Cluster Group Holdings Reports Reduced Net Loss but No Revenue in Q2 2025

Cluster Group Holdings Limited Co., formerly known as China Teletech Holdings Inc., has reported its financial results for the second quarter of 2025, revealing a continued lack of revenue generation. For the three months ending June 30, 2025, the company reported a net loss of $7,639, a significant reduction from the net loss of $30,644 recorded in the same period of the previous year. For the first half of 2025, the net loss was $16,402, down from $31,697 in the first half of 2024. The decrease in losses is attributed to a reduction in operating expenses, which fell to $7,639 in Q2 2025 from $30,644 in Q2 2024, primarily due to lower professional fees and administrative costs.

The company’s balance sheet as of June 30, 2025, shows total liabilities of $25,782, a decrease from $89,380 at the end of 2024. This reduction is largely due to a decrease in accounts payable and accrued expenses, which dropped from $16,757 to $6,652. The stockholders' deficit also improved, moving from $(89,380) at the end of 2024 to $(25,782) by mid-2025. The company has not generated any revenue during this period, maintaining its status as a development-stage entity.

Strategically, Cluster Group Holdings has undergone significant organizational changes, including a name change and a reverse stock split executed on January 28, 2025, at a ratio of 1-for-100,000. This restructuring was aimed at better aligning the company with its strategic direction. Additionally, on June 13, 2025, the company settled an outstanding payable of $80,000 to a related party by issuing 40 million shares of common stock. The company is actively seeking a merger or acquisition, particularly in the food and ingredient industry, although no definitive agreements have been established.

As of June 30, 2025, the company reported no cash reserves and a working capital deficit of $25,782. The management has indicated that it will continue to rely on advances from related parties to cover operational expenses. The outstanding amount due to related parties was $19,130, down from $72,623 at the end of 2024. The company’s management believes that its ongoing efforts to implement its business plan and generate revenues will provide opportunities for future growth, although there are no guarantees regarding the success of these initiatives.

Looking ahead, the company acknowledges substantial doubts about its ability to continue as a going concern due to its lack of revenue generation and limited cash resources. Management intends to raise additional funds through public or private offerings to support its operations. However, the company has not yet identified alternative sources of capital, and its future operations remain contingent on successfully executing its business strategy and securing necessary funding.