CCSC Technology International Holdings Limited Reports Financial Results for Fiscal Year Ended March 31, 2026
CCSC Technology International Holdings Limited Class A CCTG | 0.00 |
HONG KONG, July 17, 2026 /PRNewswire/ -- CCSC Technology International Holdings Limited (the "Company" or "CCSC") (Nasdaq: CCTG), a Hong Kong-based company that engages in the sale, design and manufacturing of interconnect products, including connectors, cables and wire harnesses, today announced its financial results for the fiscal year ended March 31, 2026.
Mr. Kung Lok Chiu, Chief Executive Officer and Director of the Company, commented, "Fiscal year 2026 demonstrated the resilience of our business and the continued strength of our core operations. During the fiscal year, gross profit increased by 1.6% to $5.1 million, with gross profit margin improving to 29.3% from 28.3% in the prior fiscal year, supported by our continued focus on cost management and operational efficiency. We also recorded encouraging growth across selected products and markets, with revenue from connectors increasing by 5.7% and revenue from Asia increasing by 4.4%.
"During the fiscal year, we advanced several strategic initiatives designed to broaden our capabilities and strengthen our market position. We launched eNaviX, our carbon footprint and energy management system for small and medium sized enterprises, expanding our offerings into carbon management and Environmental, Social and Governance (ESG) solutions. We also commenced construction of our new European supply chain management center in Merosina, Serbia, in January 2026, which is expected to be completed and ready for operational use in December 2026 and will serve as the headquarters of our European supply chain operations.
"Looking ahead, we remain focused on enhancing our product portfolio, deepening customer relationships and improving operational flexibility as we pursue sustainable growth and long-term value for our shareholders. We believe our ongoing strategic initiatives will further strengthen our market position and support the Company's next phase of development."
Fiscal Year Ended March 31, 2026 Financial Highlights
- Revenue was $17.3 million for the fiscal year ended March 31, 2026, compared to $17.6 million for the fiscal year ended March 31, 2025.
- Gross profit increased by 1.6% to $5.1 million for the fiscal year ended March 31, 2026, from $5.0 million for the fiscal year ended March 31, 2025.
- Gross profit margin was 29.3% for the fiscal year ended March 31, 2026, increased from 28.3% for the fiscal year ended March 31, 2025.
- Net loss was $4.8 million for the fiscal year ended March 31, 2026, compared to $1.4 million for the fiscal year ended March 31, 2025.
- Basic and diluted loss per share was $1.94 for the fiscal year ended March 31, 2026, compared to $1.22 for the fiscal year ended March 31, 2025.
Fiscal Year Ended March 31, 2026 Financial Results
Revenue
Total revenue was $17.3 million for the fiscal year ended March 31, 2026, which decreased by 1.9% from $17.6 million for the fiscal year ended March 31, 2025.
The following table sets forth revenue by interconnect products:
For the fiscal years ended March 31, |
Change |
|||||||||||||||||||||||
2026 |
% |
2025 |
% |
Amount |
% |
|||||||||||||||||||
(Amounts expressed in U.S. dollars) |
||||||||||||||||||||||||
Cables and wire harnesses |
$ |
15,986,501 |
92.4 |
$ |
16,385,705 |
92.9 |
$ |
(399,204) |
(2.4) |
|||||||||||||||
Connectors |
1,316,243 |
7.6 |
1,245,784 |
7.1 |
70,459 |
5.7 |
||||||||||||||||||
Total |
$ |
17,302,744 |
100.0 |
$ |
17,631,489 |
100.0 |
$ |
(328,745) |
(1.9) |
|||||||||||||||
Revenue generated from cables and wire harnesses decreased by 2.4%, to $16.0 million for the fiscal year ended March 31, 2026, from $16.4 million for the fiscal year ended March 31, 2025. The decrease was primarily driven by lower sales volume, which was partially offset by the increase in the overall average selling prices of the Company's cables and wire harness products.
Revenue generated from connectors increased by 5.7%, to $1.3 million for the fiscal year ended March 31, 2026, from $1.2 million for the fiscal year ended March 31, 2025. The increase was primarily attributable to the increase in the overall average selling prices of the Company's connectors, partially offset by a decrease in sales volume.
