CCSC Technology International Holdings Limited Reports Financial Results for Fiscal Year Ended March 31, 2025
Rhea-AI Summary
CCSC Technology (NASDAQ:CCTG), a Hong Kong-based interconnect products manufacturer, reported its fiscal year 2025 results with revenue growing 19.5% to $17.6 million. The company saw significant growth in Europe, with revenue increasing 29% to $11.0 million, while Asia revenue rose 10.2% to $5.3 million.
Gross profit increased 27.1% to $5.0 million, with improved gross margin of 28.3% (up from 26.6%). Despite revenue growth, CCSC reported a net loss of $1.4 million ($0.12 per share). The company plans to establish a new supply chain management center in Serbia to support European operations.
Cable and wire harness revenue grew 20.2% to $16.4 million, while connector revenue increased 11.1% to $1.2 million. Operating expenses rose 20.5% to $7.0 million, and cash position decreased to $3.7 million from $5.5 million year-over-year.
Positive
- None.
Negative
- Net loss increased 8.9% to $1.4 million
- Operating expenses rose 20.5% to $7.0 million
- Cash position declined to $3.7 million from $5.5 million
- Americas revenue decreased by 5.7%
- Other income decreased by $0.2 million due to lower foreign currency exchange gains
Insights
CCSC reports mixed results with 19.5% revenue growth but widening losses, highlighting regional strength in Europe amid ongoing operational investments.
CCSC Technology's fiscal 2025 results present a mixed financial picture with encouraging top-line growth but persistent profitability challenges. The company delivered
Despite the revenue growth, CCSC's net loss increased to
The improved gross margin (up to
The product mix remains heavily weighted toward cables and wire harnesses at
The decreased average selling prices coupled with higher sales volumes suggests CCSC may be employing a volume-based growth strategy, potentially sacrificing per-unit profitability to gain market share. The company's planned investment in research and development signals recognition that innovation will be crucial for sustainable growth in the competitive interconnect products market.
Mr. Kung Lok Chiu, Chief Executive Officer and Director of the Company, commented, "Fiscal year 2025 was a year of growth and global expansion, as we strengthened our customer base and deepened our reach across international markets. We achieved
Mr. Chiu continued, "Looking ahead, we are excited about our next chapter. With sustained investments in research and development and the integration of advanced technologies, we are committed to developing solutions that are not only innovative and scalable but also aligned with the evolving needs of our global clients. We are also dedicating efforts to expanding our geographic reach, while striving to identify new customers, launch new products, and explore new business opportunities. Through these initiatives, we will endeavor to drive sustainable growth and deliver long-term value to our shareholders."
Fiscal Year Ended March 31, 2025 Financial Highlights
- Revenue increased by
19.5% to$17.6 million $14.7 million - Gross profit increased by
27.1% to$5.0 million $3.9 million - Gross profit margin was
28.3% for the fiscal year ended March 31, 2025, increased from26.6% for the fiscal year ended March 31, 2024. - Net loss was
$1.4 million $1.3 million - Basic and diluted loss per share was
$0.12 $0.13
Fiscal Year Ended March 31, 2025 Financial Results
Revenue
Total revenue was
The following table sets forth revenue by interconnect products:
For the fiscal years ended March 31, | Change | |||||||||||||||||||||||
2025 | % | 2024 | % | Amount | % | |||||||||||||||||||
(Amounts expressed in | ||||||||||||||||||||||||
Cable and wire harness | $ | 16,385,705 | 92.9 | % | $ | 13,626,836 | 92.4 | % | $ | 2,758,869 | 20.2 | % | ||||||||||||
Connectors | 1,245,784 | 7.1 | % | 1,121,715 | 7.6 | % | 124,069 | 11.1 | % | |||||||||||||||
Total | $ | 17,631,489 | 100.0 | % | $ | 14,748,551 | 100.0 | % | $ | 2,882,938 | 19.5 | % | ||||||||||||
Revenue generated from cables and wire harnesses increased by
The increase in revenue was primarily attributable to the increase in the total sales volume, which was partially offset by the decrease of the overall average selling prices of the Company's products for the fiscal year ended March 31, 2025.
