#China #Qingdao #financial results #SOS Limited #Commodities Trading

SOS Limited Reports Semi-Annual Financial Results for 2025

On September 26, 2025, SOS Limited (NYSE: SOS) released its semi-annual financial results for the six-month period ending June 30, 2025. The report highlighted a significant increase in revenue compared to the same period last year, mainly due to robust performance in commodities trading amid China's continuing economic recovery.

Financial Overview

In the first half of 2025, SOS Limited generated a net revenue of $89.6 million, marking a impressive 48.1% increase from the $60.5 million recorded in the previous year. This revenue surge is attributed primarily to increased sales of natural rubber, one of the company's key industrial materials, driven by rising demand as various sectors in the Chinese economy rebound.

The company reported that its revenue streams are now heavily concentrated in three areas: Commodities Trading, Hosting Services, and other services. Notably, Commodities Trading accounted for a staggering 94.9% of the total revenue, showcasing the segment’s crucial role in the company’s overall business model. In contrast, Hosting Services and Other areas contributed 4.3% and 0.8%, respectively.

Revenue Breakdown

The financial highlights from SOS Limited's interim results are as follows:

• - Commodities Trading: $85.0 million (94.9%)
• - Hosting Services: $3.9 million (4.3%)
• - Others: $0.7 million (0.8%)

Total revenue for the period reached $89.6 million, compared to the prior year's total of $60.5 million. This impressive growth indicates the company’s strategic pivot towards sectors yielding higher returns.

Challenges and Losses

Despite the revenue growth, SOS Limited faced challenges that impacted its profitability. The cost of operations increased to $90.9 million, up 56.5% compared to the $58.1 million from the previous year. This rise in operating costs was in line with revenue growth but resulted in a significant operating loss of $14.2 million compared to a net loss of $10.9 million in the same timeframe last year.

The gross profit margin for the current period stood at -1.5%, underlining the pressure on profitability mainly due to fluctuating prices of raw materials like rubber and petroleum coke. For instance, the company sold low-quality petroleum coke at cost, causing losses in sales.

Strategic Decisions

In a move to optimize resource allocation, SOS Limited made the decision to temporarily halt its internal cryptocurrency mining operations. This strategic pivot aligns with the company's goal of focusing on higher-growth segments, particularly hosting services, which have shown increasing demand. The company intends to redirect its efforts towards expanding its third-party mining hosting services instead.

Investment and Future Outlook

As of June 30, 2025, the company’s cash and cash equivalents amounted to $4.2 million, a notable decrease from $246.7 million at the end of the previous fiscal year. This decline is a result of a strategic prepayment of approximately $228.4 million aimed at enhancing the development of a proprietary blockchain commodity trading platform – a key initiative for long-term growth.

Furthermore, the management is exploring strategies to bolster cash flow, including optimizing internal operations and seeking external capital. The company raised around $6.8 million through a registered direct offering, indicating ongoing efforts to stabilize its financial position.

Conclusion

In summary, while SOS Limited's semi-annual financial results reveal remarkable revenue growth, the company grapples with challenges that underline the volatility of raw commodity prices. By strategically reallocating resources and focusing on burgeoning sectors, SOS Limited aims to solidify its market presence and pave the way for future growth in the dynamic landscape of commodity trading.