Addentax Group Reports 18.9% Revenue Decline and Increased Net Loss for Fiscal Year Ending March 31, 2025

Addentax Group Corp. reported a significant decline in financial performance for the fiscal year ending March 31, 2025, with total revenue decreasing by approximately $972,839, or 18.9%, to $4.18 million compared to $5.15 million in the previous year. The decrease was primarily attributed to a drop in revenue from the logistics services segment, which accounted for about 72.2% of total revenue in 2025, down from 84.3% in 2024. The garment manufacturing segment contributed approximately $283,042, while the property management and subleasing segment saw an increase in revenue to $879,547, up from $581,888 in the prior year.

The company's cost of revenues also decreased, totaling $3.55 million, a reduction of 12.2% from $4.04 million in 2024. However, the gross profit fell sharply by 43.1% to $634,257, reflecting a gross profit margin of 15.2%, down from 21.6% in the previous year. Operating expenses increased by 9.1% to $2.45 million, leading to a loss from operations of $1.82 million, compared to a loss of $1.13 million in 2024. The net loss for the year was approximately $5.09 million, a 63.8% increase from the prior year's loss of $3.11 million.

In terms of strategic developments, Addentax Group has been focusing on expanding its logistics services and property management segments. The company aims to develop 20 additional logistics routes in existing cities and enhance its property management services through the integration of e-commerce and value-added services. The acquisition of Dongguan Hongxiang Commercial Co., Ltd. in September 2023 is expected to bolster its property management and subleasing operations.

Operationally, Addentax Group reported a total employee count of approximately 112 as of March 31, 2025, with a significant portion of its workforce dedicated to logistics and garment manufacturing. The company operates in 44 cities across 10 provinces and 2 municipalities in China, with plans for further geographic expansion. However, the company faces challenges related to customer concentration, as a single customer accounted for 54.1% of garment manufacturing revenues in 2025.

Looking ahead, Addentax Group's management expressed concerns regarding its ability to continue as a going concern due to ongoing operating losses and reliance on external financing. The company is exploring various strategies to improve its financial position, including potential equity financing and operational efficiencies. However, uncertainties surrounding regulatory changes in China and market conditions may impact its future performance and ability to meet compliance requirements.