CCSC Technology International Holdings Limited Reports Financial Results for Fiscal Year 2024
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.
CCSC Technology International Holdings (Nasdaq: CCTG) ha riportato i risultati finanziari per l'anno fiscale 2024. Il fatturato è diminuito del 38,7% a 14,7 milioni di dollari, rispetto ai 24,1 milioni di dollari dell'anno fiscale 2023. Il profitto lordo è calato del 50,1% a 3,9 milioni di dollari, con un margine lordo che scende al 26,6%. L'azienda ha registrato una perdita netta di 1,3 milioni di dollari, rispetto a un utile netto di 2,2 milioni di dollari dell'anno precedente.
Nonostante le difficoltà, CCSC ha messo in evidenza iniziative strategiche, tra cui l'elenco su Nasdaq nel gennaio 2024, un accordo di cooperazione con Innogetic International per esplorare applicazioni di intelligenza artificiale nella produzione e piani per un centro di gestione della supply chain in Europa in Serbia. L'azienda rimane focalizzata su innovazione, efficienze operative e espansione del mercato per stimolare la crescita futura.
CCSC Technology International Holdings (Nasdaq: CCTG) informó los resultados financieros para el año fiscal 2024. Los ingresos disminuyeron un 38,7% a 14,7 millones de dólares, en comparación con 24,1 millones de dólares en el año fiscal 2023. La utilidad bruta cayó un 50,1% a 3,9 millones de dólares, con un margen bruto que disminuyó al 26,6%. La compañía reportó una pérdida neta de 1,3 millones de dólares, en comparación con una utilidad neta de 2,2 millones de dólares el año anterior.
A pesar de los desafíos, CCSC destacó iniciativas estratégicas, incluyendo su inclusión en Nasdaq en enero de 2024, un acuerdo de cooperación con Innogetic International para explorar aplicaciones de IA en la fabricación y planes para un centro de gestión de cadena de suministro en Europa en Serbia. La empresa continúa enfocándose en la innovación, la eficiencia operativa y la expansión del mercado para impulsar el crecimiento futuro.
CCSC Technology International Holdings (Nasdaq: CCTG)는 2024 회계 연도 재무 결과를 보고했습니다. 매출은 38.7% 감소하여 1,470만 달러에 이르렀고, 이는 2023 회계 연도의 2,410만 달러와 비교됩니다. 총 이익은 50.1% 감소하여 390만 달러에 이르렀고, 총 마진은 26.6%로 떨어졌습니다. 회사는 130만 달러의 순손실을 기록했습니다, 이는 이전 해의 순이익 220만 달러와 비교됩니다.
CCSC는 도전에도 불구하고 2024년 1월 나스닥 상장, 제조업에서 AI 응용을 탐색하기 위해 Innogetic International과 협력 계약 체결, 세르비아에 유럽 공급망 관리 센터를 설립할 계획 등 전략적 이니셔티브를 강조했습니다. 회사는 혁신, 운영 효율성 및 시장 확대에 주력하여 미래 성장을 이끌어가고 있습니다.
CCSC Technology International Holdings (Nasdaq: CCTG) a publié ses résultats financiers pour l'exercice fiscal 2024. Le chiffre d'affaires a diminué de 38,7% pour atteindre 14,7 millions de dollars, par rapport à 24,1 millions de dollars pour l'exercice 2023. Le bénéfice brut a chuté de 50,1% à 3,9 millions de dollars, avec une marge brute passant à 26,6%. L'entreprise a enregistré une perte nette de 1,3 million de dollars, comparativement à un bénéfice net de 2,2 millions de dollars l'année précédente.
Malgré les défis, CCSC a souligné des initiatives stratégiques, y compris son inscription sur Nasdaq en janvier 2024, un accord de coopération avec Innogetic International pour explorer les applications d'IA dans la fabrication, et des projets pour un centre de gestion de la chaîne d'approvisionnement en Europe en Serbie. L'entreprise reste concentrée sur l'innovation, l'efficacité opérationnelle et l'expansion du marché pour stimuler sa croissance future.
CCSC Technology International Holdings (Nasdaq: CCTG) hat die finanziellen Ergebnisse für das Geschäftsjahr 2024 bekannt gegeben. Der Umsatz sank um 38,7% auf 14,7 Millionen Dollar, verglichen mit 24,1 Millionen Dollar im Geschäftsjahr 2023. Der Bruttogewinn fiel um 50,1% auf 3,9 Millionen Dollar, und die Bruttomarge verringerte sich auf 26,6%. Das Unternehmen verzeichnete einen Nettoverlust von 1,3 Millionen Dollar, verglichen mit einem Nettoergebnis von 2,2 Millionen Dollar im Vorjahr.
Trotz der Herausforderungen hob CCSC strategische Initiativen hervor, einschließlich der Nasdaq-Listung im Januar 2024, einer Kooperationsvereinbarung mit Innogetic International zur Erkundung von KI-Anwendungen in der Fertigung sowie Plänen für ein europäisches Supply-Chain-Management-Zentrum in Serbien. Das Unternehmen bleibt fokussiert auf Innovation, operative Effizienz und Markterweiterung, um zukünftiges Wachstum voranzutreiben.
- 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
- 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
for fiscal year 2024, compared to$14.7 million for fiscal year 2023.$24.1 million - Gross profit was
for fiscal year 2024, compared to$3.9 million for fiscal year 2023.$7.9 million - Loss from operations was
for fiscal year 2024, compared to income from operations of$1.8 million for fiscal year 2023.$1.8 million - Net loss was
for fiscal year 2024, compared to net income of$1.3 million for fiscal year 2023.$2.2 million - Basic and diluted loss per share was
for fiscal year 2024, compared to basic and diluted earnings per share of$0.13 for fiscal year 2023.$0.22
Fiscal Year 2024 Financial Results
Revenue
Total revenue was
The following table sets forth revenue by interconnect products:
For the years ended March 31, | Change | |||||||||||||||||||||||
($ 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
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