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CCSC Technology International Holdings Limited Reports Financial Results for Fiscal Year Ended March 31, 2026

2026-07-17 16:05 ET - News Release

CCSC Technology International Holdings Limited Reports Financial Results for Fiscal Year Ended March 31, 2026

PR Newswire

HONG KONG, July 17, 2026 /PRNewswire/ -- CCSC Technology International Holdings Limited (the "Company" or "CCSC") (Nasdaq: CCTG), a Hong Kong-based company that engages in the sale, design and manufacturing of interconnect products, including connectors, cables and wire harnesses, today announced its financial results for the fiscal year ended March 31, 2026.

Mr. Kung Lok Chiu, Chief Executive Officer and Director of the Company, commented, "Fiscal year 2026 demonstrated the resilience of our business and the continued strength of our core operations. During the fiscal year, gross profit increased by 1.6% to $5.1 million, with gross profit margin improving to 29.3% from 28.3% in the prior fiscal year, supported by our continued focus on cost management and operational efficiency. We also recorded encouraging growth across selected products and markets, with revenue from connectors increasing by 5.7% and revenue from Asia increasing by 4.4%.

"During the fiscal year, we advanced several strategic initiatives designed to broaden our capabilities and strengthen our market position. We launched eNaviX, our carbon footprint and energy management system for small and medium sized enterprises, expanding our offerings into carbon management and Environmental, Social and Governance (ESG) solutions. We also commenced construction of our new European supply chain management center in Merosina, Serbia, in January 2026, which is expected to be completed and ready for operational use in December 2026 and will serve as the headquarters of our European supply chain operations.

"Looking ahead, we remain focused on enhancing our product portfolio, deepening customer relationships and improving operational flexibility as we pursue sustainable growth and long-term value for our shareholders. We believe our ongoing strategic initiatives will further strengthen our market position and support the Company's next phase of development."

Fiscal Year Ended March 31, 2026 Financial Highlights

  • Revenue was $17.3 million for the fiscal year ended March 31, 2026, compared to $17.6 million for the fiscal year ended March 31, 2025.
  • Gross profit increased by 1.6% to $5.1 million for the fiscal year ended March 31, 2026, from $5.0 million for the fiscal year ended March 31, 2025.
  • Gross profit margin was 29.3% for the fiscal year ended March 31, 2026, increased from 28.3% for the fiscal year ended March 31, 2025.
  • Net loss was $4.8 million for the fiscal year ended March 31, 2026, compared to $1.4 million for the fiscal year ended March 31, 2025.
  • Basic and diluted loss per share was $1.94 for the fiscal year ended March 31, 2026, compared to $1.22 for the fiscal year ended March 31, 2025.

Fiscal Year Ended March 31, 2026 Financial Results

Revenue

Total revenue was $17.3 million for the fiscal year ended March 31, 2026, which decreased by 1.9% from $17.6 million for the fiscal year ended March 31, 2025.

The following table sets forth revenue by interconnect products:

                                              For the fiscal years ended March 31,                                        Change


                                       2026                           %                                        2025           %                 Amount        %


                                                    
        
          (Amounts expressed in U.S. dollars)



 Cables and wire harnesses     $
 15,986,501             92.4                            $
        16,385,705       92.9          $
 (399,204)        (2.4)



 Connectors                        1,316,243              7.6                                       1,245,784        7.1                70,459           5.7



 
          Total          $
 
   17,302,744            100.0                 $
        
          17,631,489      100.0      $
 
   (328,745)        (1.9)

Revenue generated from cables and wire harnesses decreased by 2.4%, to $16.0 million for the fiscal year ended March 31, 2026, from $16.4 million for the fiscal year ended March 31, 2025. The decrease was primarily driven by lower sales volume, which was partially offset by the increase in the overall average selling prices of the Company's cables and wire harness products.

Revenue generated from connectors increased by 5.7%, to $1.3 million for the fiscal year ended March 31, 2026, from $1.2 million for the fiscal year ended March 31, 2025. The increase was primarily attributable to the increase in the overall average selling prices of the Company's connectors, partially offset by a decrease in sales volume.

