Technology
CCSC Technology International Holdings Limited Reports Financial Results for Fiscal Year 2024
Published
2 years agoon
By
HONG KONG, July 22, 2024 /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, 2024.
Mr. Kung Lok Chiu, Chief Executive Officer and Director of the Company, commented, “We believe we have demonstrated resilience and adaptability throughout a challenging fiscal year 2024. Despite market fluctuations, we remain dedicated to innovation and excellence. We have worked to enhance our operational efficiencies and invested strategically in research and development to advance our product developments. Additionally, our Nasdaq listing in January 2024 marks a significant milestone for the Company, providing us with a platform for future growth. Furthermore, we entered into a strategic cooperation framework agreement with Innogetic International Limited (“Innogetic”) in May 2024. In the future, we anticipate exploring and applying digital technology such as artificial intelligence (“AI”) in the field of manufacturing to further advancements in our business. As we explore AI applications in the manufacturing sector in partnership with Innogetic, we endeavor to further the innovation and efficiency in our manufacturing process and enhance our position in the industry. Moreover, CCSC is planning to commence construction of a new European supply chain management center in the Republic of Serbia in second half of 2024. We believe that this strategic expansion, if and when it is established, will support our business by driving long-term growth.”
“We are committed to adopting advanced technologies, developing replicable and scalable solutions, and fostering innovative ideas and products. Looking forward, we are excited about our strategic initiatives aimed at market expansion, product innovation, and enhancing client services. We believe that our commitment to quality and customer satisfaction can drive us forward and create long-term value for our shareholders,” concluded Mr. Kung Lok Chiu.
Fiscal Year 2024 Financial Highlights
Revenue was $14.7 million for fiscal year 2024, compared to $24.1 million for fiscal year 2023.
Gross profit was $3.9 million for fiscal year 2024, compared to $7.9 million for fiscal year 2023.
Loss from operations was $1.8 million for fiscal year 2024, compared to income from operations of $1.8 million for fiscal year 2023.
Net loss was $1.3 million for fiscal year 2024, compared to net income of $2.2 million for fiscal year 2023.
Basic and diluted loss per share was $0.13 for fiscal year 2024, compared to basic and diluted earnings per share of $0.22 for fiscal year 2023.
Fiscal Year 2024 Financial Results
Revenue
Total revenue was $14.7 million for fiscal year 2024, which decreased by 38.7% from $24.1 million for fiscal year 2023.
The following table sets forth revenue by interconnect products:
For the years ended March 31,
Change
($ millions)
2024
%
2023
%
Amount
%
Cables and wire harnesses
13.6
92.4
%
22.2
92.3
%
(8.6)
(38.7)
%
Connectors
1.1
7.6
%
1.8
7.7
%
(0.7)
(39.3)
%
Total
14.7
100.0
%
24.0
100.0
%
(9.3)
(38.7)
%
Revenue generated from cables and wire harnesses decreased by 38.7%, to $13.6 million for fiscal year 2024, from $22.2 million for fiscal year 2023. Revenue generated from connectors decreased by 39.3%, to $1.1 million for fiscal year 2024, from $1.8 million for fiscal year 2023.
The decrease was primarily attributable to the decrease in the total sales volume due to customers’ shift towards zero inventory instead of advanced procurement, and the decrease of the average selling price of our products for fiscal year 2024.
The following table sets forth the disaggregation of revenue by regions:
For the years ended March 31,
Change
($ millions)
2024
%
2023
%
Amount
%
Europe
8.5
57.8
%
15.0
62.5
%
(6.5)
(43.3)
%
Asia
4.8
32.8
%
7.4
30.9
%
(2.6)
(34.9)
%
Americas
1.4
9.4
%
1.6
6.6
%
(0.2)
(12.4)
%
Total
14.7
100.0
%
24.0
100.0
%
(9.3)
(38.7)
%
Revenue generated from Europe decreased by 43.3%, to $8.5 million for fiscal year 2024, from $15.0 million for fiscal year 2023. The decrease was primarily due to the decrease of sales in Denmark, Hungary and Bulgaria, which was partially offset by the increase of sales in Italy.
