Is ATXG (Addentax Group Corp.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ATXG is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Its debt-to-market-cap ratio of 685.30% exceeds the ≤33% threshold. Its cash & securities ratio of 544.86% exceeds the ≤33% threshold.

Addentax Group Corp. (ATXG) operates as a diversified logistics and manufacturing provider primarily in China and the United States. Its core operations span four distinct segments: garment manufacturing, comprehensive logistics services, property management, and the production of epidemic prevention supplies. For Muslim investors using HalalStocks.co.uk, ATXG is currently classified as Not Halal (Haram) based on AAOIFI methodology. Although the company's underlying operational activities are permissible, it critically fails two out of the three financial screening metrics, making the stock impermissible to hold. The primary concern for Islamic finance compliance lies in the company's capital structure relative to its market valuation. ATXG carries a massive Debt to Market Cap ratio of 685.3% and a Cash & Securities to Market Cap ratio of 544.9%, both of which shatter the strict 33% limits set by Islamic scholars. Because these failures are tied to market capitalization rather than total assets, extreme stock price volatility can heavily skew these ratios for micro-cap stocks. Muslim investors should avoid ATXG unless a significant restructuring or market correction brings these debt and cash metrics back within acceptable halal boundaries. Addentax Group Corp. operates in the Industrials sector under the Integrated Freight & Logistics industry and is headquartered in Shenzhen, CN. The company is led by CEO Hong Zhida and employs approximately 112 people.

ATXG was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. ATXG passed 2 of these 4 screens.

ATXG was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.