The following table sets forth the disaggregation of revenue by regions:
For the fiscal years ended March 31, |
Change |
|||||||||||||||||||||||
2026 |
% |
2025 |
% |
Amount |
% |
|||||||||||||||||||
(Amounts expressed in U.S. dollars) |
||||||||||||||||||||||||
Europe |
$ |
10,572,256 |
61.1 |
$ |
10,991,905 |
62.3 |
$ |
(419,649) |
(3.8) |
|||||||||||||||
Asia |
5,573,347 |
32.2 |
5,336,247 |
30.3 |
237,100 |
4.4 |
||||||||||||||||||
The Americas |
1,157,141 |
6.7 |
1,303,337 |
7.4 |
(146,196) |
(11.2) |
||||||||||||||||||
Total |
$ |
17,302,744 |
100.0 |
$ |
17,631,489 |
100.0 |
$ |
(328,745) |
(1.9) |
|||||||||||||||
Revenue generated from Europe decreased by 3.8%, to $10.6 million for the fiscal year ended March 31, 2026, from $11.0 million for the fiscal year ended March 31, 2025. The decline stemmed from modest sales decreases in Denmark and Bulgaria, which were partially offset by slight revenue growth in Hungary and the Netherlands.
Revenue generated from Asia increased by 4.4%, to $5.6 million for the fiscal year ended March 31, 2026, from $5.3 million for the fiscal year ended March 31, 2025. This increase was primarily driven by a sales increase in Mainland China of $0.7 million and a sales increase in the Association of Southeast Asian Nations, or ASEAN, of $0.1 million, and was partially offset by a sales decrease in Hong Kong, China of $0.5 million.
Revenue generated from the Americas decreased by 11.2%, to $1.2 million for the fiscal year ended March 31, 2026, from $1.3 million for the fiscal year ended March 31, 2025. This decrease was primarily due to a sales decrease in North America of $0.2 million.
Cost of Revenue
Cost of revenue decreased by 3.2%, to $12.2 million for the fiscal year ended March 31, 2026, from $12.6 million for the fiscal year ended March 31, 2025, which was generally in line with the decrease in total revenue.
Inventory costs amounted to $8.5 million for the fiscal year ended March 31, 2026, compared to $8.6 million for the fiscal year ended March 31, 2025. The decrease in the Company's inventory costs was primarily due to an 11.9% decrease in the total sales volume from approximately 31.3 million units in the fiscal year ended March 31, 2025 to approximately 27.6 million units in the fiscal year ended March 31, 2026.
Labor costs amounted to $2.8 million for the fiscal year ended March 31, 2026, compared to $3.1 million for the fiscal year ended March 31, 2025. The decrease in labor costs was mainly attributable to lower production volumes driven by decreased sales and the Company's efforts to reduce labor costs.
Gross Profit and Gross Margin
Gross profit increased by 1.6%, to $5.1 million for the fiscal year ended March 31, 2026, from $5.0 million for the fiscal year ended March 31, 2025.
Gross profit margin increased by 1.0%, to 29.3% for the fiscal year ended March 31, 2026, from 28.3% for the fiscal year ended March 31, 2025, primarily due to a reduction in fixed costs per unit as a result of the Company's efforts in reducing labor costs.
Operating Expenses
Operating expenses increased by 22.6%, to $8.5 million for the fiscal year ended March 31, 2026, from $7.0 million for the fiscal year ended March 31, 2025. The expense increase was primarily due to the increase in selling expenses of $0.5 million, the increase in general and administrative expenses of $0.01 million, and the increase in research and development expenses of $1.1 million.
Net Loss
Net loss increased by 240.7%, to $4.8 million for the fiscal year ended March 31, 2026, from $1.4 million for the fiscal year ended March 31, 2025.
Basic and Diluted Loss per Share
Basic and diluted loss per share was $1.94 for the fiscal year ended March 31, 2026, compared to $1.22 for the fiscal year ended March 31, 2025.
Financial Condition
As of March 31, 2026, the Company had cash of $4.1 million, compared to $3.7 million as of March 31, 2025.
