SHENZHEN, China, March 3, 2025 /PRNewswire/ -- Addentax Group Corp. ("Addentax" or the "Company") (Nasdaq: ATXG) announced that it has regained compliance with the Nasdaq Listing Rule 5450(a)(1).On April 24, 2024, the Company was notified by Nasdaq that its common stock had failed to maintain a minimum bid price of $1.00 over the previous 30 consecutive business days, as required by Nasdaq Listing Rules. However, Nasdaq has now confirmed that for the 10 consecutive business days from February 7 through Febr ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _________________ Commission File No. 001-41478 ADDENTAX GROUP CORP. (Exact name of registrant as specified in its charter) (State or other jurisdictio ...

SHENZHEN, China, Jan. 13, 2025 /PRNewswire/ -- Addentax Group Corp. ("Addentax" or the "Company") (Nasdaq: ATXG), an integrated service provider focusing on garment manufacturing, logistics services, property management, and subleasing, has announced that Addentax has purchased 3,750,000 common shares in Well Information Technology Corporation ("Well InfoTech"), a company incorporated under the jurisdiction of the State of Nevada. Well InfoTech and its subsidiaries are headquartered in Hangzhou, People's Re ...

SHENZHEN, China, Nov. 21, 2024 /PRNewswire/ -- Addentax Group Corp. ("Addentax" or the "Company") (Nasdaq: ATXG), an integrated service provider focusing on garment manufacturing, logistics services, property management, and subleasing, has announced the signing of a Memorandum of Understanding (MOU) for nationwide strategic cooperation with Shenzhen Yingbin Brand Development Co., Ltd. ("Yingbin Brand"), a prominent brand management company headquartered in Guangdong.Mr. Hong Zhida, CEO of Addentax, express ...

Company Operations - Addentax Group Corp. operates primarily through its wholly owned subsidiary in China, Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd., and has ceased operations in epidemic prevention supplies as of Q1 2023[79] - The company dissolved Shenzhen Yingxi Tongda Logistic Co., Ltd. in April 2024 and is in the process of dissolving another subsidiary, ZHJ[87] Business Segments - The garment manufacturing segment aims to expand its customer base and improve profit, leveraging high-quality standards and timely delivery[87] - The logistics services segment currently covers 44 cities across 10 provinces and 2 municipalities in China, with plans to develop 20 additional logistics routes by the end of 2024[88] - The property management and subleasing segment provides approximately 56,238 square meters of floor space and 1,300 shop spaces to clients, focusing on integrating resources in shopping malls and e-commerce[86] Financial Performance - Total revenue for the three months ended September 30, 2024, was $1,341,478, a slight increase of 0.5% compared to $1,335,314 for the same period in 2023[109] - Gross profit for the three months ended September 30, 2024, was $328,641, representing a gross margin of 24.5%, down from 30.2% in 2023, a decrease of 18.4%[109] - The logistics services business generated approximately $964,429 in revenue for the three months ended September 30, 2024, a decrease of 18.7% from $1,186,033 in 2023[115] - Revenue from the garment manufacturing business was approximately $148,470 for the three months ended September 30, 2024, an increase of 62.8% compared to $91,218 in 2023[115] - Net loss for the three months ended September 30, 2024, was $721,532, a significant decrease from a net income of $1,362,400 in 2023, representing a change of 153.0%[109] - Total revenue for the six months ended September 30, 2024 decreased by approximately $195,309, or 8.2%, to $2,192,511 compared to $2,387,820 for the same period in 2023[138] - Net loss for the six months ended September 30, 2024, was approximately $1.9 million, compared to a net loss of $1.4 million for the same period in 2023, with basic and diluted earnings per share of ($0.36) and ($0.37), respectively[165] Cost and Expenses - The cost of revenue for property management and subleasing was $371,019, which accounted for 162.3% of total revenue for this segment in the three months ended September 30, 2024, compared to 7.9% in 2023[123] - Raw material costs for the garment manufacturing business were approximately 58.8% of total revenue in 2024, compared to 28.9% in 2023, indicating increased costs due to higher orders[116] - Labor costs for the garment manufacturing business decreased to 24.5% of total revenue in 2024 from 50.9% in 2023, attributed to increased revenue levels[117] - General and administrative expenses in the logistics services segment for the three months ended September 30, 2024 were approximately $223,375, an increase from $160,700 for the same period in 2023[129] - The company incurred total general and administrative expenses of approximately $1.1 million for the six months ended September 30, 2024, a decrease of approximately 4.2% from $1.2 million in 2023[160] Cash Flow and Assets - Net cash provided by operating activities was approximately $0.5 million for the six months ended September 30, 2024, compared to net cash used of $1.6 million in 2023, an increase of approximately $2.1 million[167] - As of September 30, 2024, the company had cash on hand of approximately $0.8 million, total current assets of approximately $28.3 million, and current liabilities of approximately $2.5 million[170] Internal Controls and Compliance - The company plans to hire an Internal Finance Manager with relevant U.S. GAAP and SEC reporting experience to strengthen internal controls[177] - An overall assessment of current finance and accounting resources will be conducted, with additional accounting members hired as needed[177] - The accounting department structure will be streamlined, and continuous internal training on U.S. GAAP and SEC reporting will be provided[177] - The company will participate in regular training and seminars by professional services firms to stay updated on U.S. GAAP/SEC reporting requirements[177] - An external consulting firm will be engaged to assist in implementing Sarbanes-Oxley 404 internal controls compliance and establishing an internal audit function[177] - There were no changes in the company's internal control over financial reporting that materially affected its effectiveness during the reporting period[179] Legal Matters - The company is not currently involved in any legal proceedings that would materially adversely affect its business or financial condition[181] Market Conditions - Economic uncertainty in China has increased clients' sensitivity to costs, leading to continued pricing pressure, although it has not yet impacted the timeliness of receivable collections[92] - The logistics services business is more vulnerable to shipping delays during the Chinese New Year due to traffic and port congestion[90]

