HUHUTECH International Group Inc. Announces Fiscal Year 2024 Financial Results
WUXI, China, April 29, 2025 /PRNewswire/ -- HUHUTECH International Group Inc. (NASDAQ:HUHU) (the "Company" or "HUHUTECH"), a professional provider of factory facility management and monitoring systems, today announced its financial results for the fiscal year ended December 31, 2024.
Mr. Yujun Xiao, Chief Executive Officer of HUHUTECH, commented, "Fiscal year 2024 was a year of expansion as we strengthened our market presence both domestically and internationally, laying a solid foundation for long-term success. We delivered $18.1 million in total revenue, representing an 8.5% increase year-over-year, driven by robust growth in product sales and system integration projects, especially in Japan. Gross profit rose 21.1% to $6.6 million, with gross margin improving to 36.1% from 32.3% in the same period last year.
Our strategic expansion in the Japanese market was underscored by the successful launch of our semiconductor industry-supporting warehousing and logistics center in Kumamoto. In line with Japan's Semiconductor Revival Initiative, the facility supports the region's growing semiconductor manufacturing clusters and reflects our commitment to building scalable infrastructure in high-growth markets. Another major milestone in 2024 was our successful initial public offering. With our Nasdaq listing, we are better positioned to accelerate innovation, enhance brand visibility, and pursue global opportunities. This achievement also underscores our commitment to long-term value creation through global market expansion."
Mr. Xiao continued, "Looking ahead, we will continue to build on this momentum by expanding our marketing and sales teams, deepening client relationships, and advancing targeted R&D—particularly in exploring the development of Factory Management and Control System and related new equipment. We also plan to broaden our product and service offerings to further penetrate key markets. Through these efforts, we are confident in delivering innovative solutions that improve efficiency, elevate performance, and set new standards in factory facility management across an evolving industrial landscape."
Fiscal Year 2024 Financial Highlights
- Total revenue was $18.1 million in fiscal year 2024, an increase of 8.5% from $16.7 million in fiscal year 2023.
- Gross profit was $6.6 million in fiscal year 2024, an increase of 21.1% from $5.4 million in fiscal year 2023.
- Gross margin was 36.1% in fiscal year 2024, increased from 32.3% in fiscal year 2023.
- Net loss was $1.9 million in fiscal year 2024, compared to net income of $2.3 million in fiscal year 2023.
- Basic and diluted loss per share were $0.1 in fiscal year 2024, compared to basic and diluted earnings per share of $0.47 in fiscal year 2023.
Fiscal Year 2024 Financial Results
Revenues
Total revenue was $18.1 million in fiscal year 2024, an increase of 8.5% from $16.7 million in fiscal year 2023. The overall increase in total revenue was primarily attributable to a $0.9 million increase in revenue from product sales and a $0.3 million increase in revenue from system integration projects.
- Revenue from system integration projects was $16.6 million in fiscal year 2024, an increase of 2.0% from $16.3 million in fiscal year 2023. The increase was due to the expansion of the Company's business in the Japanese market in fiscal year 2024.
- Revenue from engineering consulting services was $0.4 million in fiscal year 2024, an increase of 76.3% from $0.2 million in fiscal year 2023. The significant increase was a result of the system integration projects as the Company provided consulting services as auxiliary service to some system integration clients in need.
- Revenue from product sales was $1.2 million in fiscal year 2024, an increase of 340.3% from $0.3 million in fiscal year 2023. The increase of product sales revenue was due to increase in product needs along with system integration projects in fiscal year 2024.
Cost of Revenues
Cost of revenue was $11.6 million in fiscal year 2024, an increase of 2.4% from $11.3 million in fiscal year 2023.
Gross Profit and Gross Margin
Gross profit was $6.6 million in fiscal year 2024, an increase of 21.1% from $5.4 million in fiscal year 2023. The increase of gross profit in fiscal year 2024 was mainly due to the increase of gross profit from system integration projects.
Gross margin was 36.1% in fiscal year 2024, increased from 32.3% in fiscal year 2023.
Operating Expenses
Total operating expenses were $8.1 million in fiscal year 2024, an increase of 149.6% from $3.2 million in fiscal year 2023.
- Selling expenses were $2.1 million in fiscal year 2024, an increase of 137.2% from $0.9 million in fiscal year 2023. The increase was mainly due to the operation of HUHU Technology Co., Ltd. ("HUHU Japan").
- General and administrative expenses were $3.2 million in fiscal year 2024, an increase of 205.0% from $1.0 million in fiscal year 2023. The increase was mainly due to the operation of HUHU Japan.
