ESG Inc. SEC 10-Q Report

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2025.08.15 13:23
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ESG Inc. has released its Q2 2025 Form 10-Q report, showcasing strong financial performance despite a slight revenue dip to $2.49 million, down 0.8% from 2024. Gross profit rose to $1.08 million, with net income increasing to $517,554. The company is focusing on operational efficiency and expanding production capabilities, including a temporary scale-down in China for equipment upgrades. Future outlook includes improved efficiency and a shift to long-term loans for better capital structure.

ESG Inc., a leading producer of fresh mushrooms and compost products, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's robust financial performance and significant operational developments, despite a slight dip in revenue. The company continues to focus on improving operational efficiency and expanding its production capabilities.

Financial Highlights

Revenues: $2.49 million, a slight decrease of 0.8% compared to the same period in 2024 due to reduced input and production of Compost III and fresh mushrooms.

Gross Profit: $1.08 million, an increase from $432,187 in the same period in 2024, primarily due to a favorable increase in gross margin to 43.5% from 17.2%.

Income (Loss) from operations: $806,379, a significant increase from $155,901 in the same period in 2024, reflecting improved operational efficiency.

Net income (loss) to ESG Inc.: $517,554, a substantial increase from $81,347 in the same period in 2024, driven by higher gross profit and reduced operating expenses.

Net income (loss) per share - basic and diluted: $0.01, compared to $0.00 in the same period in 2024, indicating improved profitability per share.

Business Highlights

Revenue Segments: For the three months ended June 30, 2025, revenue from White Button Mushroom was $887,923, Compost III was $490,980, and Mushroom Powder Seasonings was $1,111,133. For the six months ended June 30, 2025, revenue from White Button Mushroom was $1,281,571, Compost III was $602,758, and Mushroom Powder Seasonings was $2,192,851.

Geographical Performance: The company reported revenue from China, mainland for Compost III and White Button Mushroom, and from China, Hong Kong for Mushroom Powder Seasonings. The revenue from China, mainland for Compost III decreased significantly compared to the previous year.

Sales Units: The company operates mushroom-growing facilities producing up to 20 million pounds of fresh white button mushrooms annually.

New Production Launches: During the second quarter, the company initiated a temporary scale-down of production at its China facility to allow for the installation of new equipment and completion of facility construction necessary to comply with China's Environmental Protection Agency regulations.

Future Outlook: Management expects improved operational efficiency and compliance benefits upon completion of the facility expansion and equipment installation. The company is also working to replace current bank loans with long-term loans to improve its capital structure.

SEC Filing: ESG Inc. [ ESGH ] - 10-Q - Aug. 15, 2025

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