Business Operations - Addentax Group Corp. operates primarily through its wholly owned subsidiary, Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd., and has ceased operations in the epidemic prevention supplies segment as of Q1 2023[89]. - The garment manufacturing segment focuses on expanding the customer base and improving profit, with operations supported by five wholly owned subsidiaries in Guangdong province, China[93][97]. - The logistics services segment currently covers 44 cities across 10 provinces and 2 municipalities in China, with plans to develop 20 additional logistics routes by the end of 2024[94][97]. - The property management and subleasing segment provides approximately 1,300 shop spaces and has a total floor space of 56,238 square meters, with operations conducted through a newly acquired subsidiary in September 2023[95][98]. Financial Performance - Total revenue for the three months ended June 30, 2024, decreased by approximately $0.2 million, or 19.2%, compared to the same period in 2023[118]. - Revenue from logistics services contributed approximately $0.5 million, or 57.2%, of total revenue for the three months ended June 30, 2024, down from $1.0 million, or 94.9%, in 2023[120]. - Gross profit for garment manufacturing increased to $27,267, representing 31.5% of total garment manufacturing revenue for the three months ended June 30, 2024, compared to 14.0% in 2023[127]. - Gross profit in logistics services for the three months ended June 30, 2024, was approximately $237,211, with a gross margin of 48.8%, up from 23.0% in 2023[127]. - Gross loss in property management and subleasing business for the three months ended June 30, 2024, was $(61,883), accounting for 22.3% of total revenue in this segment[128]. - Net loss for the three months ended June 30, 2024, was $(1,221,111), a decrease of 55.2% compared to a net loss of $(2,728,721) in 2023[116]. - Loss from operations for the three months ended June 30, 2024, was approximately $505,016, compared to a loss of $260,949 in 2023, representing an increase of 110.1%[134]. - Net loss for the three months ended June 30, 2024, was approximately $1.2 million, down from $2.7 million in 2023[137]. Cost Management - Total cost of revenue for the three months ended June 30, 2024, was $648,438, a decrease of 20.5% from $815,597 in 2023[121]. - Raw material costs for garment manufacturing were approximately 43.5% of total garment manufacturing revenue for the three months ended June 30, 2024, down from 49.0% in 2023[122]. - Labor costs for garment manufacturing were approximately 20.9% of total garment manufacturing revenue for the three months ended June 30, 2024, compared to 32.0% in 2023[122]. - Total general and administrative expenses increased by approximately 14.1% to $568,251 from $497,858 for the same period in 2023[133]. - General and administrative expenses in the logistics services segment for the three months ended June 30, 2024, were approximately $216,250, down from $227,423 in 2023[131]. - Selling expenses for the garment manufacturing business for the three months ended June 30, 2024, were approximately $82,603, compared to nil in 2023[130]. Cash Flow and Assets - Net cash used in operating activities was approximately $193,185 for the three months ended June 30, 2024, significantly reduced from $1,110,878 in 2023[140]. - Net cash provided by financing activities was approximately $306,461 for the three months ended June 30, 2024, compared to $969,784 in 2023[141]. - As of June 30, 2024, the company had cash on hand of approximately $0.9 million and total current assets of approximately $29.3 million[142]. Revenue Recognition and Policies - The company recognizes revenue when control of goods or services is transferred to customers, following a five-step model for revenue recognition[105][107]. - The company has implemented a collection policy requiring advances or deposits from new customers and offers payment terms of 30 to 180 days for established customers[100]. Risks and Challenges - The company has experienced continued pricing pressure due to economic uncertainty in China, which may negatively impact sales growth and operating margins[101]. - The company is subject to unique risks due to its holding company structure, which may affect the value of its common stock[89]. - The company dissolved one subsidiary in April 2024 and is in the process of dissolving another to focus on core business operations[96]. - The company estimates that garment manufacturing capacity will recover by the fiscal year ending 2025 due to factory facilities renewal and repairs[118]. Future Outlook - As of June 30, 2024, the company aims to improve profitability in its logistics services segment for the remainder of the year[97]. - The foreign currency translation gain for the three months ended June 30, 2024, was approximately $0.01 million, compared to a gain of $0.09 million in 2023[143].

