Logistics Services - For the logistics services segment, the company provides services to over 86 cities across approximately 11 provinces and 3 municipalities in China, with plans to develop an additional 20 logistics points in existing cities in 2024[107]. - The logistics services revenue is expected to increase during the third and fourth quarters due to seasonal trends[109]. - Revenue from logistics services contributed approximately $1,189,004, or 81.0% of total revenue for the three months ended December 31, 2023, compared to $1,213,530, or 57.2% in the same period of 2022[126]. - Gross profit margin for logistics services decreased to 11.2% in the three months ended December 31, 2023, down from 25.6% in the same period of 2022[134]. - Subcontracting fees for logistics services increased by approximately 121.3% to $560,735 in the three months ended December 31, 2023, compared to $253,359 in 2022[131]. - Revenue from logistics services contributed approximately $3.4 million or 87.5% of total revenue for the nine months ended December 31, 2023[150]. - Gross profit in the logistics services business decreased to approximately $695,940 for the nine months ended December 31, 2023, with a gross margin of 20.6%, down from 26.6% in 2022[158]. Property Management - The company aims to increase the occupancy rate of stores in its property management segment to over 70%[108]. - The company disposed of its property management subsidiary, DY, at fair value in February 2023 and completed the acquisition of HX in September 2023[108]. - Revenue from property management and subleasing was $252,477, a decrease of $543,866, or 68.3%, compared to $796,343 in 2022[127]. Garment Manufacturing - The garment manufacturing business focuses on expanding the customer base and improving profit margins, emphasizing exceptional quality and timely delivery[107]. - The garment manufacturing segment is supported by sufficient production capacity and skilled workers to meet quality control standards[104]. - The garment manufacturing business reported a gross profit of approximately $17,112, or 63.3% of its revenue, down from $33,083, or 32.8% in 2022[134]. - Labor costs for the garment manufacturing business increased to approximately 58.2% of total revenue for the nine months ended December 31, 2023, compared to 51.7% for the same period in 2022[152]. - Gross profit for the garment manufacturing business was approximately $40,433 for the nine months ended December 31, 2023, representing a gross margin of 23.5%, down from 25.3% in 2022[158]. - Raw material costs for garment manufacturing accounted for approximately 15.7% of total revenue in the three months ended December 31, 2023, compared to 0.8% in 2022[128]. - Overhead and other expenses for the garment manufacturing business decreased to approximately 0.8% of total garment business revenue for the nine months ended December 31, 2023, down from 3.1% in the same period of 2022[153]. Financial Performance - Total revenue for the three months ended December 31, 2023 decreased by approximately $653,746, or 30.8%, compared to the same period in 2022, primarily due to declines in property management and garment manufacturing businesses[124]. - Gross profit for the three months ended December 31, 2023 was $162,327, a decrease of $445,135, or 73.3%, compared to $607,462 in 2022[136]. - Operating expenses for the three months ended December 31, 2023 were $611,919, a decrease of $88,510, or 12.6%, compared to $700,429 in 2022[136]. - Net loss for the three months ended December 31, 2023 was $(2,607,662), a significant increase in loss of $(2,525,444), or 3071.6%, compared to $(82,218) in 2022[124]. - Total revenue for the nine months ended December 31, 2023, decreased by approximately $2.8 million, or 42.0%, compared to the same period in 2022[148]. - The company incurred a net loss of approximately $4.0 million for the nine months ended December 31, 2023, compared to a net income of approximately $0.1 million for the same period in 2022[168]. - Total general and administrative expenses increased by approximately 9.0% to $1.7 million for the nine months ended December 31, 2023, from $1.5 million in 2022[164]. - Net cash used in operating activities was $1.5 million for the nine months ended December 31, 2023, nearly the same as the $1.5 million used in the same period of 2022[170]. Regulatory and Structural Risks - The company operates through a holding structure that presents unique risks to investors, particularly regarding regulatory changes in China[100]. - The company has no off-balance sheet arrangements that could materially affect its financial condition as of December 31, 2023[175]. Management and Compliance - The report was signed on February 14, 2024, by Hong Zhida, the President and CEO, and Huang Chao, the CFO and Treasurer[185]. - The certifications required under Section 302 and Section 906 were completed by the Principal Executive Officer and Principal Financial Officer[184].

SHENZHEN, China, Feb. 6, 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 Memorandum of Understanding (the "MOU") with Shenzhen Tamir Cultural Tourism Development Co., LTD ("Tamir"), a leading full block-chain service provider for Chinese cultural  commercial tourism an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock ATXG Nasdaq Capital Markets FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _________________ Commission ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock ATXG Nasdaq Capital Markets FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _________________ Commission File ...

