CGA(CGA) - 2024 Q4 - Annual Report

Financial Performance - For the fiscal year ended June 30, 2024, total net sales were $95,845,788, a decrease of$ 28,294,567 or 22.8% from $124,140,355 in the previous year[311]. - Jinong's net sales decreased by$ 7,292,813, or 18.1%, to $32,954,490, while Gufeng's net sales decreased by$ 21,838,876, or 29.5%, to $52,189,666[310]. - Gufeng's net sales for the fiscal year ended June 30, 2024, were$ 52,189,666, a decrease of 29.5% from $74,028,542 in the previous year, with a sales volume of 105,597 tons, down 26.6% from 143,882 tons[313]. - The company reported a net loss of$ 28,405,315 for the fiscal year ended June 30, 2024, compared to a net loss of $13,281,985 in the previous year, representing an increase of 113.9%[310]. - Net loss for the fiscal year ended June 30, 2024, was$ (28,405,315), an increase of 113.9% from $(13,281,985) in the previous year, with net loss as a percentage of total net sales at approximately -29.6%[323]. Sales and Revenue - Jinong sold 33,474 metric tons of fertilizer products, an increase of 1,837 metric tons or 5.8% compared to 31,637 metric tons in the previous fiscal year[311]. - Gufeng sold 105,597 metric tons of fertilizer products, a decrease of 38,285 metric tons or 26.6% from 143,882 metric tons in the previous year[302]. - The revenue per ton for Jinong was$ 983, a decrease of $297 or 23.2% from$ 1,279 in the previous fiscal year[311]. - The revenue per ton for Gufeng was $491, a decrease of$ 25 or 4.8% from $516 in the previous year[302]. - Yuxing generated 9.8% of total revenues for the fiscal year ended June 30, 2024, compared to 7.8% in the previous year[300]. Costs and Expenses - Total cost of goods sold for the fiscal year ended June 30, 2024, was$ 76,123,808, a decrease of 25.5% from $102,222,062 in the previous year, primarily due to lower net sales[314]. - Total gross profit for the fiscal year ended June 30, 2024, decreased by$ 2,196,313 to $19,721,980, with a gross profit margin of 20.6% compared to 17.7% in the previous year[316]. - General and administrative expenses increased by 49.9% to$ 40,779,553, representing 42.5% of net sales for the fiscal year ended June 30, 2024, primarily due to higher bad debts expense[320]. Cash Flow and Liquidity - Cash and cash equivalents decreased by 17.4% to $58,772,587 as of June 30, 2024, down from$ 71,142,188 in the previous year[331]. - Net cash used in operating activities was $9,872,781 for the fiscal year ended June 30, 2024, an increase of 897.1% from$ 990,122 in the previous year[329]. - Net cash used in investing activities increased by 1191.0% to $6,102,903 for the fiscal year ended June 30, 2024, attributed to long-term equity investments[330]. - Net cash provided by financing activities decreased by 83.4% to$ 3,274,064 for the fiscal year ended June 30, 2024, compared to $19,771,581 in the previous year[333]. Accounts and Inventory Management - Accounts receivable increased to$ 16,493,068 as of June 30, 2024, up by $37,334 or 0.2% from the previous year, primarily due to Jinong's accounts receivable rising by 10.1% to$ 11,774,294[335]. - Allowance for doubtful accounts decreased by $31,966,790 or 58.4% to$ 22,741,696, with the allowance as a percentage of accounts receivable dropping from 76.9% to 58.0%[335]. - Inventories decreased by $8,628,675 or 18.6% to$ 37,826,456, largely due to Gufeng's inventory reduction of 48.3% to $11,225,115[339]. - Advances to suppliers fell by$ 2,222,681 or 15.5% to $12,110,034, reflecting fluctuations in raw material consumption and replenishment[341]. - Accounts payable decreased by$ 414,724 or 19.7% to $1,685,725, with Antaeus's accounts payable dropping by 72.0% to$ 184,429[342]. - Unearned revenue declined by $552,574 or 10.1% to$ 4,937,207, primarily due to Jinong's unearned revenue decreasing by 54.4% to $525,929[343]. Other Financial Metrics - The company had a total of 935 distributors covering 22 provinces in China as of June 30, 2024[304]. - Antaeus, the digital asset mining subsidiary, generated$ 1,285,181 in revenue, a significant increase of 511.0% from $210,342 in the previous year[310]. - Jinong's net loss decreased by 29.4% to$ (2,983,399) for the fiscal year ended June 30, 2024, primarily due to lower product costs[326]. - The accumulated other comprehensive loss was $26.6 million as of June 30, 2024, due to foreign exchange fluctuations[354]. - Short-term debt increased from$ 5.3 million in 2023 to $7.5 million in 2024, with fixed interest rates on outstanding debt instruments[355]. - The company has not entered any hedging transactions to mitigate exposure to interest rate or foreign exchange risks[356].