UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

 

For the month of July 2025

 

Commission File Number: 001-40724

 

RIDGETECH, INC.

(Translation of registrant’s name into English)

 

5th Floor, Building 6, No. 100, 18th Street,Baiyang Sub-district,

Qiantang District, Hangzhou City, Zhejiang Province,People’s Republic of China, 310018

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or willfile annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F     Form 40-F

 

 

 

 

 

 

Ridgetech, Inc., a Cayman Islandsexempted company furnishes under the cover of Form 6-K the following:

 

Exhibit No.   Description of Exhibit
99.1   Earning Release dated July 28, 2025, announcing its financial results for the fiscal year ended March 31, 2025.

 

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SIGNATURES

 

Pursuant to the requirementsof the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereuntoduly authorized.

 

Date: July 28, 2025 RIDGETECH, INC.
   
  By: /s/ Ming Zhao
  Name: Ming Zhao
  Title: Interim Chief Executive Officer and
Chief Financial Officer

 

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Exhibit 99.1

 

Ridgetech, Inc. Reports Fiscal Year 2025 FinancialResults

 

HANGZHOU, China, July 28, 2025 /PRNewswire/-- Ridgetech, Inc. (Nasdaq: RDGT) (“Ridgetech” or the “Company”), a wholesale distributor of pharmaceuticaland other healthcare products in China, today announced its financial results for the fiscal year ended March 31, 2025.

 

Mr. Frank Zhao, Interim Chief Executive Officerand Chief Financial Officer of Ridgetech, commented, “We are pleased to present a relatively stable revenue outcome for fiscal year2025, a year marked by significant transformation for the Company. During this period, we divested our retail pharmacy business and acquiredRidgeline and its subsidiary, Allright (Hangzhou) Internet Technology Co. Ltd (“Allright”), marking our strategic expansioninto both online and offline wholesale distribution of pharmaceutical and healthcare products in China.

 

This move reflects our commitment to shift ourresources focus onto the wholesale pharmaceutical sector, aligning with the evolving landscape and intensifying competition in China’shealthcare industry. We believe Allright’s broad and growing online and offline distribution network will rapidly become an indispensablecontributor to our revenue and open up new business opportunities through its multiple platforms.

 

Despite the scale of change in fiscal year 2025,we maintained stable total revenue of approximately US$120 million, while securing healthy profit margins across both our offline wholesaleoperations and online platforms. Notably, revenue from Allright’s own and third-party online platforms -- only reflecting activityfrom March 2025 following our acquisition on February 28, 2025 -- already contributed nearly 1% of our total revenue, with a gross marginof 7.4%.

 

To support this strategic shift, we increasedour investment in sales and marketing by 64.2%, primarily to build a stronger foundation for post-transformation growth.

 

Looking ahead, with the completion of our strategictransformation and continued progress in integrating our business segments and internal resources, we believe Ridgetech is now betterpositioned to drive long-term sustainable growth and deliver improved financial performance.”

 

Fiscal Year 2025 Financial Summary

 

In accordance with ASC 205, the Company has classifiedthe historical retail operations, primarily conducted through Zhejiang Jiuxin Investment Management Co., Ltd. (“Jiuxin Investment”)and its controlled entities, as discontinued operations and has re-presented prior periods accordingly. As a result, the comparative figuresin this release reflect these adjustments and may differ from those previously reported.

 

·Revenue was $119.97 million for thefiscal year ended March 31, 2025, compared to $123.99 million for the same period of last year.

 

·Gross profit was $3.84 million forthe fiscal year ended March 31, 2025, compared to $4.88 million for the same period of last year.

 

 

 

 

·Gross margin was 3.2% for the fiscal year ended March31, 2025, compared to 3.9% for the same period of last year.

 

·Net income was $10.20 million, or $1.84 perbasic and diluted earnings per share, for the fiscal year ended March 31, 2025, compared to net loss of $4.23 million, or $2.93 perbasic and diluted loss per share, for the same period of last year.

 

Fiscal Year 2025 Financial Results

 

Revenue

 

Revenue decreased by $4.02 million, or 3.2%,to $119.97 million for the fiscal year ended March 31, 2025, from $123.99 million for the same period of lastyear.