Net cash used in operating activities in the fiscal year ended March 31, 2026 was $4.5 million, compared to $1.0 million in the fiscal year ended March 31, 2025.
Net cash used in investing activities in the fiscal year ended March 31, 2026 was $1.4 million, compared to $0.9 million in the fiscal year ended March 31, 2025.
Net cash provided by financing activities in the fiscal year ended March 31, 2026 was $6.3 million, compared to net cash used in financing activities of $0.05 million in the fiscal year ended March 31, 2025.
About CCSC Technology International Holdings Limited
CCSC Technology International Holdings Limited is a Hong Kong-based company that engages in the sale, design and manufacturing of interconnect products. The Company specializes in customized interconnect products, including connectors, cables and wire harnesses that are used for a range of applications in a diversified set of industries, including industrial, automotive, robotics, medical equipment, computer, network and telecommunication, and consumer products. The Company produces interconnect products under both Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) models for manufacturing companies that produce end products, as well as electronic manufacturing services companies that procure and assemble products on behalf of such manufacturing companies. The Company has a diversified global customer base located in more than 25 countries throughout Asia, Europe and the Americas. For more information, please visit the Company's website: http://ir.ccsc-interconnect.com.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results. Factors that could cause actual results to differ materially include, without limitation, risks and uncertainties described in the Company's Annual Report on Form 20-F for the fiscal year ended March 31, 2026, filed with the United States Securities and Exchange Commission on July 17, 2026, and in the Company's other filings with the United States Securities and Exchange Commission. Investors are encouraged to review the Annual Report on Form 20-F in its entirety for a more complete discussion of the risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements.
For more information, please contact:
CCSC Technology International Holdings Limited
Investor Relations Department
Email: ir@ccsc-interconnect.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(Amount in U.S. dollars, except for number of shares) |
||||||||
As of March 31, |
||||||||
2026 |
2025 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash |
$ |
4,093,878 |
$ |
3,685,043 |
||||
Restricted cash |
10,227 |
9,413 |
||||||
Accounts receivable |
2,831,064 |
2,495,301 |
||||||
Inventories |
2,301,216 |
1,761,880 |
||||||
Prepaid expenses and other current assets |
1,669,571 |
1,066,032 |
||||||
Total current assets |
10,905,956 |
9,017,669 |
||||||
Non-current assets: |
||||||||
Property, plant and equipment, net |
1,980,764 |
853,959 |
||||||
Intangible assets, net |
67,537 |
83,906 |
||||||
Operating lease right-of-use assets, net |
868,418 |
1,106,024 |
||||||
Finance lease right-of-use assets, net |
146,732 |
194,478 |
||||||
Deferred tax assets, net |
19,308 |
558,683 |
||||||
Other non-current assets, net |
4,302,029 |
3,510,363 |
||||||
Total non-current assets |
7,384,788 |
6,307,413 |
||||||
TOTAL ASSETS |
$ |
18,290,744 |
$ |
15,325,082 |
||||
Liabilities and Shareholders' Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
2,781,034 |
$ |
1,819,647 |
||||
Advance from customers |
317,751 |
141,737 |
||||||
Accrued expenses and other current liabilities |
1,472,141 |
1,345,210 |
||||||
Taxes payable |
30,651 |
21,916 |
||||||
Operating lease liabilities, current |
573,650 |
473,116 |
||||||
