Creative Global Technology Holdings Limited (CGTL) reported its unaudited financial results for the six months ended March 31, 2025, revealing a significant decline in performance. The company recorded a net loss of US$15.3 million for the period, a substantial shift from the net income of US$1.5 million reported for the comparable period in 2024. This loss resulted in a loss per basic and diluted share of US$0.714, compared to earnings per share of $0.076 in the prior year.
Total revenue for the first half of fiscal year 2025 decreased to US$12.2 million from US$20.5 million in the first half of fiscal year 2024. This decline was primarily attributed to weaker market demand and a reduction in customer orders, particularly impacting wholesale revenue. Gross profit also fell to US$1.5 million from US$2.7 million, with the gross margin slightly decreasing from 13.1% to 12.6%.
A major factor contributing to the net loss was a substantial share-based compensation expense of US$15,776,500 for the six months ended March 31, 2025, compared to US$0 in the prior year. This expense, coupled with the decrease in sales and gross profit, significantly impacted the company's bottom line. Cash and cash equivalents decreased to $0.2 million as of March 31, 2025, from $0.4 million as of September 30, 2024, with net cash used in operating activities increasing to $4.8 million.
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