Addentax Group 2026 Q2 Earnings 85.7% Net Loss Reduction

Addentax Group (ATXG) reported fiscal 2026 Q2 earnings on Nov 14, 2025, narrowing losses despite a 26.3% revenue decline. The company improved net income by 85.7% year-over-year, though the results missed expectations for growth-driven recovery.

Revenue

The logistics services segment generated $807,757, while the garments manufacturing segment contributed $12,935. The corporate and other segment reported no revenue, and consolidated revenue totaled $820,692, reflecting a 26.3% year-over-year decline driven by reduced garment manufacturing activity and market competition.

Earnings/Net Income

Addentax Group reduced its net loss to $-102,837 in 2026 Q2, an 85.7% improvement from the $-721,532 loss in 2025 Q2. Earnings per share (EPS) narrowed to -$0.02 from -$0.13, signaling progress in cost management but underscoring ongoing operational challenges. The reduction in losses highlights strategic cost-cutting measures, though profitability remains elusive.

Price Action

The stock price of Addentax Group edged down 0.54% during the latest trading day, rebounded 2.64% during the most recent full trading week, and plummeted 53.79% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Addentax Group (ATXG) shares on the date of its revenue raise announcement and holding for 30 days shows poor performance over the past three years. The cumulative return is -44.2%, significantly underperforming the market. This indicates that this strategy is not profitable for ATXG, suggesting investors should consider other approaches, such as leveraging earnings announcements to identify growth prospects accurately.

CEO Commentary

While the earnings report lacks direct CEO quotes, the financial data suggests a focus on cost optimization and logistics expansion. The CEO likely emphasized mitigating losses in the garment segment while prioritizing high-volume logistics operations. Leadership appears to view the logistics business as a core growth driver, with plans to expand delivery networks and improve operational efficiency.

Guidance

No forward-looking guidance was provided in the earnings report.

Additional News

Addentax Group’s Q3 2025 10-Q report revealed a 2.3% revenue decline to $1.65 million, driven by reduced garment manufacturing activity. The logistics segment accounted for 98% of revenue, reflecting a strategic shift toward low-margin, high-volume operations. The company aims to expand 20 additional logistics routes in existing cities and maintain high-quality standards in garment manufacturing to attract new customers. Property management and e-commerce initiatives were discontinued following the disposal of a subsidiary.