SHANGHAI, Nov. 18, 2025 /PRNewswire/ -- Texxon Holding Limited (Nasdaq: NPT) (the "Company" or "Texxon"), a leading provider of supply chain management services in the plastics and chemical industries in East China, today announced its financial results for the fiscal year ended June 30, 2025.
Mr. Hui Xu, Chief Executive Officer and Chairman of Texxon, commented: "We are pleased to report strong results for the fiscal year ended June 30, 2025. To align with evolving market conditions and the broader industry environment, we implemented a strategic shift in our sales and marketing efforts toward high-growth sectors such as automotive, new energy, and chemical industries. Leveraging our core strengths in basic chemicals and plastic particles, we expanded our sales team to further broaden our customer base, market coverage, and penetration across China."
"The refinement of our basic chemical product portfolio contributed to an improved average selling price. Our plastic particle sales surged as sales volume increased in response to increased demand, driven by their expanded application in new fields such as automotive, new energy and chemical industries, despite a decline in selling prices. Collectively, these initiatives drove an 18.5% increase in overall revenue, highlighted by an 88.5% surge in plastic-particle sales, while basic-chemical sales slightly grew 1.5%."
"We prioritized business scale and long-term customer relationships over short-term margin gains. While this strategy temporarily compressed gross margin and profit, we believe it will strengthen customer retention, stabilize cash flows, and support sustainable profitability over the long term."
"We are accelerating the construction of a factory to manufacture polystyrene, including production lines, storage facilities, and supporting infrastructure, located in Henan Province, China (the "Henan Polystyrene Factory"), which is scheduled to begin production in the fourth quarter of 2025. Once operational, we expect it will enable us to better meet market demand and capture higher margins amid potential shortages in chemical and plastic raw materials."
"Looking ahead, we remain committed to achieving profitable growth through enhanced operational efficiency, deeper customer relationships, and disciplined product portfolio and pricing strategies. We believe, these initiatives will support long-term shareholder value and position Texxon for continued growth in an increasingly dynamic market."
Fiscal Year 2025 Financial Summary
-- Revenue was $797.15 million for fiscal year 2025, representing an
increase of 18.5% from $672.66 million for fiscal year 2024.
-- Gross profit was $4.70 million for fiscal year 2025, compared to $4.82
million for fiscal year 2024.
-- Gross profit margin was 0.6% for fiscal year 2025, compared to 0.7% for
fiscal year 2024.
-- Net loss was $1.45 million for fiscal year 2025, compared to net income
of $2.51 million for fiscal year 2024.
-- Net loss attributable to Texxon was $0.93 million for fiscal year 2025,
compared to net income attributable to Texxon of $0.95 million for fiscal
year 2024.
-- Basic and diluted losses per share were $0.05 for fiscal year 2025,
compared to basic and diluted earnings per share of $0.05 for fiscal year
2024.
Fiscal Year 2025 Financial Results
Revenue
Revenue was $797.15 million for fiscal year 2025, representing an increase of 18.5% from $672.66 million for fiscal year 2024.
(($ millions,
except for For the Fiscal Year Ended
percentages) June 30, Change
-------------------------------- ----------------
In million 2025 % 2024 % $ %
------- ---- ------- ---- -------- ------
Revenue:
Basic chemicals $524.64 65.8% $517.03 76.9% $ 7.61 1.5%
Plastic
particles 272.39 34.2% 144.50 21.5% 127.89 88.5%
Other products 0.12 0.0% 11.13 1.6% (11.02) (98.9)%
------ ---- ------ ---- ------- ------
Total revenue $797.15 100% $672.66 100% $ 124.49 18.5%
====== ==== ====== ==== ======= ======
-- Sales of basic chemicals were $524.64 million for fiscal year 2025,
representing an increase of 1.5% from $517.03 million for fiscal year
2024. The increase was primarily attributable to an increase in average
sales price.
-- Sales of plastic particles were $272.39 million for fiscal year 2025,
representing an increase of 88.5% from $144.50 million for fiscal year
2024. The increase was primarily attributable to an increase in sales
volume.
-- Sales of other products were $0.12 million for fiscal year 2025, compared
to $11.13 million for fiscal year 2024. The decrease in revenue was
primarily attributable to no sales of black metal for the fiscal year
2025, which had contributed approximately $11.0 million revenue from
sales of other products for the fiscal year 2024.