Garment Manufacturing Business - The company's garment manufacturing business operates through five wholly owned subsidiaries located in Guangdong province, China, with sufficient production capacity and skilled workers to meet high-quality control standards and timely delivery requirements[245] - The company's garment manufacturing segment aims to expand its customer base and improve profitability, leveraging its emphasis on quality and timely delivery[249] - For new garment manufacturing customers, orders require advances or deposits, while long-term customers receive payment terms of 30 to 180 days post-delivery[251] - Revenue from the garment manufacturing business decreased by $2.3 million (93.0%) in 2023, contributing only 2.2% of total revenue, down from 19.9% in 2022[268][271] - Raw materials cost for the garment manufacturing business decreased to 16.0% of revenue in 2023, down from 69.1% in 2022, due to reduced manufacturing during factory renovation[272] Logistics Services Business - The logistics business covers 86 cities in 11 provinces and 3 municipalities in China, with plans to develop 20 additional logistics routes in existing serving cities by 2024[246][249] - The logistics services segment plans to establish an efficient nationwide delivery and courier network in China, with current operations outsourced to contractors to maximize capacity and reduce costs[246][249] - Logistics services payments are collected 30 to 90 days after package receipt registration[251] - Logistics services revenue increased by $0.7 million (13.3%) in 2023, contributing 58.2% of total revenue, up from 42.0% in 2022[269] - Subcontracting fees for the logistics business decreased by $1.2 million (53.0%) in 2023, accounting for 23.2% of logistics revenue, down from 42.9% in 2022[274] - Gross profit margin for the logistics services business improved to 24.2% in 2023, up from 21.2% in 2022, primarily due to reduced subcontracting fees[277] - The logistics services segment generated income from operations of $0.28 million in FY2023, up from $0.24 million in FY2022[284] Property Management and Subleasing Business - The property management and subleasing business was restructured in February 2023, with the disposal of subsidiary DY to an independent third party at fair value, while retaining its business operations, customers, and suppliers[247][249] - Property management fees are collected monthly in advance[252] - Property management and subleasing revenue decreased by $1.2 million (27.4%) in 2023, contributing 39.0% of total revenue, down from 33.6% in 2022[269] - The property management and subleasing business reported income from operations of $0.27 million in FY2023, compared to $0.1 million in FY2022[284] Financial Performance and Revenue Recognition - Total revenue for the year ended March 31, 2023 decreased by $4.7 million (37.4%) compared to the previous year, primarily due to a decline in the garment manufacturing business[268] - Gross profit decreased by $222,193 (10.8%) in 2023, with the gross profit margin declining from 16.3% to 23.2%[271] - Operating expenses increased by $183,717 (8.7%) in 2023, with general and administrative expenses rising by $311,199 (16.3%)[279] - Net income increased significantly by $1,241,659 (1,591.9%) in 2023, driven by a fair value gain of $2,983,538[267] - General and administrative expenses increased by 16.3% to $2.2 million in FY2023 from $1.9 million in FY2022[283] - Net profit for FY2023 was $1.3 million, compared to $0.08 million in FY2022, with basic and diluted earnings per share of $0.04 and $0.00, respectively[287] - The company's revenue recognition follows a five-step model under ASC 606, recognizing revenue when control of goods or services is transferred to customers, typically upon delivery[257][259] Cash Flow and Financial Position - Net cash provided by operating activities decreased by $2.7 million to $(1,569,159) in FY2023, primarily due to lower net profit adjustments and cash outflows from operating assets and liabilities[290] - Net cash used in investing activities increased by $21.0 million to $(21,168,153) in FY2023, driven by $17.5 million in debt securities purchases and $2.5 million in long-term loan payments[291] - Net cash provided by financing activities increased by $23.2 million to $21,845,838 in FY2023, mainly due to $22.7 million from the IPO and $15.0 million from Notes and warrants issuance[292] - Cash on hand as of March 31, 2023, was $0.6 million, with restricted cash of $14.8 million, total current assets of $37.8 million, and current liabilities of $3.5 million[293] Economic and Market Conditions - The company faces economic uncertainty in China, with potential impacts on sales growth, operating margins, cash position, and accounts receivable collection due to pricing pressure and tightened credit conditions[253] Seasonal Business Trends - The company's business is seasonal, with higher garment sales in the second and third quarters and higher logistics revenue in the third and fourth quarters[250] Foreign Currency and Off-Balance Sheet Arrangements - Foreign currency translation gain for FY2023 was $0.2 million, compared to a loss of $(0.1) million in FY2022[294] - The company has no off-balance sheet arrangements as of March 31, 2023[295]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock ATXG Nasdaq Capital Market 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, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _________________ Commission Fi ...