#China #Hangzhou #Allright #Ridgetech #Ridgeline

Ridgetech, Inc. Reports Financial Outcomes for FY 2025

Ridgetech, Inc. (Nasdaq: RDGT), a leading distributor of pharmaceutical and healthcare products in China, has shared its financial performance for the fiscal year ended March 31, 2025. The report highlights a relatively stable revenue stream, despite transformative changes within the company.

Strategic Changes and Acquisitions

During the year, Ridgetech underwent substantial changes, including the divestment of its retail pharmacy business and the acquisition of Ridgeline and its subsidiary, Allright (Hangzhou) Internet Technology Co. Ltd. The acquisition marks a pivotal shift towards enhancing its wholesale distribution capabilities across both online and offline channels in the Chinese market. Mr. Frank Zhao, the Interim CEO and CFO of Ridgetech, stated, "This move signifies our commitment to pivot towards the wholesale pharmaceutical sectors, ensuring adaptability in the increasingly competitive healthcare landscape in China."

Allright’s distribution network is anticipated to be a critical contributor to revenue streams and presents new business avenues through its expanding platforms. The company aims to leverage this acquisition to streamline operations and enhance its market presence.

Financial Overview

For the fiscal year 2025, Ridgetech reported total revenue of approximately $120 million, reflecting a slight decline from $123.99 million the previous year. This decline is primarily attributed to a decrease in offline wholesale revenue, which fell by 4.3%, leading to an overall gross profit of $3.84 million and a gross margin of 3.2%.

Although offline revenue faced challenges due to rising competition, the company witnessed initial financial contributions from Allright's online platforms, which generated $1.11 million in revenue in March 2025 alone — a promising start post-acquisition.

The report indicates a healthy profit, with Ridgetech recording a net income of $10.20 million for FY 2025, translating to $1.84 per share, a remarkable turnaround from the prior year's net loss of $4.23 million. This shift exemplifies the robust operational adjustments made by the company to enhance profitability.

Investment in Growth

To support its transformation, Ridgetech increased its sales and marketing investments by over 64%, focusing on building a solid foundation for future growth. This strategy is aimed at addressing challenges in the pharmaceutical distribution sector while capitalizing on new market opportunities presented by the acquisition of Allright.

As Ridgetech looks forward, the company believes it is well-positioned for sustainable growth, promising improved financial performance as it integrates its newly acquired business segments with its existing operations. "We are now set to drive long-term growth and stability in our financial performance, thanks to the strategic decisions undertaken during this transformative year," added Mr. Zhao.

Conclusion

The fiscal year 2025 marks a significant period of change for Ridgetech, as it adjusts to the evolving market landscape. The combination of strategic acquisitions and an increased focus on wholesale distribution is expected to foster a robust recovery and set a strong growth trajectory for the future. As the company navigates new challenges, investors and stakeholders are hopeful that these changes will yield positive dividends in the coming years.