Cost of Sales
Cost of sales was $792.45 million for fiscal year 2025, representing an increase of 18.7% from $667.85 million for fiscal year 2024. The increase in cost of sales was largely attributable to the increase in the Company's sales volume of plastic particles by approximately 188.7 thousand tons, or 138.3%. The increase in cost of sales is in line with the increase in revenue.
Gross Profit and Gross Profit Margin
Gross profit was $4.70 million for fiscal year 2025, compared to $4.82 million for fiscal year 2024.
Gross profit margin was 0.6% for fiscal year 2025, compared to 0.7% for fiscal year 2024. Gross profit and gross margin decreased primarily due to the Company's strategic shift toward serving major customers, to whom the Company offered more competitive pricing. The Company prioritized expanding business scale and strengthening long-term customer relationships over pursuing short-term high-margin transactions. This strategy temporarily reduced gross margin but is expected to enhance customer retention, stabilize cash flows, and support sustainable profitability growth in the long term.
Operating Expenses
Operating expenses were $5.30 million for fiscal year 2025, representing an increase of 27.5% from $4.16 million for fiscal year 2024.
-- Selling expenses were $2.41 million for fiscal year 2025, representing an
increase of 21.2% from $1.99 million for fiscal year 2024. The increase
in selling expenses was mainly due to (i) salary and welfare benefit
expenses increased by approximately $0.3 million mainly due to the
addition of marketing personnel to support the Company's business
expansion and higher commissions and bonuses paid to sales staff in
connection with the increase in sales; (ii) shipping and delivery
expenses increased by approximately $0.1 million, or 7.2%, from
approximately $1.0 million for the fiscal year 2024 to approximately
$1.1 million for the fiscal year 2025. This increase was primarily due to
an increase in sales volume and increased use of third-party shipping
services for the sale of plastic particles. The total sales volume of
plastic particles increased by 189 thousand tons, or 138.8%, from 136.0
thousand tons for the fiscal year 2024 to 324.8 thousand tons for the
fiscal year 2025.
-- General and administrative expenses were $2.89 million for fiscal year
2025, representing an increase of 33.3% from $2.17 million for fiscal
year 2024. The increase was mainly due to (i) an expected credit loss of
approximately $0.7 million for the fiscal year 2025, compared to $1,385
of credit loss recovered for the fiscal year 2024, primarily due to full
credit losses established against specific customer receivables following
assessment of credit deterioration; and (ii) an increase in salary and
welfare benefit expenses of approximately $0.1 million due to an increase
in personnel in general and administrative department, (iii) an increase
in depreciation and amortization expenses of approximately $0.1 million,
partially offset by (iv) a decrease in professional services fee of
approximately $0.2 million.
-- Other expenses were $1.37 million for fiscal year 2025, compared to other
income of $2.57 million for fiscal year 2024. The decrease was primarily
attributable to one-time government grants of approximately $2.9 million
received in connection with the construction of Henan Polystyrene Factory,
which are recognized as a reduction of the cost of construction in
progress rather than as other income.
Net Income (loss)
Net loss was $1.45 million for fiscal year 2025, compared to net income of $2.51 million for fiscal year 2024. Net loss attributable to Texxon was $0.93 million for fiscal year 2025, compared to net income attributable to Texxon of $0.95 million for fiscal year 2024.
Basic and Diluted Earnings (losses) per Share
Basic and diluted losses per share were $0.05 for fiscal year 2025, compared to basic and diluted earnings per share of $0.05 for fiscal year 2024.
Financial Condition
As of June 30, 2025, the Company had cash and cash equivalents of $2.52 million, an increase from $0.27 million as of June 30, 2024.
Net cash provided by operating activities was $2.32 million for fiscal year 2025, compared to net cash used in operating activities of $30.80 million for fiscal year 2024.
Net cash used in investing activities was $42.25 million for fiscal year 2025, compared to $11.02 million for fiscal year 2024.
Net cash provided by financing activities was $41.36 million for fiscal year 2025, compared to $29.36 million for fiscal year 2024.