Finance lease liabilities, current |
38,816 |
36,277 |
||||||
Total current liabilities |
5,214,043 |
3,837,903 |
||||||
Non-current liabilities: |
||||||||
Operating lease liabilities, non-current |
296,436 |
633,249 |
||||||
Finance lease liabilities, non-current |
88,723 |
127,834 |
||||||
Total non-current liabilities |
385,159 |
761,083 |
||||||
TOTAL LIABILITIES |
$ |
5,599,202 |
$ |
4,598,986 |
||||
Commitments and Contingencies (Note 16) |
— |
— |
||||||
Shareholders' equity |
||||||||
Class A ordinary shares, par value of US$0.005 per share; 49,500,000 shares |
$ |
17,068 |
$ |
3,291 |
||||
Class B ordinary shares, par value of US$0.005 per share; 500,000 shares authorized; |
2,500 |
2,500 |
||||||
Additional paid-in capital |
11,182,908 |
4,855,795 |
||||||
Statutory reserve |
813,235 |
813,235 |
||||||
Retained earnings |
2,275,757 |
7,081,318 |
||||||
Accumulated other comprehensive loss |
(1,599,926) |
(2,030,043) |
||||||
Total Shareholders' Equity |
12,691,542 |
10,726,096 |
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
18,290,744 |
$ |
15,325,082 |
||||
* |
Retrospectively restated for effect of the share consolidation completed in January 2026. |
CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED |
||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
||||||||||||
(Amount in U.S. dollars, except for number of shares) |
||||||||||||
For the years ended March 31, |
||||||||||||
2026 |
2025 |
2024 |
||||||||||
Net revenue |
$ |
17,302,744 |
$ |
17,631,489 |
$ |
14,748,551 |
||||||
Cost of revenue |
(12,238,334) |
(12,647,287) |
(10,825,943) |
|||||||||
Gross profit |
5,064,410 |
4,984,202 |
3,922,608 |
|||||||||
Operating expenses: |
||||||||||||
Selling expenses |
(2,216,650) |
(1,695,217) |
(1,039,882) |
|||||||||
General and administrative expenses |
(4,606,701) |
(4,601,637) |
(4,134,394) |
|||||||||
Research and development expenses |
(1,699,630) |
(654,039) |
(594,521) |
|||||||||
Total operating expenses |
(8,522,981) |
(6,950,893) |
(5,768,797) |
|||||||||
Loss from operations |
(3,458,571) |
(1,966,691) |
(1,846,189) |
|||||||||
Other (loss)/ income: |
||||||||||||
Foreign currency exchange (loss)/income, net |
(419,431) |
67,395 |
425,308 |
|||||||||
Financial and interest (loss)/income, net |
(21,962) |
10,538 |
67,636 |
|||||||||
Government subsidy |
- |
207,257 |
7,255 |
|||||||||
Other non-operating income/(expenses), net |
55,968 |
534 |
(35,509) |
|||||||||
Total other (loss)/ income |
(385,425) |
285,724 |
464,690 |
|||||||||
Loss before income tax expense |
(3,843,996) |
(1,680,967) |
(1,381,499) |
|||||||||
Income tax (expenses)/benefit |
(961,565) |
270,502 |
86,336 |
|||||||||
Net loss |
(4,805,561) |
(1,410,465) |
(1,295,163) |
|||||||||
Other comprehensive income /(loss) |
||||||||||||
Foreign currency translation adjustment |
430,117 |
(161,106) |
(523,250) |
|||||||||
Total comprehensive loss |
$ |
(4,375,444) |
$ |
(1,571,571) |
$ |
(1,818,413) |
||||||
Loss per share |
||||||||||||
Basic and Diluted* |
$ |
(1.94) |
$ |
(1.22) |
$ |
(1.26) |
||||||
Weighted average number of ordinary shares |
||||||||||||
Basic and Diluted* |
2,480,584 |
1,158,125 |
1,028,852 |
|||||||||
* |
Retrospectively restated for effect of the share consolidation completed in January 2026. The EPS amounts pertain |
CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED |
||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||
(Amount in U.S. dollars, except for number of shares) |
||||||||||||
For the years ended March 31, |
||||||||||||
2026 |
2025 |
2024 |
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||
Net loss |
$ |
(4,805,561) |
$ |
(1,410,465) |
$ |
(1,295,163) |
||||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||||
