The company exhibits extreme operational inefficiency, evidenced by SG&A expenses that consistently dwarf gross profit, resulting in a 2025Q2 operating margin of -5.1%.
| Sales/Revenue | 12.74M | 71.54K | 6.54M | 23.33M | 20.76M | 71.48M | 65.06M | 63.94M | 61.5M | 53M |
| Revenue Growth % | -82.37% | -98.91% | -71.95% | 12.4% | -70.96% | 9.87% | 1.76% | 3.97% | 16.04% | - |
| Cost of Goods Sold | 11.32M | 62.53K | 6.54M | 22.92M | 85.78M | 53.31M | 34.64M | 31.69M | 32.14M | 27.18M |
| COGS % of Revenue | - | 87.4% | 99.86% | 98.21% | 413.21% | 74.57% | 53.25% | 49.56% | 52.27% | 51.29% |
| Gross Profit | 1.41M | 9.02K | 9.14K | 416.88K | 3.71M | 18.18M | 30.42M | 32.25M | 29.35M | 25.82M |
| Gross Margin % | 11.08% | 12.6% | 0.14% | 1.79% | 17.88% | 25.43% | 46.75% | 50.44% | 47.73% | 48.71% |
| Gross Profit Growth % | - | -1.37% | -97.81% | -88.77% | -79.58% | -40.25% | -5.67% | 9.86% | 13.69% | - |
| Operating Expenses | 26.19M | 6.79M | 4.63M | 4M | 51.29M | 16.65M | 15.02M | 10.4M | 9.11M | 8.61M |
| OpEx % of Revenue | - | 9494.53% | 70.76% | 17.15% | 247.07% | 23.29% | 23.09% | 16.27% | 14.82% | 16.25% |
| Selling, General & Admin | 5.57M | 2.31M | 2.46M | 4M | 11.42M | 14.99M | 12.66M | 8.24M | 7.25M | 6.96M |
| SG&A % of Revenue | - | 3226.16% | 37.62% | 17.15% | 55.02% | 20.97% | 19.46% | 12.89% | 11.8% | 13.13% |
| Research & Development | 0 | 0 | 0 | 1.4M | 1.68M | 1.66M | 2.36M | 2.16M | 1.86M | 1.66M |
| R&D % of Revenue | - | - | - | 5.99% | 8.11% | 2.32% | 3.63% | 3.38% | 3.02% | 3.12% |
| Other Operating Expenses | 2M | 4.48M | 2.17M | -1.4M | 38.18M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -1.31M | -6.78M | -4.62M | -4.55M | -11.17M | 1.53M | 15.4M | 21.84M | 20.24M | 17.21M |
| Operating Margin % | -10.28% | -9481.93% | -70.62% | -19.5% | -53.79% | 2.13% | 23.67% | 34.16% | 32.91% | 32.47% |
| Operating Income Growth % | - | -46.78% | -1.6% | 59.26% | -831.79% | -90.09% | -29.5% | 7.92% | 17.64% | - |
| EBITDA | 531.77K | -6.4M | -4.24M | -4.49M | -8.98M | 2.41M | 16.07M | 22.53M | 20.36M | 17.33M |
| EBITDA Margin % | 4.18% | -8950.77% | -64.79% | -19.25% | -43.25% | 3.37% | 24.7% | 35.23% | 33.11% | 32.7% |
| EBITDA Growth % | 101.05% | -51.01% | 5.56% | 49.98% | -473.05% | -85.03% | -28.64% | 10.63% | 17.48% | - |
| D&A (Non-Cash Add-back) | 1.84M | 380K | 381.13K | 58.75K | 2.19M | 880.88K | 674.25K | 682.46K | 119.76K | 125.92K |
| EBIT | -5.72M | -6.74M | -3.75M | -4.53M | -57.66M | 1.76M | 15.63M | 21.99M | 20.49M | 17.51M |
| Net Interest Income | -483.23K | -261.7K | -38.82K | 0 | 22.4K | 20.1K | -23.16K | -41.51K | -114.57K | -482.1K |
| Interest Income | 156 | 156 | 345 | 316 | 108.39K | 131.9K | 74.93K | 42.04K | 18.71K | 11.62K |
| Interest Expense | 483.39K | 261.85K | 39.17K | 72.3K | 85.99K | 111.8K | 98.09K | 83.55K | 133.28K | 493.73K |
| Other Income/Expense | -19.81M | -219.09K | 831.48K | 22.04K | 965.74K | 125.62K | 133.41K | 62.26K | 120.85K | -184.66K |
| Pretax Income | -21.12M | -7M | -3.79M | -4.53M | -10.2M | 1.65M | 15.53M | 21.91M | 20.36M | 17.02M |
| Pretax Margin % | -165.86% | -9788.16% | -57.91% | -19.4% | -49.13% | 2.31% | 23.87% | 34.26% | 33.11% | 32.12% |
| Income Tax | 0 | 0 | 0 | 3K | 696 | 959.38K | 2.84M | 3.18M | 2.87M | 2.5M |
| Effective Tax Rate % | 0% | 0% | 0% | -0.07% | -0.01% | 58.1% | 18.31% | 14.53% | 14.1% | 14.72% |
| Net Income | -26.9M | -7.89M | -10.13M | -71.74M | -49.19M | 786.36K | 12.69M | 18.72M | 17.49M | 14.52M |
| Net Margin % | -211.19% | -11033.03% | -154.72% | -307.47% | -236.96% | 1.1% | 19.5% | 29.28% | 28.44% | 27.39% |
| Net Income Growth % | 73.81% | 22.05% | 85.88% | -45.84% | -6355.51% | -93.8% | -32.23% | 7.04% | 20.49% | - |
| Net Income (Continuing) | -21.12M | -7M | -3.79M | -4.53M | -54.02M | 691.96K | 12.69M | 18.72M | 17.49M | 14.52M |
| Discontinued Operations | -2.3M | -1.3M | -6.14M | -67.66M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 4.84M | 4.75M | -412.18K | -886.01K | -710.75K | 2.89M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -381.90 | -93.60 | -2568.00 | -15156.00 | -29160.00 | 36.00 | 12720.00 | 17976.00 | 16788.00 | 13932.00 |
