CXJ Group Reports 125% Revenue Growth but Increased Operational Losses for Three and Nine Months Ended February 28, 2026

CXJ Group Co., Limited has reported its financial results for the three and nine months ended February 28, 2026, revealing a significant increase in revenue but continued operational losses. The company generated total revenue of $145,267 for the three months, a substantial increase from $64,541 in the same period last year, marking a growth of approximately 125%. For the nine months, revenue reached $301,674, compared to $279,798 in the prior year. Despite this revenue growth, the company reported a net loss of $99,214 for the three months, up from a loss of $64,638 in the previous year, and a total loss of $244,288 for the nine months, slightly down from $249,898.

The increase in revenue was primarily driven by higher sales of motor oil and auto parts, which rose significantly due to increased demand during the Chinese New Year Festival. Sales in this category surged to $110,356 from just $3,682 a year earlier. However, the company also faced rising costs, with the cost of revenue increasing to $75,124 from $2,443, leading to a gross profit of $70,143, which was an increase from $62,098 in the prior year. Selling and distribution expenses also rose sharply, reflecting increased payroll and marketing costs.

Operationally, CXJ Group has made strategic moves, including the introduction of new products such as the "Lanxiaolan Fuel Additive Cleaner," which contributed to an increase in advance payments from customers, rising to $1,097,429 from $595,108. The company’s total current assets increased to $413,857, up from $284,303, while total liabilities also rose to $2,293,798 from $1,855,286, indicating a growing operational scale but also increasing financial obligations.

Looking ahead, CXJ Group plans to enhance its market share through strategic acquisitions in the automotive aftermarket industry and aims to diversify its product portfolio. The company has expressed confidence in its business strategy, although it acknowledges the challenges posed by market conditions and regulatory environments in China. The management has indicated that while they expect to continue generating positive cash flows from operations, they may require additional funding to support future growth initiatives. The company’s ability to sustain its operations and improve profitability remains contingent on effective execution of its strategic plans and market conditions.