Based on the provided financial report articles, I generated the title for the article: "ATXG's Financial Report: Q3 2025 Earnings and Balance Sheet Update" Please note that the title may not be exact, as the provided text is a large block of financial data and may not contain a specific title.
Unfortunately, the provided text does not contain a financial report, but rather a series of financial statements and data points. However, I can try to summarize the key financial figures and main events mentioned in the text:
- The report appears to be for a company with the ticker symbol 0001650101, with financial data presented for various periods, including Q3 2025, 2024, and 2023.
- The company’s common stock, additional paid-in capital, retained earnings (unrestricted and statutory reserve), and accumulated other comprehensive income are all mentioned.
- The report includes data on the company’s financial position and performance for various periods, including balance sheet and income statement data.
- The text does not provide a clear summary of the company’s financial performance or any significant events or developments.
If you could provide more context or clarify what specific information you are looking for, I may be able to help you better.
Overview
Addentax Group Corp. is a Nevada holding company with no material operations of its own. The company conducts substantially all of its operations through its operating companies established in the People’s Republic of China (PRC). Addentax classifies its businesses into three main segments: garment manufacturing, logistics services, and property management and subleasing.
Our Business
Addentax’s subsidiaries include:
- Yingxi Industrial Chain Group Co., Ltd. (Seychelles)
- Yingxi Industrial Chain Investment Co., Ltd. (Hong Kong)
- Several PRC companies, including Qianhai Yingxi Textile & Garments Co., Ltd., Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd, Dongguan Heng Sheng Wei Garments Co., Ltd, Dongguan Yushang Clothing Co., Ltd, Shenzhen Yingxi Peng Fa Logistic Co., Ltd., Shenzhen Xin Kuai Jie Transportation Co., Ltd, Dongguan Au Te Si Garments Co., Ltd., and Dongguan Hongxiang Commercial Co., Ltd.
The company’s garment manufacturing business consists of sales made principally to wholesalers located in the PRC. The logistics business provides delivery and courier services covering 44 cities in 10 provinces and 2 municipalities in China. The property management and subleasing business provides shops subleasing and property management services for garment wholesalers and retailers.
Business Objectives
- Garment Manufacturing: Expand customer base and improve profit
- Logistics Services: Establish efficient logistics system and build nationwide delivery network
- Property Management and Subleasing: Integrate resources, develop e-commerce and internet celebrity economy
Seasonality of Business
- Garment Manufacturing: More orders in Q2 and Q3, fewer in May-June
- Logistics Services: More orders in Q3 and Q4, vulnerable to delays during Chinese New Year
- Property Management and Subleasing: No significant seasonality
Collection Policy
- Garment Manufacturing: New customers pay advances/deposits, established customers 30-180 days
- Logistics Services: 30-90 days after package registration
- Property Management and Subleasing: Rental/management fees collected monthly in advance
Economic Uncertainty
Addentax’s business is dependent on consumer demand and has experienced pricing pressure due to economic uncertainty in China. The company believes its core strengths will allow it to execute its strategy for long-term sustainable growth.
Summary of Critical Accounting Policies
Key policies include estimates and assumptions, revenue recognition, leases, accounts receivable, and recently issued accounting pronouncements.
Results of Operations
Revenue, cost of revenue, gross profit, operating expenses, and net loss are summarized for the three and nine months ended December 31, 2024 and 2023. Key trends include:
- Total revenue decreased 27.9% and 15.7% in the respective periods, mainly due to lower logistics services revenue.
- Gross profit margin decreased from 11.1% to 7.8% in Q4 2024 and from 20.8% to 18.9% in 9M 2024, due to higher costs.
- Operating expenses decreased 24.2% in Q4 2024 but only 4.0% in 9M 2024.
- Net loss improved from $2.6 million to $1.1 million in Q4 2024 but remained high at $3.0 million in 9M 2024.
Financial Condition, Liquidity and Capital Resources
As of December 31, 2024, Addentax had $0.5 million in cash, $27.8 million in current assets, and $3.2 million in current liabilities. The CEO has indicated the ability to provide additional financing if needed to support the company’s growth.
Addentax faces foreign currency translation risk due to fluctuations between the US dollar and Chinese renminbi. The company has no off-balance sheet arrangements.
