CXJ Group Limited (ECXJ)
Description
CXJ Group Limited operates in the automobile aftermarket industry in China, primarily trading motor oil, auto parts, and exhaust gas cleaners, and offering brand name management and related consulting services through variable interest entities.
Historical Reports
Financial Information
- Report Date
- 2025-04-30
- Report Period
- Quarter Ended February 28, 2025
- Debt
- 1,843,741
- Debt History
- Total liabilities decreased by approximately 7.4% from $1,990,461 at May 2024 to $1,843,741 at February 2025.
- Debt Trend
- Decreasing
Profit Information
- Profit
- -64,638
- Profit History
- Net loss increased by approximately 159.5% compared to net profit of $108,741 in the prior-year quarter.
- Profit Trend
- Decreasing
Detailed Report
CXJ Group Limited – Q1 FY2025 Financial Analysis
Report Date: April 30, 2025
Period: Quarter Ended February 28, 2025
1. Profit & Debt Analysis
- Revenue: $64.54 K, down 83.5% YoY (vs. $390.27 K in Q1 2024).
- Gross Profit: $62.10 K, down 81.0% YoY.
- Net Loss: $64.64 K vs. net profit $108.74 K in Q1 2024.
- Total Liabilities: $1.84 M, reduced by 7.4% since May 2024.
2. Drivers of Performance
- Revenue Decline: Brand-name administrative fees fell by 80.3%; product sales of motor oil and auto parts plunged by 84.2%.
- Cost Management: COGS fell in line with revenues; SG&A expenses were trimmed but not enough to offset top-line contraction.
- Cash Burn: Operating cash outflow of $370.93 K in the quarter led to cash reserves of only $2.36 K.
3. Pros & Cons
Pros:
- Leaner cost structure and lower liabilities.
- $369.7 K of equity financing in late 2024 strengthened liquidity.
- Strategic focus on e-commerce, ERP systems, and portfolio diversification.
Cons:
- Continued net loss and negative operating cash flow.
- Minimal cash on hand ($2.36 K) and going-concern uncertainty.
- Dependency on variable-interest entities and PRC foreign exchange controls.
- Dilutive equity financing may persist if additional capital is needed.
Statistics Breakdown
Q1 FY2025 Revenue Breakdown:
- Brand-Name Administrative Fees: $60,859 (94.3%)
- Exhaust Gas Cleaner & Motor Oil Sales: $3,682 (5.7%)
- Other Services: $0 (0.0%)
Company Direction Insights
CXJ has reduced its liability base and operating expenses, but ongoing cash burn and minimal cash reserves heighten going-concern risks. The company’s growth plan—expanding e-commerce channels, enhancing ERP capabilities, and acquiring quality aftermarket businesses—could revive top-line momentum. However, variable-interest entity structures, PRC currency controls, and reliance on periodic equity raises pose challenges. Execution of diversification strategies and achievement of positive operating cash flow will be critical to long-term viability.