CXJ Group Reports 83% Revenue Decline and Net Loss for Quarter Ended February 28, 2025

CXJ Group Co., Ltd. reported a significant decline in financial performance for the three months ended February 28, 2025, with total revenue of $64,541, a decrease of approximately 83% compared to $390,268 for the same period in the previous year. The company's gross profit also fell sharply to $62,098 from $326,740, reflecting a loss from operations of $64,640, compared to a profit of $113,904 in the prior year. The net loss attributable to shareholders for the quarter was $64,638, contrasting with a profit of $108,741 in the same quarter of 2024.

In terms of operational changes, CXJ Group experienced a notable reduction in revenue streams, particularly from brand name administrative fees, which dropped by $240,815. Sales of exhaust gas cleaners, motor oil, and auto parts also saw a decline of $83,971. The company attributed these declines to slow market activity, which has impacted both revenue generation and overall profitability. Additionally, the company recorded a net cash outflow of $370,928 from operating activities for the nine months ended February 28, 2025, an improvement from $637,763 in the previous year.

Strategically, CXJ Group has made several organizational changes, including the disposal of a 51% equity interest in Xishijie Automobile Industry Ecology Technology Co., Ltd. for a nominal fee of RMB 1. This decision reflects the company's ongoing efforts to streamline operations and focus on core business areas. The company also engaged in private placements, raising $369,728 through the issuance of new shares, which is intended to support working capital needs.

As of February 28, 2025, CXJ Group's total assets stood at $2,322,703, a slight decrease from $2,355,005 as of May 31, 2024. The company reported current liabilities of $1,832,932, down from $1,979,652, indicating a reduction in financial obligations. The total stockholders' equity increased to $489,771 from $364,544, primarily due to the capital raised from share issuances. The company’s cash and cash equivalents were reported at $2,364, down from $2,521.

Looking ahead, CXJ Group aims to enhance its market share through strategic acquisitions in the automotive aftermarket industry and plans to diversify its product portfolio. The management expressed optimism about improving profitability and operational efficiency, although they acknowledged the inherent risks and uncertainties associated with their business model. The company’s ability to continue as a going concern will depend on its success in executing these strategies and generating positive cash flows in the future.