Huineng Technology Reports Revenue Decline and Increased Net Losses for Q3 and Nine Months Ended August 31, 2025

Huineng Technology Corporation reported its financial results for the three and nine months ended August 31, 2025, revealing a significant decline in revenue and an increase in net losses compared to the previous fiscal period. The company generated revenue of $4.9 million for the third quarter of 2025, down from $7.2 million in the same quarter of 2024. For the nine-month period, revenue decreased to $9.5 million from $20.7 million year-over-year. The gross profit for both periods remained consistent at $4.9 million and $9.5 million, respectively, as there were no costs of revenue reported.

The financial performance indicates a substantial increase in net loss, which reached $4.7 million for the third quarter of 2025, compared to a loss of $21.1 million in the same quarter of 2024. For the nine-month period, the net loss was $25.8 million, a decrease from $28.4 million in the prior year. The company's accumulated deficit also widened to $70.5 million as of August 31, 2025, compared to $44.7 million at the end of the previous fiscal year. The total assets of Huineng Technology decreased to $8.5 million from $21.1 million, primarily due to a reduction in cash and cash equivalents.

Strategically, Huineng Technology underwent significant organizational changes, including a name change from Aceztech Corporation to Huineng Technology Corporation, effective February 18, 2025. The company also dissolved its wholly owned subsidiary, Aceztech Sdn. Bhd., in April 2025. These changes reflect a shift in focus towards providing website-related services in Malaysia and Hong Kong. The company’s executive leadership also saw a transition, with Guoxiang Ao appointed as the new President and CEO following the resignation of Kae Ren Tee.

Operationally, the company reported a decrease in cash and cash equivalents, which fell to $2.2 million from $10.3 million at the end of the previous fiscal year. The total current liabilities also decreased significantly to $5.1 million from $30.7 million, primarily due to the elimination of amounts due to shareholders and a reduction in accrued liabilities. The weighted average number of common shares outstanding increased to 44.5 million from 5.2 million, reflecting the issuance of new shares during the period.

Looking ahead, Huineng Technology acknowledges substantial doubt regarding its ability to continue as a going concern, given its accumulated deficit and cash position. The company is exploring options to improve profitability and secure additional funding through public offerings. While management expresses confidence in its strategic direction, the financial statements indicate that the company must navigate significant challenges to stabilize its operations and enhance its market position.