Singularity Future Technology Reports 18.7% Revenue Decline, Improves Gross Margin

Singularity Future Technology Ltd. reported a net revenue of $363,070 for the three months ended March 31, 2025, a decrease of approximately 18.7% from $446,575 in the same period of the previous year. For the nine months ended March 31, 2025, revenues totaled $1,339,096, down 41.9% from $2,303,741 in the prior year. The decline in revenue was primarily attributed to reduced shipping volumes from its U.S. subsidiary, Brilliant Warehouse, which saw a drop of $110,504, and a decrease in revenue from its PRC subsidiaries by $535,394. The company's gross profit for the quarter was $302,763, compared to a gross loss of $267,479 in the same quarter of 2024, reflecting a significant improvement in gross margin from negative 59.9% to 83.4%.

The company's total operating expenses for the three months ended March 31, 2025, were $1,484,527, an increase from $1,130,971 in the same period last year. This increase was driven by a substantial rise in the provision for credit losses, which reached $370,479 compared to $10,305 in the previous year. The overall operating loss for the quarter was $1,181,764, slightly improved from a loss of $1,398,450 in the prior year. For the nine-month period, the operating loss was $2,891,723, down from $4,960,709 in the previous year, indicating a reduction in losses.

In terms of strategic developments, the company has undergone significant organizational changes, including the dissolution of several subsidiaries, such as Thor Miner Inc. and SG Link LLC, which were not aligned with its core operations. The company also reported a gain from the disposal of subsidiaries amounting to $322,240. As of March 31, 2025, Singularity Future Technology had a total of $18,389,538 in assets, a decrease from $18,728,039 as of June 30, 2024. The company’s cash and restricted cash at the end of the reporting period stood at $17,922,151, reflecting a slight increase from $17,729,564 a year earlier.

Operationally, the company has faced challenges, including a reliance on a limited number of major customers, with one customer accounting for 82.8% of gross revenues for the quarter. The company’s total liabilities increased to $6,948,994 from $5,474,356, primarily due to rising accounts payable and accrued expenses. The employee headcount remains stable, with no significant changes reported. Looking ahead, the company has expressed a cautious outlook, emphasizing the need to improve its internal controls and financial reporting processes to enhance operational efficiency and mitigate risks associated with its business model.

In summary, while Singularity Future Technology Ltd. has made strides in reducing its operating losses and improving gross margins, it continues to face significant revenue challenges and operational risks. The company is focused on restructuring its operations and enhancing its financial controls to better position itself for future growth.