Revenue generated from Asia decreased by 34.9%, to $4.8 million for fiscal year 2024, from $7.4 million for fiscal year 2023. The decrease was primarily due to sales decreases in China of $1.6 million, and sales decreases in the Association of Southeast Asian Nations, or ASEAN, of $1.0 million.
Revenue generated from the Americas decreased by 12.4%, to $1.4 million for fiscal year 2024, from $1.6 million for fiscal year 2023. The decrease was primarily due to the sales decrease in North America of $0.2 million.
Cost of Revenue
Cost of revenue decreased by 33.1%, to $10.8 million for fiscal year 2024, from $16.2 million for fiscal year 2023, which was in line with the decrease of total revenue.
Inventory costs amounted to $7.3 million for fiscal year 2024, compared to $12.1 million for fiscal year 2023. The decrease of inventory costs was primarily due to a 44.1% decrease in the total sales volume, which was partially offset by an 8.5% increase in the inventory cost per unit.
Labor costs amounted to $2.5 million for fiscal year 2024, compared to $2.9 million for fiscal year 2023. The decrease of labor costs was primarily because we reduced the number of manufacturing employees.
Gross Profit and Gross Margin
Gross profit decreased by 50.1%, to $3.9 million for fiscal year 2024, from $7.9 million for fiscal year 2023.
Gross profit margin decreased by 6.1%, to 26.6% for fiscal year 2024, from 32.7% for fiscal year 2023.
Operating Expenses
Operating expenses decreased by 5.1%, to $5.8 million for fiscal year 2024, from $6.1 million for fiscal year 2023. The expense reduction was mainly due to the decline in selling expenses and research and development expenses. The decrease was partially offset by the increase in the general and administrative expenses.
Other Income
Other income decreased to $0.5 million for fiscal year 2024, from $0.7 million for fiscal year 2023.
Net (Loss)/Income
Net income decreased by 158.7%, to net loss of $1.3 million for fiscal year 2024, from net income of $2.2 million for fiscal year 2023.
Basic and Diluted (Loss)/Earnings per Share
Basic and diluted loss per share was $0.13 for fiscal year 2024, compared to earnings per share of $0.22 for fiscal year 2023.
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 both OEM (“original equipment manufacturer”) and ODM (“original design manufacture”) interconnect products for manufacturing companies that produce end products, as well as electronic manufacturing services (“EMS”) 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 announcement are forward-looking statements, including, but not limited to, the Company’s proposed Offering. 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 and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the U.S. Securities and Exchange Commission.
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,
2024
2023
Assets
Current assets:
Cash
$
5,525,430
$
7,708,310
Restricted cash
209,317
9,305
Accounts receivable
2,750,214
2,260,222
Inventories, net
2,023,456
2,187,518
Deferred initial public offering costs
–
1,051,038
Prepaid expenses and other current assets
1,474,405
814,308
Total current assets
11,982,822
14,030,701
Non-current assets:
Property, plant and equipment, net
198,901
211,949
Intangible asset, net
38,183
88,319
Operating right-of-use assets
1,659,297
2,121,070
Finance lease right-of-use asset
17,788
–
Deferred tax assets, net
287,394
41,015
Other non-current assets
3,753,646
41,844
Total non-current assets
5,955,209
2,504,197
TOTAL ASSETS
$
17,938,031
$
16,534,898
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable
$
2,175,974
$
1,663,749
Advance from customers
207,293
186,874
Accrued expenses and other current liabilities
1,523,843
1,648,970
Taxes payable
24,974
365,851
Operating lease liabilities, current
506,061
485,051
Finance lease liabilities, current
4,454
–
Long-term bank loan, current portion
–
39,725
Total current liabilities
4,442,599
4,390,220
Non-current liabilities:
Operating lease liabilities, non-current
1,184,056
1,653,411
Finance lease liabilities, non-current
