CXJ Group Reports 88% Revenue Decline and Net Loss for Quarter Ended November 30, 2024

CXJ Group Co., Limited reported a significant decline in financial performance for the three months ended November 30, 2024, with total revenue of $100,875, a decrease of approximately 88% from $866,366 in the same period last year. The company's gross profit also fell sharply to $65,442 from $530,393, reflecting a gross margin contraction due to reduced sales across its product lines, particularly in brand name administrative fees and sales of exhaust gas cleaners, motor oil, and auto parts. The company incurred a net loss of $143,693 for the quarter, compared to a profit of $203,216 in the prior year, marking a substantial shift in profitability.

In terms of operational metrics, CXJ Group's total current assets increased slightly to $560,910 as of November 30, 2024, from $535,302 at the end of the previous fiscal period. However, current liabilities also decreased to $1,803,535 from $1,979,652, indicating a reduction in financial obligations. The company’s accumulated deficit grew to $5,548,740, up from $5,363,480, highlighting ongoing challenges in achieving profitability. The total stockholders' equity increased to $550,062, reflecting new share issuances that provided working capital.

Strategically, CXJ Group has been active in managing its capital structure, having issued new shares in September 2024, raising a total of $369,728 from various private placements. This capital is intended to support ongoing operations and strategic initiatives, including the development of its e-commerce sales model and expansion of its product offerings. The company also disposed of a 51% equity interest in Xishijie Automobile Industry Ecology Technology Co., Ltd in August 2023, which may have implications for its operational focus and resource allocation.

The company reported a cash position of $352 as of November 30, 2024, a significant decrease from $2,521 at the end of the previous fiscal period. Cash flows from operating activities showed an outflow of $397,664, an improvement from $542,850 in the prior year, indicating a reduction in cash burn. The company’s management has indicated that it plans to enhance its market share through strategic acquisitions and by diversifying its product portfolio, although it acknowledges the uncertainty surrounding its ability to execute these plans successfully.

Looking ahead, CXJ Group's management remains cautious, emphasizing the need to improve profitability and operational efficiency. The company is exploring various avenues to enhance its market presence, including leveraging its online and offline marketing platforms. However, the management has also noted that there are no assurances regarding the success of these initiatives, given the current market conditions and the company's financial constraints.