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CCSC Technology International Holdings Limited Reports Financial Results for Fiscal Year Ending March 31, 2025

CCSC Technology International Holdings Limited (Nasdaq: CCTG), headquartered in Hong Kong, has released its financial report for the fiscal year that concluded on March 31, 2025, highlighting a remarkable growth trajectory and ambitious expansion initiatives.

Fiscal Highlights

The company reported total revenue of $17.6 million, marking a 19.5% increase from the previous year’s figure of $14.7 million. The growth in revenue can be attributed largely to a heightened demand for the company's interconnect products, which include key offerings such as cables, wire harnesses, and connectors.

The gross profit for the year rose to $5.0 million, reflecting a growth of 27.1% when compared to $3.9 million the previous year. This increase in gross profit led to an improved gross margin of 28.3%, up from 26.6% in the prior fiscal year.

Operating mainly outside of Asia, the company experienced particularly strong performance in Europe, where revenue surged by an impressive 29.0%. This was driven by strategic market penetration in countries like Denmark, Bulgaria, and Poland. The company aimed to bolster its European operations with the planned establishment of a new supply chain management center in Serbia, expected to enhance operational efficiency and facilitate long-term growth in the region.

Although the net loss increased slightly to $1.4 million, compared to $1.3 million for the prior year, CCSC remains optimistic about its growth prospects. The basic and diluted loss per share saw a minor reduction, improving from $0.13 to $0.12.

Revenue Breakdown

The revenue derived from the company’s primary segments is as follows:

• - Cables and wire harnesses contributed $16.4 million (92.9% of total revenue), a 20.2% increase year over year.
• - Connectors accounted for $1.2 million (7.1% of total revenue), also reflecting an 11.1% increase.

Regionally, revenue distribution is as follows:

• - Europe: $11.0 million, marking a 29.0% growth.
• - Asia: Accounted for $5.3 million with a 10.2% increase, driven primarily by sales in the ASEAN member countries and China, although with a slight downturn in Hong Kong.
• - The Americas: Revenue dipped slightly to $1.3 million, a 5.7% decrease from the previous year. This reduction was attributed to lower sales performance in North America.

Operational Overview

In terms of cost, total expenses grew in line with revenue, pushing operating expenses up 20.5% to $7.0 million as CCSC continues to invest significantly in marketing, general administration, and research and development. The company remains committed to enhancing its R&D capabilities to deliver innovative solutions aligned with customer needs.

Despite the challenges faced, including fluctuating average selling prices, CCSC's strategy is heavily focused on expanding its product lineup and geographical reach. Future initiatives will concentrate on attracting new customers, launching additional products, and exploring diverse business opportunities globally.

Mr. Kung Lok Chiu, the CEO of CCSC, emphasized the company's commitment to sustainable growth through innovation and adaptation to market needs. He expressed that despite the net loss reported for the year, the growing revenue and gross profit underscore the resilience and viability of the company’s business model.

Future Outlook

Looking ahead, CCSC's strategic focus will remain on research and development, geographical expansion, and enhancing the overall customer experience to foster lasting relationships. With the significant increase in both revenue and gross profit margin, CCSC Technology International Holdings Limited is positioned to create long-term value for its shareholders and stakeholders alike, setting the stage for a promising trajectory in the upcoming fiscal years.

For more information about CCSC Technology International Holdings Limited, visit CCSC's website.

This article contains forward-looking statements that are subject to risks and uncertainties. Please review all material factors that may affect future results.