13,709
–
Total non-current liabilities
1,197,765
1,653,411
TOTAL LIABILITIES
5,640,364
6,043,631
Commitments and Contingencies
–
–
Shareholders’ equity
Ordinary Shares (par value of US$0.0005 per share; 100,000,000 shares
authorized, 11,581,250 and 10,000,000 shares issued and outstanding as of
March 31, 2024 and 2023)
5,791
5,000
Subscription receivable
–
(5,000)
Additional paid-in capital
4,855,795
1,236,773
Statutory reserve
813,235
813,235
Retained earnings
8,491,783
9,786,946
Accumulated other comprehensive loss
(1,868,937)
(1,345,687)
Total shareholders’ equity
12,297,667
10,491,267
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
17,938,031
$
16,534,898
CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME
(Amount in U.S. dollars, except for number of shares)
For the years ended March 31,
2024
2023
2022
Net revenue
$
14,748,551
$
24,059,556
$
27,169,935
Cost of revenue
(10,825,943)
(16,190,985)
(19,694,031)
Gross profit
3,922,608
7,868,571
7,475,904
Operating expenses:
Selling expenses
(1,039,882)
(1,097,150)
(866,136)
General and administrative expenses
(4,134,394)
(3,898,894)
(3,318,815)
Research and development expenses
(594,521)
(1,084,119)
(829,024)
Total operating expenses
(5,768,797)
(6,080,163)
(5,013,975)
(Loss)/income from operations
(1,846,189)
1,788,408
2,461,929
Other (expenses)/income:
Other non-operating (expenses)/income, net
(35,509)
49,873
415,934
Government subsidy
7,255
62,627
17,910
Foreign currency exchange income/(loss)
425,308
562,527
(199,759)
Financial and interest income/(expenses), net
67,636
22,455
(7,028)
Total other income
464,690
697,482
227,057
(Loss)/income before income tax expense
(1,381,499)
2,485,890
2,688,986
Income tax benefit/(expense)
86,336
(277,738)
(399,828)
Net (loss)/income
(1,295,163)
2,208,152
2,289,158
Other comprehensive (loss)/income
Foreign currency translation adjustment
(523,250)
(728,399)
368,037
Total comprehensive (loss)/income
$
(1,818,413)
$
1,479,753
$
2,657,195
(Loss)/earnings per share
Basic and Diluted
$
(0.13)
$
0.22
$
0.23
Weighted average number of ordinary shares
Basic and Diluted
10,288,525
10,000,000
10,000,000
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,
2024
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)/income
$
(1,295,163)
$
2,208,152
$
2,289,158
Adjustments to reconcile net (loss)/income to net cash (used in)/provided
by operating activities:
Inventory write-down
188,268
369,512
117,807
Depreciation and amortization
238,757
221,106
330,269
Amortization of right-of-use asset
509,086
526,546
330,812
Losses/(gains) from disposal of fixed assets
2,188
5,621
(61,205)
Deferred tax (benefit)/expense
(249,892)
51,780
(17,927)
Foreign currency exchange (gains)/losses
(227,691)
(562,527)
199,759
Changes in operating assets and liabilities:
Accounts receivable
(500,747)
586,559
286,662
Inventories
(101,220)
2,028,980
(1,272,692)
Amount due from related parties
–
478,285
(51,421)
Prepaid expenses and other current assets
(704,610)
179,619
16,666
Operating right-of-use assets
–
(2,240,092)
62,343
Other non-current assets
(77,220)
41,314
19,310
Accounts payable
563,226
(2,054,385)
757,114
Advance from customers
22,060
113,383
(92,699)
Taxes payable
(340,992)
112,295
220,736
Accrued expenses and other current liabilities
(64,258)
(91,373)
117,673
Operating lease liabilities
(490,319)
1,704,248
(409,019)
Financing Lease liabilities
24
–
–
Amount due to related parties
–
(215,388)
78,270
Net cash (used in)/provided by operating activities
(2,528,503)
3,463,635
2,921,616
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment
(156,999)
(153,409)
(376,785)
Prepayment of long-term equipment and mold model
(3,639,312)
–
–
Proceed from disposal of property and equipment
–
10,891
199,146
Purchase of intangible asset
(29,476)
(64,364)
–
Net cash used in investing activities
(3,825,787)
(206,882)
(177,639)
CASH FLOWS FORM FINANCING ACTIVITIES
Proceeds from short-term bank loans
–
136,784
107,076
Repayments of short-term bank loans
–
(136,784)
(107,076)
Repayments of long-term bank loans
(39,853)
(156,174)
