Texxon Holding Limited Announces Unaudited Financial Results for the First Half of Fiscal Year 2026
Rhea-AI Summary
Texxon Holding (Nasdaq:NPT) reported unaudited results for the first half of fiscal 2026 (six months ended December 31, 2025).
Revenue fell 35.8% to $327.0 million, with gross margin at 0.4% and a net loss of $1.0 million. Plastic particles revenue rose 40.1%, while basic chemicals declined 64.1%. Cash was $0.5 million, with $8.6 million operating cash outflow.
Positive
- Plastic particles revenue rose 40.1% to $193.4 million year over year
- Operating expenses decreased 41.4% to $2.0 million
- General and administrative expenses declined 47.1% to $1.0 million
- Net cash provided by investing activities totaled $11.1 million
- Net cash provided by financing activities increased to $17.8 million
Negative
- Total revenue decreased 35.8% to $327.0 million
- Basic chemicals sales declined 64.1% to $133.5 million
- Gross profit fell 68.8% to $1.2 million; margin at 0.4%
- Result swung to $1.0 million net loss from $2.3 million income
- Operating cash flow of -$8.6 million versus $11.0 million inflow prior year
- Cash balance declined to $0.5 million from $2.5 million
- Results are unaudited and subject to potential significant adjustments
News Market Reaction – NPT
In the Jul 1 session, NPT gained 1.66%, reflecting a mild positive market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 18 | Full-year earnings | Neutral | -6.8% | Fiscal 2025 results with revenue growth but continued net loss and thin margins. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Prior earnings results led to a single-digit share-price decline, indicating cautious reactions to financial updates.
Key Terms
gross profit margin financial
net loss attributable financial
unaudited financial information financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Mr. Hui Xu, Chief Executive Officer and Chairman of Texxon, commented: "During the first half of fiscal year 2026, the chemical industry continued to face a challenging market environment characterized by softer demand in certain product categories, heightened competition, and volatility in upstream raw material costs. In particular, higher international crude oil prices increased the costs of key feedstocks and affected customer purchasing behavior, which contributed to lower sales volumes in our basic chemicals segment during the period. In addition, competitive pricing conditions across both the plastic particles and basic chemicals markets continued to place pressure on profitability.
"Despite these headwinds, our plastic particles business achieved strong revenue growth of
"While our gross profit and gross profit margin were affected by the competitive pricing environment, we remain committed to strengthening relationships with key customers and supporting long-term business growth through disciplined execution and customer-focused solutions. In addition, our prior-year results benefited from a one-time government grant of approximately
"Looking ahead, we will continue to focus on expanding our customer network, improving operational efficiency, and advancing the development of the Henan Polystyrene Factory. Having commenced production in early June 2026, the facility is expected to further strengthen our capabilities across the plastics value chain and support our long-term growth strategy."
First Half of Fiscal Year 2026 Financial Summary
- Revenue was
$327.0 million for the first half of fiscal year 2026, compared to$509.6 million for the same period of last fiscal year. - Gross profit was
$1.2 million for the first half of fiscal year 2026, compared to$3.9 million for the same period of last fiscal year. - Gross profit margin was
0.4% for the first half of fiscal year 2026, compared to0.8% for the same period of last fiscal year. - Net loss was
$1.0 million $2.3 million - Net loss attributable to Texxon was
$0.9 million $1.0 million - Basic and diluted loss per share were
$0.04 for the first half of fiscal year 2026, compared to basic and diluted earnings per share of$0.05 for the same period of last fiscal year.
First Half of Fiscal Year 2026 Financial Results
Revenue
Revenue was
- Sales of basic chemicals were
$133.5 million for the first half of fiscal year 2026, representing a decrease of64.1% from$371.4 million for the same period of last fiscal year. The decrease was primarily attributable to lower market demand, particularly for aromatic chemical raw materials. Higher international crude oil prices also increased the costs of key upstream feedstocks, which adversely affected customer demand and contributed to the decline in sales volume. - Sales of plastic particles were
$193.4 million for the first half of fiscal year 2026, representing an increase of40.1% from$138.0 million for the same period of last fiscal year. The increase was primarily attributable to the Company's marketing and sales efforts to meet the growing market needs. As part of the Company's marketing strategies, the Company expanded its sales teams across various cities inChina , which not only enhanced the Company's market penetration but also diversified the Company's customer base. By broadening the Company's sales channels, the Company had effectively captured a larger market share, contributing significantly to the Company's revenue growth.
