Ridgetech, Inc. Reports Fiscal Year 2025 Financial Results
Rhea-AI Summary
Ridgetech (NASDAQ:RDGT) reported its fiscal year 2025 results, marked by strategic transformation. Revenue reached $119.97 million, a slight decrease of 3.2% from the previous year. The company reported net income of $10.20 million ($1.84 per share), compared to a net loss of $4.23 million in FY2024.
Key developments include the divestiture of retail pharmacy operations and the acquisition of Ridgeline and Allright, marking expansion into online wholesale distribution. The newly acquired online platform contributed 1% of total revenue with a 7.4% gross margin. Overall gross margin decreased to 3.2% from 3.9% year-over-year, while sales and marketing expenses increased by 64.2%.
The company's cash position strengthened to $12.78 million as of March 31, 2025, up from $2.30 million the previous year, with operating activities providing $1.25 million in cash flow.
Positive
- Strategic transformation through acquisition of Ridgeline and Allright expanding into online distribution
- Net income improved significantly to $10.20 million from previous year's loss of $4.23 million
- Cash position strengthened to $12.78 million from $2.30 million year-over-year
- Online platform showing promising 7.4% gross margin, higher than traditional business
- Positive operating cash flow of $1.25 million versus previous year's negative $3.16 million
Negative
- Revenue declined 3.2% to $119.97 million year-over-year
- Gross margin decreased to 3.2% from 3.9% in previous year
- Operating loss of $1.04 million compared to previous year's operating income of $0.60 million
- Sales and marketing expenses increased significantly by 64.2%
- Net loss from continuing operations increased to $1.45 million from $0.79 million
News Market Reaction 5 Alerts
On the day this news was published, RDGT declined 0.77%, reflecting a mild negative market reaction. Argus tracked a peak move of +27.7% during that session. Argus tracked a trough of -4.2% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $67K from the company's valuation, bringing the market cap to $9M at that time. Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Mr. Frank Zhao, Interim Chief Executive Officer and Chief Financial Officer of Ridgetech, commented, "We are pleased to present a relatively stable revenue outcome for fiscal year 2025, a year marked by significant transformation for the Company. During this period, we divested our retail pharmacy business and acquired Ridgeline and its subsidiary, Allright (
This move reflects our commitment to shift our resources focus onto the wholesale pharmaceutical sector, aligning with the evolving landscape and intensifying competition in
Despite the scale of change in fiscal year 2025, we maintained stable total revenue of approximately
To support this strategic shift, we increased our investment in sales and marketing by
Looking ahead, with the completion of our strategic transformation and continued progress in integrating our business segments and internal resources, we believe Ridgetech is now better positioned to drive long-term sustainable growth and deliver improved financial performance."
Fiscal Year 2025 Financial Summary
In accordance with ASC 205, the Company has classified the historical retail operations, primarily conducted through Zhejiang Jiuxin Investment Management Co., Ltd. ("Jiuxin Investment") and its controlled entities, as discontinued operations and has re-presented prior periods accordingly. As a result, the comparative figures in this release reflect these adjustments and may differ from those previously reported.
- Revenue was
$119.97 million for the fiscal year ended March 31, 2025, compared to$123.99 million for the same period of last year. - Gross profit was
$3.84 million for the fiscal year ended March 31, 2025, compared to$4.88 million for the same period of last year. - Gross margin was
3.2% for the fiscal year ended March 31, 2025, compared to3.9% for the same period of last year. - Net income was
$10.20 million , or$1.84 per basic and diluted earnings per share, for the fiscal year ended March 31, 2025, compared to net loss of$4.23 million , or$2.93 per basic and diluted loss per share, for the same period of last year.
Fiscal Year 2025 Financial Results
Revenue
Revenue decreased by
Revenue from offline wholesale decreased by
Revenue from Online platform increased to
Gross profit and gross margin
Total cost of goods sold decreased to
Gross margins for offline wholesale and online platform were
Income (Loss) from operations
Sales and marketing expenses increased by
General and administrative expenses decreased by
Loss from operations was
Net loss from continuing operations
Net loss from continuing operations was
Net income (loss)
Net income was
Financial Condition
As of March 31, 2025, the Company had cash and cash equivalents of
Net cash used in investing activities was
Net cash provided by financing activities was
About Ridgetech, Inc.
