1. CCTG's revenue decreased by 8.2% to $8.47 million. 2. Gross profit margin stands at 29.2%, a slight drop from last year. 3. Net loss increased by 30.5% to $0.97 million in first half. 4. A new supply chain center is planned in Serbia for 2026. 5. CCTG aims for operational efficiency and product innovation.
FAQ
Why Bearish?
The significant drop in revenue and increasing net loss are concerning, indicating potential struggles ahead. Historical drops post-announcement of similar revenue declines suggest negative market reactions.
How important is it?
Given the company's direct operations and financial outcomes, this report significantly impacts investor sentiment and CCTG's stock performance.
Why Short Term?
Immediate financial performance metrics indicate potential for short-term price pressure, especially due to a large loss reported.
CCSC Technology International Holdings Limited Reports Financial Results for the Six Months Ended September 30, 2025
CCSC Technology International Holdings Limited (Nasdaq: CCTG), a Hong Kong-based leader in the sale, design, and manufacturing of interconnect products, has announced its unaudited financial results for the first half of fiscal year 2026, concluding on September 30, 2025. The company highlighted a strategic focus on operational efficiency as it navigates the market landscape.
Financial Highlights
For the six months ended September 30, 2025, CCSC reported the following financial metrics:
- Revenue: US$8.47 million, a decline from US$9.22 million year-over-year.
- Gross Profit: US$2.48 million, down from US$2.75 million.
- Gross Profit Margin: 29.2%, slightly decreased from 29.8% in the previous year.
- Net Loss: US$0.97 million compared to US$0.74 million.
- Loss Per Share: Basic and diluted loss per share was US$0.08, up from US$0.06.
Insights from Leadership
Mr. Kung Lok Chiu, Chief Executive Officer of CCSC, stated, “The six months ended September 30, 2025, demonstrated the resilience of our business and the continued strength of our core operations. During the period, we maintained a gross profit margin of 29.2%, supported by effective cost management.”
He further emphasized the company’s commitment to operational efficiency, noting a reduction in both the cost of revenue and operating expenses.
Strategic Developments
In October 2025, CCSC successfully completed a follow-on public offering, raising US$7.06 million. This funding will support the company's long-term growth strategy, including the development of a new supply chain management center in Serbia, with construction expected to begin in January 2026. The center is projected to optimize logistics and enhance manufacturing capabilities to better serve customers in Europe.
Revenue Breakdown by Product and Region
Product Category Revenue
Total revenue for the six months ended September 30, 2025, was largely affected by a decline in cables and wire harness sales:
- Cables and Wire Harness: US$7.83 million, down by 9.0%.
- Connectors: US$0.64 million, an increase of 3.5%.
Regional Revenue Performance
Revenue breakdown by region illustrated the following trends:
- Europe: US$4.97 million, down by 11.6%, primarily due to reduced orders in Denmark.
- Asia: US$2.90 million, up by 5.9%, boosted by increased sales in Mainland China.
- Americas: US$596,689, a decline of 30.3%.
Conclusion and Future Outlook
Looking forward, CCSC remains committed to focusing on product innovation and disciplined investment in operational execution. With the strategic developments undertaken and market adaptations, CCSC aims to deliver high-quality, customized interconnect solutions to a broadening customer base.