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Addentax Group Corp. (ATXG-1.80%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenue to $1,059,362 from $1,468,496 in the same quarter the previous year. This decrease is attributed primarily to a reduction in revenue from the logistics services business.
Cost of revenues for the quarter was $976,543, representing 92.2% of sales, compared to 88.9% in the same quarter of 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 $82,819 for the quarter, compared to $162,327 in the previous year, with the decline attributed to increased costs in the garment manufacturing segment.
Selling, general, and administrative expenses decreased to $463,873 from $611,919, primarily due to reduced general and administrative expenses across segments.
Net loss for the quarter was $1,085,721, down from $2,607,662 in the previous year. The decrease in net loss is largely due to reduced fair value losses and lower net finance costs.
Cash provided by operating activities was $802,379, while cash used in investing and financing activities was $153,739 and $986,341, respectively.
Addentax had total assets of $49,566,926 as of December 31, 2024, with a decrease from $52,338,748 as of March 31, 2024. The company continues to depend on revenue from its logistics services and property management segments.
The filing also details various financial agreements, including the extension of the maturity date for senior secured convertible notes to July 4, 2025.
Addentax does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting and plans to implement remediation initiatives, including hiring a reporting manager with relevant experience.
Addentax continues to focus on expanding its customer base and improving profit margins across 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 February 14, 2025. To report an error, please email earnings@qz.com.