Addentax (ATXG) Q2 2026 earnings summary

Executive summary

• Revenue for the three months ended September 30, 2025, decreased 26.3% year-over-year to $820,692, mainly due to declines in both garment manufacturing and logistics services segments.

• Net loss for the quarter was $102,837, a significant improvement from a net loss of $721,532 in the prior year period.

• The company disposed of its property management and subleasing subsidiary (HX) in July 2025, classifying this segment as discontinued operations.

Financial highlights

• Six-month revenue was $1,647,046, down 2.3% year-over-year; net loss for the period was $495,275, compared to $1,942,643 in the prior year.

• Gross profit margin for the quarter was 27.4%, down from 42.3% a year ago, reflecting higher costs and a shift in business mix.

• Operating expenses increased 31.7% year-over-year for the quarter, driven by higher general and administrative costs.

• Cash and cash equivalents at September 30, 2025, were $445,726; total current assets were $27.8 million, and current liabilities were $1.1 million.

Outlook and guidance

• The company aims to expand its garment manufacturing customer base and improve profitability.

• Logistics services are focused on building a nationwide delivery network and developing additional routes.

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