Inventory write-downs |
68,783 |
128,241 |
188,268 |
|||||||||
Depreciation and amortization |
216,722 |
238,599 |
238,757 |
|||||||||
Amortization of right-of-use assets |
588,969 |
519,426 |
509,086 |
|||||||||
Loss from disposal of property, plant and equipment |
7,802 |
10,889 |
2,188 |
|||||||||
Deferred tax expense/(benefit) |
545,390 |
(270,502) |
(249,892) |
|||||||||
Foreign currency exchange losses/(gains) |
360,960 |
(56,479) |
(227,691) |
|||||||||
Changes in operating assets and liabilities: |
||||||||||||
Accounts receivable |
(330,965) |
267,028 |
(500,747) |
|||||||||
Inventories |
(543,130) |
130,289 |
(101,220) |
|||||||||
Prepaid expenses and other current assets |
(542,610) |
412,124 |
(704,610) |
|||||||||
Other non-current assets |
(63,336) |
257,086 |
(77,220) |
|||||||||
Accounts payable |
870,609 |
(359,764) |
563,226 |
|||||||||
Advance from customers |
177,602 |
(66,537) |
22,060 |
|||||||||
Taxes payable |
7,096 |
(2,971) |
(340,992) |
|||||||||
Accrued expenses and other current liabilities |
(535,246) |
(234,550) |
(64,258) |
|||||||||
Operating lease liabilities |
(540,332) |
(534,472) |
(490,319) |
|||||||||
Financing lease liabilities |
9,272 |
3,250 |
24 |
|||||||||
Net cash used in operating activities |
(4,507,975) |
(968,808) |
(2,528,503) |
|||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||||||
Purchase of property, plant and equipment |
(859,118) |
(327,801) |
(156,999) |
|||||||||
Prepayment of equipment and mold model |
- |
- |
(3,639,312) |
|||||||||
Proceed from disposal of property, plant and equipment |
4,118 |
943 |
- |
|||||||||
Purchase of land |
- |
(519,895) |
- |
|||||||||
Purchase of intangible asset |
(568,864) |
(43,737) |
(29,476) |
|||||||||
Net cash used in investing activities |
(1,423,864) |
(890,490) |
(3,825,787) |
|||||||||
CASH FLOWS FORM FINANCING ACTIVITIES |
||||||||||||
Repayments of long-term bank loans |
- |
- |
(39,853) |
|||||||||
Proceeds from issuance of ordinary shares, net of issuance cost |
6,340,890 |
- |
4,665,444 |
|||||||||
Capital contribution by shareholder |
- |
- |
5,000 |
|||||||||
Payment made for principal portion of financing lease liabilities |
(45,580) |
(49,345) |
(4,322) |
|||||||||
Net cash provided by/(used in) financing activities |
6,295,310 |
(49,345) |
4,626,269 |
|||||||||
Effect of exchange rate changes on cash and restricted cash |
46,178 |
(131,648) |
(254,847) |
|||||||||
Net change in cash and restricted cash |
409,649 |
(2,040,291) |
(1,982,868) |
|||||||||
Cash and restricted cash, beginning of the year |
3,694,456 |
5,734,747 |
7,717,615 |
|||||||||
Cash and restricted cash, end of the year |
$ |
4,104,105 |
$ |
3,694,456 |
$ |
5,734,747 |
||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW |
||||||||||||
Cash paid for income tax |
$ |
(1,740) |
$ |
- |
$ |
(859,882) |
||||||
Cash received from income tax refund |
$ |
40,004 |
$ |
246,771 |
$ |
- |
||||||
Cash paid for interest |
$ |
(8,771) |
$ |
- |
$ |
(228) |
||||||
Cash paid for operating lease |
$ |
(581,553) |
$ |
(571,159) |
$ |
(575,014) |
||||||
Cash paid for finance lease |
$ |
(45,580) |
$ |
(49,345) |
$ |
(4,322) |
||||||
Supplemental disclosure of non-cash information: |
||||||||||||
Right-of-use assets obtained in exchange for operating lease liabilities |
$ |
268,971 |
$ |
192,311 |
$ |
137,617 |
||||||
Purchase of intangible assets included in accrued expenses and other |
$ |
(5,069) |
$ |
(43,103) |
$ |
- |
||||||
Purchase of equipment and molds included in accrued expenses and other |
$ |
(626,300) |
$ |
(11,418) |
$ |
- |
||||||
Cashless exercise of warrants |
$ |
7,894 |
$ |
- |
$ |
- |
||||||
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SOURCE CCSC Technology International Holdings Limited
