CCSC Technology International Holdings Limited Reports Financial Results for Fiscal Year 2024
Rhea-AI Summary
CCSC Technology International Holdings (Nasdaq: CCTG) reported financial results for fiscal year 2024. Revenue decreased by 38.7% to $14.7 million, compared to $24.1 million in FY 2023. Gross profit fell by 50.1% to $3.9 million, with gross margin declining to 26.6%. The company reported a net loss of $1.3 million, compared to a net income of $2.2 million in the previous year.
Despite challenges, CCSC highlighted strategic initiatives including its Nasdaq listing in January 2024, a cooperation agreement with Innogetic International to explore AI applications in manufacturing, and plans for a European supply chain management center in Serbia. The company remains focused on innovation, operational efficiencies, and market expansion to drive future growth.
Positive
- Nasdaq listing in January 2024 provides a platform for future growth
- Strategic cooperation with Innogetic to explore AI applications in manufacturing
- Plans to establish a European supply chain management center in Serbia
- Focus on innovation and operational efficiencies
Negative
- Revenue decreased by 38.7% to $14.7 million in FY 2024
- Gross profit fell by 50.1% to $3.9 million
- Gross margin declined from 32.7% to 26.6%
- Net loss of $1.3 million compared to net income of $2.2 million in FY 2023
- Basic and diluted loss per share of $0.13 compared to earnings per share of $0.22 in FY 2023
Insights
The financial results presented by CCSC Technology International Holdings Limited for fiscal year 2024 indicate a challenging period for the company. The revenue decline of
The market landscape for interconnect products like connectors, cables and wire harnesses appears to be undergoing significant shifts, which poses both challenges and opportunities for CCSC Technology. The sharp decline in revenues across Europe (
CCSC Technology's initiative to incorporate AI in manufacturing through its partnership with Innogetic is a forward-thinking strategy that could significantly enhance operational efficiencies and product innovation. AI applications in manufacturing can lead to improved predictive maintenance, optimized production processes and enhanced quality control. These advancements could result in cost savings and better product quality, offering a competitive edge in the market. However, the implementation of AI technologies requires substantial investment and a period of adjustment, which might not yield immediate financial returns. Therefore, while the strategic cooperation agreement is promising, investors should consider the potential lag before these technological benefits translate into financial performance.
Mr. Kung Lok Chiu, Chief Executive Officer and Director of the Company, commented, "We believe we have demonstrated resilience and adaptability throughout a challenging fiscal year 2024. Despite market fluctuations, we remain dedicated to innovation and excellence. We have worked to enhance our operational efficiencies and invested strategically in research and development to advance our product developments. Additionally, our Nasdaq listing in January 2024 marks a significant milestone for the Company, providing us with a platform for future growth. Furthermore, we entered into a strategic cooperation framework agreement with Innogetic International Limited ("Innogetic") in May 2024. In the future, we anticipate exploring and applying digital technology such as artificial intelligence ("AI") in the field of manufacturing to further advancements in our business. As we explore AI applications in the manufacturing sector in partnership with Innogetic, we endeavor to further the innovation and efficiency in our manufacturing process and enhance our position in the industry. Moreover, CCSC is planning to commence construction of a new European supply chain management center in the
"We are committed to adopting advanced technologies, developing replicable and scalable solutions, and fostering innovative ideas and products. Looking forward, we are excited about our strategic initiatives aimed at market expansion, product innovation, and enhancing client services. We believe that our commitment to quality and customer satisfaction can drive us forward and create long-term value for our shareholders," concluded Mr. Kung Lok Chiu.
Fiscal Year 2024 Financial Highlights
- Revenue was
$14.7 million $24.1 million - Gross profit was
$3.9 million $7.9 million - Loss from operations was
$1.8 million $1.8 million - Net loss was
$1.3 million $2.2 million - Basic and diluted loss per share was
$0.13 $0.22
Fiscal Year 2024 Financial Results
Revenue
Total revenue was
The following table sets forth revenue by interconnect products:
For the years ended March 31, | Change | |||||||||||||||||||||||
($ millions) | 2024 | % | 2023 | % | Amount | % | ||||||||||||||||||
Cables and wire harnesses | 13.6 | 92.4 | % | 22.2 | 92.3 | % | (8.6) | (38.7) | % | |||||||||||||||
Connectors | 1.1 | 7.6 | % | 1.8 | 7.7 | % | (0.7) | (39.3) | % | |||||||||||||||
Total | 14.7 | 100.0 | % | 24.0 | 100.0 | % | (9.3) | (38.7) | % | |||||||||||||||
Revenue generated from cables and wire harnesses decreased by
The decrease was primarily attributable to the decrease in the total sales volume due to customers' shift towards zero inventory instead of advanced procurement, and the decrease of the average selling price of our products for fiscal year 2024.
