CCSC Technology International Holdings Limited Reports Financial Results for the Six Months Ended September 30, 2025

Rhea-AI Summary

CCSC Technology (Nasdaq: CCTG) reported unaudited results for the six months ended September 30, 2025. Revenue was US$8.47M (down 8.2% year‑over‑year); gross profit was US$2.48M with a 29.2% gross margin. Net loss widened to US$0.97M (up 30.5%) and loss per share was US$0.08. The company completed a US$7.06M follow‑on public offering in October 2025 and plans to start construction of a supply‑chain center in Serbia in January 2026, targeted for completion in Q4 2026. Cash was US$2.81M as of September 30, 2025, with operating cash outflow of US$0.41M for the period.

Key drivers: lower sales volume from a major customer during product transition, regional declines in Europe and the Americas, and continued cost controls that reduced cost of revenue and operating expenses.

Positive

• Completed US$7.06M follow‑on public offering (Oct 2025)
• Gross profit margin maintained at 29.2%
• Cost of revenue decreased by 7.4%
• Operating expenses decreased by 3.3%

Negative

• Total revenue declined 8.2% to US$8.47M for six months ended Sep 30, 2025
• Net loss increased 30.5% to US$0.97M
• Revenue in Europe fell 11.6% (to US$4.97M)
• Revenue in the Americas fell 30.3% (to US$596,689)
• Cash balance decreased ~23.8% to US$2.81M from March 31, 2025

Key Figures

H1 FY2026 revenue US$8.47 million Six months ended September 30, 2025; down from US$9.22M prior-year period

H1 gross profit US$2.48 million Six months ended September 30, 2025; down from US$2.75M prior-year period

Gross profit margin 29.2% Six months ended September 30, 2025; slightly down from 29.8% prior-year period

Net loss US$0.97 million Six months ended September 30, 2025; wider than US$0.74M prior-year period

Loss per share US$0.08 Basic and diluted, six months ended September 30, 2025; vs US$0.06 prior-year period

Cash balance US$2.81 million As of September 30, 2025; vs US$3.69M as of March 31, 2025

Net cash used in ops US$0.41 million Six months ended September 30, 2025; improved from US$1.12M prior-year period

Follow-on offering size US$7.06 million Follow-on public offering completed in October 2025

Market Reality Check

$0.1422 Last Close

Volume Volume 201,821 vs 20-day average 826,665 indicates trading below recent norms. low

Technical Shares at $0.1806, trading well below the $1.09 200-day moving average and far under the $2.61 52-week high.

Peers on Argus 1 Up

CCTG showed weakness while peers were mixed: GWH -2.44%, EPOW +19.06%, DFLI -7.51%, APWC +3.78%, FLUX 0%, suggesting stock-specific factors around these results.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Oct 09	Expansion project update	Positive	-32.9%	MOU to build Serbian supply chain center for European logistics and manufacturing.
Oct 02	Equity offering closing	Negative	-12.1%	Closing of $7.06M public offering of shares and warrants at $0.60.
Oct 01	Equity offering pricing	Negative	-2.9%	Pricing of $7.06M public offering of shares plus five-year warrants.
Jul 17	Annual earnings	Positive	+5.7%	FY2025 results with 19.5% revenue growth but ongoing net loss and Serbia plan.

Pattern Detected

Offerings have historically drawn negative reactions, while operational or earnings updates have produced mixed responses with one notable selloff on expansion news.

Recent Company History

Over the past months, CCSC reported FY2025 results with $17.6M revenue and improved gross margin, but still a $1.4M net loss. It later announced plans and an MOU for a new supply chain management center in Serbia to support European growth. Two October 2025 capital raises totaling $7.06M in a public offering introduced financing-related pressure. Today’s H1 FY2026 results show revenue contraction, margin stability, and a wider net loss, following those expansion and financing steps.

Market Pulse Summary

This announcement details H1 FY2026 results showing revenue at US$8.47M, a modestly lower gross margin of 29.2%, and a wider net loss of US$0.97M. Management highlights cost controls and plans for a new Serbian supply chain center, funded in part by a recent US$7.06M offering. Investors may track whether European and Asian demand stabilizes, how margins evolve as volumes change, and the pace and cost of constructing the new logistics and manufacturing hub.

