Texxon Holding Limited Announces Financial Results for Fiscal Year 2025 | NPT Stock News

, /PRNewswire/ --Texxon Holding Limited (Nasdaq: NPT) (the "Company" or "Texxon"), a leading provider of supply chain management services in the plastics and chemical industries in East China, today announced its financial results for the fiscal year endedJune30, 2025. Mr.Hui Xu, Chief Executive Officer and Chairman of Texxon, commented: "We are pleased to report strong results for the fiscal year ended June 30, 2025. To align with evolving market conditions and the broader industry environment, we implemented a strategic shift in our sales and marketing efforts toward high-growth sectors such as automotive, new energy, and chemical industries. Leveraging our core strengths in basic chemicals and plastic particles, we expanded our sales team to further broaden our customer base, market coverage, and penetration across China." "The refinement of our basic chemical product portfolio contributed to an improved average selling price. Our plastic particle sales surged as sales volume increased in response to increased demand, driven by their expanded application in new fields such as automotive, new energy and chemical industries, despite a decline in selling prices. Collectively, these initiatives drove an 18.5% increase in overall revenue, highlighted by an 88.5% surge in plastic-particle sales, while basic-chemical sales slightly grew 1.5%." "We prioritized business scale and long-term customer relationships over short-term margin gains. While this strategy temporarily compressed gross margin and profit, we believe it will strengthen customer retention, stabilize cash flows, and support sustainable profitability over the long term." "We are accelerating the construction of a factory to manufacture polystyrene, including production lines, storage facilities, and supporting infrastructure, located inHenan Province, China(the "Henan Polystyrene Factory"), which is scheduled to begin production in the fourth quarter of 2025. Once operational, we expect it will enable us to better meet market demand and capture higher margins amid potential shortages in chemical and plastic raw materials." "Looking ahead, we remain committed to achieving profitable growth through enhanced operational efficiency, deeper customer relationships, and disciplined product portfolio and pricing strategies. We believe, these initiatives will support long-term shareholder value and position Texxon for continued growth in an increasingly dynamic market." Fiscal Year 2025 Financial Summary Revenue was$797.15 millionfor fiscal year 2025, representing an increase of 18.5% from$672.66 millionfor fiscal year 2024. Gross profit was$4.70 millionfor fiscal year 2025, compared to$4.82 millionfor fiscal year 2024. Gross profit margin was 0.6% for fiscal year 2025, compared to 0.7% for fiscal year 2024. Net loss was$1.45 millionfor fiscal year 2025, compared to net income of$2.51 millionfor fiscal year 2024. Net loss attributable to Texxon was$0.93 millionfor fiscal year 2025, compared to net income attributable to Texxon of$0.95 millionfor fiscal year 2024. Basic and diluted losses per share were$0.05for fiscal year 2025, compared tobasic and diluted earnings per share of $0.05for fiscal year 2024. Fiscal Year 2025 Financial Results Revenue Revenue was$797.15 millionfor fiscal year 2025, representing an increase of 18.5% from$672.66 millionfor fiscal year 2024. (($ millions, except for percentages) For the Fiscal Year Ended June30, Change In million 2025 % 2024 % $ % Revenue: Basic chemicals $ 524.64 65.8 % $ 517.03 76.9 % $ 7.61 1.5 % Plastic particles 272.39 34.2 % 144.50 21.5 % 127.89 88.5 % Other products 0.12 0.0 % 11.13 1.6 % (11.02) (98.9) % Total revenue $ 797.15 100 % $ 672.66 100 % $ 124.49 18.5 % Sales of basic chemicals were$524.64 millionfor fiscal year 2025, representing an increase of 1.5% from$517.03 millionfor fiscal year 2024. The increase was primarily attributable to an increase in average sales price. Sales of plastic particles were$272.39 millionfor fiscal year 2025, representing an increase of 88.5% from$144.50 millionfor fiscal year 2024. The increase was primarily attributable to an increase in sales volume. Sales of other products were$0.12 millionfor fiscal year 2025, compared to$11.13 millionfor fiscal year 2024. The decrease in revenue was primarily attributable to no sales of black metal for the fiscal year 2025, which had contributed approximately $11.0 million revenue from sales of other products