The following table sets forth the disaggregation of revenue by regions:

                                       For the fiscal years ended March 31,                                          Change


                                2026                             %                                        2025              %               Amount     %


                                           
          
            (Amounts expressed in U.S. dollars)


  Europe                 $
 10,572,256           61.1                              $
          10,991,905       62.3           $
 (419,649)     (3.8)



 Asia                       5,573,347           32.2                                           5,336,247       30.3                237,100        4.4


  The Americas               1,157,141            6.7                                           1,303,337        7.4              (146,196)    (11.2)


               Total $
 
   17,302,744          100.0                 $
          
            17,631,489      100.0  $
      
   (328,745)     (1.9)

Revenue generated from Europe decreased by 3.8%, to $10.6 million for the fiscal year ended March 31, 2026, from $11.0 million for the fiscal year ended March 31, 2025. The decline stemmed from modest sales decreases in Denmark and Bulgaria, which were partially offset by slight revenue growth in Hungary and the Netherlands.

Revenue generated from Asia increased by 4.4%, to $5.6 million for the fiscal year ended March 31, 2026, from $5.3 million for the fiscal year ended March 31, 2025. This increase was primarily driven by a sales increase in Mainland China of $0.7 million and a sales increase in the Association of Southeast Asian Nations, or ASEAN, of $0.1 million, and was partially offset by a sales decrease in Hong Kong, China of $0.5 million.

Revenue generated from the Americas decreased by 11.2%, to $1.2 million for the fiscal year ended March 31, 2026, from $1.3 million for the fiscal year ended March 31, 2025. This decrease was primarily due to a sales decrease in North America of $0.2 million.

Cost of Revenue

Cost of revenue decreased by 3.2%, to $12.2 million for the fiscal year ended March 31, 2026, from $12.6 million for the fiscal year ended March 31, 2025, which was generally in line with the decrease in total revenue.

Inventory costs amounted to $8.5 million for the fiscal year ended March 31, 2026, compared to $8.6 million for the fiscal year ended March 31, 2025. The decrease in the Company's inventory costs was primarily due to an 11.9% decrease in the total sales volume from approximately 31.3 million units in the fiscal year ended March 31, 2025 to approximately 27.6 million units in the fiscal year ended March 31, 2026.

Labor costs amounted to $2.8 million for the fiscal year ended March 31, 2026, compared to $3.1 million for the fiscal year ended March 31, 2025. The decrease in labor costs was mainly attributable to lower production volumes driven by decreased sales and the Company's efforts to reduce labor costs.

Gross Profit and Gross Margin

Gross profit increased by 1.6%, to $5.1 million for the fiscal year ended March 31, 2026, from $5.0 million for the fiscal year ended March 31, 2025.

Gross profit margin increased by 1.0%, to 29.3% for the fiscal year ended March 31, 2026, from 28.3% for the fiscal year ended March 31, 2025, primarily due to a reduction in fixed costs per unit as a result of the Company's efforts in reducing labor costs.

Operating Expenses

Operating expenses increased by 22.6%, to $8.5 million for the fiscal year ended March 31, 2026, from $7.0 million for the fiscal year ended March 31, 2025. The expense increase was primarily due to the increase in selling expenses of $0.5 million, the increase in general and administrative expenses of $0.01 million, and the increase in research and development expenses of $1.1 million.

Net Loss

Net loss increased by 240.7%, to $4.8 million for the fiscal year ended March 31, 2026, from $1.4 million for the fiscal year ended March 31, 2025.

Basic and Diluted Loss per Share

Basic and diluted loss per share was $1.94 for the fiscal year ended March 31, 2026, compared to $1.22 for the fiscal year ended March 31, 2025.

Financial Condition

As of March 31, 2026, the Company had cash of $4.1 million, compared to $3.7 million as of March 31, 2025.

Net cash used in operating activities in the fiscal year ended March 31, 2026 was $4.5 million, compared to $1.0 million in the fiscal year ended March 31, 2025.

Net cash used in investing activities in the fiscal year ended March 31, 2026 was $1.4 million, compared to $0.9 million in the fiscal year ended March 31, 2025.

Net cash provided by financing activities in the fiscal year ended March 31, 2026 was $6.3 million, compared to net cash used in financing activities of $0.05 million in the fiscal year ended March 31, 2025.

