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SINGAPORE, May 14, 2025 /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
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:
Revenue Enhancement:
To drive sales growth, the Company is exploring potential horizontal strategic partnerships to access new, high-value capabilities.
These initiatives include:
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.
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.
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.
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.
(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 Zima
Email: [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 - | 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; | 1,179 | 1,044 | ||||||
Class B ordinary shares, $0.0001 par value; | 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 | $ | -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 | -99,086 | -100,078 | ||||||
Total comprehensive (loss) income attributable to | $ | -1,207,762 | $ | 970,838 | ||||
Weighted average number of common shares | 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) | |||||||
Depreciation expense | 365,366 | 248,146 | |||||
Amortization expense | 10,269 | 15,118 | |||||
Provision for credit losses or | 217,471 | 190,983 | |||||
Write-down of inventories | 129,686 | 6,713 | |||||
Deferred tax expense | - | 74,616 | |||||
Amortization of operating | 261,754 | 154,455 | |||||
Amortization of finance | 11,951 | - | |||||
Loss from disposal of property and equipment | 1,046 | - | |||||
Changes in operating assets | |||||||
Accounts and notes | 1,019,565 | -1,371,684 | |||||
Accounts receivable - | -16,938 | -218,421 | |||||
Prepayments | -530,103 | 275,082 | |||||
Prepayments - related | -2,653,081 | -1,004,692 | |||||
Inventories | -117,157 | -909,054 | |||||
Other receivables and | -335,891 | -52,168 | |||||
Prepaid expenses and | -57,373 | -1,107 | |||||
Operating lease receivable | - | - | |||||
Accounts payable | 345,455 | -25,698 | |||||
Accounts payable - related | -411,139 | 392,777 | |||||
Contract liabilities | 2,244,964 | 2,146,876 | |||||
Accrued expenses and | 201,624 | 307,405 | |||||
Operating lease liabilities | -132,525 | -34,652 | |||||
Operating lease liabilities - | -102,751 | -204,940 | |||||
Other payables – related | 18,794 | - | |||||
Taxes payable | -474,512 | -295,495 | |||||
Net cash (used in) | -575,242 | 451,021 | |||||
Cash flows from investing activities: | |||||||
Purchases of property, plant and | -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 | -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 - | - | - | |||||
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 | -119,223 | - | |||||
Dividends payments | -517,140 | -1,275,902 | |||||
Capital contribution from | 50,000 | - | |||||
Proceeds from issuance of shares | 5,000,000 | - | |||||
Proceeds from issuance of shares | 413,940 | - | |||||
Payments of initial public offering | -1,418,521 | -474,972 | |||||
Net cash provided by | 2,792,522 | -2,805,308 | |||||
Effect of exchange rate change on cash | -526,628 | 108,141 | |||||
Net change in cash and restricted cash | -1,330,047 | -2,327,891 | |||||
Cash and restricted cash - beginning of | 10,802,405 | 13,130,296 | |||||
Cash and restricted cash - end of the | $ | 9,472,358 | $ | 10,802,405 | |||
Cash | 8,968,814 | 10,802,405 | |||||
Restricted cash | 503,544 | - | |||||
Supplemental disclosure of cash flow | |||||||
Interest paid | $ | 66,864 | $ | 91,276 | |||
Income tax paid | $ | 746,044 | $ | 664,259 | |||
Supplemental non-cash information: | |||||||
Finance lease right-of-use assets | $ | 235,556 | $ | - | |||
Operating lease right-of-use assets | $ | 1,013,605 | $ | 391,309 | |||
Termination of operating lease right- | $ | -27,667 | $ | - | |||
Other receivables - related party | $ | - | $ | 381,710 | |||
Dividends declared to offset with | $ | - | $ | - | |||
Deferred IPO costs transfer to | $ | -1,192,734 | $ | - | |||
SOURCE Tungray Technologies Inc
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| Dec-31 | |
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