- Research and development expenses were $2.9 million in fiscal year 2024, an increase of 114.7% from $1.3 million in fiscal year 2023. The increase was due to (1) a decrease of $0.1 million in material costs; and (2) an increase of $1.6 million in technical consulting fees charged by a third party.
Net Loss
Net loss was $1.9 million in fiscal year 2024, compared to net income of $2.3 million in fiscal year 2023.
Basic and Diluted Loss per Share
Basic and diluted loss per share were $0.1 in fiscal year 2024, compared to basic and diluted earnings per share of $0.47 in fiscal year 2023.
Financial Condition
As of December 31, 2024, the Company had cash of $3.1 million, compared to $2.7 million as of December 31, 2023.
Net cash used in operating activities in fiscal year 2024 was $3.0 million, compared to net cash provided by operating activities of $3.0 million in fiscal year 2023.
Net cash used in investing activities in fiscal year 2024 was $3.8 million, compared to $1.2 million in fiscal year 2023.
Net cash provided by financing activities in fiscal year 2024 was $7.5 million, compared to net cash used in financing activities of $0.6 million in fiscal year 2023.
Recent Development
On October 23, 2024, the Company completed its initial public offering (the "Offering") of 1,050,000 ordinary shares at a public offering price of $4.00 per share. On November 19, 2024, the representative of the underwriters of the Offering partially exercised their over-allotment option to purchase an additional 123,413 ordinary shares at the public offering price of $4.00 per share. The gross proceeds were $4.69 million, before deducting underwriting discounts and commissions, and other expenses. The Company's ordinary shares began trading on the Nasdaq Capital Market on October 22, 2024, under the ticker symbol "HUHU."
About HUHUTECH International Group Inc.
HUHUTECH International Group Inc. is a professional provider of factory facility management and monitoring systems. Through its subsidiaries in China and Japan, HUHUTECH designs and provides customized high-purity gas and chemical production system and equipment. The Company's products mainly include high-purity process systems (HPS) and factory management control systems (FMCS), which effectively increase operation efficiency by using standardized module software. The modularity of HUHUTECH's software solution reduces the errors caused by frequent updates of the program. As a nationally recognized brand, HUHUTECH serve major players in the pan-semiconductor industry. Its products and services are widely used by semi-conductor manufacturers, LED and micro-electronics factories, as well as some pharmaceutical, food and beverage manufacturers. For more information, please visit the Company's website: ir.huhutech.com.cn.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any 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 other filings with the U.S. Securities and Exchange Commission ("SEC").
For more information, please contact:
HUHUTECH International Group Inc.
Investor Relations Department
Email: [email protected]
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: [email protected]
HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES | ||||||||
As of December 31, | ||||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 3,102,865 | $ | 2,739,530 | ||||
Restricted cash | 220,261 | 107,129 | ||||||
Notes receivable | 254,092 | — | ||||||
Accounts receivable, net | 9,633,289 | 8,708,075 | ||||||
Inventories | 1,175,241 | 530,048 | ||||||
Advance to vendors | 150,637 | 64,750 | ||||||
Prepayments and other assets, net | 80,137 | 181,371 | ||||||
TOTAL CURRENT ASSETS | 14,616,522 | 12,330,903 | ||||||
Property, plant and equipment, net | 4,978,080 | 1,528,982 | ||||||
Intangible assets, net | 79,985 | 124,679 | ||||||
Deferred tax assets | 326,087 | 56,931 | ||||||
Deferred offering costs | — | 805,889 | ||||||
Right-of-use assets, net | 183,815 | 255,573 | ||||||
TOTAL ASSETS | $ | 20,184,489 | $ | 15,102,957 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short term bank loans | $ | 5,273,678 | $ | 1,690,165 | ||||
Notes payable | 733,996 | 103,943 | ||||||
Accounts payable | 4,466,933 | 4,532,958 | ||||||
Due to related parties | 246,454 | 868,438 | ||||||
Advance from customers | 1,403,628 | 943,348 | ||||||
Accrued expenses and other liabilities | 732,419 | 561,439 | ||||||
Taxes payable | 356,889 | 400,071 | ||||||
Operating lease liabilities – current | 104,088 | 107,424 | ||||||
TOTAL CURRENT LIABILITIES | 13,318,085 | 9,207,786 | ||||||
Long term loans | 260,299 | — | ||||||