About CCSC Technology International Holdings Limited

CCSC Technology International Holdings Limited is a Hong Kong-based company that engages in the sale, design and manufacturing of interconnect products. The Company specializes in customized interconnect products, including connectors, cables and wire harnesses that are used for a range of applications in a diversified set of industries, including industrial, automotive, robotics, medical equipment, computer, network and telecommunication, and consumer products. The Company produces interconnect products under both Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) models for manufacturing companies that produce end products, as well as electronic manufacturing services companies that procure and assemble products on behalf of such manufacturing companies. The Company has a diversified global customer base located in more than 25 countries throughout Asia, Europe and the Americas. For more information, please visit the Company's website: http://ir.ccsc-interconnect.com.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that 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 "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue," or other similar expressions in this press release. 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. Factors that could cause actual results to differ materially include, without limitation, risks and uncertainties described in the Company's Annual Report on Form 20-F for the fiscal year ended March 31, 2026, filed with the United States Securities and Exchange Commission on July 17, 2026, and in the Company's other filings with the United States Securities and Exchange Commission. Investors are encouraged to review the Annual Report on Form 20-F in its entirety for a more complete discussion of the risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements.

For more information, please contact:

CCSC Technology International Holdings Limited
Investor Relations Department
Email: ir@ccsc-interconnect.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

                                                                                             
    
    CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED


                                                                                                 
  
            CONSOLIDATED BALANCE SHEETS


                                                                                           
   
    (Amount in U.S. dollars, except for number of shares)




                                                                                                                                                                                  As of March 31,


                                                                                                                                                                           2026                               2025



       
            Assets



       
            Current assets:



        Cash                                                                                                                                                   $
      4,093,878                   $
       3,685,043



       Restricted cash                                                                                                                                                    10,227                                9,413



       Accounts receivable                                                                                                                                             2,831,064                            2,495,301



       Inventories                                                                                                                                                     2,301,216                            1,761,880



       Prepaid expenses and other current assets                                                                                                                       1,669,571                            1,066,032



       
            Total current assets                                                                                                                              10,905,956                            9,017,669





       
            Non-current assets:



       Property, plant and equipment, net                                                                                                                              1,980,764                              853,959



       Intangible assets, net                                                                                                                                             67,537                               83,906



       Operating lease right-of-use assets, net                                                                                                                          868,418                            1,106,024



       Finance lease right-of-use assets, net                                                                                                                            146,732                              194,478



       Deferred tax assets, net                                                                                                                                           19,308                              558,683



       Other non-current assets, net                                                                                                                                   4,302,029                            3,510,363



       
            Total non-current assets                                                                                                                           7,384,788                            6,307,413



       
            TOTAL ASSETS                                                                                                                         $
  
        18,290,744             $
  
         15,325,082





       
            Liabilities and Shareholders' Equity



       
            Current liabilities:



       Accounts payable                                                                                                                                        $
      2,781,034                   $
       1,819,647



       Advance from customers                                                                                                                                            317,751                              141,737



       Accrued expenses and other current liabilities                                                                                                                  1,472,141                            1,345,210



       Taxes payable                                                                                                                                                      30,651                               21,916



       Operating lease liabilities, current                                                                                                                              573,650                              473,116



       Finance lease liabilities, current                                                                                                                                 38,816                               36,277



       
            Total current liabilities                                                                                                                          5,214,043                            3,837,903





       
            Non-current liabilities:



       Operating lease liabilities, non-current                                                                                                                          296,436                              633,249



       Finance lease liabilities, non-current                                                                                                                             88,723                              127,834



       
            Total non-current liabilities                                                                                                                        385,159                              761,083



       
            TOTAL LIABILITIES                                                                                                                     $
  
        5,599,202              $
  
         4,598,986





       
            Commitments and Contingencies (Note 16)





       
            Shareholders' equity



       Class A ordinary shares, par value of US$0.005 per share; 49,500,000 shares                                                                                $
      17,068                      $
        3,291
  authorized; 3,413,520 and 658,125 shares issued and outstanding as of March 31,
  2026 and 2025, respectively*



