reached $1.90 million, a 6% increase from $1.79 million in the prior year, while gross profit fell by 57% to $201,468. The operating loss for the quarter was $5.23 million, a 63% increase from the previous year, and the year-to-date operating loss was $8.15 million, up 25%.

The financial performance reflects the impact of a strategic shift in the company's subsidiary, RMC, which transitioned from a traditional purchase-and-resale model to a consignment-based arrangement. This change resulted in the sale of previously held inventory back to suppliers at cost, adversely affecting gross margins. Additionally, selling, general, and administrative expenses surged by 53% to $5.26 million for the quarter, primarily due to costs associated with the completion of the Business Combination on February 14, 2025, which consolidated OSR Holdings Inc. into its financials.

In terms of operational developments, OSR Holdings reported a significant increase in its cash position, with cash and cash equivalents rising to $1.58 million as of June 30, 2025, compared to $341,543 at the end of 2024. The company also noted a substantial increase in total liabilities, which reached $46.26 million, up from $32.03 million at the end of the previous fiscal year. The total stockholders' equity decreased slightly to $139.15 million from $143.21 million, reflecting the ongoing operational losses.

Looking ahead, OSR Holdings is pursuing strategic initiatives to enhance its market position, including a partnership with BCM Europe AG to explore tokenization of its equity under the Regulation D framework. This initiative aims to leverage blockchain technology for capital raising and liquidity enhancement. Additionally, the company signed a term sheet to acquire Woori IO Co., Ltd., a pioneer in noninvasive glucose monitoring technology, which is expected to bolster its presence in the healthcare sector. Management anticipates that these strategic moves will create significant revenue opportunities and enhance shareholder value in the long term.