HONG
KONG, Dec. 27, 2024 /PRNewswire/ -- CCSC
Technology International Holdings Limited (the "Company" or "CCSC")
(Nasdaq: CCTG), a Hong Kong-based
company that engages in the sale, design and manufacturing of
interconnect products, including connectors, cables and wire
harnesses, today announced its unaudited financial results for the
first six months of fiscal year 2025 ended September 30, 2024.
Mr. Kung Lok Chiu, Chief
Executive Officer and Director of the Company, commented, "The
first six months of fiscal year 2025 has been a remarkable period
of growth for our Company. We are proud to report
a 22.9% increase in revenue compared to the
same period last year, while our gross margin remained stable
despite a net loss of $0.74 million in a challenging environment.
Furthermore, in January 2024, we
successfully completed our initial public offering (IPO) and got
listed on the Nasdaq Capital Market under the ticker symbol
"CCTG". Building on the momentum, we launched a plan in
May 2024 to establish a new
supply chain management center in Serbia, Central Europe. Once completed, this
center will serve as the headquarter of our supply chain
operations in Europe to support
our operations across the region. As of the date of the
report, we have acquired the land plot for our new center and
expect to complete this project by the fourth quarter of 2025.
Looking forward, we plan to strategically focus on further
expanding into high-growth industries, such as new energy,
robotics, and medical technologies. By continuing to invest in
research and development, we aim to deliver innovative and
cost-effective products that meet the evolving needs of our
customers. We are committed to delivering high-quality products to
our customers and generating long-term value for our
shareholders."
First Six Months of Fiscal Year
2025 Financial Highlights
- Revenue increased by 22.9% to $9.2
million for the six months ended September 30, 2024, from $7.5 million for the same period of last
year.
- Gross profit increased by 20.5% to $2.7
million for the six months ended September 30, 2024, from $2.3 million for the same period of last
year.
- Gross profit margin was 29.8% for the six months ended
September 30, 2024, compared to 30.4%
for the same period of last year.
- Net loss was $0.7 million for the
six months ended September 30, 2024,
compared to net income of $0.4
million for the same period of last year.
First Six Months of Fiscal Year
2025 Financial Results
Revenue
Total revenue was $9.2 million for
the six months ended September 30,
2024, which increased by 22.9% from $7.5 million for the same period of last
year.
The following table sets forth revenue by interconnect
products:
|
|
For the six
months ended
September 30,
|
|
|
Change
|
|
|
|
2024
|
|
|
%
|
|
|
2023
|
|
|
%
|
|
|
Amount
|
|
|
%
|
|
|
|
(Amounts expressed
in U.S. dollars)
|
|
|
Cable and wire
harness
|
|
$
|
8,604,502
|
|
|
|
93.3 %
|
|
|
$
|
6,887,303
|
|
|
|
91.8 %
|
|
|
$
|
1,717,199
|
|
|
|
24.9 %
|
|
|
Connectors
|
|
|
613,957
|
|
|
|
6.7 %
|
|
|
|
616,217
|
|
|
|
8.2 %
|
|
|
|
(2,260)
|
|
|
|
(0.4) %
|
|
|
Total
|
|
$
|
9,218,459
|
|
|
|
100.0 %
|
|
|
$
|
7,503,520
|
|
|
|
100.0 %
|
|
|
$
|
1,714,939
|
|
|
|
22.9 %
|
|
Revenue generated from cables and wire harnesses increased by
24.9%, to $8.6 million for the
six months ended September 30, 2024,
from $6.9 million for the same
period of last year. Revenue generated from connectors remained
essentially unchanged compared to the same period last year.
The increase in revenue was primarily attributable to the
increase in sales volume and partially offset by the decrease
in the average selling price of products. The increase in demand
was mainly due to that customers had utilized their inventories
previously purchased and increased their orders
accordingly.
