CCSC Technology International Holdings Limited Reports Financial Results for Fiscal Year 2024
July 22, 2024

CCSC Technology International Holdings Limited Reports Financial Results for Fiscal Year 2024

HONG KONG, July 22, 2024 /PRNewswire/ — CCSC Technology International Holdings Limited (the “Company” or “CCSC”) (Nasdaq: CCTG), a Hong Kong-based company that engages in the sale, design and manufacturing of interconnect products, including connectors, cables and wire harnesses, today announced its financial results for the fiscal year ended March 31, 2024.

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 Republic of Serbia in second half of 2024. We believe that this strategic expansion, if and when it is established, will support our business by driving long-term growth.”

“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 $14.7 million for fiscal year 2024, compared to $24.1 million for fiscal year 2023.

Gross profit was $3.9 million for fiscal year 2024, compared to $7.9 million for fiscal year 2023.

Loss from operations was $1.8 million for fiscal year 2024, compared to income from operations of $1.8 million for fiscal year 2023.

Net loss was $1.3 million for fiscal year 2024, compared to net income of $2.2 million for fiscal year 2023.

Basic and diluted loss per share was $0.13 for fiscal year 2024, compared to basic and diluted earnings per share of $0.22 for fiscal year 2023.

Fiscal Year 2024 Financial Results

Revenue

Total revenue was $14.7 million for fiscal year 2024, which decreased by 38.7% from $24.1 million for fiscal year 2023.

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 38.7%, to $13.6 million for fiscal year 2024, from $22.2 million for fiscal year 2023. Revenue generated from connectors decreased by 39.3%, to $1.1 million for fiscal year 2024, from $1.8 million for fiscal year 2023.

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

%

Europe

8.5

57.8

%

15.0

62.5

%

(6.5)

(43.3)

%

Asia

4.8

32.8

%

7.4

30.9

%

(2.6)

(34.9)

%

Americas

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 Europe decreased by 43.3%, to $8.5 million for fiscal year 2024, from $15.0 million for fiscal year 2023. The decrease was primarily due to the decrease of sales in Denmark, Hungary and Bulgaria, which was partially offset by the increase of sales in Italy.

Revenue generated from Asia decreased by 34.9%, to $4.8 million for fiscal year 2024, from $7.4 million for fiscal year 2023. The decrease was primarily due to sales decreases in China of $1.6 million, and sales decreases in the Association of Southeast Asian Nations, or ASEAN, of $1.0 million.

Revenue generated from the Americas decreased by 12.4%, to $1.4 million for fiscal year 2024, from $1.6 million for fiscal year 2023. The decrease was primarily due to the sales decrease in North America of $0.2 million.

Cost of Revenue

Cost of revenue decreased by 33.1%, to $10.8 million for fiscal year 2024, from $16.2 million for fiscal year 2023, which was in line with the decrease of total revenue.

Inventory costs amounted to $7.3 million for fiscal year 2024, compared to $12.1 million for fiscal year 2023. The decrease of inventory costs was primarily due to a 44.1% decrease in the total sales volume, which was partially offset by an 8.5% increase in the inventory cost per unit.

Labor costs amounted to $2.5 million for fiscal year 2024, compared to $2.9 million for fiscal year 2023. The decrease of labor costs was primarily because we reduced the number of manufacturing employees.

Gross Profit and Gross Margin

Gross profit decreased by 50.1%, to $3.9 million for fiscal year 2024, from $7.9 million for fiscal year 2023.

Gross profit margin decreased by 6.1%, to 26.6% for fiscal year 2024, from 32.7% for fiscal year 2023.

Operating Expenses

Operating expenses decreased by 5.1%, to $5.8 million for fiscal year 2024, from $6.1 million for fiscal year 2023. The expense reduction was mainly due to the decline in selling expenses and research and development expenses. The decrease was partially offset by the increase in the general and administrative expenses.

Other Income

Other income decreased to $0.5 million for fiscal year 2024, from $0.7 million for fiscal year 2023.

Net (Loss)/Income

Net income decreased by 158.7%, to net loss of $1.3 million for fiscal year 2024, from net income of $2.2 million for fiscal year 2023.

Basic and Diluted (Loss)/Earnings per Share

Basic and diluted loss per share was $0.13 for fiscal year 2024, compared to earnings per share of $0.22 for fiscal year 2023.

About CCSC Technology International Holdings Limited

CCSC Technology International Holdings Limited, is a Hong Kong-based company that engages in the sale, design and manufacturing of interconnect products. The Company specializes in customized interconnect products, including connectors, cables and wire harnesses that are used for a range of applications in a diversified set of industries, including industrial, automotive, robotics, medical equipment, computer, network and telecommunication, and consumer products. The Company produces both OEM (“original equipment manufacturer”) and ODM (“original design manufacture”) interconnect products for manufacturing companies that produce end products, as well as electronic manufacturing services (“EMS”) companies that procure and assemble products on behalf of such manufacturing companies. The Company has a diversified global customer base located in more than 25 countries throughout Asia, Europe and the Americas. For more information, please visit the Company’s website: http://ir.ccsc-interconnect.com.

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 U.S. Securities and Exchange Commission.

For more information, please contact:

CCSC Technology International Holdings Limited

Investor Relations Department
Email: [email protected]

Ascent Investor Relations LLC

Tina Xiao
Phone: +1-646-932-7242
Email: [email protected]

 

 

 

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 US$0.0005 per share; 100,000,000 shares
authorized, 11,581,250 and 10,000,000 shares issued and outstanding as of
March 31, 2024 and 2023)

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
by operating activities:

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
of US$1.65 million

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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