Financial Performance - For the fiscal year ended June 30, 2025, total net sales decreased by $20,560,917, or 21.5%, to $75,284,871 from $95,845,788 for the fiscal year ended June 30, 2024[369]. - Jinong's net sales decreased by $4,151,469, or 12.6%, to $28,803,021, while Gufeng's net sales decreased by $15,640,115, or 30.0%, to $36,549,551 for the fiscal year ended June 30, 2025[370][371]. - Yuxing's net sales increased by $334,102, or 3.5%, to $9,750,553 for the fiscal year ended June 30, 2025, attributed to increased market demand[372]. - Gross profit for the fiscal year ended June 30, 2025 decreased by $2,612,198 to $17,109,782, with a gross profit margin of 22.7% compared to 20.6% for the fiscal year ended June 30, 2024[378]. - For the fiscal year ended June 30, 2025, Gufeng's gross profit was $4,582,302, a decrease of 30.5% from $6,589,283 in 2024, with a gross profit margin of approximately 12.5%[380]. - Yuxing's gross profit for the fiscal year ended June 30, 2025 was $1,692,944, a decrease of 5.8% from $1,599,885 in 2024, with a gross profit margin of approximately 17.4%[381]. - Antaeus reported a gross profit of $(34,027) for the fiscal year ended June 30, 2025, a decrease of 109.5% from $356,463 in 2024, resulting in a gross profit margin of approximately -18.7%[382]. - The net loss for the fiscal year ended June 30, 2025 was $(15,602,160), a decrease of 45.1% from $(28,405,315) in 2024, with net loss as a percentage of total net sales at approximately -20.7%[388]. Costs and Expenses - The total cost of goods sold for the fiscal year ended June 30, 2025 was $58,175,089, a decrease of $17,948,719, or 23.6%, from $76,123,808 for the fiscal year ended June 30, 2024[373]. - General and administrative expenses decreased by 40.1% to $24,430,435, or 32.5% of net sales, for the fiscal year ended June 30, 2025, compared to $40,779,553, or 42.5% in 2024[384]. - Total other expenses for the fiscal year ended June 30, 2025 were $897,017, a decrease of 2649.1% from total other income of $35,189 in 2024[385]. Sales and Distribution - As of June 30, 2025, the company had a total of 639 distributors covering 22 provinces in China, with Jinong's top five distributors accounting for 21.4% of its fertilizer revenues[361]. - The provinces of Hebei, Heilongjiang, Liaoning, Shaanxi, and Inner Mongolia accounted for approximately 65.2% of the company's manufactured fertilizer revenue for the fiscal year ended June 30, 2025[360]. - Jinong sold approximately 39,304 metric tons of fertilizer products, an increase of 5,831 metric tons or 17.4% compared to 33,474 metric tons in fiscal year 2024[370]. - Gufeng sold approximately 74,197 metric tons of fertilizer products, a decrease of 31,399 metric tons or 29.7% compared to 105,597 metric tons for fiscal year 2024[371]. Assets and Liabilities - As of June 30, 2025, cash and cash equivalents were $52,519,418, a decrease of 10.6% from $58,772,587 in 2024[395]. - Accounts receivable increased by 17.3% to $19,345,061 as of June 30, 2025, compared to $16,493,068 in 2024, primarily due to an increase in Jinong's accounts receivable[402]. - Inventories decreased by 2.3% to $36,975,287 as of June 30, 2025, compared to $37,826,456 in 2024, mainly due to a decrease in Gufeng's inventory[406]. - Accounts payable rose to $1,736,031 as of June 30, 2025, reflecting an increase of $50,307 or 3.0% from $1,685,725 as of June 30, 2024[408]. - Unearned revenue decreased to $4,526,024 as of June 30, 2025, down by $411,183 or 8.3% from $4,937,207 as of June 30, 2024, primarily due to Gufeng's decline in unearned revenue by $2,003,153 or 45.6%[409]. - Advances to suppliers increased to $12,367,419 as of June 30, 2025, up by $257,385 or 2.1% from $12,110,034 as of June 30, 2024[407]. - Short-term debt outstanding decreased to $4.7 million as of June 30, 2025, from $7.5 million as of June 30, 2024[426]. Risks and Concerns - The company has experienced higher credit risk since 2020, with increased overdue accounts receivable due to the impact of the COVID-19 pandemic[428]. - Inflationary pressures have led to higher operating costs, adversely affecting gross margins and selling, general, and administrative expenses[429]. - The company is exposed to risks from potential epidemics or pandemics, which may disrupt operations and affect demand for products[430]. - Management's assessment of going concern is critical due to recurring operating losses and negative cash flows, raising doubts about the company's ability to continue operations[413]. - The company has not entered into any hedging transactions to mitigate exposure to foreign exchange or interest rate risks[427]. - The company reported accumulated other comprehensive loss of $28.0 million as of June 30, 2025, due to foreign exchange risk from RMB fluctuations against the U.S. dollar[425].
CGA(CGA) - 2025 Q4 - Annual Report