Tungray Reports Unaudited 2025 First Half Results, Revenue Up 37% and Returns to Profitability

Total Revenues Increased by 37.0% YoY to $7.4 million Operating Income Increased to $0.3 million from -$0.9 million Net Income Increased to $0.5 million from -$0.8 million , /PRNewswire/ -- Tungray Technologies Inc ("Tungray" or the "Company"), a global Engineer-to-Order (ETO) company, today reported its unaudited financial results for the six months ended June 30, 2025. First Half 202 5 Financial Highlights Total revenues for the six months ended June 30, 2025 increased by 37.0% to $7.4 million, compared to $5.4 million in the same period of 2024. Gross margin for the six months ended June 30, 2025 was 48.6%, compared to 46.7% for the same period in 2024. Operating income for the six months ended June 30, 2025, was $0.3 million, compared to an operating loss of $0.9 million for the same period in 2024. Net income for the six months ended June 30, 2025, was $0.5 million, compared to net loss of $0.8 million for the same period in 2024. Recent Developments and Strategic Highlights: Tungray Drives Revenue Growth and Reduces Costs Revenue Enhancement: To drive sales growth, the Company is exploring potential horizontal strategic partnerships to access new, high-value capabilities. These initiatives include: Introducing new lines of business through potential partnerships with existing companies. Utilizing the "market-for-tech" model to leverage Singapore's hub position for regional business expansion. Exploring technologies and services such as standardized manufacturing of medical components, and contract repair work for aviation components, such as aircraft engine fan blades and turbines. Enhancing sales and market penetration by hiring a dedicated business-focused market and sales manager. This initiative will focus on: Increasing market penetration of non-printer related markets in the Southeast Asia (SEA) region. Focusing primarily on the semiconductor, automotive and non-printer related consumer product sectors. Cost-Cutting Measures: The Company has implemented targeted cost control actions aimed at reducing expenses, enhancing operational efficiency, and renegotiating supplier contracts. These actions include: Identifying and utilizing high-trade volume suppliers. Leveraging volume to negotiate favorable rates for common-use components. Management Commentary Mr. Wanjun Yao, Chairman and Chief Executive Officer of Tungray, commented, "We achieved solid top line growth during the first half of the year with revenue up 37.0% reaching $7.4 million compared to the same period last year. Despite rising raw material and labor costs, our gross margin showed material improvement with gross margin of 48.6% in the first half of the year, compared with 46.7% in the same period last year. This 190 basis points improvement combined with leverage opportunities in our business model helped drive our return to profitability with net income of $0.5 million in the first half of the year, compared with a net loss of $0.8 million in the same period last year." "During the first half of 2025, we invested $0.5 million in R&D, an increase of 6.2% compared to the same period of 2024, demonstrating continued commitment to innovation as we target high-growth areas such as automation equipment, semiconductor-related solutions, and mechatronics. In Singapore, we advanced modularization of equipment components to reduce variance-related costs and rolled out after-sale service initiatives that reinforce our customer-first approach. In addition, we increased R&D in highly automated equipment to meet growing demand. In the mechatronics segment, we benefitted from increased orders linked to rising demand for automotive refrigerators in new energy vehicles (NEVs) during the first half of 2025." "We will continue to allocate resources strategically to ensure long-term product and technology advancement. These initiatives not only support near-term competitiveness but also lay the foundation for sustainable growth. We believe our efforts will enhance Tungray's market presence, create new revenue streams, and deliver greater value for our shareholders as market conditions improve." Mr. Henry Guo, Chief Financial Officer of Tungray, commented, "To remain competitive amidst pricing pressure, we are implementing aggressive cost-cutting measures and pursuing operational efficiencies. At the same time, we are expanding our revenue base by developing higher-margin products, strengthening partnerships, and pursuing new market opportunities." "In the longer term, we believe our business strategies should continue to fuel Tungray's top-line growth and margin expansion." First Half 2025 Financial Results Total Revenues Our