Addentax Group Corp. (NASDAQ: ATXG)

Addentax Group Corp. is a Nevada holding company that does not have material operations of its own and conducts substantially all of its business through operating companies established in the People's Republic of China. The company is listed on the Nasdaq Capital Market under the ticker ATXG and is not a Chinese operating company. Its primary activities are carried out via subsidiaries such as Yingxi Industrial Chain Group Co., Ltd, Yingxi Industrial Chain Investment Co., Ltd (Hong Kong), Yingxi Textile & Garments Co., Ltd (WFOE), Shenzhen Yingxi Industrial Chain Services Co., Ltd (YX), Dongguan Heng Sheng Wei Garments Co., Ltd (HSW), Dongguan Yushang Clothing Co., Ltd (YS), Shenzhen Yingxi Peng Fa Logistic Co., Ltd (PF), Shenzhen Xin Kuai Jie Transportation Co., Ltd (XKJ), Dongguan Aotesi Garments Co., Ltd (AOT), and Dongguan Hongxiang Commercial Co., Ltd (HX). These entities engage in garment manufacturing, logistics services, and property management and subleasing.

The company generates revenue mainly from the sale of manufactured garments to wholesalers in the PRC, from providing delivery and courier logistics services across 44 cities in 10 provinces and 2 municipalities, and from subleasing shop space and offering property management services to garment wholesalers and retailers. For the nine months ended December 31, 2025, logistics services accounted for approximately 98.6% of total revenue, garment manufacturing contributed about 1.4%, and property management and subleasing represented a minimal share after the subsidiary HX was disposed of in July 2025. Almost all sales are denominated in Chinese renminbi and translated into U. S. dollars for financial reporting.

The company operates through the following segments: garment manufacturing, logistics services, and property management and subleasing.

• Garment Manufacturing: This segment manufactures and sells garments principally to wholesalers located in the People's Republic of China, operating through three wholly owned subsidiaries (HSW, YS and AOT) located in Guangdong province, with production facilities, skilled workers and quality control standards to ensure timely delivery; in May 2025 the company disposed of AOT to its management, and during periods of low order volume it sources finished garments from external manufacturers for resale while purchasing raw materials directly from numerous local fabric and accessory suppliers.

• Logistics Services: This segment provides delivery and courier services covering 44 cities in 10 provinces and 2 municipalities in China, utilizing its own motor vehicles and drivers while outsourcing part of the business to contractors to maintain flexibility and reduce capital expenditures, conducted through subsidiaries XKJ and PF in Guangdong province, and the company focuses on optimizing routes and building a nationwide logistics network to improve service efficiency.

• Property Management and Subleasing: This segment subleases shop space and provides property management services to garment wholesalers and retailers in the garment market, managing approximately 56,238 square meters of floor space and about 1,300 shop spaces through subsidiary HX, which was acquired in September 2023 and disposed of to its management on July 1, 2025, resulting in net assets of $6,972, consideration of $13,829 and a gain of $6,857 from the disposal.

Within the PRC's competitive garment manufacturing, logistics and property management sectors, the company differentiates itself through a commitment to product quality and timely delivery in its garment line, an efficient logistics network supported by owned vehicles and strategic outsourcing, and integrated property solutions that combine shop leasing with management services to enhance tenant value; it faces fierce market competition and pricing pressure but seeks to expand its customer base, improve profit margins, develop ecommerce capabilities and increase the value of leased properties.

The company serves wholesalers and retailers in the garment market for its manufacturing and property management operations, and provides logistics delivery and courier services to a diverse range of clients across the 44 cities it covers; no specific customer names are disclosed in the filing.