       Class B ordinary shares, par value of US$0.005 per share; 500,000 shares authorized;                                                                                2,500                                2,500
  500,000 shares issued and outstanding as of March 31, 2026 and 2025, respectively*



       Additional paid-in capital                                                                                                                                     11,182,908                            4,855,795



       Statutory reserve                                                                                                                                                 813,235                              813,235



       Retained earnings                                                                                                                                               2,275,757                            7,081,318



       Accumulated other comprehensive loss                                                                                                                          (1,599,926)                         (2,030,043)



       
            Total Shareholders' Equity                                                                                                                        12,691,542                           10,726,096



       
            TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                           $
  
        18,290,744             $
  
         15,325,082


 *

    Retrospectively restated for effect of the share consolidation
     completed in January 2026.

                                                              
     
        CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED


                                                          
     
     CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS


                                                            
     
      (Amount in U.S. dollars, except for number of shares)




                                                                                                                                      For the years ended March 31,


                                                                                                                  2026                                         2025                   2024



 
            Net revenue                                                                        $
          17,302,744                         $
          17,631,489      $
       14,748,551



 Cost of revenue                                                                                           (12,238,334)                                  (12,647,287)            (10,825,943)



 
            Gross profit                                                                                    5,064,410                                      4,984,202                3,922,608





 
            Operating expenses:



 Selling expenses                                                                                           (2,216,650)                                   (1,695,217)             (1,039,882)



 General and administrative expenses                                                                        (4,606,701)                                   (4,601,637)             (4,134,394)



 Research and development expenses                                                                          (1,699,630)                                     (654,039)               (594,521)



 
            Total operating expenses                                                                      (8,522,981)                                   (6,950,893)             (5,768,797)



 
            Loss from operations                                                                          (3,458,571)                                   (1,966,691)             (1,846,189)





 
            Other (loss)/ income:



 Foreign currency exchange (loss)/income, net                                                                 (419,431)                                        67,395                  425,308



 Financial and interest (loss)/income, net                                                                     (21,962)                                        10,538                   67,636



 Government subsidy                                                                                                                                           207,257                    7,255



 Other non-operating income/(expenses), net                                                                      55,968                                            534                 (35,509)



 
            Total other (loss)/ income                                                                      (385,425)                                       285,724                  464,690





 
            Loss before income tax expense                                                                (3,843,996)                                   (1,680,967)             (1,381,499)



 Income tax (expenses)/benefit                                                                                (961,565)                                       270,502                   86,336



 
            Net loss                                                                                      (4,805,561)                                   (1,410,465)             (1,295,163)





 
            Other comprehensive income /(loss)



 Foreign currency translation adjustment                                                                        430,117                                      (161,106)               (523,250)



 
            Total comprehensive loss                                             $
          
            (4,375,444)           $
         
            (1,571,571)  $
 
       (1,818,413)





 
            Loss per share



 Basic and Diluted*                                                                                  $
          (1.94)                            $
          (1.22)         $
       (1.26)



 
            Weighted average number of ordinary shares



 Basic and Diluted*                                                                                           2,480,584                                      1,158,125                1,028,852


          *

             Retrospectively restated for effect of the share consolidation completed in
              January 2026. The EPS amounts pertain
  to each class of common stock are the same.

                                                                                                   
     
       CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED


                                                                                                     
     
         CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                                                 
     
     (Amount in U.S. dollars, except for number of shares)




                                                                                                                                                                                      For the years ended March 31,


                                                                                                                                                                       2026                                   2025                            2024



       
            CASH FLOWS FROM OPERATING ACTIVITIES:



       Net loss                                                                                                                                      $
          (4,805,561)                 $
          (1,410,465)             $
       (1,295,163)



       
            Adjustments to reconcile net loss to net cash used in operating activities:



       Inventory write-downs                                                                                                                                          68,783                                  128,241                           188,268



       Depreciation and amortization                                                                                                                                 216,722                                  238,599                           238,757



       Amortization of right-of-use assets                                                                                                                           588,969                                  519,426                           509,086



       Loss from disposal of property, plant and equipment                                                                                                             7,802                                   10,889                             2,188