The following table sets forth the disaggregation of revenue by regions:
For the years ended March 31, | Change | |||||||||||||||||||||||
($ millions) | 2024 | % | 2023 | % | Amount | % | ||||||||||||||||||
8.5 | 57.8 | % | 15.0 | 62.5 | % | (6.5) | (43.3) | % | ||||||||||||||||
4.8 | 32.8 | % | 7.4 | 30.9 | % | (2.6) | (34.9) | % | ||||||||||||||||
1.4 | 9.4 | % | 1.6 | 6.6 | % | (0.2) | (12.4) | % | ||||||||||||||||
Total | 14.7 | 100.0 | % | 24.0 | 100.0 | % | (9.3) | (38.7) | % | |||||||||||||||
Revenue generated from
Revenue generated from
Revenue generated from the
Cost of Revenue
Cost of revenue decreased by
Inventory costs amounted to
Labor costs amounted to
Gross Profit and Gross Margin
Gross profit decreased by
Gross profit margin decreased by
Operating Expenses
Operating expenses decreased by
Other Income
Other income decreased to
Net (Loss)/Income
Net income decreased by
Basic and Diluted (Loss)/Earnings per Share
Basic and diluted loss per share was
About CCSC Technology International Holdings Limited
CCSC Technology International Holdings Limited, is a
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
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, | ||||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 5,525,430 | $ | 7,708,310 | ||||
Restricted cash | 209,317 | 9,305 | ||||||
Accounts receivable | 2,750,214 | 2,260,222 | ||||||
Inventories, net | 2,023,456 | 2,187,518 | ||||||
Deferred initial public offering costs | - | 1,051,038 | ||||||
Prepaid expenses and other current assets | 1,474,405 | 814,308 | ||||||
Total current assets | 11,982,822 | 14,030,701 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 198,901 | 211,949 | ||||||
Intangible asset, net | 38,183 | 88,319 | ||||||
Operating right-of-use assets | 1,659,297 | 2,121,070 | ||||||
Finance lease right-of-use asset | 17,788 | - | ||||||
Deferred tax assets, net | 287,394 | 41,015 | ||||||
Other non-current assets | 3,753,646 | 41,844 | ||||||
Total non-current assets | 5,955,209 | 2,504,197 | ||||||
TOTAL ASSETS | $ | 17,938,031 | $ | 16,534,898 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,175,974 | $ | 1,663,749 | ||||
Advance from customers | 207,293 | 186,874 | ||||||
Accrued expenses and other current liabilities | 1,523,843 | 1,648,970 | ||||||
Taxes payable | 24,974 | 365,851 | ||||||
Operating lease liabilities, current | 506,061 | 485,051 | ||||||
Finance lease liabilities, current | 4,454 | - | ||||||
Long-term bank loan, current portion | - | 39,725 | ||||||
Total current liabilities | 4,442,599 | 4,390,220 | ||||||
Non-current liabilities: | ||||||||
Operating lease liabilities, non-current | 1,184,056 | 1,653,411 | ||||||
Finance lease liabilities, non-current | 13,709 | - | ||||||
Total non-current liabilities | 1,197,765 | 1,653,411 | ||||||
TOTAL LIABILITIES | 5,640,364 | 6,043,631 | ||||||
Commitments and Contingencies | - | - | ||||||
Shareholders' equity | ||||||||
Ordinary Shares (par value of | 5,791 | 5,000 | ||||||
Subscription receivable | - | (5,000) | ||||||
Additional paid-in capital | 4,855,795 | 1,236,773 | ||||||
Statutory reserve | 813,235 | 813,235 | ||||||
Retained earnings | 8,491,783 | 9,786,946 | ||||||
Accumulated other comprehensive loss | (1,868,937) | (1,345,687) | ||||||
Total shareholders' equity | 12,297,667 | 10,491,267 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 17,938,031 | $ | 16,534,898 | ||||
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, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Net revenue | $ | 14,748,551 | $ | 24,059,556 | $ | 27,169,935 | ||||||
Cost of revenue | (10,825,943) | (16,190,985) | (19,694,031) | |||||||||
Gross profit | 3,922,608 | 7,868,571 | 7,475,904 | |||||||||
Operating expenses: | ||||||||||||
Selling expenses | (1,039,882) | (1,097,150) | (866,136) | |||||||||
General and administrative expenses | (4,134,394) | (3,898,894) | (3,318,815) | |||||||||
Research and development expenses | (594,521) | (1,084,119) | (829,024) | |||||||||
Total operating expenses | (5,768,797) | (6,080,163) | (5,013,975) | |||||||||
(Loss)/income from operations | (1,846,189) | 1,788,408 | 2,461,929 | |||||||||
Other (expenses)/income: | ||||||||||||
Other non-operating (expenses)/income, net | (35,509) | 49,873 | 415,934 | |||||||||
Government subsidy | 7,255 | 62,627 | 17,910 | |||||||||
Foreign currency exchange income/(loss) | 425,308 | 562,527 | (199,759) | |||||||||
Financial and interest income/(expenses), net | 67,636 | 22,455 | (7,028) | |||||||||
Total other income | 464,690 | 697,482 | 227,057 | |||||||||