The following table sets forth the disaggregation of revenue by regions:
For the fiscal years ended March 31, | Change | |||||||||||||||||||||||
2025 | % | 2024 | % | Amount | % | |||||||||||||||||||
(Amounts expressed in | ||||||||||||||||||||||||
$ | 10,991,905 | 62.3 | % | $ | 8,523,788 | 57.8 | % | $ | 2,468,117 | 29.0 | % | |||||||||||||
5,336,247 | 30.3 | % | 4,843,082 | 32.8 | % | 493,165 | 10.2 | % | ||||||||||||||||
The | 1,303,286 | 7.4 | % | 1,381,681 | 9.4 | % | (78,395) | (5.7) | % | |||||||||||||||
Others | 51 | 0 | % | - | - | % | 51 | 100.0 | % | |||||||||||||||
Total | $ | 17,631,489 | 100.0 | % | $ | 14,748,551 | 100 | % | $ | 2,882,938 | 19.5 | % | ||||||||||||
Revenue generated from
Revenue generated from
Revenue generated from the
Revenue from other regions was mainly derived from
Cost of Revenue
Cost of revenue increased by
Inventory costs amounted to
Labor costs amounted to
Gross Profit and Gross Margin
Gross profit increased by
Gross profit margin increased by
Operating Expenses
Operating expenses increased by
Other Income
Other income decreased by
Net Loss
Net loss increased by
Basic and Diluted Loss per Share
Basic and diluted loss per share was
Financial Condition
As of March 31, 2025, the Company had cash of
Net cash used in operating activities in the fiscal year ended March 31, 2025 was
Net cash used in investing activities in the fiscal year ended March 31, 2025 was
There were no cash outflows from financing activities in the fiscal year ended March 31, 2025. Net cash provided by financing activities was
About CCSC Technology International Holdings Limited
CCSC Technology International Holdings Limited, is a
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
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 | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Amount in U.S. dollars, except for number of shares) | ||||||||
As of March 31, | ||||||||
2025 | 2024 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 3,685,043 | $ | 5,525,430 | ||||
Restricted cash | 9,413 | 209,317 | ||||||
Accounts receivable | 2,495,301 | 2,750,214 | ||||||
Inventories | 1,761,880 | 2,023,456 | ||||||
Prepaid expenses and other current assets | 1,066,032 | 1,474,405 | ||||||
Total current assets | 9,017,669 | 11,982,822 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 853,959 | 198,901 | ||||||
Intangible asset, net | 83,906 | 38,183 | ||||||
Operating right-of-use assets, net | 1,106,024 | 1,659,297 | ||||||
Finance lease right-of-use assets, net | 194,478 | 17,788 | ||||||
Deferred tax assets, net | 558,683 | 287,394 | ||||||
Other non-current assets, net | 3,510,363 | 3,753,646 | ||||||
Total non-current assets | 6,307,413 | 5,955,209 | ||||||
TOTAL ASSETS | $ | 15,325,082 | $ | 17,938,031 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,819,647 | $ | 2,175,974 | ||||
Advance from customers | 141,737 | 207,293 | ||||||
Accrued expenses and other current liabilities | 1,345,210 | 1,523,843 | ||||||
Taxes payable | 21,916 | 24,974 | ||||||
Operating lease liabilities, current | 473,116 | 506,061 | ||||||
Finance lease liabilities, current | 36,277 | 4,454 | ||||||
Total current liabilities | 3,837,903 | 4,442,599 | ||||||
Non-current liabilities: | ||||||||
Operating lease liabilities, non-current | 633,249 | 1,184,056 | ||||||
Finance lease liabilities, non-current | 127,834 | 13,709 | ||||||
Total non-current liabilities | 761,083 | 1,197,765 | ||||||
TOTAL LIABILITIES | $ | 4,598,986 | $ | 5,640,364 | ||||