The following table sets forth the disaggregation of revenue by
regions:
|
|
For the six
months ended
September 30,
|
|
|
Change
|
|
|
|
2024
|
|
|
%
|
|
|
2023
|
|
|
%
|
|
|
Amount
|
|
|
%
|
|
|
|
(Amounts expressed
in U.S. dollars)
|
|
|
Europe
|
|
$
|
5,626,272
|
|
|
|
61.0 %
|
|
|
$
|
4,336,284
|
|
|
|
57.8 %
|
|
|
$
|
1,289,988
|
|
|
|
29.7 %
|
|
|
Asia
|
|
|
2,736,289
|
|
|
|
29.7 %
|
|
|
|
2,388,511
|
|
|
|
31.8 %
|
|
|
|
347,778
|
|
|
|
14.6 %
|
|
|
Americas
|
|
|
855,847
|
|
|
|
9.3 %
|
|
|
|
778,725
|
|
|
|
10.4 %
|
|
|
|
77,122
|
|
|
|
9.9 %
|
|
|
Other
regions
|
|
|
51
|
|
|
|
0.0 %
|
|
|
|
-
|
|
|
|
0.0 %
|
|
|
|
51
|
|
|
|
0.0 %
|
|
|
Total
|
|
$
|
9,218,459
|
|
|
|
100 %
|
|
|
$
|
7,503,520
|
|
|
|
100 %
|
|
|
$
|
1,714,939
|
|
|
|
22.9 %
|
|
Revenue generated from Europe
increased by 29.7%, to $5.6 million for the six months ended
September 30, 2024, from $4.3 million for the same period of last
year. The increase was primarily due to the increase of sales in
Denmark of $1.0 million and Bulgaria of $0.2
million.
Revenue generated from Asia
increased by 14.6%, to $2.7 million for the six months ended
September 30, 2024, from $2.4 million for the same period of last
year. The increase was primarily due to sales increases in
Hong Kong, China of $0.1 million, and sales increases in the
Association of Southeast Asian Nations, or ASEAN, of $0.2 million.
Revenue generated from the Americas increased by 9.9%, to
$0.9 million for the six months
ended September 30, 2024, from
$0.8 million for the same period
of last year. The increase was primarily due to sales increases in
Northern America of $0.08
million.
Revenue from other regions was mainly derived from Australia.
Cost of Revenue
Cost of revenue increased by 23.9%, to $6.5 million for the six months ended
September 30, 2024, from $5.2
million for the same period of last year, which was in line
with the increase of the total revenue.
Inventory costs amounted to $4.4 million for the six months ended
September 30, 2024, compared to $3.5 million for the same period of last
year. The increase of inventory costs was primarily due to a 47.5%
increase in the total sales volume and a 13.6% decrease in the
inventory cost per unit.
Labor costs amounted to $1.5
million for the six months ended September 30, 2024, compared to $1.2 million for the same period of last year.
The increase of labor costs was primarily due to the increase in
production volume as a result of an increase in sales volume.
Gross Profit and Gross Margin
Gross profit increased by 20.5%, to $2.7 million for the six months ended
September 30, 2024, from $2.3 million for the same period of last
year.
Gross profit margin was 29.8% for the six months ended
September 30, 2024, compared with
30.4% for the same period of last year. The gross profit margin was
basically consistent with the same period of 2023. The Company
recruited more workers to cope with the increased sales volume, and
the increased labor costs eroded profits, resulting in a decrease
in gross profit margin.
Operating Expenses
Operating expenses increased by 38.5%, to $3.6 million for the six months ended
September 30, 2024, from $2.6 million for the same period of last
year. The expense increase was mainly due to the increases in the
selling expenses of $0.3 million,
inclusive of $0.2 million in
costs relating to market development and expansion to ASEAN market,
and general and administrative expenses of $0.7 million, inclusive of $0.6 million
in agent and professional fees for expenses related to
compliance requirements as a public company following the IPO
in the U.S..
Other Income/(Expenses)
Other income/(expenses) decreased by $0.8 million, to
other expenses of $0.1 million
for the six months ended September 30,
2024, from other income of $0.6 million for
the same period of last year, primarily due to the decrease in
foreign exchange gain.
