Texxon Holding Limited Announces Financial Results for Fiscal Year 2025

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 percentages)		For the Fiscal Year Ended 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: [email protected]

Ascent Investor Relations LLC
Tina Xiao
Phone: [phone]
Email: [email protected]

TEXXON HOLDING LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2025 AND 2024
(EXPRESSED IN U.S. DOLLARS)
		June 30, 2025				June 30, 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

SOURCE Texxon Holding Limited