(Loss)/income before income tax expense | (1,381,499) | 2,485,890 | 2,688,986 | |||||||||
Income tax benefit/(expense) | 86,336 | (277,738) | (399,828) | |||||||||
Net (loss)/income | (1,295,163) | 2,208,152 | 2,289,158 | |||||||||
Other comprehensive (loss)/income | ||||||||||||
Foreign currency translation adjustment | (523,250) | (728,399) | 368,037 | |||||||||
Total comprehensive (loss)/income | $ | (1,818,413) | $ | 1,479,753 | $ | 2,657,195 | ||||||
(Loss)/earnings per share | ||||||||||||
Basic and Diluted | $ | (0.13) | $ | 0.22 | $ | 0.23 | ||||||
Weighted average number of ordinary shares | ||||||||||||
Basic and Diluted | 10,288,525 | 10,000,000 | 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, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net (loss)/income | $ | (1,295,163) | $ | 2,208,152 | $ | 2,289,158 | ||||||
Adjustments to reconcile net (loss)/income to net cash (used in)/provided | ||||||||||||
Inventory write-down | 188,268 | 369,512 | 117,807 | |||||||||
Depreciation and amortization | 238,757 | 221,106 | 330,269 | |||||||||
Amortization of right-of-use asset | 509,086 | 526,546 | 330,812 | |||||||||
Losses/(gains) from disposal of fixed assets | 2,188 | 5,621 | (61,205) | |||||||||
Deferred tax (benefit)/expense | (249,892) | 51,780 | (17,927) | |||||||||
Foreign currency exchange (gains)/losses | (227,691) | (562,527) | 199,759 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (500,747) | 586,559 | 286,662 | |||||||||
Inventories | (101,220) | 2,028,980 | (1,272,692) | |||||||||
Amount due from related parties | - | 478,285 | (51,421) | |||||||||
Prepaid expenses and other current assets | (704,610) | 179,619 | 16,666 | |||||||||
Operating right-of-use assets | - | (2,240,092) | 62,343 | |||||||||
Other non-current assets | (77,220) | 41,314 | 19,310 | |||||||||
Accounts payable | 563,226 | (2,054,385) | 757,114 | |||||||||
Advance from customers | 22,060 | 113,383 | (92,699) | |||||||||
Taxes payable | (340,992) | 112,295 | 220,736 | |||||||||
Accrued expenses and other current liabilities | (64,258) | (91,373) | 117,673 | |||||||||
Operating lease liabilities | (490,319) | 1,704,248 | (409,019) | |||||||||
Financing Lease liabilities | 24 | - | - | |||||||||
Amount due to related parties | - | (215,388) | 78,270 | |||||||||
Net cash (used in)/provided by operating activities | (2,528,503) | 3,463,635 | 2,921,616 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Purchase of property and equipment | (156,999) | (153,409) | (376,785) | |||||||||
Prepayment of long-term equipment and mold model | (3,639,312) | - | - | |||||||||
Proceed from disposal of property and equipment | - | 10,891 | 199,146 | |||||||||
Purchase of intangible asset | (29,476) | (64,364) | - | |||||||||
Net cash used in investing activities | (3,825,787) | (206,882) | (177,639) | |||||||||
CASH FLOWS FORM FINANCING ACTIVITIES | ||||||||||||
Proceeds from short-term bank loans | - | 136,784 | 107,076 | |||||||||
Repayments of short-term bank loans | - | (136,784) | (107,076) | |||||||||
Repayments of long-term bank loans | (39,853) | (156,174) | (153,053) | |||||||||
Proceeds from issuance of ordinary shares, net of issuance cost | 4,665,444 | - | - | |||||||||
Payment for deferred initial public offering costs | - | (596,446) | (459,265) | |||||||||
Capital contribution by shareholder | 5,000 | - | 462,469 | |||||||||
Payment made for principal portion of financing lease liabilities | (4,322) | - | (7,553) | |||||||||
Net cash provided by/(used in) financing activities | 4,626,269 | (752,620) | (157,402) | |||||||||
Effect of exchange rate changes on cash and restricted cash | (254,847) | (72,458) | 46,415 | |||||||||
Net change in cash and restricted cash | (1,982,868) | 2,431,675 | 2,632,990 | |||||||||
Cash and restricted cash, beginning of the year | 7,717,615 | 5,285,940 | 2,652,950 | |||||||||
Cash and restricted cash, end of the year | $ | 5,734,747 | $ | 7,717,615 | $ | 5,285,940 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Cash paid for income tax | $ | (859,882) | $ | (119,679) | $ | (471,259) | ||||||
Cash received from income tax refund | $ | - | $ | 126,413 | $ | 461,418 | ||||||
Cash paid for interest | $ | (228) | $ | (4,986) | $ | (8,650) | ||||||
Cash paid for operating lease | $ | (575,014) | $ | (601,953) | $ | (635,499) | ||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | 137,617 | $ | 2,263,898 | $ | 138,450 | ||||||
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SOURCE CCSC Technology International Holdings Limited
FAQ
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