Summary of Addentax Group Corp.

Overview:

• Addentax Group Corp. is a Nevada holding company that conducts its operations primarily through its subsidiaries established in China. It is not a Chinese operating company itself.
• The company’s main business segments include:
  • Garment manufacturing
  • Logistics services
  • Property management and subleasing

Business Structure and Operations:

• Holding Company: Addentax Group Corp.
• Main Operating Subsidiaries in China:
  • Yingxi Industrial Chain Group Co., Ltd. (Seychelles)
  • Yingxi HK (Hong Kong-based)
  • Various PRC companies including:
    • Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd. (“YX”, WFOE)
    • Dongguan Heng Sheng Wei Garments Co., Ltd. (“HSW”)
    • Dongguan Yushang Clothing Co., Ltd (“YS”)
    • Shenzhen Yingxi Peng Fa Logistic Co., Ltd. (“PF”)
    • Shenzhen Xin Kuai Jie Transportation Co., Ltd (“XKJ”)
    • Dongguan Aotesi Garments Co., Ltd (“AOT”)
    • Dongguan Hongxiang Commercial Co., Ltd. (“HX”)

Business Segments:

1. Garment Manufacturing

• Produces garments primarily for high-end fashion brands.
• Operates 3 manufacturing subsidiaries in Guangdong.
• Employees: Approximately 112 employees as of March 31, 2025.
• Revenue: Contributed about $0.3 million (6.8% of total) in fiscal year 2025.
• Gross Profit (2025): Approximately $53,879.
• Gross profit margin: 19% in 2025, down from 27.7% in 2024.
• Cost of raw materials: About 49.6% of revenue in 2025 (significantly higher than 14.6% in 2024).
• Major costs include raw materials, labor, and overhead.

2. Logistics Services

• Provides delivery and courier services across 44 cities in 10 provinces in China.
• Uses in-house vehicles and outsources some delivery to contractors.
• Employees: Not specified, but operates through two subsidiaries.
• Revenue: Approximately $3.02 million (72.2% of total) in 2025.
• Gross Profit (2025): About $1.05 million.
• Gross profit margin: 34.8% in 2025; an improvement from 21.8% in 2024.
• Significant cost reductions from decreased subcontracting fees in 2025.

3. Property Management and Subleasing

• Provides shop subleasing and property management services in garment markets.
• Owns 56,238 square meters of floor space with ~1,300 shop spaces.
• The subsidiary HX was acquired in September 2023.
• Revenue: About $0.9 million in 2025, a 51.2% increase from 2024.
• Gross Profit (2025): Loss of approximately $0.5 million.
• Gross profit margin: Negative in 2025 due to high costs (about 53.5%).

Financial Highlights (2025 vs. 2024):

• Total Revenue: Decreased from $5.15 million in 2024 to $4.18 million in 2025 (down 18.9%).
• Net Income: Loss widened from $3.11 million in 2024 to $5.09 million in 2025.
• Loss from Operations: Increased to approximately $1.82 million in 2025 from $1.13 million in 2024.
• Gross Profit: Fell from $1.11 million (21.6%) in 2024 to $0.63 million (15.2%) in 2025.

Employees:

• Approximately 112 employees as of March 31, 2025.

Revenue Breakdown in 2025:

• Logistics: ~$3.02 million (72.2%)
• Garment manufacturing: ~$0.3 million (6.8%)
• Property management and subleasing: ~$0.9 million (21.0%)

Other Financial Notes:

• Total assets as of March 31, 2025: approximately $29.8 million.
• Current liabilities: approx. $4 million.
• Cash on hand: approx. $0.3 million.
• Restricted cash: approx. $2.8 million.
• No dividends paid in 2025; company does not currently plan to pay dividends.
• The company’s shares are traded on Nasdaq under the symbol ATXG.
• As of June 29, 2025, there were 10,090,963 shares outstanding.
• The company primarily conducts its business operations in China but is incorporated in Nevada, with investors not holding direct equity interests in Chinese operating companies.

Summary: Addentax Group Corp. is a US-listed holding company with operations mainly in China, focusing on garment manufacturing, logistics, and property management. It has approximately 112 employees, generated around $4.18 million in revenue in 2025, and reported a net loss of approximately $5.09 million for the year. The company’s operations are segmented, with logistics contributing the majority of revenue, while garment manufacturing and property management together contribute smaller portions.