Income tax benefit
Income tax benefit increased by 170.7%, to $0.2 million for the six months ended
September 30, 2024, from $0.1 million for the same period of last year,
which was due to the loss of CCSC Technology Group for the six
months ended September 30, 2024.
Net (Loss)/Income
Net income decreased by 280.0%, to net loss
of $0.7 million for the six months ended September 30, 2024, from net income of
$0.4 million for the same period
of last year.
Basic and Diluted
(Loss)/Earnings per Share
Basic and diluted loss per share was $0.06 for the six months ended September 30, 2024, compared to basic and
diluted earnings per share of $0.04 for the same period
of last year.
About CCSC Technology International Holdings Limited
CCSC Technology International Holdings Limited, is a
Hong Kong-based company that
engages in the sale, design and manufacturing of interconnect
products. The Company specializes in customized interconnect
products, including connectors, cables and wire harnesses that are
used for a range of applications in a diversified set of
industries, including industrial, automotive, robotics, medical
equipment, computer, network and telecommunication, and consumer
products. The Company produces both OEM ("original equipment
manufacturer") and ODM ("original design manufacture") interconnect
products for manufacturing companies that produce end products, as
well as electronic manufacturing services ("EMS") companies that
procure and assemble products on behalf of such manufacturing
companies. The Company has a diversified global customer base
located in more than 25 countries throughout Asia, Europe
and the Americas. For more information, please visit the Company's
website: http://ir.ccsc-interconnect.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking
statements, including, but not limited to, the Company's proposed
Offering. These forward-looking statements involve known and
unknown risks and uncertainties and are based on the Company's
current expectations and projections about future events that may
affect its financial condition, results of operations, business
strategy and financial needs. Investors can find many (but not all)
of these statements by the use of words such as "may," "will,"
"could," "expect," "anticipate," "aim," "estimate," "intend,"
"plan," "believe," "is/are likely to," "propose," "potential,"
"continue", or other similar expressions in this press release. The
Company undertakes no obligation to update or revise publicly any
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations, except as may be
required by law. Although the Company believes that the
expectations expressed in these forward-looking statements are
reasonable, it cannot assure you that such expectations will turn
out to be correct, and the Company cautions investors that actual
results may differ materially from the anticipated results and
encourages investors to review other factors that may affect its
future results in the Company's registration statement and other
filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
CCSC Technology International Holdings
Limited
Investor Relations Department
Email: ir@ccsc-interconnect.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
|
CCSC TECHNOLOGY
INTERNATIONAL HOLDINGS LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Amount in
U.S. dollars, except for number of shares)
|
|
|
|
|
As of
September 30,
2024
|
|
|
As of
March 31,
2024
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash
|
|
$
|
3,789,806
|
|
$
|
5,525,430
|
|
Restricted
cash
|
|
|
209,622
|
|
|
209,317
|
|
Accounts