for the fiscal year 2024. Cost of Sales Cost of sales was$792.45 millionfor fiscal year 2025, representing an increase of 18.7% from$667.85 millionfor fiscal year 2024. The increase in cost of sales was largely attributable to the increase in the Company'ssales volume of plastic particles by approximately 188.7 thousand tons, or 138.3%. The increase in cost of sales is in line with the increase in revenue. Gross Profitand Gross Profit Margin Gross profit was$4.70 millionfor fiscal year 2025, compared to$4.82 millionfor fiscal year 2024. Gross profit margin was 0.6% for fiscal year 2025, compared to 0.7% for fiscal year 2024. Gross profit and gross margin decreased primarily due to the Company's strategic shift toward serving major customers, to whom the Company offered more competitive pricing. The Company prioritized expanding business scale and strengthening long-term customer relationships over pursuing short-term high-margin transactions. This strategy temporarily reduced gross margin but is expected to enhance customer retention, stabilize cash flows, and support sustainable profitability growth in the long term. Operating Expenses Operating expenses were$5.30 millionfor fiscal year 2025, representing an increase of 27.5% from$4.16 millionfor fiscal year 2024. Selling expenses were$2.41 millionfor fiscal year 2025, representing an increase of 21.2% from$1.99 millionfor fiscal year 2024. The increase in selling expenses was mainly due to (i) salary and welfare benefit expenses increased by approximately $0.3million mainly due to the addition of marketing personnel to support the Company's business expansion and higher commissions and bonuses paid to sales staff in connection with the increase in sales; (ii) shipping and delivery expenses increased by approximately $0.1million, or 7.2%, from approximately $1.0million for the fiscal year 2024 to approximately $1.1million for the fiscal year 2025. This increase was primarily due to an increase in sales volume and increased use of third-party shipping services for the sale of plastic particles. The total sales volume of plastic particles increased by 189 thousand tons, or 138.8%, from 136.0 thousand tons for the fiscal year 2024 to 324.8 thousand tons for the fiscal year 2025. General and administrative expenses were$2.89 millionfor fiscal year 2025, representing an increase of 33.3% from$2.17 millionfor fiscal year 2024. The increase was mainly due to (i) an expected credit loss of approximately $0.7 million for the fiscal year 2025, compared to $1,385 of credit loss recovered for the fiscal year 2024, primarily due to full credit losses established against specific customer receivables following assessment of credit deterioration; and (ii) an increase in salary and welfare benefit expenses of approximately $0.1 million due to an increase in personnel in general and administrative department, (iii) an increase in depreciation and amortization expenses of approximately $0.1 million, partially offset by (iv) a decrease in professional services fee of approximately $0.2 million. Other expenses were$1.37 millionfor fiscal year 2025, compared toother income of $2.57 millionfor fiscal year 2024. The decrease was primarily attributable to one-time government grants of approximately $2.9million received in connection with the construction of Henan Polystyrene Factory, which are recognized as a reduction of the cost of construction in progress rather than as other income. Net Income (loss) Net loss was$1.45 millionfor fiscal year 2025, compared to net income of$2.51 millionfor fiscal year 2024. Net loss attributable to Texxon was$0.93 millionfor fiscal year 2025, compared to net income attributable to Texxon of$0.95 millionfor fiscal year 2024. Basic and Diluted Earnings (losses) per Share Basic and diluted losses per share were$0.05for fiscal year 2025, compared tobasic and diluted earnings per share of $0.05for fiscal year 2024. Financial Condition As ofJune30, 2025, the Company had cash and cash equivalents of$2.52 million, an increase from$0.27 millionas ofJune30, 2024. Net cash provided by operating activities was$2.32 millionfor fiscal year 2025, compared tonet cash used in operating activities of $30.80 millionfor fiscal year 2024. Net cash used in investing activities was$42.25 millionfor fiscal year 2025, compared to $11.02 millionfor fiscal year 2024. Net cash provided by financing activities was$41.36 millionfor fiscal year 2025, compared to$29.36 millionfor fiscal year 2024. Recent Development OnOctober 23, 2025, the Company completed its initial public offering (the "Offering") of 1,900,000 ordinary shares at a public price ofUS$5.00per share. OnOctober 28, 2025, the underwriters of the Offering fully exercised their over-allotment option to purchase an additional 285,000 ordinary shares of the Company at the public offering price ofUS$5.00per share. The gross proceeds wereUS$10,925,000from the Offering, before deducting underwriting discounts and commissions, and other expenses. The Company's ordinary shares began trading on the Nasdaq Capital Market onOctober 22, 2025, under the ticker symbol "NPT." 