 

Revenue from offline wholesale decreased by $5.13million, or 4.3%, to $118.86 million for the fiscal year ended March 31, 2025, from $123.99 million for the sameperiod of last year. As a local wholesale distributor in pharmaceutical products, the Company’s sales are limited to local and neighborhoodregions. As the market became competitive, to keep reasonable profitability, the Company abandoned certain wholesales with low gross profitmargin in the year ended March 31, 2025. As a result, the wholesale revenue declined.

 

Revenue from Online platform increased to $1.11million for the fiscal year ended March 31, 2025, from nil for the same period of last year. The increased figurereflects Allright’s online platform revenue for the month of March, 2025. On February 28, 2025, the Company acquired Ridgeline andits subsidiary, Allright, which is a rapidly growing online and offline wholesale distributor of pharmaceutical and other healthcare productssuch as health foods, cosmetics and daily necessities in China. Allright actively trades on popular online distribution platforms nationwide.Through these online platforms, the Company sell various medical products to retail pharmacies, clinics and other vendors across the country.Allright also has its own online distribution platform.

 

Gross profit and gross margin

 

Total cost of goods sold decreased to $116.13million for the fiscal year ended March 31, 2025, from $119.12 million for the same period of last year. Gross profitdecreased by $1.04 million, or 21.3%, to $3.84 million for the fiscal year ended March 31, 2025, from $4.88million for the same period of last year. Overall gross margin decreased by 0.7 percentage points to 3.2% for the fiscal year ended March31, 2025, from 3.9% for the same period of last year.

 

Gross margins for offline wholesale andonline platform were 3.2% and 7.4%, respectively, for the fiscal year ended March 31, 2025, compared to gross margins foroffline wholesale and online platform of 3.9% and nil%, respectively, for the same period of last year.

 

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Income (Loss) from operations

 

Sales and marketing expenses increased by $0.60million, or 64.2%, to $1.53 million for the fiscal year ended March 31, 2025, from $0.93 million for thesame period of last year. The increase was primarily attributable to the increase in drug distribution service fee. Overall, such expensesas a percentage of the Company’s revenue were 1.3% and 0.8% respectively, for the years ended March 31, 2025 and 2024.

 

General and administrative expenses decreasedby $8,158, or 0.2%, to $3.34 million for the fiscal year ended March 31, 2025, from $3.35 million forthe same period of last year. The decrease in general and administrative expenses was primarily due to the decrease in warehousing managementfee, offset by the increase in exchange loss of approximately $0.51 million. Such expenses as a percentage of revenue increased for theyear ended March 31, 2025 to 2.8% from 2.7% for the same period a year ago. In the year ended March 31, 2025, the Company recorded approximately$0.52 million in warehousing management fee as compared to approximately of $0.99 million in warehousing management fee in the year endedMarch 31, 2024.

 

Loss from operations was $1.04 million forthe fiscal year ended March 31, 2025, compared to income from operations of $0.60 million for the same period of last year.Operating margin was (0.9)% and 0.5% for the fiscal year ended March 31, 2025 and 2024, respectively.

 

Net loss from continuing operations

 

Net loss from continuing operations was $1.45million and $0.79 million in the years ended March 31, 2025 and 2024.

 

Net income (loss)

 

Net income was $10.20 million, or $1.84 perbasic and diluted earnings per share for the fiscal year ended March 31, 2025, compared to net loss of $4.23 million, or $2.93 perbasic and diluted loss per share for the same period of last year.

 

Financial Condition

 

As of March 31, 2025, the Company hadcash and cash equivalents of $12.78 million, compared to $2.30 million as of March 31, 2024. Net cashprovided by operating activities was $1.25 million for the fiscal year ended March 31, 2025, compared to net cashused in operating activities of $3.16 million for the same period of last year. The change is primarily attributable to anincrease in other payables and accrued liabilities of $27.88 million, an increase in accounts receivable of $11.84 million and anincrease in net income (loss) of $14.43 million, offset by a decrease in accounts payable of $27.13 million, a decrease in otherreceivable of $11.09 million and a decrease in gain of divestiture of Jiuxin Investment of $15.76 million.