Cost of Sales
Cost of sales was
Gross Profit and Gross Profit Margin
Gross profit was
Gross profit margin was
Operating Expenses
Operating expenses were
- Selling expenses were
$1.0 million for the first half of fiscal year 2026, representing a decrease of34.1% from$1.5 million for the same period of last fiscal year. The decrease in selling expenses was mainly due to lower shipping and delivery expenses, primarily as a result of reduced sales. - General and administrative expenses were
$1.0 million for the first half of fiscal year 2026, representing a decrease of47.1% from$1.9 million for the same period of last fiscal year. The decrease was mainly attributed to a$0.2 million $0.7 million
Net Income
Net loss was
Basic and Diluted Earnings (loss) per Share
Basic and diluted loss per share were
Financial Condition
As of December 31, 2025, the Company had cash and cash equivalents of
Net cash used in operating activities was
Net cash provided by investing activities was
Net cash provided by financing activities was
Statement Regarding Unaudited Financial Information
The unaudited financial information set out in this earnings release has been prepared by management and approved by the audit committee and board of directors of the Company and has not been reviewed by the Company's independent auditor. Such financial information is subject to potential adjustments, which may be identified when audit work is performed for the Company's year-end audit, which could result in significant differences from the unaudited financial information.
About Texxon Holding Limited
Texxon Holding Limited is a leading provider of supply chain management services in the plastics and chemical industries in East China. Through its polystyrene production facility and technology-enabled platform, the Company manufactures and sells polystyrene products and provides a full spectrum of supply chain management services to Chinese Small and Medium-size Enterprises (SME) customers, including procurement, shipping and logistics, payments and fulfillment services. It aspires to build the largest one-stop plastic and chemical raw material supply chain management platform in China, to streamline the complex and labor-intensive raw material procurement process and enhance convenience, cost-effectiveness, and efficiency for customers. Texxon has built a highly scalable distributed software architecture for continuous improvement, and an effective User Experience Design (UED) process to improve the customer experience. In addition, with over a decade of experience, the Company has amassed substantial transaction data, including supplier and customer information, price trends, category-specific price indexes and market demand volume, to analyze price trends and market demands and make informed decisions. For more information, please visit the Company's website: https://ir.npt-cn.com/.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, but not limited to, the timeline and effects regarding the construction and production of the Henan Polystyrene Factory. These forward-looking statements involve known and unknown risks and uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the Company's Annual Report on Form 20-F for the fiscal year ended June 30, 2025 filed with the U.S. Securities and Exchange Commission (the "SEC") on November 18, 2026 and are based on the Company's current expectations and projections about future events that the Company believes 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 "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions. 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 latest annual report on Form 20-F and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
For more information, please contact:
Texxon Holding Limited
Investor Relations Department
Email: ir@totrade.cn
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
TEXXON HOLDING LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2025 AND JUNE 30, 2025 (EXPRESSED IN | ||||||||
December 31, 2025 | June 30, 2025 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 396,837 | $ | 2,517,577 | ||||
Restricted cash | 286,576 | 562 | ||||||
Accounts receivable, net | 4,304,444 | 7,522,465 | ||||||
Note receivables | 1,430 | - | ||||||
Advanced to suppliers | 6,833,236 | 2,675,445 | ||||||
Inventories | - | 973,644 | ||||||
Loan to a related party | - | 153,554 | ||||||
Prepayments and other current assets | 9,769,977 | 6,918,026 | ||||||
TOTAL CURRENT ASSETS | 21,592,500 | 20,761,273 | ||||||