Key Terms

follow-on public offering financial

"In October 2025, we completed a US$7.06 million follow-on public offering..."

An offering of new shares by a company that has already gone public, sold to investors to raise additional cash. Like a bakery cutting a larger cake to serve more customers, it increases the number of shares available which can lower each existing share’s claim on profits and ownership; investors watch these offerings because they can dilute current holdings, signal fundraising needs or growth plans, and often affect the stock price in the short term.

inventory obsolescence financial

"we concluded that no indicators of inventory obsolescence or asset impairment existed..."

Inventory obsolescence is when a company's stock of goods loses value or becomes unsellable because demand has faded, the items are outdated, damaged, or spoiled. It matters to investors because obsolete inventory lowers profits and ties up cash—similar to money stuck in unsellable products—so companies often record a loss or reserve against these items, which can signal weaker future earnings or poor inventory management.

asset impairment financial

"no indicators of inventory obsolescence or asset impairment existed as of September 30, 2025."

Asset impairment occurs when the value of a company’s asset drops below its recorded value on the books, indicating the asset is worth less than previously thought. This often happens due to changes in the market or the asset’s usefulness, similar to realizing a stored item is damaged or less valuable than expected. It matters to investors because it can signal potential losses and affect the company's overall financial health.

foreign currency exchange losses financial

"partially offset by a decrease of US$0.10 million in foreign currency exchange losses."

Losses that occur when a company holds assets, revenue or obligations in another country’s money and the value of that foreign currency falls relative to the company’s reporting currency. Like finding out a foreign paycheck buys less at home after the exchange rate changes, these losses reduce reported profits or raise costs even if the underlying business didn’t change. Investors watch them because they can mask true operating performance and affect cash flow, earnings and stock value.

AI-generated analysis. Not financial advice.

HONG KONG, Dec. 23, 2025 /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 2026 ended September 30, 2025.

Mr. Kung Lok Chiu, Chief Executive Officer and Director of the Company, commented, "The six months ended September 30, 2025 demonstrated the resilience of our business and the continued strength of our core operations. During the period, we maintained a gross profit margin of 29.2%, supported by cost management across our operations. Cost of revenue and operating expenses both declined compared to the prior year, reflecting our continued focus on operational efficiency and expense control.

In October 2025, we completed a US$7.06 million follow-on public offering, which provided the resources to advance our long-term growth strategy. Building on this momentum, we plan to commence construction of our new supply chain management center in Serbia in January 2026, and we currently expect to complete the project in the fourth quarter of 2026. Once completed, this center is expected to serve as a logistics and manufacturing hub for our supply chain operations in Europe and to enhance our ability to support customers across the region with greater efficiency and responsiveness.

Looking ahead, we aim to remain focused on product innovation, operational execution, and disciplined investment, and we are committed to delivering high quality, customized interconnect solutions to our customers."

Six Months Ended September 30, 2025 Financial Summary

• Revenue was US$8.47 million for the six months ended September 30, 2025, compared to US$9.22 million for the same period of last year.
• Gross profit was US$2.48 million for the six months ended September 30, 2025, compared to US$2.75 million for the same period of last year.
• Gross profit margin was 29.2% for the six months ended September 30, 2025, compared to 29.8% for the same period of last year.
• Net loss was US$0.97 million for the six months ended September 30, 2025, compared to US$0.74 million for the same period of last year.
• Basic and diluted loss per share was US$0.08 for the six months ended September 30, 2025, compared to US$0.06 for the same period of last year.

Six Months Ended September 30, 2025 Financial Results

Revenue

Total revenue was US$8.47 million for the six months ended September 30, 2025, which decreased by 8.2% from US$9.22 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
		2025				%				2024				%				Amount				%
		(Amounts expressed in U.S. dollars)
Cable and wire harness		$	7,830,157				92.5			$	8,604,502				93.3			$	(774,345)				(9.0)
Connectors			635,431				7.5				613,957				6.7				21,474				3.5
Total		$	8,465,588				100.0			$	9,218,459				100.0			$	(752,871)				(8.2)

Revenue generated from cables and wire harnesses decreased by 9.0%, to US$7.83 million for the six months ended September 30, 2025, from US$8.60 million for the same period of last year. Revenue generated from connectors increased by 3.5%, to US$0.64 million for the six months ended September 30, 2025, from US$0.61 million for the same period of last year.