Recent Development
On October 23, 2025, the Company completed its initial public offering (the "Offering") of 1,900,000 ordinary shares at a public price of US$5.00 per share. On October 28, 2025, the underwriters of the Offering fully exercised their over-allotment option to purchase an additional 285,000 ordinary shares of the Company at the public offering price of US$5.00 per share. The gross proceeds were US$10,925,000 from the Offering, before deducting underwriting discounts and commissions, and other expenses. The Company's ordinary shares began trading on the Nasdaq Capital Market on October 22, 2025, under the ticker symbol "NPT."
About Texxon Holding Limited
Texxon Holding Limited is a leading provider of supply chain management services in the plastics and chemical industries in East China. Through its technology-enabled platform, the Company provides a full spectrum of services to Chinese SME customers, including procurement, shipping and logistics, payments and fulfillment services. It aspires to build the largest one-stop plastic and chemical raw material supply chain management platform in China, to streamline the complex and labor-intensive raw material procurement process and enhance convenience, cost-effectiveness, and efficiency for customers. Texxon has built a highly scalable distributed software architecture for continuous improvement, and an effective User Experience Design (UED) process to improve the customer experience. In addition, with over a decade of experience, the Company has amassed substantial transaction data, including supplier and customer information, price trends, category-specific price indexes and market demand volume, to analyze price trends and market demands and make informed decisions. For more information, please visit the Company's website: ir.npt-cn.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, but not limited to, the timeline and effects regarding the construction and production of the Henan Polystyrene Factory. These forward-looking statements involve known and unknown risks and uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the Company's Annual Report on Form 20-F for the fiscal year ended June 30, 2025 filed with the U.S. Securities and Exchange Commission (the "SEC") and are based on the Company's current expectations and projections about future events that the Company believes 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 "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions. 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 latest annual report on Form 20-F and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
For more information, please contact:
Texxon Holding Limited
Investor Relations Department
Email: ir@totrade.cn
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
TEXXON HOLDING LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2025 AND 2024
(EXPRESSED IN U.S. DOLLARS)
June 30, June 30,
2025 2024
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,517,577 $ 272,895
Restricted cash 562 785,105
Accounts receivable, net 7,522,465 11,094,702
Note receivables - 1,885,183
Advanced to suppliers 2,675,445 1,632,975
Inventories 973,644 873,720
Loan to a related party 153,554 151,365
Prepayments and other current assets 6,918,026 1,353,457
----------- -----------
TOTAL CURRENT ASSETS 20,761,273 18,049,402
----------- -----------
NON-CURRENT ASSETS:
Property, plant and equipment, net 84,623,119 23,363,352
Intangible assets, net 6,164,781 6,207,309
Prepayments for long-term assets 24,522,149 39,307,235
Deferred offering costs 634,978 538,584
Equity investment 2,261,433 2,229,194
----------- -----------
TOTAL NON-CURRENT ASSETS 118,206,460 71,645,674
----------- -----------
TOTAL ASSETS $138,967,733 $ 89,695,076
=========== ===========
LIABILITIES
CURRENT LIABILITIES:
Short-term borrowings $ 20,624,062 $ 25,788,560
Accounts payable 763,343 1,294,480
Contract liabilities 2,272,179 637,537
Accrued expenses and other current
liabilities 19,258,940 9,790,325
Due to related parties 29,826,131 19,807,637
----------- -----------
TOTAL CURRENT LIABILITIES 72,744,655 57,318,539
----------- -----------
NON-CURRENT LIABILITIES:
Long-term borrowings 32,175,020 -
----------- -----------
TOTAL LIABILITIES $104,919,675 $ 57,318,539
=========== ===========
Commitments and contingencies
(Note 16)
SHAREHOLDERS' EQUITY (DEFICIT):
Ordinary shares, $0.0001 par value,
500,000,000 shares authorized,
20,000,000 and 20,000,000 shares
issued and outstanding as of June 30,
2025 and 2024, respectively.* 2,000 2,000
Additional paid-in capital* 777,992 777,992
Accumulated deficit (4,316,467) (3,383,846)
Accumulated other comprehensive loss (275,578) (245,500)
----------- -----------
SHAREHOLDERS' DEFICIT ATTRIBUTABLE TO
TEXXON HOLDING LIMITED (3,812,053) (2,849,354)
Non-controlling interests 37,860,111 35,225,891
----------- -----------
TOTAL EQUITY 34,048,058 32,376,537
----------- -----------
TOTAL LIABILITIES AND EQUITY $138,967,733 89,695,076
=========== ===========
* Shares presented on a retroactive basis to reflect the reorganization.