 

Net cash used in investing activities was $18.14million for the fiscal year ended March 31, 2025, compared to $2.04 million for the same period of last year. Thechange is primarily attributable to divestiture of Jiuxin Investment.

 

Net cash provided by financing activities was $1.51million for the fiscal year ended March 31, 2025, compared to $8.00 million for the same period of last year. Thechange is primarily due to proceeds from equity and debt financing and change in notes payables issued to Hangzhou United Bank.

 

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About Ridgetech, Inc.

 

Ridgetech, Inc., formerly known as China Jo-Jo Drugstores,Inc. (“Ridgetech” or the “Company”), is a growing online and offline wholesale distributor of pharmaceutical andother healthcare products in China. Ridgetech actively trades on popular online distribution platforms nationwide and has its own onlinedistribution platform. The Company believes that trading on these platforms offers greater opportunities to distribute pharmaceuticalproducts nationwide. For more information about the Company, please visit www.ridgetch.com. The Company routinely posts importantinformation on its website.

 

Forward-Looking Statements

 

This press release contains informationabout the Company’s view of its future expectations, plans and prospects that constitute forward-looking statements. Forward-lookingstatements usually, but not always, contain the words “estimate,” “anticipate,” “believe,”“expect,” or similar expressions, or the negative of those words and expressions, as well as statements in future tense.All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning futureevents or future performance of the Company. Actual results may differ materially from historical results or those indicated bythese forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertaintiesassociated with the Company’s ability to secure additional funding, execute its business strategy, and respond to changingmarket conditions; fluctuations in operating results; the Company’s ability to maintain and grow its distribution platformsand customer base; the Company’s dependence on key customers; the effectiveness of marketing and business development efforts;the integration of acquired businesses, technologies, or assets; intensifying competition within the pharmaceutical and healthcaredistribution industry; evolving government regulations and macro-economic conditions in China and globally; its ability to attract,hire, and retain qualified management and employees; and the adequacy of its intellectual property protection. The Companyencourages you to review other factors that may affect its future results in the Company’s annual reports and in its other filingswith the Securities and Exchange Commission. The Company undertakes no obligation to update or publicly announce revisions to anyforward-looking statements to reflect future events or developments, except as required by law.

 

For more information, please contact:

 

Company Contact: 

 

Frank Zhao
Chief Financial Officer
+86-571-88077108
frank.zhao@ridgetch.com

 

Investor Relations Contact:

 

Tina Xiao
Ascent Investor Relations LLC
+1-646-932-7242
investors@ascent-ir.com

 

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RIDGETECH, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

   March 31,   March 31, 
   2025   2024 
ASSETS        
CURRENT ASSETS        
Cash and cash equivalents  $12,779,781   $2,297,256 
Restricted cash   5,761,294    1,988,710 
Trade accounts receivables   27,811,813    6,014,511 
Inventories   9,758,071    9,076,734 
Other receivables, net   2,419,671    218,765 
Advances to suppliers   433,140    182,075 
Due from related parties   -    19,737 
Other current assets   745,477    - 
Current assets of discontinued operations   -    49,884,574 
Total current assets   59,709,247    69,682,362 
           
NON-CURRENT ASSETS          
Property and equipment, net   8,931    8,377 
Intangible assets, net   3,302,961    1,276,737 
Goodwill   1,463,733    - 
Non-current assets of discontinued operations   -    24,089,614 
Total non-current assets   4,775,625    25,374,728 
Total assets  $64,484,872   $95,057,090 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
CURRENT LIABILITIES          
Accounts payable  $19,666,664   $30,576,909 
Notes payable   10,386,612    6,594,442 
Other payables   2,319,139    592,876 
Due to related parties   2,130    2,140 
Customer deposits   264,068    174,138 
Taxes payable   1,521,546    543,081 
Accrued liabilities   196,210    197,199 
Current liabilities of discontinued operations   -    35,679,310 
Total current liabilities   34,356,369    74,360,095 
           
