CCSC Technology (CCTG) Q2 2024 Earnings Report

CCSC Technology International Holdings Limited Ordinary Shares (CCTG) reported its QQ2 2024 results with a marked top-line rebound and continued profitability challenges. Revenue reached USD 9.22 million, up 145.7% year-over-year and 27.2% quarter-over-quarter, supported by a gross profit of USD 2.75 million and a gross margin of 29.8%. Despite the improving top-line, the company delivered an operating loss of USD 0.806 million and net loss of USD 0.744 million, with EBITDA recorded at USD -0.717 million. The EPS for the quarter was -0.0643, underscoring that margin expansion has not yet translated into sustainable profitability. On a balance-sheet basis, CCSC maintains a net cash position driven by modest leverage, with total assets of USD 2.11 million and net debt of approximately USD -0.72 million. Free cash flow for the period was modest at USD 16 thousand, while operating cash flow stood at USD 25 thousand; cash at period-end was USD 0.942 million.

Looking ahead, topline momentum appears durable, but profitability hinges on further margin optimization and disciplined cost management. Management commentary is not provided in the data set for QQ2 2024; consequently, the forward-looking guidance is not explicit. Investors should monitor the trajectory of gross margins, SG&A efficiency, and working-capital dynamics, as well as any stated strategic initiatives in design wins, customer diversification, and geographic expansion that could unlock higher-margin revenue streams.