CCSC Technology International Holdings Limited reported a net loss of $0.97 million for the first six months of fiscal 2026, a 30.5% increase in loss compared with the $0.74 million loss in the same period a year earlier. The company’s revenue fell 8.2% to $8.47 million, driven primarily by a 12% drop in its cable and wire harness segment, where a major Danish customer reduced orders while transitioning to new products still under development. The decline was compounded by higher U.S. tariffs that prompted some American customers to shift to local suppliers.
Gross profit slid to $2.48 million, a 9.9% decline from $2.75 million year‑ago, and the gross‑profit margin contracted to 29.2% from 29.8%. The margin compression reflects a mix shift toward lower‑margin connector sales and the impact of fixed‑cost amortization as production volumes fell. Operating expenses fell 3.3% to $3.44 million, largely due to disciplined cost‑control initiatives, but the reduction was insufficient to offset the revenue shortfall and margin squeeze.
Management highlighted that the company is maintaining a disciplined cost structure while investing in a new supply‑chain management center in Serbia, slated for completion in the fourth quarter of 2026. CEO Kung Lok Chiu said the firm remains resilient, focusing on operational efficiency and strategic investments to support long‑term growth. He also noted the completion of a $7.06 million follow‑on public offering in October 2025, which bolstered liquidity for the upcoming capital‑intensive project.
The results triggered a 4.5% drop in after‑hours trading on December 23, reflecting investor concern over the widening loss and revenue decline. Analysts cited the company’s continued exposure to tariff‑related headwinds and the loss of a key customer as primary reasons for the negative market reaction. Despite the short‑term pressure, the company’s commitment to cost discipline and its planned Serbian facility suggest a potential turnaround in European operations once the new center becomes operational.
CCSC also received a Nasdaq notification regarding a minimum bid‑price deficiency, with a compliance deadline of June 15, 2026. The company must address this to avoid potential delisting, adding a regulatory risk element to its outlook.
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