Addentax (ATXG) Q2 2025 earnings summary

Executive summary

• Revenue for the quarter ended September 30, 2024, was $1.34 million, nearly flat year-over-year, with a net loss of $0.72 million compared to net income of $1.36 million in the prior year period.

• For the six months ended September 30, 2024, revenue was $2.19 million, down 8.2% year-over-year, and net loss widened to $1.94 million from $1.37 million.

• The company operates in three main segments: garment manufacturing, logistics services, and property management/subleasing, with logistics contributing the majority of revenue.

• A subsidiary in the garment manufacturing segment was disposed of in August 2024, resulting in a $334,135 loss.

Financial highlights

• Gross profit for the quarter was $328,641 (24.5% margin), down from $402,887 (30.2%) year-over-year.

• Operating expenses for the quarter were $573,707, a decrease from $707,819 in the prior year.

• For the six months, gross profit was $531,236 (24.2% margin), down from $639,796 (26.8%) year-over-year.

• Cash and cash equivalents at September 30, 2024, were $810,545, with total current assets of $28.3 million and current liabilities of $2.5 million.

• Net cash provided by operating activities for the six months was $0.53 million, a significant improvement from a $1.58 million outflow in the prior year.

Outlook and guidance

• Management expects garment manufacturing capacity to recover by fiscal year-end 2025 following facility renewals.

• The logistics segment aims to expand routes and improve profitability, while property management/subleasing is in early development.