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 technology-enabled platform, the Company provides a full spectrum of services to Chinese 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: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") 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 atwww.sec.gov. For more information, please contact: Texxon Holding Limited Investor Relations DepartmentEmail:ir@totrade.cn Ascent Investor Relations LLCTina XiaoPhone: +1-646-932-7242Email:investors@ascent-ir.com TEXXON HOLDING LIMITED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF JUNE30, 2025 AND2024 (EXPRESSED IN U.S.DOLLARS) June30, 2025 June30, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,517,577 $ 272,895 Restricted cash 562 785,105 Accounts receivable, net 7,522,465 11,094,702 Note receivables - 1,885,183 Advanced to suppliers 2,675,445 1,632,975 Inventories 973,644 873,720 Loan to a related party 153,554 151,365 Prepayments and other current assets 6,918,026 1,353,457 TOTAL CURRENT ASSETS 20,761,273 18,049,402 NON-CURRENT ASSETS: Property, plant and equipment, net 84,623,119 23,363,352 Intangible assets, net 6,164,781 6,207,309 Prepayments for long-term assets 24,522,149 39,307,235 Deferred offering costs 634,978 538,584 Equity investment 2,261,433 2,229,194 TOTAL NON-CURRENT ASSETS 118,206,460 71,645,674 TOTAL ASSETS $ 138,967,733 $ 89,695,076 LIABILITIES CURRENT LIABILITIES: Short-term borrowings $ 20,624,062 $ 25,788,560 Accounts payable 763,343 1,294,480 Contract liabilities 2,272,179 637,537 Accrued expenses and other current liabilities 19,258,940 9,790,325 Due to related parties 29,826,131 19,807,637 TOTAL CURRENT LIABILITIES 72,744,655 57,318,539 NON-CURRENT LIABILITIES: Long-term borrowings 32,175,020 - TOTAL LIABILITIES $ 104,919,675 $ 57,318,539 Commitments and contingencies (Note16) SHAREHOLDERS' EQUITY (DEFICIT): Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 20,000,000 and 20,000,000 shares issued and outstanding as of June30, 2025 and 2024, respectively.* 2,000 2,000 Additional paid-in capital* 777,992 777,992 Accumulated deficit (4,316,467) (3,383,846) Accumulated other comprehensive loss (275,578) (245,500) SHAREHOLDERS' DEFICIT ATTRIBUTABLE TO TEXXON HOLDING LIMITED (3,812,053) (2,849,354) Non-controlling interests 37,860,111 35,225,891 TOTAL EQUITY 34,048,058 32,376,537 TOTAL LIABILITIES AND EQUITY $ 138,967,733 89,695,076 * Shares presented on a retroactive basis to reflect the reorganization. TEXXON HOLDING LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) FOR THE FISCAL YEARS ENDED JUNE30, 2025, 2024 AND2023 (EXPRESSED IN U.S.DOLLARS) For the Fiscal Year ended June30, 2025 2024 2023 REVENUE Sales revenue generated from third parties $ 797,148,640 $ 672,662,697 $ 549,879,053 Sales revenue generated from related parties - - 2,647,129 Total revenue 797,148,640 672,662,697 552,526,182 COST OF SALES Cost of sales charged by third parties (789,783,093) (662,621,392) (541,218,715) Cost of sales charged by related parties (2,015,752) (4,987,246) (7,569,836) Tax and surcharges (649,245) (236,983) (204,138) Total cost of sales (792,448,090) (667,845,621) (548,992,689) GROSS PROFIT 4,700,550 4,817,076 3,533,493 OPERATING EXPENSES Selling and marketing expenses (2,413,149) (1,990,991) (996,638) General and administrative expenses (2,888,047) (2,166,116) (1,282,757) Total operating expenses (5,301,196) (4,157,107) (2,279,395) (LOSS) INCOME FROM OPERATIONS $ (600,646) $ 659,969 $ 1,254,098 OTHER INCOME (EXPENSES): Interest (expenses) income, net (408,843) (470,288) 197,428 Interest income–related parties - 34,922 592,581 Other income, net 55,680 105,603 86,585 Government grants 216,574 2,896,219 - Total other income (expenses), net (136,589) 2,566,456 876,594 INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (737,235) 3,226,425 2,130,692 INCOME TAXES EXPENSES (716,897) (716,782) (42,998) NET INCOME (LOSS) (1,454,132) 2,509,643 2,087,694 Less: net