Addentax (ATXG) investor relations material

Executive summary

• Revenue for the nine months ended December 31, 2025 increased 2.8% year-over-year to $2.62 million, driven by growth in logistics services, while garment manufacturing revenue declined due to lower order volume and competition.

• Net loss widened to $4.7 million from $3.0 million year-over-year, primarily due to a $4.1 million fair value loss on derivative liabilities and increased operating expenses.

• The property management and subleasing segment was disposed of in July 2025 and classified as discontinued operations.

Financial highlights

• Gross profit for the nine months was $710,474, down 23.3% from $925,725 year-over-year.

• Operating loss increased to $873,516 from $490,574 year-over-year.

• Basic and diluted loss per share were $0.50 and $0.53 for the nine months ended December 31, 2025 and 2024, respectively.

• Cash and cash equivalents at period end were $238,466, with total current assets of $27.9 million and current liabilities of $1.3 million.

Outlook and guidance

• Plans to expand logistics routes and improve profitability in 2026, with a focus on nationwide delivery network growth.

• Strategic objectives include leveraging core strengths for long-term sustainable growth despite economic uncertainty in China.

• CEO has indicated intent and ability to provide additional equity financing if needed.