Tungray Technologies Inc Reports 2024 Full Year Financial Results

, /PRNewswire/ -- Tungray Technologies Inc ("Tungray" or the "Company"), a global Engineer-to-Order (ETO) company, today reported its financial results for the twelve months ended December 31, 2024. Full Year 2024 Financial Highlights Total revenues for the year ended December 31, 2024 decreased by 10.8% to $12.8 million, compared to $14.4 million for 2023. Gross margin for the year ended December 31, 2024 was 43.7%, compared to 46.7% for 2023. Operating loss for the year ended December 31, 2024 was $0.7 million, compared to an operating income of $1.1 million for 2023. Net loss for the year ended December 31, 2024 was $0.6 million, compared to net income of $0.8 million for 2023. Recent Developments and Strategic Highlights: 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. 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 metal 3D printing for precision engineering, 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. Management Commentary Mr. Wanjun Yao, Chairman and Chief Executive Officer of Tungray, commented, "Despite ongoing pressure on revenue and profitability in 2024, we successfully expanded our customer base. This pressure was partly driven by lower revenue per customer, resulting from shifts in sales mix, pricing strategies, order volumes, and broader market conditions. For example, as of year 2024, China and Singapore's manufacturing automation industry was experiencing intense price competition, driven by overcapacity, economic pressures. To address these challenges, we remain focused on strengthening customer retention, enhancing service offerings, and expanding high-value customer relationships to support sustainable revenue growth." "While navigating these market dynamics, we remain committed to delivering sustainable, innovative growth, underscored by a 34.3% increase in R&D year-over-year. In 2024, this investment supported the launch of over a dozen new projects aimed at expanding our product portfolio, accelerating innovation, and strengthening our competitive position. These ongoing efforts are designed to ensure we are well-positioned for long-term success as the market stabilizes." "Looking ahead to 2025 and beyond, we continue to adapt to an evolving market landscape. We are actively exploring 3D metal printing solutions aimed at delivering value-added solutions to both existing and prospective customers in high-end sectors such as commercial aviation, offshore marine, and oil & gas industries. Our focus remains on delivering long-term shareholder value while strategically positioning the company for sustainable growth and success in a dynamic market environment," Mr, Yao added. Fiscal 2024 Financial Results Total Revenues Total revenues decreased by 10.8% to $12.8 million for the year ended December 31, 2024, compared to $14.4 million for the year ended December 31, 2023. Revenues from customized products decreased by $1.6 million or 13.6% for the year ended December 31, 2024, primarily driven by the sales price decrease due to competitive dynamics and strategic decisions to retain market share. Revenues from standardized products increased by $42,000, or 1.6% for the year ended December 31, 2024, mainly due to the increase in sales volume, offset by the reduction in average selling prices across key production lines to retain market share. Cost of Revenues Total costs decreased by 5.7% to $7.2 million for the year ended December 31, 2024, compared to $7.7 million for the year ended December 31, 2023. The cost of revenues for customized products down by $0.5 million, or 9.9% for the year ended December 31, 2024, driven by sales volume decrease. The cost of revenues for standardized products increased by $93,000, or 4.1% for the year ended December 31, 2024, as a result of improved sales volume. Gross Profit Gross profit was $5.6 million for the year ended December 31, 2024, representing a decrease of 16.6% year over year from $6.7 million for the year ended December 31, 2023. Gross margin was 43.7% for the year ended December 31, 2024, compared to 46.7% for 2023. Gross profit for customized products was $5.3 million for the year ended December 31, 2024, a decrease of 16.8% as compared to $6.3 million for the year ended December 31, 2023. Gross margin for customized products was 52.1% for the year ended December 31, 2024, and 54.1% for the year ended December 31, 2023. The decrease was mainly due to the decrease of unit selling prices and the increase of labor costs. Gross profit for standardized products was $0.4 million for the year ended December 31, 2024 compared to $0.4 million for the year ended December 31, 2023. Gross margin for standardized products was 12.0% for the year ended December 31, 2024, and 14.2% for the year ended December 31, 2023. The decrease was due to pricing decrease for retaining the market share. Operating Expenses Total operating expenses were $6.3 million for the year ended December 31, 2024, representing an increase of 11.4% year over year from $5.6 million for the year ended December 31, 2023. Selling expenses increased by $0.2 million or 41.3% from $0.4 million for the year ended December 31, 2023 to $0.6 