Business Operations - Addentax Group Corp. operates primarily through its wholly owned subsidiary, Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd., and does not directly own any substantive business operations in China[261]. - The company’s garment manufacturing segment aims to expand its customer base and improve profit, focusing on exceptional quality and timely delivery[270]. - As of March 31, 2024, the logistics services segment provides services to over 44 cities across approximately 10 provinces and 2 municipalities in China, with plans to develop 20 additional logistics routes[270]. - The property management and subleasing segment aims to integrate resources in shopping malls and develop e-commerce bases to increase store value, following the acquisition of Dongguan Hongxiang Commercial Co., Ltd. in September 2023[268]. Financial Performance - Total revenue for the year ended March 31, 2024, decreased by approximately $2.8 million, or 35.1%, compared to the previous year, primarily due to a decline in the garment manufacturing business[293]. - Revenue from the logistics services business contributed approximately $4.3 million, or 84.3%, of total revenue for the year ended March 31, 2024, down from $4.6 million, or 58.2%, in 2023[294]. - Revenue generated from property management and subleasing business was approximately $0.6 million, or 11.3%, of total revenue for the year ended March 31, 2024, down from $3.1 million, or 39.0%, in 2023[294]. - Net income for the year ended March 31, 2024, was a loss of $3,109,418, compared to a net income of $1,319,657 in 2023, representing a decrease of $4,429,075 or 335.6%[291]. - Gross profit for the year ended March 31, 2024 was approximately $1.1 million, a decrease of 39.4% compared to $1.8 million in 2023[304]. Cost and Expenses - Cost of revenue for the year ended March 31, 2024, was $4,038,668, an increase of 33.8% compared to $6,103,110 in 2023[296]. - The cost of revenue for property management and subleasing business was $0.5 million, approximately 81.4% of total revenue for the segment in 2024, compared to $2.4 million, or 78.9%, in 2023[300]. - Selling expenses for property management and subleasing business were approximately $84.0 million for the year ended March 31, 2024, compared to $78.8 million in 2023, reflecting an increase of 6.5%[305]. - General and administrative expenses in the logistics services segment decreased to approximately $767.0 million in 2024 from $832.7 million in 2023, a decrease of 7.8%[307]. Operational Challenges - The company has experienced continued pricing pressure due to economic uncertainty in China, which may negatively impact sales growth and operating margins[275]. - Loss from operations increased to approximately $1.1 million for the year ended March 31, 2024, compared to a loss of $0.5 million in 2023, representing a 144.4% increase[304]. - Subcontracting fees for logistics services increased to approximately $1.5 million for the year ended March 31, 2024, from $1.1 million in 2023, representing an increase of approximately 33.0%[299]. Cash Flow and Assets - Cash on hand as of March 31, 2024 was approximately $0.8 million, with total current assets of approximately $29.2 million and current liabilities of approximately $4.6 million[317]. - Net cash used in operating activities decreased by approximately $1.1 million to $411,473 in 2024 from $1.6 million in 2023[315]. - Net cash provided by investing activities was approximately $90,731 in 2024, a significant recovery from cash used of $21.2 million in 2023[316]. Revenue Recognition - The company’s revenue is recognized when a customer obtains control of promised goods or services, reflecting the consideration expected to be received[279]. - For new customers, the company typically requires orders to be backed by advances or deposits, while established customers may have payment terms of 30 to 180 days[272]. Segment Performance - Gross profit for the garment manufacturing business was approximately $63,544 for the year ended March 31, 2024, with a gross profit ratio of 27.7%, compared to approximately $0.2 million and 25.5% in 2023[302]. - Gross profit for the logistics services business was approximately $947,038 for the year ended March 31, 2024, with a gross profit ratio of 21.8%, down from approximately $1.1 million and 24.2% in 2023[302]. - Fuel, toll, and other costs for logistics business were approximately $1.9 million for the year ended March 31, 2024, down from $2.4 million in 2023, accounting for 43.3% of total service revenue[299]. - Income tax expense for the year ended March 31, 2024 was $11,605, down from $22,143 in 2023, reflecting a decrease of 47.5%[310].

