CXJ GROUP CO., Ltd (ECXJ)

Price$1.30Cached quoteAs of 2026-09-05 15:12 UTC

AI: Overvalued

Price checkThe shares trade at many hundreds of times the company's small yearly sales despite ongoing losses.

At the observed price the whole company is valued near $138 million, yet sales over the past year totaled only about half a million dollars, down from $2.3 million two years earlier. That is roughly three hundred times sales with no profit cushion: the latest nine months produced a $244,000 net loss, total assets cover barely a fifth of near-term bills, and management flags serious doubt about continuing operations. Reported fundamentals offer no support for this valuation, so we judge the stock overvalued.

Big pictureA tiny Chinese car-parts franchiser sells shares through a legal structure that gives investors no direct ownership.

CXJ franchises a Chinese auto-care brand, Teenage Hero Car, with more than 160 stores across 23 provinces selling motor oil, exhaust cleaners, and brand licenses. Shareholders own stock in a Nevada holding company that controls the China business only through contracts — a variable interest entity, meaning investors hold no direct equity in the operating company, an arrangement never tested in Chinese courts that the company warns could leave shares nearly worthless. Sales have whipsawed, peaking near $2.8 million before collapsing to roughly half a million dollars in the latest year, and growing electric-vehicle adoption erodes demand for engine oil.

Business strengthThe company has lost money every year for six years and owes far more than it owns.

Losses have landed every year for at least six, pushing the accumulated deficit to $7.9 million, and the remaining goodwill — the premium paid for past acquisitions — was written off completely in the latest fiscal year. Cash of roughly $145,000 confronts bills due within a year near $2.28 million, leaving about 18 cents of short-term resources per dollar owed. Recent operating cash inflows look better mainly because customers prepaid about $1.1 million, an obligation to deliver goods rather than earned income. Filings state a major shareholder must keep providing financial support.

What could change the storySurvival likely needs new fundraising that would dilute holders; genuine store-growth profits are the only bull case.

With roughly $100,000 lost each quarter against about $145,000 of cash, the company likely needs outside money soon, and any sale of new shares would dilute existing holders. Four buyers supplied 72% of one recent quarter's revenue, so losing one hurts badly. The bull case rests on management's plan to add roughly 1,000 franchises over five years turning license fees into real profits — recent quarterly revenue doubled year over year, a start but far from proof. Watch the annual report expected around September and whether customer prepayments become repeat business.

AI: News

Speculative surge then slideThe stock rocketed from pennies to above three dollars within months, then gave back more than half.

After changing hands below ten cents late last year, the shares spiked to a 52-week high above three dollars in early June, then surrendered most of that gain by late summer. Volume is extraordinarily thin — often only a few hundred shares trade daily — so a handful of orders can swing the price violently. No company announcement accompanied the rally, and any link to fundamentals is uncertain; the pattern resembles speculation more than an earnings-driven rerating.

Going-concern warning persistsManagement again warned that cash on hand may not sustain operations, keeping survival risk front and center.

In its most recent quarterly filing, submitted in mid-April covering the quarter ended February, management repeated substantial doubt about the company's ability to continue as a going concern — meaning it may not stay in business without outside help. Assets of about $448,000 sat against liabilities near $2.29 million, leaving owners' equity negative $1.85 million. Cash climbed to roughly $145,000 from about $10,000, but mostly because customers advanced $1.1 million that must be repaid through future deliveries — breathing room, not new earnings.

Repeated late filingsThe company twice needed extensions to file quarterly reports while its outside auditor reviewed the numbers.

Over the past year CXJ filed two formal late-filing notices, each delaying a quarterly report because the external auditor was still reviewing results. Reports eventually arrived showing continued losses, but the pattern adds governance and reliability concerns for a company already flagging survival doubts. For a micro-cap dependent on scarce trust and thin trading, delayed disclosures can amplify volatility whenever investors reassess the risk.

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Revenue

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2025

Net income

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$458,632	$2.3M	$2.1M	$2.8M	$1.1M	$803,840
Gross profit	$372,657	$1.6M	$1.2M	$1.7M	$646,901	$188,873
Gross margin	81.25%	70.99%	55.35%	62.55%	61.56%	23.50%
Research & development	—	—	—	—	$75,062	—
Operating expenses	$2.6M	$3.8M	$2.2M	$2.2M	$2.2M	$869,921
Operating income	−$2.2M	−$2.1M	−$1.1M	−$498,389	−$1.6M	−$681,048
Operating margin	−490.50%	−92.04%	−49.59%	−17.98%	−149.81%	−84.72%
EBITDA	−$2.2M	−$2.0M	−$956,546	−$473,982	—	—
EBITDA margin	−490.02%	−85.96%	−44.98%	−17.10%	—	—
Net income	−$2.3M	−$2.1M	−$1.1M	−$541,453	−$1.6M	−$721,290
Net profit margin	−498.01%	−92.11%	−49.77%	−19.54%	−150.59%	−89.73%
Basic EPSper basic share	-$0.02	-$0.02	-$0.01	$0.00	-$0.02	-$0.01
Diluted EPSper diluted share	-$0.02	-$0.02	-$0.01	$0.00	-$0.02	-$0.01

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Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

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