       Deferred tax expense/(benefit)                                                                                                                                545,390                                (270,502)                        (249,892)



       Foreign currency exchange losses/(gains)                                                                                                                      360,960                                 (56,479)                        (227,691)



       
            Changes in operating assets and liabilities:



       Accounts receivable                                                                                                                                         (330,965)                                 267,028                         (500,747)



       Inventories                                                                                                                                                 (543,130)                                 130,289                         (101,220)



       Prepaid expenses and other current assets                                                                                                                   (542,610)                                 412,124                         (704,610)



       Other non-current assets                                                                                                                                     (63,336)                                 257,086                          (77,220)



       Accounts payable                                                                                                                                              870,609                                (359,764)                          563,226



       Advance from customers                                                                                                                                        177,602                                 (66,537)                           22,060



       Taxes payable                                                                                                                                                   7,096                                  (2,971)                        (340,992)



       Accrued expenses and other current liabilities                                                                                                              (535,246)                               (234,550)                         (64,258)



       Operating lease liabilities                                                                                                                                 (540,332)                               (534,472)                        (490,319)



       Financing lease liabilities                                                                                                                                     9,272                                    3,250                                24



       
            Net cash used in operating activities                                                                                                        (4,507,975)                               (968,808)                      (2,528,503)





       
            CASH FLOWS FROM INVESTING ACTIVITIES



       Purchase of property, plant and equipment                                                                                                                   (859,118)                               (327,801)                        (156,999)



       Prepayment of equipment and mold model                                                                                                                                                                                             (3,639,312)



       Proceed from disposal of property, plant and equipment                                                                                                          4,118                                      943



       Purchase of land                                                                                                                                                                                    (519,895)



       Purchase of intangible asset                                                                                                                                (568,864)                                (43,737)                         (29,476)



       
            Net cash used in investing activities                                                                                                        (1,423,864)                               (890,490)                      (3,825,787)





       
            CASH FLOWS FORM FINANCING ACTIVITIES



       Repayments of long-term bank loans                                                                                                                                                                                                    (39,853)



       Proceeds from issuance of ordinary shares, net of issuance cost                                                                                             6,340,890                                                                 4,665,444



       Capital contribution by shareholder                                                                                                                                                                                                      5,000



       Payment made for principal portion of financing lease liabilities                                                                                            (45,580)                                (49,345)                          (4,322)



       
            Net cash provided by/(used in) financing activities                                                                                            6,295,310                                 (49,345)                        4,626,269





       Effect of exchange rate changes on cash and restricted cash                                                                                                    46,178                                (131,648)                        (254,847)





       Net change in cash and restricted cash                                                                                                                        409,649                              (2,040,291)                      (1,982,868)



       Cash and restricted cash, beginning of the year                                                                                                             3,694,456                                5,734,747                         7,717,615



       
            Cash and restricted cash, end of the year                                                                             $
          
            4,104,105       $
          
            3,694,456         $
    
         5,734,747





       
            SUPPLEMENTAL DISCLOSURE OF CASH FLOW
  INFORMATION:



       Cash paid for income tax                                                                                                                          $
          (1,740) 
  $                                                  $
       (859,882)



       Cash received from income tax refund                                                                                                               $
          40,004                      $
          246,771   
   $



       Cash paid for interest                                                                                                                            $
          (8,771) 
  $                                                      $
       (228)



       Cash paid for operating lease                                                                                                                   $
          (581,553)                   $
          (571,159)               $
       (575,014)



       Cash paid for finance lease                                                                                                                      $
          (45,580)                    $
          (49,345)                 $
       (4,322)





       
            Supplemental disclosure of non-cash information:



       Right-of-use assets obtained in exchange for operating lease liabilities                                                                          $
          268,971                      $
          192,311                  $
       137,617



       Purchase of intangible assets included in accrued expenses and other                                                                              $
          (5,069)                    $
          (43,103)  
   $
  liabilities



       Purchase of equipment and molds included in accrued expenses and other                                                                          $
          (626,300)                    $
          (11,418)  
   $
  liabilities



       Cashless exercise of warrants                                                                                                                       $
          7,894  
  $                                     
   $

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SOURCE CCSC Technology International Holdings Limited

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