The decrease in revenue was primarily attributable to the decrease of sales volume, which was partially offset by an increase of the overall average selling prices of the Company's cables and wire harness products. The reduction in demand was principally attributable to a major customer's reduced order volumes during its transition from discontinued product models to new products that remain in the development phase, as the Company's cables and wire harnesses are customized to the customer's product designs. The Company's subsidiaries manufacture cables and wire harnesses based on customer-specific orders. Our subsidiaries do not have a practice of holding excessive levels of inventory related to the customer's discontinued products, and do not have manufacturing assets or production lines that have been established solely for any specific product specification. Accordingly, we concluded that no indicators of inventory obsolescence or asset impairment existed as of September 30, 2025.

The following table sets forth the disaggregation of revenue by regions:

		For the six months ended September 30,																Change
		2025				%				2024				%				Amount				%
		(Amounts expressed in U.S. dollars)
Europe		$	4,971,949				58.8			$	5,626,272				61.0			$	(654,323)				(11.6)
Asia			2,896,950				34.2				2,736,289				29.7				160,661				5.9
Americas			596,689				7.0				855,847				9.3				(259,158)				(30.3)
Others			-				-				51				-				(51)				(100.0)
Total		$	8,465,588				100.0			$	9,218,459				100.0			$	(752,871)				(8.2)

Revenue generated from Europe decreased by 11.6%, to US$4.97 million for the six months ended September 30, 2025, from US$5.63 million for the same period of last year. The decrease was primarily due to a decrease of sales in Denmark of US$0.69 million and Bulgaria of US$0.19 million, partially offset by an increase of sales in the U.K. of US$0.14 million and Hungary of US$0.12 million. The decline in Denmark was mainly attributable to a major customer placing fewer orders while transitioning from discontinued products to new products still under development, with the Company's cables and wire harnesses customized for the customer's products.

Revenue generated from Asia increased by 5.9%, to US$2.90 million for the six months ended September 30, 2025, from US$2.74 million for the same period of last year. The increase was primarily driven by a sales increase in Mainland China of US$0.35 million, a sales increase in Association of Southeast Asian Nations of US$0.10 million, mainly due to higher demand from certain customers in Malaysia for components used in automation products, and partially offset by a sales decrease in Hong Kong, China of US$0.28 million.

Revenue generated from the Americas decreased by 30.3%, to US$0.60 million for the six months ended September 30, 2025, from US$0.86 million for the same period of last year, which was primarily due to a sales decrease in North America of US$0.27 million. The decline was largely attributable to higher U.S. tariffs, which led certain customers to gradually shift to local suppliers in order to mitigate their tax exposure.

Revenue from other regions was mainly derived from Australia.

Cost of Revenue

Cost of revenue decreased by 7.4%, to US$5.99 million for the six months ended September 30, 2025, from US$6.47 million for the same period of last year. The decrease was primarily due to a decrease in inventory costs and labor costs.

Inventory costs amounted to US$4.14 million for the six months ended September 30, 2025, compared to US$4.44 million for the same period of last year. The decrease in inventory costs was primarily due to a 14.1% decrease in the total sales volume and partially offset by an 8.8% increase in inventory cost per unit.

Labor costs amounted to US$1.37 million for the six months ended September 30, 2025, compared to US$1.52 million for the same period of last year. The decrease in labor costs was mainly attributable to lower production volumes driven by decreased sales.

Gross Profit and Gross Profit Margin

Gross profit decreased by 9.9%, to US$2.48 million for the six months ended September 30, 2025, from US$2.75 million for the same period of last year.

Gross profit margin was 29.2% for the six months ended September 30, 2025, compared with 29.8% for the same period of last year. The decrease was primarily due to an increase in fixed cost per unit as a result of a decrease in total sales volume.

Operating Expenses

Operating expenses decreased by 3.3%, to US$3.44 million for the six months ended September 30, 2025, from US$3.55 million for the same period of last year. The decrease was mainly due to (i) a decrease of US$0.08 million in selling expenses, including a decrease of US$0.09 million in exhibition expenses, as the Company reduced exhibition activities and focused on direct customer outreach to develop the market, partially offset by an increase of US$0.03 million in travelling expenses, reflecting additional on-site customer visits to support market development, and (ii) a decrease of US$0.03 million in general and administrative expenses, including a decrease of US$0.06 million in salaries and benefits due to the absence of non-recurring initial public offering-related bonus and celebration expenses incurred in the prior period, partially offset by an increase of US$0.02 million in depreciation and amortization.

