Texxon Holding Limited Announces Financial Results for Fiscal Year 2025

Core Insights - Texxon Holding Limited reported strong financial results for the fiscal year ended June 30, 2025, with a strategic shift towards high-growth sectors such as automotive, new energy, and chemicals, leading to an 18.5% increase in overall revenue [2][4]. Financial Performance - Revenue for fiscal year 2025 was $797.15 million, up 18.5% from $672.66 million in fiscal year 2024 [4][5]. - Gross profit was $4.70 million, slightly down from $4.82 million in fiscal year 2024, resulting in a gross profit margin of 0.6%, compared to 0.7% the previous year [5][9]. - The company reported a net loss of $1.45 million for fiscal year 2025, a decline from a net income of $2.51 million in fiscal year 2024 [5][14]. - Basic and diluted losses per share were $0.05 for fiscal year 2025, compared to earnings per share of $0.05 in fiscal year 2024 [15]. Revenue Breakdown - Sales of basic chemicals reached $524.64 million, a modest increase of 1.5% from $517.03 million in fiscal year 2024 [6][11]. - Sales of plastic particles surged to $272.39 million, an increase of 88.5% from $144.50 million in fiscal year 2024, driven by increased sales volume [6][11]. - Other products generated $0.12 million in revenue, a significant decrease from $11.13 million in fiscal year 2024, primarily due to no sales of black metal in fiscal year 2025 [11]. Cost and Expenses - Cost of sales was $792.45 million, up 18.7% from $667.85 million in fiscal year 2024, largely due to increased sales volume of plastic particles [7]. - Operating expenses increased by 27.5% to $5.30 million from $4.16 million in fiscal year 2024 [10]. - Selling expenses rose by 21.2% to $2.41 million, attributed to increased marketing personnel and higher commissions [12]. Cash Flow and Financial Condition - As of June 30, 2025, cash and cash equivalents were $2.52 million, up from $0.27 million the previous year [16]. - Net cash provided by operating activities was $2.32 million, a turnaround from net cash used of $30.80 million in fiscal year 2024 [16]. - Net cash used in investing activities was $42.25 million, compared to $11.02 million in fiscal year 2024 [16]. Recent Developments - On October 23, 2025, the company completed its initial public offering of 1,900,000 ordinary shares at $5.00 per share, raising gross proceeds of $10.93 million [18].