| EPS Growth % | 76.72% | 96.36% | 83.06% | 48.02% | -81100% | -99.72% | -29.24% | 7.08% | 20.5% | - |
| EPS (Basic) | - | -93.60 | -2568.00 | -15156.00 | -29160.00 | 36.00 | 12720.00 | 17976.00 | 16788.00 | 13932.00 |
| Diluted Shares Outstanding | 70.43K | 70.43K | 3.94K | 4.73K | 1.69K | 21.8K | 993 | 1.04K | 1.04K | 1.04K |
| Basic Shares Outstanding | 70.43K | 70.43K | 3.94K | 4.73K | 1.69K | 21.8K | 993 | 1.04K | 1.04K | 1.04K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | 47.63% | - |
Existential Going Concern Risk
According to historical financial filings, PAVS experienced a catastrophic 98.9% year-over-year revenue decline, effectively signaling the abandonment of its legacy nutraceutical business model and leaving the firm with negligible top-line contributions that suggest a near-total cessation of core commercial activities across its reported operating segments.
The precipitous drop in revenue from historical levels of over $40 million per quarter to current nominal figures indicates that the company's pivot to entertainment technology has failed to gain any meaningful traction. This trajectory suggests that the entity is no longer functioning as a viable commercial enterprise in its original industry, warranting extreme caution regarding future revenue durability.
As reported in recent income statements, the company's gross margin has fluctuated near the low double-digits, with a 12.6% average reflecting significant pricing pressure and an inability to maintain the premium spreads typically associated with specialized nutraceutical products in a competitive Chinese market environment.
The inability to sustain healthy gross margins suggests that the company lacks the pricing power necessary to offset rising raw material costs or competitive encroachment. This margin profile appears structurally compromised, as the current cost of goods sold consistently consumes the vast majority of the limited revenue generated.
Based on the provided financial data, the company exhibits extreme operating inefficiency, with SG&A expenses consistently dwarfing gross profit, leading to massive operating losses that indicate a failure to achieve any semblance of scale or cost discipline throughout its recent corporate restructuring and rebranding efforts.
The persistent gap between operating expenses and gross profit suggests that the company's fixed cost base is entirely misaligned with its current revenue reality. Investors should monitor whether management can implement drastic cost-cutting measures, though the current data suggests that operating leverage remains deeply negative and unsustainable.
While the income statement reflects a failing operating business, the market may be pricing the entity as a potential shell for future reverse mergers, yet the reported cash balance of $261,355 suggests that the company lacks the liquidity to sustain even basic regulatory compliance requirements.
Short-term observers might argue that the company's US listing status holds residual value, but the financial evidence points toward an entity that is rapidly depleting its remaining capital. The lack of a clear path to profitability or operational stabilization suggests that the current valuation may be disconnected from the underlying reality of its distressed financial position.
Quick answers to the most common questions about buying PAVS stock.
For fiscal year 2024, Paranovus Entertainment Technology Ltd. (PAVS) reported total revenue of $0.1M. This represents a 99.9% decline compared to $53.0M in 2016.
Paranovus Entertainment Technology Ltd. (PAVS) reported a net loss of $7.9M for the fiscal year ending 2024.
Paranovus Entertainment Technology Ltd. (PAVS) reported an operating income of $-6.8M, resulting in an operating profit margin of -9481.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Paranovus Entertainment Technology Ltd. (PAVS) generated $0.0M in gross profit for the year, representing a gross profit margin of 12.6%. This demonstrates the company's core pricing power and production efficiency.