million for the year ended December 31, 2024. The increase was mainly due to higher advertising, travel, hospitality and compensation expense related to business expansion and efforts to enhance product quality. General and administrative expenses increased by $0.2 million or 4.5% from $4.4 million for the year ended December 31, 2023 to $4.6 million for the year ended December 31, 2024. The increase was mainly due to the increase in (i) professional service fee of approximately $244,000 associated with IPO which are not capitalized, (ii) depreciation expense of approximately $152,000 due to new purchase of machines, and (iii) insurance expenses of approximately $89,000 for Directors and Officers Liability insurance during the year ended December 31, 2024. The increase was offset by the decrease of (i) salaries and wages expenses of approximately $173,000 due to workforce elimination to cut costs during the year ended December 31, 2024, (ii) travel expense, meals and entertainment expense of approximately $72,000 for cost enhancement.R&D expenses increased by 34.3% for the year ended December 31, 2024 as compared with the year ended December 31, 2023. The increase was driven by the previously announced initiatives aimed at strengthening product offerings, advancing innovation, and maintaining market competitiveness. (Loss) Income from operations Loss from operations was $0.7 million for the year ended December 31, 2024, compared to income from operations of $1.1 million for the year ended December 31, 2023. Total Other Income, net Total other income was $0.4 million for the year ended December 31, 2024, compared to total other income of $0.2 for the year ended December 31, 2023. Income tax expense Income tax expense decreased by approximately $0.3 or 48.3%, from $0.5 million for the year ended December 31, 2023 to $0.2 million for the year ended December 31, 2024. Net (Loss) Income Net loss was $0.6 million for the year ended December 31, 2024, compared to net income of $0.8 million for the year ended December 31, 2023. 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 filings with the SEC. For more information, please contact: Investor Relations:Bill ZimaEmail: [email protected] Tungray Technologies Inc and Subsidiaries Consolidated Balance Sheets (Stated in U.S. Dollars) As of As of 31-Dec-24 31-Dec-23 ASSETS CURRENT ASSETS Cash $ 8,968,814 $ 10,802,405 Restricted cash 503,544 - Accounts and notes receivable, net 2,393,902 3,574,739 Accounts receivable - related parties 327,556 319,589 Inventories, net 2,206,329 2,283,809 Prepayments, net 726,991 259,950 Prepayments - related parties, net 3,582,032 1,048,745 Other receivables and other current assets, net 507,523 215,651 Other receivables - related parties 553,736 23,816 Total current assets 19,770,427 18,528,704 PROPERTY AND EQUIPMENT, NET 6,173,176 6,326,369 OTHER ASSETS Prepaid expenses and deposits 79,088 23,163 Prepayment for land use right 1,987,685 - Long-term investment 205,499 211,271 Operating right-of-use assets 1,411,033 712,261 Finance right-of-use assets 221,847 - Intangible assets 59,148 55,842 Deferred initial public offering ("IPO") costs - 1,192,734 Total non-current assets 3,964,300 2,195,271 Total assets 29,907,903 27,050,344 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable 1,359,244 1,048,271 Accounts payable - related parties 79,988 498,923 Contract liabilities 6,115,315 4,010,832 Accrued expenses and other payables 1,450,005 1,289,941 Other payables - related parties 338,453 670,866 Current portion of banking facilities 80,588 140,162 Current portion of operating lease liabilities 184,201 46,232 Current portion of operating lease liabilities - related party 168,551 123,094 Current portion of finance lease liabilities 123,762 - Taxes payable 703,264 1,206,141 Total current liabilities 10,603,371 9,034,462 OTHER LIABILITIES Banking facilities 1,161,174 1,951,389 Operating lease liabilities 692,329 10,603 Operating lease liabilities - related party 190,752 339,450 Total other liabilities 2,044,255 2,301,442 Total liabilities 12,647,626 11,335,904 COMMITMENTS AND CONTINGENCIES EQUITY Class A ordinary shares, $0.0001 par value; 400,000,000 shares authorized; 11,793,485 and 10,440,000 shares issued and outstanding as of December 31, 2024 and 2023, respectively 1,179 1,044 Class B ordinary shares, $0.0001 par value; 100,000,000 shares authorized; 4,560,000 sharesissued and outstanding as of December 31, 2024 and 2023 456 456 Additional paid-in capital 3,135,124 332,574 Retained earnings 15,051,662 15,530,562 Statutory reserves 248,761 248,761 Accumulated other comprehensive loss -1,013,306 -284,444 Total Tungray Technologies Inc's equity 17,423,876 15,828,953 NONCONTROLLING INTERESTS -163,599 -114,513 TOTAL EQUITY 17,260,277 15,714,440 Total liabilities and shareholders' equity $ 29,907,903 $ 27,050,344 Tungray Technologies Inc and Subsidiaries Consolidated Statements of Operations and Comprehensive (Loss) Income (Stated in U.S. Dollars) For the Years Ended December 31, 2024 2023 Revenue - third parties $ 12,770,907 $ 14,042,956 Revenue - related parties 39,342 319,546 Total revenues 12,810,249 14,362,502 Cost of revenue - third parties 7,187,415 7,378,471 Cost