Phoenix Plus Corp. Reports 90% Revenue Decline and Increased Net Losses for Six Months Ending January 31, 2025

Phoenix Plus Corp. reported its financial results for the six months ending January 31, 2025, revealing a significant decline in revenue and an increase in net losses compared to the same period in the previous fiscal year. The company generated revenue of $92.6 million, a decrease of 90% from $932.4 million in the prior year. The cost of revenue also fell to $90.7 million from $880.5 million, resulting in a gross profit of $1.9 million, down from $51.9 million. The net loss for the period was $231.7 million, compared to a loss of $156.7 million in the same period last year.

The company's balance sheet as of January 31, 2025, showed total assets of $652.2 million, a decrease from $921.6 million as of July 31, 2024. Current assets dropped to $585.5 million from $841.6 million, primarily due to a reduction in contract assets and cash reserves, which fell to $277.8 million from $434.4 million. Stockholders' equity also declined significantly to $437.9 million from $677.1 million, reflecting an accumulated deficit that increased to $2.8 billion from $2.6 billion.

Operationally, Phoenix Plus Corp. has seen changes in its customer base and engagement metrics. The company continues to focus on its core business of providing technical consultancy on solar power systems and green energy solutions. However, specific customer counts and user statistics were not disclosed in the filing. The company has maintained its employee headcount at approximately 332.7 million shares outstanding, consistent with previous periods.

The filing indicates that the company is undergoing strategic adjustments, including a focus on reducing operating expenses, which were $150.9 million for the six months ended January 31, 2025, down from $199.5 million in the prior year. This reduction is part of a broader effort to streamline operations in response to market conditions. The company also reported a foreign exchange adjustment gain of $4.1 million for the three months ended January 31, 2025, which partially offset the losses.

Looking ahead, Phoenix Plus Corp. has not provided specific forward-looking statements regarding revenue or profitability. However, the management's focus on operational efficiency and strategic realignment suggests a commitment to navigating the current market challenges. The company continues to explore opportunities for geographic expansion and product adoption in the renewable energy sector, aiming to stabilize its financial performance in the coming quarters.