Commitments and Contingencies | — | — | ||||||
Shareholders' equity | ||||||||
Class A ordinary shares, par value of | $ | 3,291 | $ | 3,291 | ||||
Class B ordinary shares, par value of | 2,500 | 2,500 | ||||||
Additional paid-in capital | 4,855,795 | 4,855,795 | ||||||
Statutory reserve | 813,235 | 813,235 | ||||||
Retained earnings | 7,081,318 | 8,491,783 | ||||||
Accumulated other comprehensive loss | (2,030,043) | (1,868,937) | ||||||
Total shareholders' equity | 10,726,096 | 12,297,667 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 15,325,082 | $ | 17,938,031 | ||||
* | Retrospectively reflect the changes in class of shares effective on September 10, 2024 |
CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME | ||||||||||||
(Amount in U.S. dollars, except for number of shares) | ||||||||||||
For the years ended March 31, | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
Net revenue | $ | 17,631,489 | $ | 14,748,551 | $ | 24,059,556 | ||||||
Cost of revenue | (12,647,287) | (10,825,943) | (16,190,985) | |||||||||
Gross profit | 4,984,202 | 3,922,608 | 7,868,571 | |||||||||
Operating expenses: | ||||||||||||
Selling expenses | (1,695,217) | (1,039,882) | (1,097,150) | |||||||||
General and administrative expenses | (4,601,637) | (4,134,394) | (3,898,894) | |||||||||
Research and development expenses | (654,039) | (594,521) | (1,084,119) | |||||||||
Total operating expenses | (6,950,893) | (5,768,797) | (6,080,163) | |||||||||
(Loss)/income from operations | (1,966,691) | (1,846,189) | 1,788,408 | |||||||||
Other income: | ||||||||||||
Other non-operating income/(expenses), net | 534 | (35,509) | 49,873 | |||||||||
Government subsidy | 207,257 | 7,255 | 62,627 | |||||||||
Foreign currency exchange income | 67,395 | 425,308 | 562,527 | |||||||||
Financial and interest income, net | 10,538 | 67,636 | 22,455 | |||||||||
Total other income | 285,724 | 464,690 | 697,482 | |||||||||
(Loss)/income before income tax expense | (1,680,967) | (1,381,499) | 2,485,890 | |||||||||
Income tax benefit/(expenses) | 270,502 | 86,336 | (277,738) | |||||||||
Net (loss)/income | (1,410,465) | (1,295,163) | 2,208,152 | |||||||||
Other comprehensive loss | ||||||||||||
Foreign currency translation adjustment | (161,106) | (523,250) | (728,399) | |||||||||
Total comprehensive (loss)/income | $ | (1,571,571) | $ | (1,818,413) | $ | 1,479,753 | ||||||
(Loss)/earnings per share | ||||||||||||
Basic and Diluted | $ | (0.12) | $ | (0.13) | $ | 0.22 | ||||||
Weighted average number of ordinary shares | ||||||||||||
Basic and Diluted | 11,581,250 | 10,288,525 | 10,000,000 | |||||||||
CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(Amount in U.S. dollars, except for number of shares) | ||||||||||||
For the years ended March 31, | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net (loss)/income | $ | (1,410,465) | $ | (1,295,163) | $ | 2,208,152 | ||||||
Adjustments to reconcile net (loss)/income to net cash (used in)/ provided | ||||||||||||
Inventory write-downs | 128,241 | 188,268 | 369,512 | |||||||||
Depreciation and amortization | 238,599 | 238,757 | 221,106 | |||||||||
Amortization of right-of-use asset | 519,426 | 509,086 | 526,546 | |||||||||
Loss from disposal of property, plant and equipment | 10,889 | 2,188 | 5,621 | |||||||||
Deferred tax (benefit)/expense | (270,502) | (249,892) | 51,780 | |||||||||
Foreign currency exchange gains | (56,479) | (227,691) | (562,527) | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | 267,028 | (500,747) | 586,559 | |||||||||
