Financial Performance - For the fiscal year ended June 30, 2025, the company's revenue increased by approximately $124.5 million, or 18.5%, reaching approximately $797.1 million compared to $672.7 million for the fiscal year ended June 30, 2024[461]. - The company's net loss for the fiscal year ended June 30, 2025 was approximately $1.5 million, a decrease of approximately $4.0 million, or 157.9%, from a net income of approximately $2.5 million for the fiscal year ended June 30, 2024[447]. - The company's gross profit for the fiscal year ended June 30, 2025 was approximately $4.7 million, a decrease of 2.4% from $4.8 million for the fiscal year ended June 30, 2024[460]. - Revenue from sales of plastic particles surged by 88.5%, increasing from $144.5 million in the fiscal year ended June 30, 2024 to $272.4 million in the fiscal year ended June 30, 2025[462]. - Revenue from sales of basic chemicals increased by approximately $7.6 million, or 1.5%, from approximately $517.0 million for the fiscal year ended June 30, 2024 to approximately $524.6 million for the fiscal year ended June 30, 2025[465]. - Revenue from sales of other products decreased by approximately $11.0 million, or 98.9%, from approximately $11.1 million for the fiscal year ended June 30, 2024 to approximately $0.1 million for the fiscal year ended June 30, 2025[469]. - Total revenue for the fiscal year ended June 30, 2025, was $797,148,640, representing a 18.6% increase from $672,662,697 in 2024[597]. - Revenue from basic chemicals was $524,640,932, accounting for 65.8% of total revenue, while plastic particles generated $272,389,920, or 34.2%[597]. Customer and Supplier Metrics - As of June 30, 2025, the company had 2,742 suppliers and 5,027 customers, an increase from 2,213 suppliers and 3,528 customers as of June 30, 2024[445]. - The company reported that one major customer accounted for approximately 59.2% of total revenue for the fiscal year ended June 30, 2025, compared to 13.8% for the same customer in the previous fiscal year[446]. Operating Expenses - The company's total operating expenses for the fiscal year ended June 30, 2025 were approximately $5.3 million, an increase of 27.5% from $4.2 million for the fiscal year ended June 30, 2024[460]. - Selling and marketing expenses increased by approximately $0.4 million, or 21.2%, from approximately $2.0 million for the fiscal year ended June 30, 2024 to approximately $2.4 million for the fiscal year ended June 30, 2025[484]. - General and administrative expenses increased by approximately $0.7 million, or 33.3%, from approximately $2.2 million for the fiscal year ended June 30, 2024 to approximately $2.9 million for the fiscal year ended June 30, 2025[486]. Cash Flow and Financing - For the fiscal year ended June 30, 2025, net cash provided by operating activities was approximately $2.3 million, an increase of about $33.1 million compared to the prior year[540][541]. - Net cash used in investing activities for the fiscal year ended June 30, 2025 amounted to approximately $42.2 million, primarily due to $45.1 million in investments for factory construction in Henan Province, China[544]. - Net cash provided by financing activities for the fiscal year ended June 30, 2025 was approximately $41.4 million, an increase of about $12.0 million compared to the previous year[546][547]. - The company had cash, cash equivalents, and restricted cash of $2,518,139 and $1,058,000 as of June 30, 2025, and 2024, respectively[531]. - The company reported a net cash decrease of approximately $11.1 million for the fiscal year ended June 30, 2024, compared to a decrease of approximately $26.6 million in the prior year[549]. Capital Expenditures and Commitments - Capital expenditures for the fiscal year ended June 30, 2025, were approximately $45.1 million, an increase from $33.3 million in 2024 and $29.3 million in 2023, primarily due to land use rights purchase and factory construction[569][570]. - Capital commitments related to construction in progress were approximately $21.5 million and $55.3 million as of June 30, 2025, and 2024, respectively[534]. Risk Management - The company is exposed to interest rate risk primarily through a $209,392 short-term loan and a $27,931,343 long-term syndicated loan, both of which have floating rates[582]. - The company performs ongoing credit evaluations to manage credit risk associated with accounts receivable, which is linked to revenue concentration[581]. - The company operates primarily in RMB, which is not freely convertible into foreign currencies, posing currency convertibility risks[579]. Revenue Recognition - The company recognizes revenue upon customer acceptance of goods, with all contracts being fixed price and historically low return rates[595]. - The company evaluates revenue recognition based on ASC 606, ensuring control of goods is transferred to customers before revenue is recognized[585]. - The company does not routinely allow product returns, with historical return allowance being immaterial[595].
Texxon(NPT) - 2025 Q4 - Annual Report