(153,053)
Proceeds from issuance of ordinary shares, net of issuance cost
of US$1.65 million
4,665,444
–
–
Payment for deferred initial public offering costs
–
(596,446)
(459,265)
Capital contribution by shareholder
5,000
–
462,469
Payment made for principal portion of financing lease liabilities
(4,322)
–
(7,553)
Net cash provided by/(used in) financing activities
4,626,269
(752,620)
(157,402)
Effect of exchange rate changes on cash and restricted cash
(254,847)
(72,458)
46,415
Net change in cash and restricted cash
(1,982,868)
2,431,675
2,632,990
Cash and restricted cash, beginning of the year
7,717,615
5,285,940
2,652,950
Cash and restricted cash, end of the year
$
5,734,747
$
7,717,615
$
5,285,940
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income tax
$
(859,882)
$
(119,679)
$
(471,259)
Cash received from income tax refund
$
–
$
126,413
$
461,418
Cash paid for interest
$
(228)
$
(4,986)
$
(8,650)
Cash paid for operating lease
$
(575,014)
$
(601,953)
$
(635,499)
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease obligations
$
137,617
$
2,263,898
$
138,450
View original content:https://www.prnewswire.com/news-releases/ccsc-technology-international-holdings-limited-reports-financial-results-for-fiscal-year-2024-302202911.html
SOURCE CCSC Technology International Holdings Limited
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View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/forum-on-the-development-of-internet-public-welfare-held-at-2026-world-internet-conference-wuzhen-summit-302931693.html
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OTTAWA, ON, Nov. 5, 2026 /CNW/ — Tech-Access Canada, the national network of Canada’s 70 Technology Access Centres (TACs), welcomes Budget 2026’s proposals to expand the Scientific Research and Experimental Development (SR&ED) tax incentive and renew federal clean technology support. TACs already help Canadian companies test new technologies, validate products and prepare for production. Tech-Access Canada’s proposed Canadian Innovation Pipeline Initiative would give more businesses year-round access to the teams and facilities already doing that work.
TACs already provide contract research services to businesses. Under existing Canada Revenue Agency rules, businesses can claim eligible costs for qualifying SR&ED work that TACs perform under contract on their behalf. The proposed expansion, estimated at $930 million over five years, would extend eligibility to certain commercialisation expenses. These include testing and validation required for initial regulatory approval or certification when directly linked to an eligible SR&ED project. Tech-Access Canada is ready to share its project experience as the agency develops sector-specific guidance.
“A tax credit can help a company recover eligible costs. Somebody still has to pay for the test first,” said Ken Doyle, Executive Director of Tech-Access Canada. “Some of the firms our TACs work with are still building the case for NRC IRAP funding or seeking their first outside investment. That test can be exactly what a customer or investor needs to see before they commit. Canada already has the people, the labs and the equipment. Let’s fund the projects that put them to work.”
The National Research Council of Canada’s Industrial Research Assistance Program (NRC IRAP) is Canada’s leading innovation assistance program for small and medium-sized businesses. Tech-Access Canada estimates that, through their partnership, NRC IRAP has funded approximately 75,000 hours of applied innovation and commercialisation support delivered by TACs over the past decade.
Tech-Access Canada welcomes the proposed renewal of NRC IRAP’s Clean Technology initiative. In the 2026 pilot, TACs moved quickly to complete 54 projects, helping companies advance from real-world prototype demonstration at technology readiness level (TRL) 7 toward commercial deployment at TRLs 8 and 9. TACs and their industry partners still have 161 projects scoped and ready to start as soon as a second round gets the green light.