Other Expenses

Other expenses decreased by 9.9%, to US$0.12 million for the six months ended September 30, 2025, from US$0.13 million for the same period of last year, primarily attributable to a decrease of US$0.14 million in government subsidy resulting from the absence of the non-recurring "Little Giant" award received in the prior period, and partially offset by a decrease of US$0.10 million in foreign currency exchange losses.

Income Tax Benefit

Income tax benefit decreased by 44.8%, to US$0.11 million for the six months ended September 30, 2025, from US$0.19 million for the same period of last year, which was primarily due to the lower losses incurred by the Company's Hong Kong subsidiary, CCSC Interconnect Technology Limited, for the six months ended September 30, 2025.

Net Loss

Net loss increased by 30.5%, to US$0.97 million for the six months ended September 30, 2025, from US$0.74 million for the same period of last year.

Basic and Diluted Loss per Share

Basic and diluted loss per share was US$0.08 for the six months ended September 30, 2025, compared to US$0.06 for the same period of last year.

Financial Condition

As of September 30, 2025, the Company had cash of US$2.81 million, compared to US$3.69 million as of March 31, 2025.

Net cash used in operating activities was US$0.41 million for the six months ended September 30, 2025, compared to US$1.12 million for the same period of last year.

Net cash used in investing activities was US$0.48 million for the six months ended September 30, 2025, compared to US$0.67 million for the same period of last year.

There were no cash outflows from financing activities for the six months ended September 30, 2025 and 2024.

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 interconnect products under both Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) models for manufacturing companies that produce end products, as well as electronic manufacturing services 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 press release are forward-looking statements. 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 statements and other filings with the United States 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
(Amounts in U.S. dollars, except for number of shares)
		As of September 30,				As of March 31,
			2025			2025
			(Unaudited)
Assets
Current assets:
Cash		$	2,814,898		$	3,685,043
Restricted cash			10,283			9,413
Accounts receivable			2,803,083			2,495,301
Inventories			1,916,517			1,761,880
Prepaid expenses and other current assets			1,012,463			1,066,032
Total current assets			8,557,244			9,017,669
Non-current assets:
Property, plant and equipment, net			820,824			853,959
Intangible assets, net			98,553			83,906
Operating right-of-use assets, net			988,983			1,106,024
Finance lease right-of-use assets, net			171,220			194,478
Deferred tax assets, net			671,319			558,683
Other non-current assets			3,933,614			3,510,363
Total non-current assets			6,684,513			6,307,413
TOTAL ASSETS		$	15,241,757		$	15,325,082
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable		$	2,394,097		$	1,819,647
Advance from customers			286,301			141,737
Accrued expenses and other current liabilities			1,414,073			1,345,210
Taxes payable			28,050			21,916
Operating lease liabilities, current			494,005			473,116
Finance lease liabilities, current			37,651			36,277
Total current liabilities			4,654,177			3,837,903
Non-current liabilities:
Operating lease liabilities, non-current			495,750			633,249
Finance lease liabilities, non-current			109,001			127,834
Total non-current liabilities			604,751			761,083
TOTAL LIABILITIES		$	5,258,928		$	4,598,986
Commitments and Contingencies			—			—
Shareholders' equity
Class A ordinary shares, par value of $0.0005 per share; 495,000,000 shares authorized, 6,581,250 shares issued and outstanding as of September 30, 2025 and March 31, 2025		$	3,291		$	3,291
Class B ordinary shares, par value of $0.0005 per share; 5,000,000 shares authorized, 5,000,000 shares issued and outstanding as of September 30, 2025 and March 31, 2025			2,500			2,500
Additional paid-in capital			4,855,795			4,855,795
Statutory reserve			813,235			813,235
Retained earnings			6,110,175			7,081,318
Accumulated other comprehensive loss			(1,802,167)			(2,030,043)
Total shareholders' equity			9,982,829			10,726,096
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	15,241,757		$	15,325,082

 

CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
(Amounts in U.S. dollars, except for number of shares)
		For the six months ended September 30,
		2025			2024
Net revenue		$	8,465,588		$	9,218,459
Cost of revenue			(5,990,079)			(6,470,715)
Gross profit			2,475,509			2,747,744
Operating expenses:
Selling expenses			(667,073)			(752,926)
General and administrative expenses			(2,436,926)			(2,468,416)
Research and development expenses			(331,097)			(332,155)
Total operating expenses			(3,435,096)			(3,553,497)
Loss from operations			(959,587)			(805,753)
Other expenses:
Other non-operating income/(expenses), net			32,306			(34,766)
Government subsidy			-			138,845
Foreign currency exchange losses			(139,017)			(241,996)
Financial and interest (expenses)/income, net			(10,712)			7,530
Total other expenses			(117,423)			(130,387)
Loss before income tax benefit			(1,077,010)			(936,140)
Income tax benefit			105,867			191,820
Net loss			(971,143)			(744,320)
Other comprehensive income
Foreign currency translation adjustment			227,876			295,194
Total comprehensive loss		$	(743,267)		$	(449,126)
Loss per share*
Basic and Diluted		$	(0.08)		$	(0.06)
Weighted average number of ordinary shares
Basic and Diluted			11,581,250			11,581,250
*Basic and diluted loss per share are the same for Class A ordinary shares and Class B ordinary shares.

 

CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in U.S. dollars, except for number of shares)
		For the six months ended September 30,
		2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(971,143)		$	(744,320)
Adjustments to reconcile net loss to net cash used in operating activities:
Inventory write-downs			42,909			108,257
Depreciation and amortization			121,848			108,167
Amortization of right-of-use asset			286,341			259,582
Loss from disposal of property, plant and equipment			2,216			1,497
Deferred tax benefit			(105,867)			(191,820)
Foreign currency exchange losses			129,038			189,653
Changes in operating assets and liabilities:
Accounts receivable			(298,246)			(479,077)
Inventories			(157,316)			(10,449)
Prepaid expenses and other current assets			72,340			(221,742)
Other non-current assets			18,025			54,925
Accounts payable			538,199			336,256
Advance from customers			143,723			(56,965)
Taxes payable			4,528			1,453
Accrued expenses and other current liabilities			43,876			(223,442)
Operating lease liabilities			(262,338)			(250,801)
Financing lease liabilities			(17,794)			(2,208)
Net cash used in operating activities			(409,661)			(1,121,034)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment			(14,481)			(44,006)
Prepayments for long-term equipment and mold models			(431,678)			-
Purchase of land			-			(539,513)
Purchase of intangible assets			(34,878)			(83,346)
Net cash used in investing activities			(481,037)			(666,865)
CASH FLOWS FORM FINANCING ACTIVITIES
Net cash used in financing activities			-			-
Effect of exchange rate changes on cash and restricted cash			21,423			52,580
Net change in cash and restricted cash			(869,275)			(1,735,319)
Cash and restricted cash, beginning of the period			3,694,456			5,734,747
Cash and restricted cash, end of the period		$	2,825,181		$	3,999,428
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest		$	(4,667)		$	-
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease obligations		$	134,295		$	-
Increase in accrued expenses and other liabilities related to intangible asset acquisitions		$	(3,216)		$	-
Purchase of property, plant and equipment included in accrued expenses and other liabilities		$	(3,426)		$	-

 

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SOURCE CCSC Technology International Holdings Limited

FAQ

What were CCSC Technology (CCTG) revenue and net loss for the six months ended September 30, 2025?

Revenue was US$8.47M and net loss was US$0.97M for the six months ended September 30, 2025.

How did CCSC Technology's regional sales perform in H1 FY2026 for CCTG?

Europe revenue declined 11.6% to US$4.97M, Asia rose 5.9% to US$2.90M, and the Americas fell 30.3% to US$596,689.

What financing did CCSC Technology (CCTG) complete in October 2025?

The company completed a US$7.06M follow‑on public offering in October 2025.

How much cash did CCSC Technology (CCTG) report as of September 30, 2025 and what was operating cash flow?

Cash was US$2.81M and net cash used in operating activities was US$0.41M for the six months ended September 30, 2025.

What caused CCSC Technology's revenue decline in the six months ended September 30, 2025?

The decline was mainly due to lower sales volume from a major customer transitioning from discontinued models to new products still in development.