NON-CURRENT LIABILITIES          
Deferred tax liabilities   492,121    - 
Non-current liabilities of discontinued operations   -    6,403,858 
Total non-current liabilities   492,121    6,403,858 
Total liabilities   34,848,490    80,763,953 
           
COMMITMENTS AND CONTINGENCIES          
SHAREHOLDERS’ EQUITY          
Ordinary shares; $0.24 par value; 36,000,000,000 shares authorized; 5,855,009 and 1,743,362 shares issued and outstanding as of March 31, 2025 and 2024, respectively   1,405,202    418,407 
Preferred shares; $0.001 par value; 10,000,000 shares authorized; nil issued and outstanding as of March 31, 2025 and 2024   -    - 
Additional paid-in capital   91,743,163    86,413,978 
Statutory reserves   -    1,309,109 
Accumulated deficit   (63,312,779)   (73,507,246)
Accumulated other comprehensive income   (199,204)   1,005,762 
Total shareholders’ equity attributed to Ridgetech   29,636,382    15,640,010 
Noncontrolling interests   -    (1,346,873)
Total shareholders’ equity   29,636,382    14,293,137 
Total liabilities and shareholders’ equity  $64,484,872   $95,057,090 

 

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RIDGETECH, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVEINCOME (LOSS)

 

   For the years ended
March 31,
 
   2025   2024   2023 
REVENUES, NET  $119,971,638   $123,994,053   $120,199,193 
                
COST OF GOODS SOLD   116,132,823    119,115,636    116,597,751 
                
GROSS PROFIT   3,838,815    4,878,417    3,601,442 
                
SELLING EXPENSES   1,534,200    934,223    1,266,025 
GENERAL AND ADMINISTRATIVE EXPENSES   3,339,954    3,348,112    5,137,741 
STOCK BASED COMPENSATION   -    -    10,360,000 
TOTAL OPERATING EXPENSES   4,874,154    4,282,335    16,763,766 
                
INCOME (LOSS) FROM OPERATIONS   (1,035,339)   596,082    (13,162,324)
                
OTHER INCOME (EXPENSES):               
INTEREST INCOME   92,834    197,763    31,582 
INVESTMENT LOSS   -    (1,607,537)   (2,402,376)
OTHER INCOME (EXPENSES)   (8,155)   (13,377)   92,358 
                
LOSS BEFORE INCOME TAXES   (950,660)   (827,069)   (15,440,760)
                
PROVISION FOR INCOME TAXES   503,524    (41,363)   394,541 
NET LOSS FROM CONTINUING OPERATIONS   (1,454,184)   (785,706)   (15,835,301)
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES   (4,103,718)   (3,448,536)   (5,303,476)
GAIN OF DIVESTITURE JIUXIN INVESTMENT   15,757,753    -    - 
NET GAIN(LOSS) FROM DISCONTINUED OPREATIONS, NET OF TAX   11,654,035    (3,448,536)   (5,303,476)
                
NET INCOME (LOSS)   10,199,851    (4,234,242)   (21,138,777)
                
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST   5,384    (14)   (252)
                
NET INCOME (LOSS) ATTRIBUTABLE TO RIDGETECH, INC.   10,194,467    (4,234,228)   (21,138,525)
NET INCOME (LOSS) ATTRIBUTABLE TO RIDGETECH, INC. FROM CONTINUING OPERATIONS   (1,454,184)   (785,706)   (15,835,301)
NET INCOME (LOSS) ATTRIBUTABLE TO RIDGETECH, INC. FROM DISCONTINUED OPERATIONS   11,648,651    (3,448,522)   (5,303,224)
                
OTHER COMPREHENSIVE LOSS               
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS   (1,204,966)   (729,373)   (2,617,857)
COMPREHENSIVE INCOME (LOSS)   8,994,885    (4,963,615)   (23,756,634)
                
WEIGHTED AVERAGE NUMBER OF SHARES:               
Basic   5,543,118    1,444,263    509,828 
Diluted   5,543,118    1,444,263    509,828 
                
