In This Story
Addentax Group Corp. (ATXG-1.66%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing total revenue of $1,341,478, which is nearly the same as the previous year. The garment manufacturing business contributed $148,470, logistics services $964,429, and property management and subleasing $228,579.
Cost of revenues for the quarter was $1,012,837, representing 75.5% of sales, compared to 69.8% in the previous year. The increase in cost ratio is due to higher raw material costs in the garment manufacturing segment.
The company reported a gross profit of $328,641 for the quarter, compared to $402,887 in the previous year, with the decline attributed to increased raw material costs.
Operating expenses decreased to $573,707 from $707,819, primarily due to lower general and administrative expenses.
Net loss for the quarter was $721,532, compared to a net income of $1,362,400 in the previous year. The loss is attributed to a fair value loss of $531,614 and net finance costs of $57,703.
Cash provided by operating activities was $528,998, while cash used in investing and financing activities was $115,651 and $415,566, respectively.
Addentax had a working capital of $28,288,594 as of September 30, 2024. The company relies on revenue, public offerings, private placements, and contributions from its CEO for financing.
The filing also details various financial instruments, including convertible notes and warrants issued in January 2023.
The company identified material weaknesses in its internal controls over financial reporting and is planning remediation initiatives.
Addentax continues to focus on expanding its customer base and improving profitability in its garment manufacturing, logistics services, and property management segments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Addentax Group Corp. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.