income (loss) attributable to non-controlling interest (521,511) 1,556,083 65,542 NET INCOME (LOSS) ATTRIBUTABLE TO TEXXON HOLDING LIMITED (932,621) 953,560 2,022,152 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation income (loss) 469,036 1,218,751 (1,502,270) TOTAL COMPREHENSIVE INCOME (LOSS) $ (985,096) $ 3,728,394 $ 585,424 Less: comprehensive income (loss) attributable to non-controlling interests (22,397) 1,528,622 (471,406) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO TEXXONHOLDING LIMITED (962,699) 2,199,772 1,056,830 BASIC AND DILUTED EARNINGS (LOSS) PER SHARE: Net income (loss) attributable to Texxon Holding Limited per share Basic and diluted $ (0.05) $ 0.05 $ 0.10 Weighted average shares outstanding used in calculating basic and diluted income per share* Basic and diluted 20,000,000 20,000,000 20,000,000 * Shares presented on a retroactive basis to reflect the reorganization. TEXXON HOLDING LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE FISCAL YEARS ENDED JUNE30, 2025, 2024 AND2023 (EXPRESSED IN U.S.DOLLARS) For the fiscal year ended June30, 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (1,454,132) $ 2,509,643 $ 2,087,694 Adjustments to reconcile net income to net cash providedby (used in) operating activities: Depreciation and amortization 288,072 332,728 251,081 Interest income from a related party - (34,922) (592,581) Allowance (recovery) for credit losses 720,054 (1,385) (220,339) Loss on disposal of property, plant and equipment - - 50,236 Changes in operating assets and liabilities: Accounts receivable 2,986,453 (7,512,856) 3,711,146 Notes receivable 1,899,032 (1,896,246) - Inventories (86,676) (466,902) (358,965) Advanced to suppliers (1,011,848) 147,725 (1,447,491) Prepayments and other current assets (3,315,341) (559,757) 117,283 Notes payable - (13,828,757) (24,696,655) Accounts payable (546,002) (10,429,603) 4,486,026 Accrued expenses and other current liabilities 1,231,325 1,902,256 1,389,576 Contract liabilities 1,614,022 (957,134) 1,043,235 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 2,324,959 (30,795,210) (14,179,754) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of plant, property and equipment (45,103,546) (33,338,925) (22,615,531) Purchase of intangible assets - (6,805) (6,683,817) Payments made for loans to related parties - (152,253) (11,931,168) Government grant received in connection with the construction of plant, property and equipment 2,853,622 - - Loan repayment from a related party - 22,478,306 - NET CASH USED IN INVESTING ACTIVITIES (42,249,924) (11,019,677) (41,230,516) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from short-term borrowings 154,521,737 141,956,726 22,969,397 Proceeds from long-term borrowings 30,105,666 - - Repayment of short-term borrowings (154,473,136) (127,367,676) (12,327,428) Capital contribution from non-controlling interests 2,647,556 9,254,357 18,260,003 Financing cost paid for the syndicated loan (1,011,893) - - Withdrawal of capital by non-controlling interests - (1,460,814) - Capital contribution from shareholder - - 1,405,778 Payments made to shareholders to acquire Net Plastic Technologyfor the Reorganization - (12,226,342) - Proceeds from related parties 9,663,775 19,747,892 106,062 Payments made for deferred offering costs (93,243) (539,639) - NET CASH PROVIDED BY FINANCING ACTIVITIES 41,360,462 29,364,504 30,413,812 EFFECT OF EXCHANGE RATE CHANGE ON CASH, CASHEQUIVALENTS AND RESTRICTED CASH 24,642 1,326,240 (1,559,510) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 1,460,139 (11,124,143) (26,555,968) CASH, CASH EQUIVALENTS AND RESTRICTED CASH–beginning of year 1,058,000 12,182,143 38,738,111 CASH, CASH EQUIVALENTS AND RESTRICTED CASH–end of year $ 2,518,139 $ 1,058,000 $ 12,182,143 SUPPLEMENTAL CASH FLOW DISCLOSURES: Cash paid for income taxes (10,202) (432) (785) Cash paid for interest (1,942,702) (549,534) (361,912) Cash received from interest income 1,845 226,831 508,742 SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: Payable related to purchase of property, plant, and equipment 5,318,449 6,069,298 1,385,669 Prepayment for long-term assets transferred to property, plant and equipment 19,262,697 4,516,656 - Convertible loan transfer to other payables - Interest receivable accrued related to loan to a related party - 34,922 592,581 Cash and cash equivalents 2,517,577 272,895 1,328,917 Restricted cash 562 785,105 10,853,226 Total cash, cash equivalents and restricted cash 2,518,139 1,058,000 12,182,143 SOURCE Texxon Holding Limited