TEXXON HOLDING LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)
FOR THE FISCAL YEARS ENDED JUNE 30, 2025, 2024 AND 2023
(EXPRESSED IN U.S. DOLLARS)
For the Fiscal Year ended
June 30,
----------------------------------------------
2025 2024 2023
-------------- -------------- --------------
REVENUE
Sales revenue
generated from
third parties $ 797,148,640 $ 672,662,697 $ 549,879,053
Sales revenue
generated from
related parties - - 2,647,129
------------- ------------- -------------
Total revenue 797,148,640 672,662,697 552,526,182
COST OF SALES
Cost of sales
charged by third
parties (789,783,093) (662,621,392) (541,218,715)
Cost of sales
charged by related
parties (2,015,752) (4,987,246) (7,569,836)
Tax and surcharges (649,245) (236,983) (204,138)
------------- ------------- -------------
Total cost of sales (792,448,090) (667,845,621) (548,992,689)
------------- ------------- -------------
GROSS PROFIT 4,700,550 4,817,076 3,533,493
------------- ------------- -------------
OPERATING EXPENSES
Selling and
marketing
expenses (2,413,149) (1,990,991) (996,638)
General and
administrative
expenses (2,888,047) (2,166,116) (1,282,757)
------------- ------------- -------------
Total operating
expenses (5,301,196) (4,157,107) (2,279,395)
------------- ------------- -------------
(LOSS) INCOME FROM
OPERATIONS $ (600,646) $ 659,969 $ 1,254,098
------------- ------------- -------------
OTHER INCOME
(EXPENSES):
Interest (expenses)
income, net (408,843) (470,288) 197,428
Interest
income -- related
parties - 34,922 592,581
Other income, net 55,680 105,603 86,585
Government grants 216,574 2,896,219 -
------------- ------------- -------------
Total other income
(expenses), net (136,589) 2,566,456 876,594
------------- ------------- -------------
INCOME (LOSS)
BEFORE PROVISION
FOR INCOME TAXES (737,235) 3,226,425 2,130,692
INCOME TAXES
EXPENSES (716,897) (716,782) (42,998)
------------- ------------- -------------
NET INCOME (LOSS) (1,454,132) 2,509,643 2,087,694
Less: net income
(loss)
attributable to
non-controlling
interest (521,511) 1,556,083 65,542
------------- ------------- -------------
NET INCOME (LOSS)
ATTRIBUTABLE TO
TEXXON HOLDING
LIMITED (932,621) 953,560 2,022,152
OTHER
COMPREHENSIVE
INCOME (LOSS)
Foreign currency
translation income
(loss) 469,036 1,218,751 (1,502,270)
------------- ------------- -------------
TOTAL COMPREHENSIVE
INCOME (LOSS) $ (985,096) $ 3,728,394 $ 585,424
Less: comprehensive
income (loss)
attributable to
non-controlling
interests (22,397) 1,528,622 (471,406)
------------- ------------- -------------
COMPREHENSIVE
INCOME (LOSS)
ATTRIBUTABLE TO
TEXXON HOLDING
LIMITED (962,699) 2,199,772 1,056,830
============= ============= =============
BASIC AND DILUTED
EARNINGS (LOSS)
PER SHARE:
Net income (loss)
attributable to
Texxon Holding
Limited per share
Basic and diluted $ (0.05) $ 0.05 $ 0.10
============= ============= =============
Weighted average
shares outstanding
used in
calculating basic
and diluted income
per share*
Basic and diluted 20,000,000 20,000,000 20,000,000
============= ============= =============
* Shares presented on a retroactive basis to reflect the reorganization.
