Mon, Aug 12, 1:35 PM (26 days ago)
For the quarter ended February 29, 2024, CXJ Group Co., Limited reported a significant revenue increase to $390,268, up from $191,637 in the same period last year. This growth was primarily driven by higher brand name administrative fees. The gross profit surged to $326,740, reflecting improved profit margins. However, the company incurred a net profit of $108,741 compared to a loss of $136,085 in the prior year, indicating a recovery in operational performance. Despite the positive revenue growth, cash flow remains a concern, with a net cash outflow of $580,581 from operating activities, although this was an improvement from the previous year’s outflow. The company’s cash and cash equivalents decreased significantly to $18,088 from $659,451, raising liquidity concerns. Total liabilities decreased to $2,453,459 from $3,123,324, while stockholders' equity fell to $2,205,070 from $2,439,347, driven by an accumulated deficit increase. The company continues to face uncertainties regarding its ability to maintain operations and meet financial obligations, emphasizing the need for restructuring and potential financing solutions to support future growth.