Inventories | 130,289 | (101,220) | 2,028,980 | |||||||||
Amount due from related parties | - | - | 478,285 | |||||||||
Prepaid expenses and other current assets | 412,124 | (704,610) | 179,619 | |||||||||
Other non-current assets | 257,086 | (77,220) | 41,314 | |||||||||
Accounts payable | (359,764) | 563,226 | (2,054,385) | |||||||||
Advance from customers | (66,537) | 22,060 | 113,383 | |||||||||
Taxes payable | (2,971) | (340,992) | 112,295 | |||||||||
Accrued expenses and other current liabilities | (234,550) | (64,258) | (91,373) | |||||||||
Operating lease liabilities | (534,472) | (490,319) | (535,844) | |||||||||
Financing lease liabilities | (46,095) | 24 | - | |||||||||
Amount due to related parties | - | - | (215,388) | |||||||||
Net cash (used in)/provided by operating activities | (1,018,153) | (2,528,503) | 3,463,635 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Purchase of property, plant and equipment | (327,801) | (156,999) | (153,409) | |||||||||
Prepayment of long-term equipment and mold model | - | (3,639,312) | - | |||||||||
Proceed from disposal of property, plant and equipment | 943 | - | 10,891 | |||||||||
Purchase of land | (519,895) | - | - | |||||||||
Purchase of intangible asset | (43,737) | (29,476) | (64,364) | |||||||||
Net cash used in investing activities | (890,490) | (3,825,787) | (206,882) | |||||||||
CASH FLOWS FORM FINANCING ACTIVITIES | ||||||||||||
Proceeds from short-term bank loans | - | - | 136,784 | |||||||||
Repayments of short-term bank loans | - | - | (136,784) | |||||||||
Repayments of long-term bank loans | - | (39,853) | (156,174) | |||||||||
Proceeds from issuance of ordinary shares, net of issuance cost of | - | 4,665,444 | - | |||||||||
Payment for deferred IPO costs | - | - | (596,446) | |||||||||
Capital contribution by shareholder | - | 5,000 | - | |||||||||
Payment made for principal portion of financing lease liabilities | - | (4,322) | - | |||||||||
Net cash provided by/(used in) financing activities | - | 4,626,269 | (752,620) | |||||||||
Effect of exchange rate changes on cash and restricted cash | (131,648) | (254,847) | (72,458) | |||||||||
Net change in cash and restricted cash | (2,040,291) | (1,982,868) | 2,431,675 | |||||||||
Cash and restricted cash, beginning of the year | 5,734,747 | 7,717,615 | 5,285,940 | |||||||||
Cash and restricted cash, end of the year | $ | 3,694,456 | $ | 5,734,747 | $ | 7,717,615 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW | ||||||||||||
Cash paid for income tax | $ | - | $ | (859,882) | $ | (119,679) | ||||||
Cash received from income tax refund | $ | 246,771 | $ | - | $ | 126,413 | ||||||
Cash paid for interest | $ | - | $ | (228) | $ | (4,986) | ||||||
Cash paid for operating lease | $ | (571,159) | $ | (575,014) | $ | (601,953) | ||||||
Cash paid for finance lease | $ | (15,240) | $ | (4,322) | $ | - | ||||||
Supplemental disclosure of non-cash investing and financing | ||||||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | 192,311 | $ | 137,617 | $ | 2,263,898 | ||||||
Purchase of intangible assets included in accrued expenses and other | $ | (43,103) | $ | - | $ | - | ||||||
Purchase of property and equipment included in accrued expenses and | $ | (11,418) | $ | - | $ | - | ||||||
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SOURCE CCSC Technology International Holdings Limited
FAQ
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