TEXXON HOLDING LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED JUNE 30, 2025, 2024 AND 2023
(EXPRESSED IN U.S. DOLLARS)
For the fiscal year ended
June 30,
---------------------------------------------
2025 2024 2023
-------------- -------------- -------------
CASH FLOWS FROM
OPERATING
ACTIVITIES:
Net income (loss) $ (1,454,132) $ 2,509,643 $ 2,087,694
Adjustments to
reconcile net
income to net cash
provided by (used
in) operating
activities:
Depreciation and
amortization 288,072 332,728 251,081
Interest income
from a related
party - (34,922) (592,581)
Allowance
(recovery) for
credit losses 720,054 (1,385) (220,339)
Loss on disposal of
property, plant
and equipment - - 50,236
Changes in
operating assets
and liabilities:
Accounts receivable 2,986,453 (7,512,856) 3,711,146
Notes receivable 1,899,032 (1,896,246) -
Inventories (86,676) (466,902) (358,965)
Advanced to
suppliers (1,011,848) 147,725 (1,447,491)
Prepayments and
other current
assets (3,315,341) (559,757) 117,283
Notes payable - (13,828,757) (24,696,655)
Accounts payable (546,002) (10,429,603) 4,486,026
Accrued expenses
and other current
liabilities 1,231,325 1,902,256 1,389,576
Contract
liabilities 1,614,022 (957,134) 1,043,235
------------- ------------- ------------
NET CASH PROVIDED
BY (USED IN)
OPERATING
ACTIVITIES 2,324,959 (30,795,210) (14,179,754)
------------- ------------- ------------
CASH FLOWS FROM
INVESTING
ACTIVITIES:
Purchase of plant,
property and
equipment (45,103,546) (33,338,925) (22,615,531)
Purchase of
intangible assets - (6,805) (6,683,817)
Payments made for
loans to related
parties - (152,253) (11,931,168)
Government grant
received in
connection with
the construction
of plant, property
and equipment 2,853,622 - -
Loan repayment from
a related party - 22,478,306 -
------------- ------------- ------------
NET CASH USED IN
INVESTING
ACTIVITIES (42,249,924) (11,019,677) (41,230,516)
------------- ------------- ------------
CASH FLOWS FROM
FINANCING
ACTIVITIES:
Proceeds from
short-term
borrowings 154,521,737 141,956,726 22,969,397
Proceeds from
long-term
borrowings 30,105,666 - -
Repayment of
short-term
borrowings (154,473,136) (127,367,676) (12,327,428)
Capital
contribution from
non-controlling
interests 2,647,556 9,254,357 18,260,003
Financing cost paid
for the syndicated
loan (1,011,893) - -
Withdrawal of
capital by
non-controlling
interests - (1,460,814) -
Capital
contribution from
shareholder - - 1,405,778
Payments made to
shareholders to
acquire Net
Plastic Technology
for the
Reorganization - (12,226,342) -
Proceeds from
related parties 9,663,775 19,747,892 106,062
Payments made for
deferred offering
costs (93,243) (539,639) -
------------- ------------- ------------
NET CASH PROVIDED
BY FINANCING
ACTIVITIES 41,360,462 29,364,504 30,413,812
------------- ------------- ------------
EFFECT OF EXCHANGE
RATE CHANGE ON
CASH, CASH
EQUIVALENTS AND
RESTRICTED CASH 24,642 1,326,240 (1,559,510)
------------- ------------- ------------
NET CHANGE IN CASH,
CASH EQUIVALENTS
AND RESTRICTED
CASH 1,460,139 (11,124,143) (26,555,968)
CASH, CASH
EQUIVALENTS AND
RESTRICTED
CASH -- beginning
of year 1,058,000 12,182,143 38,738,111
------------- ------------- ------------
CASH, CASH
EQUIVALENTS AND
RESTRICTED
CASH -- end of
year $ 2,518,139 $ 1,058,000 $ 12,182,143
SUPPLEMENTAL CASH
FLOW DISCLOSURES:
Cash paid for
income taxes (10,202) (432) (785)
Cash paid for
interest (1,942,702) (549,534) (361,912)
Cash received from
interest income 1,845 226,831 508,742
SUPPLEMENTAL
DISCLOSURE OF
NON-CASH
ACTIVITIES:
Payable related to
purchase of
property, plant,
and equipment 5,318,449 6,069,298 1,385,669
Prepayment for
long-term assets
transferred to
property, plant
and equipment 19,262,697 4,516,656 -
Convertible loan
transfer to other
payables -
Interest receivable
accrued related to
loan to a related
party - 34,922 592,581
Cash and cash
equivalents 2,517,577 272,895 1,328,917
Restricted cash 562 785,105 10,853,226
------------- ------------- ------------
Total cash, cash
equivalents and
restricted cash 2,518,139 1,058,000 12,182,143
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SOURCE Texxon Holding Limited
(END) Dow Jones Newswires
November 18, 2025 16:30 ET (21:30 GMT)