Ridgetech, Inc., formerly known as China Jo-Jo Drugstores, Inc. ("Ridgetech" or the "Company"), is a growing online and offline wholesale distributor of pharmaceutical and other healthcare products in
Forward-Looking Statements
This press release contains information about the Company's view of its future expectations, plans and prospects that constitute forward-looking statements. Forward-looking statements usually, but not always, contain the words "estimate," "anticipate," "believe," "expect," or similar expressions, or the negative of those words and expressions, as well as statements in future tense. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with the Company's ability to secure additional funding, execute its business strategy, and respond to changing market conditions; fluctuations in operating results; the Company's ability to maintain and grow its distribution platforms and customer base; the Company's dependence on key customers; the effectiveness of marketing and business development efforts; the integration of acquired businesses, technologies, or assets; intensifying competition within the pharmaceutical and healthcare distribution industry; evolving government regulations and macro-economic conditions in
For more information, please contact:
Company Contact:
Frank Zhao
Chief Financial Officer
+86-571-88077108
frank.zhao@ridgetch.com
Investor Relations Contact:
Tina Xiao
Ascent Investor Relations LLC
+1-646-932-7242
investors@ascent-ir.com
RIDGETECH, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
March 31, | March 31, | |||||||
2025 | 2024 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 12,779,781 | $ | 2,297,256 | ||||
Restricted cash | 5,761,294 | 1,988,710 | ||||||
Trade accounts receivables | 27,811,813 | 6,014,511 | ||||||
Inventories | 9,758,071 | 9,076,734 | ||||||
Other receivables, net | 2,419,671 | 218,765 | ||||||
Advances to suppliers | 433,140 | 182,075 | ||||||
Due from related parties | - | 19,737 | ||||||
Other current assets | 745,477 | - | ||||||
Current assets of discontinued operations | - | 49,884,574 | ||||||
Total current assets | 59,709,247 | 69,682,362 | ||||||
NON-CURRENT ASSETS | ||||||||
Property and equipment, net | 8,931 | 8,377 | ||||||
Intangible assets, net | 3,302,961 | 1,276,737 | ||||||
Goodwill | 1,463,733 | - | ||||||
Non-current assets of discontinued operations | - | 24,089,614 | ||||||
Total non-current assets | 4,775,625 | 25,374,728 | ||||||
Total assets | $ | 64,484,872 | $ | 95,057,090 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 19,666,664 | $ | 30,576,909 | ||||
Notes payable | 10,386,612 | 6,594,442 | ||||||
Other payables | 2,319,139 | 592,876 | ||||||
Due to related parties | 2,130 | 2,140 | ||||||
Customer deposits | 264,068 | 174,138 | ||||||
Taxes payable | 1,521,546 | 543,081 | ||||||
Accrued liabilities | 196,210 | 197,199 | ||||||
Current liabilities of discontinued operations | - | 35,679,310 | ||||||
Total current liabilities | 34,356,369 | 74,360,095 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Deferred tax liabilities | 492,121 | - | ||||||
Non-current liabilities of discontinued operations | - | 6,403,858 | ||||||
Total non-current liabilities | 492,121 | 6,403,858 | ||||||
Total liabilities | 34,848,490 | 80,763,953 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares; | 1,405,202 | 418,407 | ||||||
Preferred shares; | - | - | ||||||
Additional paid-in capital | 91,743,163 | 86,413,978 | ||||||
Statutory reserves | - | 1,309,109 | ||||||
Accumulated deficit | (63,312,779) | (73,507,246) | ||||||
Accumulated other comprehensive income | (199,204) | 1,005,762 | ||||||
