Addentax Group Corp.

What they do

Addentax was incorporated in Nevada in 2014 and acquired Yingxi Industrial Chain Group Co., Ltd. in 2017, which became its business. Continuing operations for the fiscal year ended March 31, 2026 consisted of garment manufacturing, logistics services and consulting services. Garment manufacturing is run through PRC subsidiaries YX and YS in Guangdong province, selling principally to wholesalers in the PRC; logistics is run through XKJ and PF, covering 45 cities in 10 provinces and 2 municipalities in China; consulting is run through Yingxi HK in Hong Kong, serving customers seeking overseas wealth planning and insurance-related information.

Revenue drivers

• Garment manufacturing — Sales made principally to wholesalers located in the PRC through wholly-owned subsidiaries YX and YS, which operate the company's own manufacturing facilities in Guangdong province. This is the core legacy business described in the 10-K and 10-Q.
• Logistics services — Delivery and courier services covering 45 cities in 10 provinces and 2 municipalities in China, conducted through XKJ and PF. The company owns motor vehicles and drivers but outsources some work to contractors to maximize capacity and reduce capital expenditures.
• Consulting services — Business consulting and coordination for customers seeking overseas wealth planning, insurance-related information and cross-border service support, delivered through Yingxi HK in Hong Kong. Services include customer consultation, appointment coordination, referral and liaison with third-party insurance brokers.
• Financing services (Time Is Loan) — Time Is Loan Limited, a licensed Hong Kong money lender acquired May 15, 2026, provides short-term personal loans and other consumer and commercial financing, with customers sourced through online advertising, social media, mobile applications and telephone marketing. Results are consolidated from the acquisition date.

Recent performance

Annual revenue declined from $12.7M in fiscal 2022 to $4.2M in fiscal 2025 before recovering to $5.4M in fiscal 2026. Net income was positive in fiscal 2022 ($77,998) and fiscal 2023 ($1.3M), then turned negative: $-3.1M in 2024, $-5.1M in 2025 and $-4.5M in 2026. Diluted EPS went from $0.04 in 2023 to $-12.75 in 2025 and $-6.27 in 2026. Operating cash flow was negative $603,603 in fiscal 2026 after positive $816,001 in fiscal 2025. Quarterly revenue has risen sequentially from $820,692 for the quarter ended September 30, 2025 to $975,823 in December 2025, $2.7M in March 2026 and $3.4M in June 2026.

Strategy

The stated primary objective for garment manufacturing is to expand the customer base and improve profit. Management describes future logistics plans involving new logistics points and outsourcing to contractors for capacity and flexibility. The company has been acquisitive: it completed the KMFG acquisition on March 30, 2026 and the Time Is Loan acquisition on May 15, 2026. KMFG operates an apparel and garment trading business and a digital publishing business through GW Reader Sdn. Bhd. in Malaysia, a mobile online fiction platform using a pay-per-chapter microtransaction model; as of June 30, 2026 its revenue contribution was not significant. It has also initiated divestiture of Shantou Yi Bai Yi Garment Co., Ltd., which has been excluded from consolidation since July 2024.

Risks

• Customer concentration in garment manufacturing — All garment manufacturing customers are garment wholesalers and retailers, so results depend directly on their end customers' demand and on consumer preferences the company cannot control.
• Holding company structure — Addentax is a Nevada holding company with no material operations of its own; investors hold no direct equity in the PRC operating companies, and Chinese regulatory authorities could disallow the structure, potentially making the securities worthless.
• PRC regulatory and policy uncertainty — PRC laws governing the company's operations are sometimes vague and uncertain, and the PRC government has initiated regulatory actions with little advance notice, including oversight of China-based companies listed overseas.
• Persistent losses and weak operating cash flow — The company reported net losses of $3.1M, $5.1M and $4.5M in fiscal 2024, 2025 and 2026, and operating cash flow was negative $603,603 in fiscal 2026.

Outlook

The 10-K and 10-Q do not quantify forward guidance; management describes expansion of the garment customer base, improvement of profit and development of new logistics points. Newly acquired KMFG is not presented as a separate reportable segment as of June 30, 2026, and management says it will monitor KMFG's operations and revenue contribution and reassess segment disclosure as necessary. Time Is Loan results are consolidated from May 15, 2026. The company cautions that forward-looking statements are subject to risks and uncertainties beyond its control and disclaims any obligation to revise them.