total revenues increased by 37.0% to $7.4 million for the six months ended June 30, 2025, compared to $5.4 million for the six months ended June 30, 2024. Revenues from customized products increased by $0.8 million, or 18.4%, compared to the same period in 2024, primarily driven by the sales increase of a major customer during the period. Revenues from standardized products increased by $1.2 million, or 130.6%, compared to the same period in 2024, primarily increased orders driven by rising demand for automotive refrigerators used in new energy vehicles (NEVs) during the first half of 2025. This growth demonstrates the Company's ability to respond to emerging market needs and capitalize on industry trends. Cost of Revenues Total costs increased by 32.0% to $3.8 million for the six months ended June 30, 2025, compared to $2.9 million for the six months ended June 30 2024. The cost of revenues for customized products rose by $0.3 million, or 10.4% compared to the same period ended June 30, 2024, in line with the revenue increase. The cost of revenues for standardized products increased by $0.7 million, or 139.6% compared to the same period ended June 30, 2024, corresponding with the revenue increase. Gross Profit Gross profit was $3.6 million for the six months ended June 30, 2025, up from $2.5 million for the six months ended June 30, 2024. Gross margin was 48.6%, compared to 46.7% for the same period last year. The improvement in gross profit was mainly driven by revenue growth that outpaced cost increases. Gross profit for customized products was $2.7 million for the six months ended June 30, 2025, an increase of 27.7% as compared to $2.1 million for the six months ended June 30, 2024. Gross margin for customized products was 50.4% for the six months ended June 30, 2025, as compared to 46.7% for the six months ended June 30, 2024. Gross profit for standardized products was $0.9 million for the six months ended June 30, 2025, an increase of 120.2% as compared to $0.4 million for the six months ended June 30, 2024. Gross margin for standardized products was 44.3% for the six months ended June 30, 2025, and 46.4% for the six months ended June 30, 2024. Operating Expenses Total operating expenses were $3.3 million for the six months ended June 30, 2025, compared to $3.5 million for the prior year period, representing a 4.1% decrease. Selling expenses increased by 16.3% to $349.0 thousand for the six months ended June 30, 2025, compared to $300.1 thousand for the six months ended June 30, 2024. The increase was mainly due to an increase of salary expenses and travel related expenses for business expansion. General and administrative expenses decreased by 8.0% to $2.5 million from $2.7 million for the six months ended June 30, 2024, reflecting tighter cost management. R&D expenses increased by 6.2% to $475.0 thousand, compared to $447.2 thousand for the same period of last year. The increase was consistent with the R&D plan the Company previously set out. Income (Loss) from operations Income from operations was $0.3 million for the six months ended June 30, 2025, compared to loss from operations of $0.9 million for the six months ended June 30, 2024. Other Income, net Total other income was $0.2 million for the six months ended June 30, 2025 and 2024. Income tax expense Income tax expense decreased by approximately $94.9 thousand, or 75.2%, from $126.2 thousand for the six months ended June 30, 2024 to $31.3 thousand for the six months ended June 30, 2025. Net Income (Loss) Net income was $0.5 million for the six months ended June 30, 2025, compared to net loss of $0.8 million for the six months ended June 30, 2024. About Tungray Technologies Inc Tungray Technologies Inc is an Engineer-to-Order (ETO) company that provides customized industrial manufacturing solutions to original equipment manufacturers (OEMs) in the semiconductors, printers, electronics, and home appliances industries. With research, development and manufacturing bases in Singapore and China, Tungray designs, develops, and delivers a wide range of industrial products ranging from customized manufacturing machineries, direct drive and linear direct current motors, to induction welding equipment. As an ETO company with more than two decades of experience, Tungray takes pride in its ability to deliver quality customized industrial solutions that fulfil its customers' unique needs and specifications. For more information, visit the Company's website at http://tungray.com/. Forward-Looking Statements All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC. For more information, please contact: Investor Relations:Bill ZimaEmail: [email protected] Tungray Technologies Inc and Subsidiaries Unaudited Condensed Consolidated