Total shareholders' equity attributed to Ridgetech | 29,636,382 | 15,640,010 | ||||||
Noncontrolling interests | - | (1,346,873) | ||||||
Total shareholders' equity | 29,636,382 | 14,293,137 | ||||||
Total liabilities and shareholders' equity | $ | 64,484,872 | $ | 95,057,090 | ||||
RIDGETECH, INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
For the years ended | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
REVENUES, NET | $ | 119,971,638 | $ | 123,994,053 | $ | 120,199,193 | ||||||
COST OF GOODS SOLD | 116,132,823 | 119,115,636 | 116,597,751 | |||||||||
GROSS PROFIT | 3,838,815 | 4,878,417 | 3,601,442 | |||||||||
SELLING EXPENSES | 1,534,200 | 934,223 | 1,266,025 | |||||||||
GENERAL AND ADMINISTRATIVE EXPENSES | 3,339,954 | 3,348,112 | 5,137,741 | |||||||||
STOCK BASED COMPENSATION | - | - | 10,360,000 | |||||||||
TOTAL OPERATING EXPENSES | 4,874,154 | 4,282,335 | 16,763,766 | |||||||||
INCOME (LOSS) FROM OPERATIONS | (1,035,339) | 596,082 | (13,162,324) | |||||||||
OTHER INCOME (EXPENSES): | ||||||||||||
INTEREST INCOME | 92,834 | 197,763 | 31,582 | |||||||||
INVESTMENT LOSS | - | (1,607,537) | (2,402,376) | |||||||||
OTHER INCOME (EXPENSES) | (8,155) | (13,377) | 92,358 | |||||||||
LOSS BEFORE INCOME TAXES | (950,660) | (827,069) | (15,440,760) | |||||||||
PROVISION FOR INCOME TAXES | 503,524 | (41,363) | 394,541 | |||||||||
NET LOSS FROM CONTINUING OPERATIONS | (1,454,184) | (785,706) | (15,835,301) | |||||||||
NET LOSS FROM DISCONTINUED OPERATIONS, | (4,103,718) | (3,448,536) | (5,303,476) | |||||||||
GAIN OF DIVESTITURE JIUXIN INVESTMENT | 15,757,753 | - | - | |||||||||
NET GAIN(LOSS) FROM DISCONTINUED | 11,654,035 | (3,448,536) | (5,303,476) | |||||||||
NET INCOME (LOSS) | 10,199,851 | (4,234,242) | (21,138,777) | |||||||||
LESS: NET LOSS ATTRIBUTABLE TO | 5,384 | (14) | (252) | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO | 10,194,467 | (4,234,228) | (21,138,525) | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO | (1,454,184) | (785,706) | (15,835,301) | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO | 11,648,651 | (3,448,522) | (5,303,224) | |||||||||
OTHER COMPREHENSIVE LOSS | ||||||||||||
FOREIGN CURRENCY TRANSLATION | (1,204,966) | (729,373) | (2,617,857) | |||||||||
COMPREHENSIVE INCOME (LOSS) | 8,994,885 | (4,963,615) | (23,756,634) | |||||||||
WEIGHTED AVERAGE NUMBER OF SHARES: | ||||||||||||
Basic | 5,543,118 | 1,444,263 | 509,828 | |||||||||
Diluted | 5,543,118 | 1,444,263 | 509,828 | |||||||||
INCOME (LOSS) PER SHARE: | ||||||||||||
Basic | $ | 1.84 | $ | (2.93) | $ | (41.46) | ||||||
Diluted | $ | 1.84 | $ | (2.93) | $ | (41.46) | ||||||
RIDGETECH, INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
For the years ended | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net loss | $ | 10,199,851 | $ | (4,234,242) | $ | (21,138,777) | ||||||
Adjustments to reconcile net loss to net cash used in | ||||||||||||
Depreciation and amortization | 1,137,240 | 790,449 | 718,002 | |||||||||
Bad debt direct write-off and provision and reversal | 85,642 | (249,257) | 7,579,886 | |||||||||
Amortization of right-of-use assets | 4,879,012 | 4,594,172 | - | |||||||||
Loss from disposal of property and equipment | - | 107,251 | - | |||||||||
Gain of divestiture Jiuxin Investment | (15,757,753) | - | - | |||||||||
Deferred tax expenses(benefits) | (29,822) | |||||||||||
Share-based compensation | - | - | 10,360,000 | |||||||||
Investment loss | - | 1,607,537 | 2,402,376 | |||||||||
Change in operating assets and liabilities: | ||||||||||||
Accounts receivable | 10,040,414 | (1,804,440) | (2,531,755) | |||||||||
Notes receivable | (29,271) | 19,943 | (20,861) | |||||||||