INCOME (LOSS) PER SHARE:               
Basic  $1.84   $(2.93)  $(41.46)
Diluted  $1.84   $(2.93)  $(41.46)

 

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RIDGETECH, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   For the years ended
March 31,
 
   2025   2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES:               
Net loss  $10,199,851   $(4,234,242)  $(21,138,777)
Adjustments to reconcile net loss to net cash used in operating activities:               
Depreciation and amortization   1,137,240    790,449    718,002 
Bad debt direct write-off and provision and reversal   85,642    (249,257)   7,579,886 
Amortization of right-of-use assets   4,879,012    4,594,172    - 
Loss from disposal of property and equipment   -    107,251    - 
Gain of divestiture Jiuxin Investment   (15,757,753)   -    - 
Deferred tax expenses(benefits)   (29,822)          
Share-based compensation   -    -    10,360,000 
Investment loss   -    1,607,537    2,402,376 
Change in operating assets and liabilities:               
Accounts receivable   10,040,414    (1,804,440)   (2,531,755)
Notes receivable   (29,271)   19,943    (20,861)
Inventories and biological assets   405,822    (1,699,621)   (522,550)
Other receivables   (11,758,658)   (672,830)   (958,671)
Advances to suppliers   (341,702)   (839,221)   201,984 
Long term deposit   (1,361,613)   (132,568)   589,653 
Other current assets   -    19,076    331,426 
Other noncurrent assets   (359,114)   69,539    (30,483)
Amount due from related parties   -    (317,828)   - 
Accounts payable   (21,128,762)   6,002,186    1,765,488 
Other payables and accrued liabilities   28,752,570    868,975    (1,426,829)
Customer deposits   (162,940)   (144,761)   (1,035,456)
Taxes payable   1,314,644    (948,277)   433,054 
Operating lease liabilities   (4,637,790)   (6,191,522)   - 
Net cash provided by (used in) operating activities   1,247,770    (3,155,439)   (3,283,513)
                
CASH FLOWS FROM INVESTING ACTIVITIES:               
Acquisition of equipment and building   (155,360)   (330,677)   (118,272)
Investment in a joint venture   -    (1,116,212)   (4,379)
Purchases of intangible assets   -    (66,973)   (12,774)
Additions to leasehold improvements   (459,907)   (525,988)   (180,672)
Acquisition of Ridgeline, net of cash acquired   4,833,439    -    - 
Divestiture Jiuxin Investment, net of cash disposed   (22,353,250)   -    - 
Net cash used in investing activities   (18,135,078)   (2,039,850)   (316,097)
                
CASH FLOWS FROM FINANCING ACTIVITIES:               
Proceeds from short-term bank loan   -    1,116,212    - 
Repayment of short-term bank loan   (277,266)   (837,159)   - 
Repayment of third parties loan   -    -    (1,811,558)
Proceeds from notes payable   51,689,531    56,875,403    57,965,013 
Repayment of notes payable   (56,365,693)   (52,997,171)   (60,273,598)
Proceeds from issuance of shares and warrants in private placements   7,633,000    2,589,600    7,325,000 
Proceeds from other payable-related parties   325,784    1,257,406    43,785 
Repayment of other payable-related parties   (1,499,764)   -    (882,486)
Net cash provided by financing activities   1,505,592    8,004,291    2,366,156 
                
EFFECT OF EXCHANGE RATE ON CASH   1,048,620    (1,505,475)   (2,535,479)
                
DECREASE (INCREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH   (14,333,096)   1,303,527    (3,768,933)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year   32,874,171    31,570,644    35,339,577 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, end of year  $18,541,075   $32,874,171   $31,570,644 
                
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:               
Cash paid for income taxes  $137,456   $149,023   $63,668 
Cash paid for interest   6,289    13,604    64,943 
                
NON-CASH ACTIVITIES:               
Cashless exercise of warrants  $-   $-   $135,118 
Issuance of shares for acquisition of subsidiaries   3,582,250    -    - 
Cancellation of shares for disposal of subsidiaries   4,102,848    -    - 

 

(a)Thecash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows includethe results of continuing and discontinued operations.

 

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