Addentax (ATXG) Q1 2025 earnings summary

Executive summary

• Revenue for the quarter ended June 30, 2024, was $0.85 million, down 19.2% year-over-year, mainly due to a decline in logistics services revenue partially offset by growth in property management and subleasing.

• Net loss narrowed to $1.2 million from $2.7 million in the prior year quarter, with basic and diluted EPS of ($0.25) compared to ($0.83) last year.

• The company operates in three main segments: garment manufacturing, logistics services, and property management and subleasing, with all operations based in China.

Financial highlights

• Gross profit was $0.20 million, down 14.5% year-over-year, with a gross margin of 23.8%.

• Operating expenses increased 14.1% to $0.71 million, driven by higher selling and administrative costs.

• Cash and cash equivalents at quarter-end were $0.9 million; net cash used in operating activities was $0.2 million.

• Total assets were $52.0 million and total equity was $25.5 million as of June 30, 2024.

Outlook and guidance

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

• The logistics segment aims to expand routes and improve profitability, while property management seeks to enhance store value through integration with e-commerce and the internet celebrity economy.