Balance Sheets (Stated in U.S. Dollars, except for share data, or otherwise noted) As of30-Jun-25 As of31-Dec-24 ASSETS CURRENT ASSETS Cash $ 8,534,954 $ 8,968,814 Restricted cash - 503,544 Accounts and notes receivable, net 3,345,278 2,393,902 Accounts receivable - related parties 333,996 327,556 Inventories, net 2,348,620 2,206,329 Prepayments, net 724,373 726,991 Prepayments - related parties, net 1,601,838 3,815,321 Other receivables and other current assets, net 340,983 507,523 Other receivables – related parties 1,131,174 320,447 Total current assets 18,361,216 19,770,427 NON-CURRENT ASSETS Prepaid expenses and deposits 76,753 79,088 Prepayment for land use right - 1,987,685 Long-term investment 209,392 205,499 Operating right-of-use assets and land use rights 3,368,272 1,411,033 Finance right-of-use assets 214,493 221,847 Intangible assets, net 129,392 59,148 Deferred tax assets 32,884 - Property and equipment, net 6,469,929 6,173,176 Total non-current assets 10,501,115 10,137,476 Total assets 28,862,331 29,907,903 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable 1,809,327 1,359,244 Accounts payable - related parties 163,837 79,988 Contract liabilities 2,967,980 6,115,315 Accrued expenses and other payables 1,143,049 1,450,005 Other payables - related parties 371,146 338,453 Current portion of banking facilities 94,432 80,588 Short-term loans - banks 697,973 - Current portion of operating lease liabilities 187,752 184,201 Current portion of operating lease liabilities - related party 76,950 168,551 Current portion of finance lease liabilities 64,740 123,762 Taxes payable 552,987 703,264 Total current liabilities 8,130,173 10,603,371 OTHER LIABILITIES Banking facilities 1,217,800 1,161,174 Operating lease liabilities 624,863 692,329 Operating lease liabilities - related party 156,787 190,752 Deferred revenue 97,870 - Total other liabilities 2,097,320 2,044,255 Total liabilities 10,227,493 12,647,626 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Class A ordinary shares ($0.0001 par value; 400,000,000 and 400,000,000shares authorized as of June 30, 2025 and December 31, 2024, respectively; 11,793,485 and 11,793,485 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively) 1,179 1,179 Class B ordinary shares ($0.0001 par value; 100,000,000 and 100,000,000shares authorized as of June 30, 2025 and December 31, 2024, respectively; 4,560,000 and 4,560,000 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively) 456 456 Additional paid-in capital 3,135,124 3,135,124 Retained earnings 15,600,685 15,050,543 Statutory reserves 248,761 248,761 Accumulated other comprehensive loss (116,634) (1,012,187) Total Tungray Technologies Inc shareholders' equity 18,869,571 17,423,876 NONCONTROLLING INTERESTS (234,733) (163,599) TOTAL EQUITY 18,634,838 17,260,277 Total liabilities and equity $ 28,862,331 $ 29,907,903 Tungray Technologies Inc and Subsidiaries Unaudited Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Stated in U.S. Dollars, except for share data, or otherwise noted) For the six months ended June 30, 2025 2024 Revenue - products $ 7,445,174 $ 5,435,786 Revenue - related party 205 - Total revenues 7,445,379 5,435,786 Cost of revenue - products 3,824,129 2,897,866 Cost of revenue - related party 209 - Total cost of revenues 3,824,338 2,897,866 Gross profit 3,621,041 2,537,920 Operating expenses: Selling expenses 349,032 300,122 General and administrative expenses 2,516,927 2,735,835 Research and development expenses 474,959 447,234 Total operating expenses 3,340,918 3,483,191 Income (Loss) from operations 280,123 (945,271) Other income Other income, net 205,095 172,687 Lease income - related party 9,803 9,855 Financial income, net 8,619 44,262 Total other income, net 223,517 226,804 Income (Loss) before income taxes 503,640 (718,467) Income tax expense (31,270) (126,219) Net income (loss) 472,370 (844,686) Less: net loss attributable to noncontrolling interests (77,772) (30,679) Net income (loss) attributable to Tungray Technologies Inc 550,142 (814,007) Net income (loss) 472,370 (844,686) Foreign currency translation adjustment 902,191 (629,472) Comprehensive income (loss) 1,374,561 (1,474,158) Less: comprehensive loss attributable to noncontrolling interests (71,134) (30,679) Total comprehensive income (loss) attributable to Tungray Technologies Inc 1,445,695 (1,443,479) Weighted average number of common shares outstanding - basic and diluted 16,353,485 15,539,074 Earnings (Loss) per common share - basic and diluted 0.03 (0.05) SOURCE Tungray Technologies Inc WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Tungray Reports Unaudited 2025 First Half Results, Revenue Up 37% and Returns to Profitability

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