Inventories and biological assets | 405,822 | (1,699,621) | (522,550) | |||||||||
Other receivables | (11,758,658) | (672,830) | (958,671) | |||||||||
Advances to suppliers | (341,702) | (839,221) | 201,984 | |||||||||
Long term deposit | (1,361,613) | (132,568) | 589,653 | |||||||||
Other current assets | - | 19,076 | 331,426 | |||||||||
Other noncurrent assets | (359,114) | 69,539 | (30,483) | |||||||||
Amount due from related parties | - | (317,828) | - | |||||||||
Accounts payable | (21,128,762) | 6,002,186 | 1,765,488 | |||||||||
Other payables and accrued liabilities | 28,752,570 | 868,975 | (1,426,829) | |||||||||
Customer deposits | (162,940) | (144,761) | (1,035,456) | |||||||||
Taxes payable | 1,314,644 | (948,277) | 433,054 | |||||||||
Operating lease liabilities | (4,637,790) | (6,191,522) | - | |||||||||
Net cash provided by (used in) operating activities | 1,247,770 | (3,155,439) | (3,283,513) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Acquisition of equipment and building | (155,360) | (330,677) | (118,272) | |||||||||
Investment in a joint venture | - | (1,116,212) | (4,379) | |||||||||
Purchases of intangible assets | - | (66,973) | (12,774) | |||||||||
Additions to leasehold improvements | (459,907) | (525,988) | (180,672) | |||||||||
Acquisition of Ridgeline, net of cash acquired | 4,833,439 | - | - | |||||||||
Divestiture Jiuxin Investment, net of cash disposed | (22,353,250) | - | - | |||||||||
Net cash used in investing activities | (18,135,078) | (2,039,850) | (316,097) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from short-term bank loan | - | 1,116,212 | - | |||||||||
Repayment of short-term bank loan | (277,266) | (837,159) | - | |||||||||
Repayment of third parties loan | - | - | (1,811,558) | |||||||||
Proceeds from notes payable | 51,689,531 | 56,875,403 | 57,965,013 | |||||||||
Repayment of notes payable | (56,365,693) | (52,997,171) | (60,273,598) | |||||||||
Proceeds from issuance of shares and warrants in private | 7,633,000 | 2,589,600 | 7,325,000 | |||||||||
Proceeds from other payable-related parties | 325,784 | 1,257,406 | 43,785 | |||||||||
Repayment of other payable-related parties | (1,499,764) | - | (882,486) | |||||||||
Net cash provided by financing activities | 1,505,592 | 8,004,291 | 2,366,156 | |||||||||
EFFECT OF EXCHANGE RATE ON CASH | 1,048,620 | (1,505,475) | (2,535,479) | |||||||||
DECREASE (INCREASE) IN CASH AND CASH | (14,333,096) | 1,303,527 | (3,768,933) | |||||||||
CASH AND CASH EQUIVALENTS AND | 32,874,171 | 31,570,644 | 35,339,577 | |||||||||
CASH AND CASH EQUIVALENTS AND | $ | 18,541,075 | $ | 32,874,171 | $ | 31,570,644 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW | ||||||||||||
Cash paid for income taxes | $ | 137,456 | $ | 149,023 | $ | 63,668 | ||||||
Cash paid for interest | 6,289 | 13,604 | 64,943 | |||||||||
NON-CASH ACTIVITIES： | ||||||||||||
Cashless exercise of warrants | $ | - | $ | - | $ | 135,118 | ||||||
Issuance of shares for acquisition of subsidiaries | 3,582,250 | - | - | |||||||||
Cancellation of shares for disposal of subsidiaries | 4,102,848 | - | - | |||||||||
(a) | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
View original content:https://www.prnewswire.com/news-releases/ridgetech-inc-reports-fiscal-year-2025-financial-results-302514671.html
SOURCE Ridgetech, Inc.
FAQ
What were Ridgetech's (RDGT) key financial results for fiscal year 2025?
How did Ridgetech's strategic transformation affect its business in FY 2025?
What caused RDGT's operating loss in fiscal year 2025?
How did Ridgetech's cash flow perform in FY 2025?
What is the outlook for Ridgetech following its strategic transformation?