receivable
|
|
|
3,256,687
|
|
|
2,750,214
|
|
Inventories
|
|
|
1,967,824
|
|
|
2,023,456
|
|
Prepaid expenses and
other current assets
|
|
|
1,737,454
|
|
|
1,474,405
|
|
Total current
assets
|
|
|
10,961,393
|
|
|
11,982,822
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
681,342
|
|
|
198,901
|
|
Intangible asset,
net
|
|
|
103,768
|
|
|
38,183
|
|
Operating right-of-use
assets, net
|
|
|
1,441,593
|
|
|
1,659,297
|
|
Finance lease
right-of-use asset
|
|
|
15,915
|
|
|
17,788
|
|
Deferred tax assets,
net
|
|
|
488,190
|
|
|
287,394
|
|
Other non-current
assets
|
|
|
3,733,073
|
|
|
3,753,646
|
|
Total non-current
assets
|
|
|
6,463,881
|
|
|
5,955,209
|
|
TOTAL
ASSETS
|
|
$
|
17,425,274
|
|
$
|
17,938,031
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
2,567,890
|
|
$
|
2,175,974
|
|
Advance from
customers
|
|
|
151,594
|
|
|
207,293
|
|
Accrued expenses and
other current liabilities
|
|
|
1,333,630
|
|
|
1,523,843
|
|
Taxes
payable
|
|
|
27,248
|
|
|
24,974
|
|
Operating lease
liabilities – current
|
|
|
517,985
|
|
|
506,061
|
|
Finance lease
liabilities – current
|
|
|
4,682
|
|
|
4,454
|
|
Total current
liabilities
|
|
|
4,603,029
|
|
|
4,442,599
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Operating lease
liabilities – non current
|
|
|
961,965
|
|
|
1,184,056
|
|
Finance lease
liabilities – non current
|
|
|
11,739
|
|
|
13,709
|
|
Total
non – current liabilities
|
|
|
973,704
|
|
|
1,197,765
|
|
TOTAL
LIABILITIES
|
|
$
|
5,576,733
|
|
$
|
5,640,364
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Class A ordinary
shares, par value of US$0.0005 per share; 495,000,000 shares
authorized,
6,581,250 shares issued and outstanding as of September 30, 2024
and March 31, 2024*
|
|
|
3,291
|
|
|
3,291
|
|
Class B ordinary
shares, par value of US$0.0005 per share; 5,000,000 shares
authorized,
5,000,000 shares issued and outstanding as of September 30, 2024
and March 31, 2024*
|
|
|
2,500
|
|
|
2,500
|
|
Additional paid-in
capital
|
|
|
4,855,795
|
|
|
4,855,795
|
|
Statutory
reserve
|
|
|
813,235
|
|
|
813,235
|
|
Retained
earnings
|
|
|
7,747,463
|
|
|
8,491,783
|
|
Accumulated other
comprehensive loss
|
|
|
(1,573,743)
|
|
|
(1,868,937)
|
|
Total shareholders'
equity
|
|
|
11,848,541
|
|
|
12,297,667
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
17,425,274
|
|
$
|
17,938,031
|
*Retrospectively reflect the changes in class of shares
effective on September 10, 2024
|
CCSC TECHNOLOGY
INTERNATIONAL HOLDINGS LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
AND COMPREHENSIVE
LOSS
|
|
(Amount in
U.S. dollars, except for number of shares)
|
|
|
|
For the six months
ended September 30,
|
|
|
2024
|
2023
|
|
Net
revenue
|
|
$
|
9,218,459
|
|
$
|
7,503,520
|
|
Cost of
revenue
|
|
|
(6,470,715)
|
|
|
(5,223,159)
|
|
Gross
profit
|
|
|
2,747,744
|
|
|
2,280,361
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(752,926)
|
|
|
(473,636)
|
|
General and
administrative expenses
|
|
|
(2,468,416)
|
|
|
(1,753,179)
|
|
Research and
development expenses
|
|
|
(332,155)
|
|
|
(338,038)
|
|
Total operating
expenses
|
|
|
(3,553,497)
|
|
|
(2,564,853)
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(805,753)
|
|
|
(284,492)
|
|
|
|
|
|
|
|
|
Other
(expenses)/income:
|
|
|
|
|
|
|
|
Other non-operating
(expenses)/income, net
|
|
|
(34,766)
|
|
|
51,628
|
|
Government
subsidies
|
|
|
138,845
|
|
|
-
|
|
Foreign currency
exchange (losses)/gains
|
|
|
(241,996)
|
|
|
539,844
|
|
Financial and interest
expenses, net
|
|
|
7,530
|
|
|
35,783
|
|
Total other
(expenses)/income
|
|
|
(130,387)
|
|
|
627,255
|
|
|
|
|
