Addentax (ATXG) Q1 2026 earnings summary

Executive summary

• Revenue for the quarter ended June 30, 2025 increased 15.3% year-over-year to $980,954, driven by growth in logistics services revenue, while net loss narrowed to $392,438 from $1,221,111 in the prior year period.

• Gross profit declined sharply to $6,059 from $202,595, with gross margin dropping to 0.6% due to higher costs and losses in property management and subleasing.

• The company disposed of its garment manufacturing subsidiary AOT in May 2025 and its property management subsidiary HX in July 2025, resulting in a shift in segment focus.

Financial highlights

• Logistics services contributed 82.2% of total revenue, up from 57.2% a year ago, while garment manufacturing fell to 2.0% of revenue.

• Gross profit margin for logistics services dropped to 23.2% from 48.8% year-over-year; garment manufacturing gross margin fell to 17.7% from 31.5%.

• Net cash used in operating activities was $306,075, with $553,822 provided by financing activities.

• Basic and diluted loss per share improved to ($0.06) from ($0.25) year-over-year.

Outlook and guidance

• The company aims to expand its logistics network and improve profitability in garment manufacturing.

• Property management and subleasing business was discontinued after the sale of HX.

• Management expects continued pricing pressure and economic uncertainty in China to impact margins and receivables.