SHENZHEN, China, April 29, 2024 /PRNewswire/ -- Addentax Group Corp. ("Addentax" or the "Company") (Nasdaq: ATXG), an integrated service provider focusing on garment manufacturing, logistics services, property management, and subleasing, has announced that it has entered into Private Placement Agreements (the "Agreements") with two investors (the "Investors"), who are independent third parties. Under the Agreements, the Company will sell to each of the investor 330,000 shares of common stock at a purchase p ...

SHENZHEN, China, March 20, 2024 /PRNewswire/ -- Addentax Group Corp. ("Addentax" or the "Company") (Nasdaq: ATXG), an integrated service provider focusing on garment manufacturing, logistics services, property management, and subleasing, has announced the formalization of a strategic cooperation and the signing of a three year memorandum of understanding (the "MOU") with Dezhong Xinghui Information Technology Co., Ltd. ("Dezhong Xinghui") on March 20, 2024, an enterprise established in September 2017 based ...

SHENZHEN, China, March 5, 2024 /PRNewswire/ -- Addentax Group Corp. ("Addentax" or the "Company") (Nasdaq: ATXG), an integrated service provider focusing on garment manufacturing, logistics services, property management, and subleasing, has announced that it has collaborated with Hong Kong Stock Exchange listed company Regina Miracle International (Holdings) Limited ("Regina") (HKEx: 02199). Regina is a global leading manufacturer of intimate apparel, renowned for its unique Innovative Design Manufacturing ...