NON-CURRENT ASSETS: | ||||||||
Property, plant and equipment, net | 116,325,271 | 84,623,119 | ||||||
Intangible assets, net | 6,247,753 | 6,164,781 | ||||||
Prepayments for long-term assets | 9,339,771 | 24,522,149 | ||||||
Deferred offering costs | - | 634,978 | ||||||
Equity investment | - | 2,261,433 | ||||||
TOTAL NON-CURRENT ASSETS | 131,912,795 | 118,206,460 | ||||||
TOTAL ASSETS | $ | 153,505,295 | $ | 138,967,733 | ||||
LIABILITIES | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term borrowings | $ | 31,005,284 | $ | 20,624,062 | ||||
Accounts payable | 785,782 | 763,343 | ||||||
Note Payable | 285,996 | - | ||||||
Contract liabilities | 4,630,524 | 2,272,179 | ||||||
Accrued expenses and other current liabilities | 11,678,356 | 19,258,940 | ||||||
Due to related parties | 16,728,760 | 29,826,131 | ||||||
TOTAL CURRENT LIABILITIES | 65,114,702 | 72,744,655 | ||||||
NON-CURRENT LIABILITIES: | ||||||||
Long-term borrowings | 33,284,411 | 32,175,020 | ||||||
TOTAL LIABILITIES | $ | 98,399,113 | $ | 104,919,675 | ||||
Commitments and contingencies | ||||||||
SHAREHOLDERS' EQUITY (DEFICIT): | ||||||||
Ordinary shares, | 2,219 | 2,000 | ||||||
Additional paid-in capital | 9,554,895 | 777,992 | ||||||
Accumulated deficit | (5,228,083) | (4,316,467) | ||||||
Accumulated other comprehensive income (loss) | 161,157 | (275,578) | ||||||
SHAREHOLDERS' EQUITY (DEFICIT) | 4,490,188 | (3,812,053) | ||||||
Non-controlling interests | 50,615,994 | 37,860,111 | ||||||
TOTAL EQUITY | 55,106,182 | 34,048,058 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 153,505,295 | 138,967,733 | |||||
TEXXON HOLDING LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) FOR THE SIX MONTHS ENDED DECEMBER 31, 2025, 2024 AND 2023 (EXPRESSED IN U.S. DOLLARS) | ||||||||||||
For the Six Months Ended December 31, | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
REVENUE | ||||||||||||
Sales revenue generated from third parties | $ | 326,809,690 | $ | 509,579,018 | $ | 324,816,043 | ||||||
Sales revenue generated from related parties | 188,480 | - | - | |||||||||
Total revenue | 326,998,170 | 509,579,018 | 324,816,043 | |||||||||
COST OF SALES | ||||||||||||
Cost of sales charged by third parties | (325,514,666) | (503,345,950) | (317,499,833) | |||||||||
Cost of sales charged by related parties | - | (2,026,284) | (4,980,422) | |||||||||
Tax and surcharges | (275,528) | (338,186) | (114,064) | |||||||||
Total cost of sales | (325,790,194) | (505,710,420) | (322,594,319) | |||||||||
GROSS PROFIT | 1,207,976 | 3,868,598 | 2,221,724 | |||||||||
OPERATING EXPENSES | ||||||||||||
Selling and marketing expenses | (980,828) | (1,487,873) | (970,802) | |||||||||
General and administrative expenses | (1,010,704) | (1,908,996) | (710,009) | |||||||||
Total operating expenses | (1,991,532) | (3,396,869) | (1,680,811) | |||||||||
(LOSS) INCOME FROM OPERATIONS | $ | (783,556) | $ | 471,729 | $ | 540,913 | ||||||
OTHER INCOME (EXPENSES): | ||||||||||||
Interest expenses, net | (110,448) | (277,914) | (299,439) | |||||||||
Interest income – related parties | - | - | 227,173 | |||||||||
Government grants | - | 2,868,835 | 2,868,896 | |||||||||
Other income (expenses), net | (96,046) | 12,512 | (13,782) | |||||||||
Total other income (expenses), net | (206,494) | 2,603,433 | 2,782,848 | |||||||||
(LOSS) INCOME BEFORE PROVISION FOR | (990,050) | 3,075,162 | 3,323,761 | |||||||||
INCOME TAXES EXPENSES | - | (816,605) | - | |||||||||
NET (LOSS) INCOME | (990,050) | 2,258,557 | 3,323,761 | |||||||||
Less: net (loss) income attributable to non-controlling | (78,434) |
1,302,869 | 2,102,679 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO | (911,616) |
955,688 | 1,221,082 | |||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
Foreign currency translation income (loss) | 1,192,749 | (213,769) | 934,158 | |||||||||
TOTAL COMPREHENSIVE INCOME | $ | 202,699 | $ | 2,044,788 | $ | 4,257,919 | ||||||
Less: comprehensive income attributable to non- | 677,581 | 1,054,240 | 2,836,582 | |||||||||
COMPREHENSIVE (LOSS) INCOME | (474,881) | 990,548 | 1,421,337 | |||||||||
BASIC AND DILUTED EARNINGS (LOSS) PER | ||||||||||||
Net (loss) income attributable to Texxon Holding | ||||||||||||
Basic and diluted | $ | (0.04) | $ | 0.05 | $ | 0.06 | ||||||
Weighted average shares outstanding used in | ||||||||||||
Basic and diluted | 20,823,505 | 20,000,000 | 20,000,000 | |||||||||
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SOURCE Texxon Holding Limited