Agape ATP Corporation Reports 9.3% Revenue Decline and Net Loss of $712,919 for Q1 2025

Agape ATP Corporation reported a revenue of $289,037 for the three months ended March 31, 2025, a decrease of approximately 9.3% from $318,643 in the same period of the previous year. The decline in revenue was attributed to a strategic shift in focus towards new revenue streams and a decrease in sales from the company's network marketing business, which fell by 28.4% to $26,547. Revenue from the provision of complementary health therapies also decreased by 10.4% to $252,246, with the company not generating any revenue from overseas customers during this period.

The company's cost of revenue increased by 15.2% to $132,751, primarily due to inventory write-offs in the network marketing segment. As a result, gross profit dropped to $156,286, reflecting a gross margin of 54.1%, down from 63.8% in the prior year. Operating expenses totaled $876,690, a reduction from $926,958 in the previous year, driven by a decrease in general and administrative expenses. However, selling expenses rose by 25.2% to $63,052, largely due to increased advertising costs.

Agape ATP Corporation recorded a net loss of $712,919 for the first quarter of 2025, compared to a net loss of $703,094 in the same quarter of 2024. The increase in net loss was influenced by the factors mentioned above, including reduced revenue and increased costs. The company also reported a significant decrease in other income, which fell to $7,485 from $27,282, primarily due to a drop in interest income.

Operationally, the company has been focusing on diversifying its revenue streams, including the introduction of new products in the wellness and green energy sectors. As of March 31, 2025, Agape ATP Corporation had a working capital of $23,775,576, significantly higher than $1,656,571 at the end of 2024, largely due to a $23 million investment deposit made to Bi Cheng Investment Management Limited for future investment opportunities. However, the company continues to face challenges, including an accumulated deficit of $10,216,994 and ongoing concerns regarding its ability to generate positive cash flow.

Looking ahead, Agape ATP Corporation aims to enhance its financial position by increasing revenue and controlling operating costs. The management is also focused on improving internal controls and financial reporting processes, as identified weaknesses in these areas have raised concerns about the reliability of financial statements. The company plans to engage external consultants and hire additional staff to strengthen its internal controls and ensure compliance with U.S. GAAP standards.