of revenue - related parties 25,291 273,122 Total cost of revenues 7,212,706 7,651,593 Gross profit 5,597,543 6,710,909 Operating expenses: Selling expenses 595,995 421,869 General and administrative expenses 4,594,438 4,397,603 Research and development expenses 1,063,210 791,762 Total operating expenses 6,253,643 5,611,234 (Loss) income from operations -656,100 1,099,675 Other income (expense) Other income, net 220,477 336,576 Lease income - related party 19,762 19,126 Financial income (expenses), net 122,226 -160,735 Total other income, net 362,465 194,967 (Loss) income before income taxes -293,635 1,294,642 Income tax expense -278,082 -537,881 Net (loss) income -571,717 756,761 Less: net loss attributable to noncontrolling interests -91,698 -99,775 Net (loss) income attributable to Tungray Technologies Inc $ -480,019 $ 856,536 Net (loss) income $ -571,717 $ 756,761 Foreign currency translation adjustment -735,131 113,999 Comprehensive (loss) income -1,306,848 870,760 Less: comprehensive loss attributable to noncontrolling interests -99,086 -100,078 Total comprehensive (loss) income attributable to Tungray Technologies Inc $ -1,207,762 $ 970,838 Weighted average number of common shares outstanding - basic and diluted 15,949,600 15,000,000 (Loss) earnings per share - basic and diluted $ -0.03 $ 0.06 Tungray Technologies Inc and Subsidiaries Consolidated Statements of Cash Flows (Stated in U.S. Dollars) For the Years Ended December 31, 2024 2023 Cash flows from operating activities: Net (loss) income $ -571,717 $ 756,761 Adjustments to reconcile net (loss)income to net cash (used in) provided by operating activities: Depreciation expense 365,366 248,146 Amortization expense 10,269 15,118 Provision for credit losses ordoubtful accounts 217,471 190,983 Write-down of inventories 129,686 6,713 Deferred tax expense(benefits) - 74,616 Amortization of operating lease right-of-use assets 261,754 154,455 Amortization of financelease right-of-use assets 11,951 - Loss from disposal of property and equipment 1,046 - Changes in operating assets and liabilities Accounts and notesreceivable 1,019,565 -1,371,684 Accounts receivable - related parties -16,938 -218,421 Prepayments -530,103 275,082 Prepayments - related parties -2,653,081 -1,004,692 Inventories -117,157 -909,054 Other receivables and other current assets -335,891 -52,168 Prepaid expenses and deposits -57,373 -1,107 Operating lease receivable- related party - - Accounts payable 345,455 -25,698 Accounts payable - relatedparty -411,139 392,777 Contract liabilities 2,244,964 2,146,876 Accrued expenses and other payables 201,624 307,405 Operating lease liabilities -132,525 -34,652 Operating lease liabilities - related parties -102,751 -204,940 Other payables – related parties 18,794 - Taxes payable -474,512 -295,495 Net cash (used in) provided by operating activities -575,242 451,021 Cash flows from investing activities: Purchases of property, plant andequipment -450,637 -43,254 Purchase of intangible assets -15,170 -37,993 Prepayment for land use right -2,016,296 - Deposit for long-term investment - - Loans to related parties -538,596 -677,765 Repayments from related parties - 677,267 Net cash used in investing activities -3,020,699 -81,745 Cash flows from financing activities: Borrowings from related parties 178,860 1,587,015 Repayments to related parties - -1,511,509 Repayments from loans receivable -related parties - - Proceeds from bank loan - 282,450 Repayments to bank loan -795,394 -1,218,164 Repayments to third party loans - -194,226 Repayments to related party loans - - Repayments of finance lease liabilities -119,223 - Dividends payments -517,140 -1,275,902 Capital contribution fromnoncontrolling interest shareholder 50,000 - Proceeds from issuance of shares upon IPO 5,000,000 - Proceeds from issuance of shares pursuant to exercise of over-allotment 413,940 - Payments of initial public offering costs -1,418,521 -474,972 Net cash provided by(used in) financing activities 2,792,522 -2,805,308 Effect of exchange rate change on cashand restricted cash -526,628 108,141 Net change in cash and restricted cash -1,330,047 -2,327,891 Cash and restricted cash - beginning of the year 10,802,405 13,130,296 Cash and restricted cash - end of the year $ 9,472,358 $ 10,802,405 Cash 8,968,814 10,802,405 Restricted cash 503,544 - Supplemental disclosure of cash flowinformation: Interest paid $ 66,864 $ 91,276 Income tax paid $ 746,044 $ 664,259 Supplemental non-cash information: Finance lease right-of-use assets obtained in exchange for finance lease liabilities $ 235,556 $ - Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 1,013,605 $ 391,309 Termination of operating lease right-of-use asset with lease liability $ -27,667 $ - Other receivables - related party offset with other payables - related party upon execution of offset agreement $ - $ 381,710 Dividends declared to offset withloans receivable - related parties uponexecution of offset agreement $ - $ - Deferred IPO costs transfer toadditional paid-in capital upon IPO $ -1,192,734 $ - 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 Technologies Inc Reports 2024 Full Year Financial Results

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