Key Highlights

• ATXG shares rose 7.10% intraday to $3.25.

• Fiscal 2026 revenue reached $5.37 million, up 28.5% from $4.18 million in fiscal 2025.

• New consulting services accounted for 40.1% of fiscal 2026 revenue.

• The company posted a net loss of $4.47 million, an improvement from a $5.09 million loss in fiscal 2025.

Consulting Services Drive Revenue Growth

Addentax Group Corp. (NASDAQ:ATXG) shares surged Wednesday after the Shenzhen-based integrated logistics and holding company reported fiscal 2026 revenue of $5.37 million, up 28.5% from $4.18 million in the prior year, driven largely by the launch of new consulting services.

Addentax operates across four business segments, garment manufacturing, logistics services, property management and epidemic prevention supplies, with its logistics services segment remaining the largest contributor at 59.1% of total revenue, supported by route expansion across 45 cities and plans for 20 additional routes.

Net Loss Narrows Amid Business Mix Shift

The company's new consulting services segment accounted for 40.1% of fiscal 2026 revenue, reflecting a broader strategic shift toward asset-light services as garment manufacturing sales declined sharply. Addentax reported a net loss attributable to equity holders of $4.47 million, an improvement from a $5.09 million loss in the prior year, with diluted loss per share narrowing to $6.27 from $12.75.

During the year, Addentax completed its acquisition of KMFG, an apparel trading and digital publishing business, while disposing of its property management unit, which is now classified as a discontinued operation. Margins remained pressured, with the consulting segment posting a gross margin of just 0.7% due to high referral fees, while logistics margins were squeezed by higher fuel, toll and subcontracting costs.

Conclusion

Addentax's fiscal 2026 results show meaningful top-line growth driven by its pivot toward consulting and asset-light services, alongside a narrowing net loss. However, thin consulting margins and cost pressure in its core logistics segment highlight ongoing profitability challenges as the company continues reshaping its business mix.

 

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