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

Core Viewpoint - CCSC Technology International Holdings Limited reported a significant decline in financial performance for the fiscal year ended March 31, 2024, with total revenue dropping by 38.7% compared to the previous year, primarily due to decreased sales volume and average selling prices of products. Revenue Performance - Total revenue was $14.7 million for fiscal year 2024, down from $24.1 million in fiscal year 2023, representing a decrease of 38.7% [3][15]. - Revenue from cables and wire harnesses decreased by 38.7% to $13.6 million, while revenue from connectors fell by 39.3% to $1.1 million [16]. - Revenue by region showed a decline: Europe decreased by 43.3% to $8.5 million, Asia decreased by 34.9% to $4.8 million, and the Americas decreased by 12.4% to $1.4 million [7][17][18]. Profitability Metrics - Loss from operations was $1.8 million for fiscal year 2024, compared to income from operations of $1.8 million in fiscal year 2023 [4]. - Gross profit decreased by 50.1% to $3.9 million, with a gross profit margin of 26.6%, down from 32.7% in the previous year [9][20]. - Net loss was $1.3 million for fiscal year 2024, a significant decline from net income of $2.2 million in fiscal year 2023 [10][14]. Cost Structure - Cost of revenue decreased by 33.1% to $10.8 million, aligning with the decrease in total revenue [29]. - Labor costs amounted to $2.5 million, down from $2.9 million, primarily due to a reduction in manufacturing employees [8]. - Operating expenses decreased by 5.1% to $5.8 million, mainly due to declines in selling and research and development expenses [21]. Strategic Initiatives - The company is focused on adopting advanced technologies and enhancing client services, with plans for market expansion and product innovation [2]. - A strategic cooperation framework agreement with Innogetic International Limited was established in May 2024, aiming to explore AI applications in manufacturing [13]. - CCSC plans to commence construction of a new European supply chain management center in Serbia in the second half of 2024 [13].