CX Network Group Inc (CXKJ) Q1 2024 Earnings Report

CX Network Group Inc (CXKJ) reported QQ1 2024 revenue of 562,158 USD with a gross margin of 73.43% (412,811 USD gross profit). Despite a YoY revenue increase of 24.34%, the quarter delivered a substantial operating loss of 566,996 USD and a net loss of 520,934 USD. EBITDA stood at -566,996 USD, underscoring a scale mismatch between the cost base and top-line growth. The company exhibits significant cash burn, with net cash used in operating activities of -300,617 USD and negative free cash flow of -300,617 USD. The balance sheet shows pronounced leverage and liquidity challenges: total liabilities of 6,535,522 USD vs total assets of 2,891,516 USD, and stockholders’ equity of -3,471,026 USD, implying negative book value and potential solvency concerns if operating performance does not improve.

Liquidity remains tight: current ratio 0.42, quick ratio 0.412, and cash on hand of 109,825 USD at period end. Deferred revenue stands at 862,171 USD, suggesting a portion of revenue may be pre-booked related to future commitments, which could impact near-term revenue recognition and margins if filled at scale. Management commentary (transcript not supplied) is needed to clarify monetization plans for the King Eagle Mall platform and the path toward sustainable profitability. Given the lack of forward guidance in the data, the near-term outlook hinges on material efficiency gains, cost control in SG&A, and revenue growth acceleration.