Addentax Group Corp (NASDAQ: ATXG) is a China-based holding company that operates three businesses: garment manufacturing, logistics services, and property management and subleasing. Revenue comes from garment production contracts, fees charged for storage, transportation, warehousing, handling, packaging, and order processing, and rental and management fees collected from tenants. All three segments operate in Guangdong province and broader PRC markets. Total revenue was $4.18M for the fiscal year ended March 31, 2025, down 18.9% from $5.15M in the prior fiscal year. Gross margin contracted to 15.2% in FY2025 from 21.6% in FY2024. The company reported a loss from operations of $1.82M in FY2025. As of March 31, 2025, the logistics network covered 45 cities across 10 provinces and 2 municipalities in the PRC, with 114 logistics points and nine delivery routes.

Revenue model

Three transactional revenue streams: (1) garment manufacturing, billed on delivery with payment terms of 30 to 180 days for established customers; (2) logistics services fees billed 30 to 90 days after package receipt registration; (3) property management and subleasing rental and management fees collected one month in advance.

Products and services

Garment manufacturing with in-house quality control and design team (3 members as of March 31, 2025, 20 production employees as of March 31, 2025). Logistics services including storage, transportation, warehousing, handling, packaging, order processing, customs declaration, and tax clearance. Property management and subleasing operated through Dongguan Hongxiang Commercial Co., Ltd. (HX) in Guangdong province.

Customers and end markets

Garment customers include new buyers requiring deposits and established buyers on 30-to-180-day payment terms. Logistics customers include businesses shipping goods within the PRC and exporters requiring customs and tax clearance. Property management tenants include smaller, growth-oriented businesses in the garment industry, as disclosed in the FY2025 10-K.

Value-chain role

Manufacturer and service provider. In garments, ATXG produces finished goods and conducts quality control before delivery. In logistics, it operates as a third-party logistics provider with both in-house delivery fleets and outsourced third-party contractors for overflow or uncovered geographies. In property, it acts as a sublease intermediary managing commercial space.

Geographic exposure

All operations are in the PRC. Logistics network covers 45 cities in 10 provinces and 2 municipalities as of the FY2025 10-K filing. Garment manufacturing and property management are based in Guangdong province.

Source: SEC 10-K, filed 2025-06-30

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