Addentax Group Corp. Reports 28.5% Revenue Growth to $5.37 Million for Fiscal Year Ending March 31, 2026

Addentax Group Corp. reported a significant increase in revenue for the fiscal year ending March 31, 2026, achieving $5.37 million, a 28.5% rise from $4.18 million in the previous year. This growth was primarily driven by the introduction of a new consulting services segment, which contributed approximately $2.15 million, accounting for 40.1% of total revenue. The garment manufacturing segment, however, saw a decline in revenue, contributing only $40,911 compared to $283,042 in the prior year, reflecting challenges in customer acquisition and order volumes. The logistics services segment maintained a steady performance, generating $3.18 million, up from $3.02 million.

Despite the revenue growth, Addentax reported a net loss of approximately $4.47 million for the year, a slight improvement from the $5.09 million loss in the previous year. The loss from operations decreased to $1.53 million from $1.82 million, indicating improved operational efficiency. The company’s gross profit margin also saw a decline, with gross profit at $757,605, representing 14.1% of total revenue, down from 15.2% the previous year. The increase in costs, particularly in logistics and consulting services, contributed to this margin compression.

Strategically, Addentax completed the acquisition of Keemo Fashion Group Limited in March 2026, which is expected to enhance its market presence in the apparel trading and digital publishing sectors. The acquisition was valued at approximately $5.5 million, resulting in the recognition of $5.69 million in goodwill. Additionally, the company disposed of its property management and subleasing business, which has been classified as discontinued operations, allowing it to focus on its core segments.

Operationally, Addentax has been expanding its logistics services, now covering 45 cities across 10 provinces and 2 municipalities in China. The company aims to develop 20 additional logistics routes by the end of 2026 to enhance service efficiency and profitability. As of March 31, 2026, the company employed approximately 61 individuals, a slight increase from the previous year, reflecting its ongoing commitment to operational growth.

Looking ahead, Addentax faces challenges related to its holding company structure, which poses unique risks, particularly concerning regulatory changes in China. The company has expressed concerns about its ability to continue as a going concern due to its history of operating losses and reliance on future financing. Management is focused on improving operational results and exploring additional financing options to support its growth strategy.