|
|
|
|
(Loss)/income
before income tax expense
|
|
|
(936,140)
|
|
|
342,763
|
|
Income tax
benefit
|
|
|
191,820
|
|
|
70,851
|
|
Net
(loss)/income
|
|
|
(744,320)
|
|
|
413,614
|
|
|
|
|
|
|
|
|
Other comprehensive
income/(loss)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
295,194
|
|
|
(636,978)
|
|
Total comprehensive
loss
|
|
$
|
(449,126)
|
|
$
|
(223,364)
|
|
|
|
|
|
|
|
|
(Loss)/earnings per
share
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
(0.06)
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
11,581,250
|
|
|
10,000,000
|
|
CCSC TECHNOLOGY
INTERNATIONAL HOLDINGS LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Amount in
U.S. dollars, except for number of shares)
|
|
|
|
For the six months
ended
September
30,
|
|
|
2024
|
|
2023
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
|
$
|
(744,320)
|
|
|
$
|
413,614
|
|
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Inventories
write-down
|
|
|
108,257
|
|
|
|
73,643
|
|
|
Depreciation and
amortization
|
|
|
108,167
|
|
|
|
114,208
|
|
|
Amortization of
right-of-use asset
|
|
|
259,582
|
|
|
|
251,865
|
|
|
Loss from disposal of
fixed assets
|
|
|
1,497
|
|
|
|
595
|
|
|
Deferred tax
benefits
|
|
|
(191,820)
|
|
|
|
(79,198)
|
|
|
Foreign currency
exchange losses/(gains)
|
|
|
189,653
|
|
|
|
(539,844)
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(479,077)
|
|
|
|
(47,683)
|
|
|
Inventories
|
|
|
(10,449)
|
|
|
|
164,072
|
|
|
Prepaid expenses and
other current assets
|
|
|
(221,742)
|
|
|
|
(223,354)
|
|
|
Other non-current
assets
|
|
|
54,925
|
|
|
|
-
|
|
|
Accounts
payable
|
|
|
336,256
|
|
|
|
418,473
|
|
|
Advance from customers
|
|
|
(56,965)
|
|
|
|
(60,075)
|
|
|
Taxes
payable
|
|
|
1,453
|
|
|
|
(4,408)
|
|
|
Accrued expenses and
other current liabilities
|
|
|
(223,442)
|
|
|
|
(39,341)
|
|
|
Operating lease
liabilities
|
|
|
(250,801)
|
|
|
|
(244,763)
|
|
|
Financing lease
liabilities
|
|
|
(2,208)
|
|
|
|
-
|
|
|
Net cash (used
in)/provided by operating activities
|
|
|
(1,121,034)
|
|
|
|
197,804
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(44,006)
|
|
|
|
(52,025)
|
|
|
Purchase of
land
|
|
|
(539,513)
|
|
|
|
-
|
|
|
Purchase of intangible
asset
|
|
|
(83,346)
|
|
|
|
(19,217)
|
|
|
Net cash used in
investing activities
|
|
|
(666,865)
|
|
|
|
(71,242)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FORM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Repayments of
long-term bank loans
|
|
|
-
|
|
|
|
(39,817)
|
|
|
Payment for deferred
initial public offering costs
|
|
|
-
|
|
|
|
(366,094)
|
|
|
Capital contribution
by shareholder
|
|
|
-
|
|
|
|
5,000
|
|
|
Net cash used in
financing activities
|
|
|
-
|
|
|
|
(400,911)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and restricted cash
|
|
|
52,580
|
|
|
|
(63,670)
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and
restricted cash
|
|
|
(1,735,319)
|
|
|
|
(338,019)
|
|
|
Cash and restricted
cash, beginning of the year
|
|
|
5,734,747
|
|
|
|
7,717,615
|
|
|
Cash and restricted
cash, end of the year
|
|
$
|
3,999,428
|
|
|
$
|
7,379,596
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
Cash paid for income
tax
|
|
$
|
-
|
|
|
$
|
(39,402)
|
|
|
Cash paid for
interest
|
|
$
|
-
|
|
|
$
|
(228)
|
|
|
Cash paid for
operating lease
|
|
$
|
(287,263)
|
|
|
$
|
(288,667)
|
|
View original
content:https://www.prnewswire.com/news-releases/ccsc-technology-international-holdings-limited-reports-financial-results-for-the-first-six-months-of-fiscal-year-2025-ended-september-30-2024-302339706.html
SOURCE CCSC Technology International Holdings Limited