“The clean technology pilot gave companies a chance to see how their technologies performed under real operating conditions,” said Jennifer Andersen, Vice-Chair of Tech-Access Canada and Executive Director, Applied Research & Innovation at Fleming College. “That evidence helps a business decide whether it’s ready to deploy or where it needs to do more work. We’d welcome the opportunity to extend that support to more companies.”
Since the tri-agency College and Community Innovation program began, the federal government has invested more than $1 billion through it in applied research. Tech-Access Canada thanks the Natural Sciences and Engineering Research Council of Canada for administering the program in collaboration with the Canadian Institutes of Health Research and the Social Sciences and Humanities Research Council. The $165 million committed in the 2026 Spring Economic Update will help sustain that capacity.
“Canada’s three granting councils and the Canada Foundation for Innovation have helped build applied research capacity that businesses can draw on across the country,” said Melanie Ross, Chair of Tech-Access Canada and Research Chair at SAIT’s Green Building Technology Access Centre. “We welcome the opportunity to build on those investments and give more Canadian companies access to that expertise.”
Tech-Access Canada estimates that the Canada Foundation for Innovation (CFI) has invested $500 million in federal funding for research infrastructure at colleges and cégeps over the past decade. At the College Fund’s 40% federal contribution ceiling, $500 million in capital funding would correspond to roughly $1.3 billion in eligible research infrastructure costs, with provinces, institutions and other partners contributing the balance. Dedicated, predictable infrastructure support for TACs would build on that partnership, keeping specialised facilities and equipment available on demand so TACs can respond quickly as new industry needs emerge.
“A pilot run can show a manufacturer whether a new process is worth scaling before it commits capital or changes its production line,” said Stephen Reaume, Treasurer of Tech-Access Canada and Director of Research at Lambton College. “TACs give smaller firms access to the equipment and expertise to run those trials and make decisions based on the results.”
Tech-Access Canada welcomes the opportunity to work with NRC research centres and federal departments such as Fisheries and Oceans Canada and Agriculture and Agri-Food Canada. TACs and federal research teams could bring complementary expertise and equipment to company projects, from testing new technologies for fisheries and aquaculture to piloting new processes for food and agricultural businesses.
“When a Canadian company needs specialised equipment or expertise, we can help connect it with the team best equipped to do the work,” said Jean-Philippe Jacques, Vice-Chair of Tech-Access Canada and Director of Innofibre. “Sharing facilities and coordinating equipment purchases can reduce duplication, give companies faster access to the tools they need and make better use of the research infrastructure Canadians have already invested in.”
Tech-Access Canada proposes to deliver the Canadian Innovation Pipeline Initiative through the TAC network. Interactive Visits would help firms decide what’s worth pursuing. Strategic Interactions would help them test and validate their technologies. TRLascend projects would help them demonstrate those technologies at pilot scale and prepare for production or deployment. The proposed $33 million annual investment would support about 3,000 engagements with Canadian businesses each year once fully implemented.
The TAC network already gives companies access to more than 2,100 applied R&D professionals, two million square feet of dedicated applied R&D space and approximately $500 million in specialised equipment. Tech-Access Canada also has intake and project delivery systems in use today. With approval and funding, it could start accepting Pipeline projects within 48 hours. Tech-Access Canada looks forward to working with the federal government on the proposal ahead of the Spring 2027 Economic Update.
Through Commercialisation Canada, Tech-Access Canada will share stories of Canadian companies bringing new products and processes to market with TAC teams working alongside them. Companies bring their ideas and knowledge of their customers. TACs help them test, refine and scale what they’ve developed. This hands-on accompaniment is a Canadian model of collaborative applied innovation and commercialisation that has drawn international attention, including from the OECD. More details will follow.
About Tech-Access Canada
Tech-Access Canada is the national network of Canada’s Technology Access Centres. TACs help businesses solve technical problems, develop and validate products and processes, and adopt new technologies. Companies retain their intellectual property.
SOURCE Tech-Access Canada
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