Operating lease liabilities – non-current | 80,636 | 114,374 | ||||||
TOTAL LIABILITIES | 13,659,020 | 9,322,160 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 13) | ||||||||
SHAREHOLDERS' EQUITY: | ||||||||
Ordinary shares, $0.0000025 par value, 20,000,000,000 shares authorized, 21,173,413 and 20,000,000 shares issued and outstanding as of December 31, 2024 and 2023*, respectively | 53 | 50 | ||||||
Additional paid-in capital | 4,695,350 | 1,738,179 | ||||||
Statutory reserves | 343,077 | 343,077 | ||||||
Retained earnings | 2,026,786 | 3,958,029 | ||||||
Accumulated other comprehensive loss | (539,797) | (258,538) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 6,525,469 | 5,780,797 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 20,184,489 | $ | 15,102,957 | ||||
* | Share and per share data are presented on a retroactive basis to reflect the reorganization and the forward split at a ratio of 1-for-4, with effective date of July 15, 2024. |
HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Revenues | $ | 18,149,244 | $ | 16,732,688 | $ | 11,374,257 | ||||||
Cost of revenues – third parties | 10,919,792 | 11,110,545 | 7,018,597 | |||||||||
Cost of revenues – related party | 676,889 | 210,251 | 805,679 | |||||||||
Total cost of revenues | 11,596,681 | 11,320,796 | 7,824,276 | |||||||||
Gross profit | 6,552,563 | 5,411,892 | 3,549,981 | |||||||||
Operating expenses: | ||||||||||||
Selling expenses | 2,068,278 | 871,797 | 391,013 | |||||||||
General and administrative expenses | 3,162,801 | 1,036,922 | 1,033,079 | |||||||||
Research and development expenses | 2,879,183 | 1,341,221 | 1,213,529 | |||||||||
Total operating expenses | 8,110,262 | 3,249,940 | 2,637,621 | |||||||||
(Loss) income from operations | (1,557,699) | 2,161,952 | 912,360 | |||||||||
Other income (expense): | ||||||||||||
Interest income | 8,691 | 7,279 | 4,021 | |||||||||
Interest expense | (113,657) | (72,197) | (51,985) | |||||||||
Other income, net | 5,821 | 492,123 | 99,920 | |||||||||
Total other (expense) income, net | (99,145) | 427,205 | 51,956 | |||||||||
(Loss) income before income taxes | (1,656,844) | 2,589,157 | 964,316 | |||||||||
Provision for income taxes | 274,399 | 255,570 | 34,307 | |||||||||
Net (loss) income | (1,931,243) | 2,333,587 | 930,009 | |||||||||
Other comprehensive loss | ||||||||||||
Foreign currency translation adjustments | (281,259) | (105,029) | (238,627) | |||||||||
Comprehensive (loss) income | $ | (2,212,502) | $ | 2,228,558 | $ | 691,382 | ||||||
(Loss) earnings per share* | ||||||||||||
Basic and diluted | $ | (0.10) | $ | 0.47 | $ | 0.19 | ||||||
Weighted average number of shares outstanding* | ||||||||||||
Basic and diluted | 20,208,803 | 20,000,000 | 20,000,000 | |||||||||
* | Share and per share data are presented on a retroactive basis to reflect the reorganization and the forward split at a ratio of 1-for-4, with effective date of July 15, 2024. |
HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net (loss) income | $ | (1,931,243) | $ | 2,333,587 | $ | 930,009 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 326,471 | 214,106 | 138,572 | |||||||||
Provision for (recovery of) credit losses | 1,900 | 25,335 | (52,229) | |||||||||
Deferred tax (benefits) expense | (274,609) | 11,950 | 33,739 | |||||||||
Amortization of operating lease right-of-use assets | 62,062 | 53,307 | 19,643 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (1,179,061) | (2,817,167) | (1,370,494) | |||||||||
Notes receivable | (257,751) | — | — | |||||||||
Inventories | (669,170) | 851,308 | (979,451) | |||||||||
Prepayments and other assets | 97,665 | 50,862 | (171,856) | |||||||||
Advance to vendors | (88,917) | (5,119) | 28,844 | |||||||||
Accounts payable | 52,879 | 1,603,497 | 674,460 | |||||||||
Accrued expenses and other liabilities | 188,280 | 115,482 | 60,707 | |||||||||
Advance from customers | 493,048 | 446,802 | 485,270 | |||||||||
Taxes payable | (40,645) | 246,100 | 82,890 | |||||||||
Due from related parties | 250,495 | — | — | |||||||||
Operating leases liabilities | (66,909) | (81,121) | (19,643) | |||||||||
Net cash (used in) provided by operating activities | (3,035,505) | 3,048,929 | (139,539) | |||||||||
Cash flows from investing activities: | ||||||||||||
Additions to property, plant, and equipment | (3,825,547) | (1,205,784) | (95,448) | |||||||||
Acquisition of intangible asset | — | (2,469) | — | |||||||||
Net cash used in investing activities | (3,825,547) | (1,208,253) | (95,448) | |||||||||
Cash flows from financing activities: | ||||||||||||
Payments to related parties | (868,438) | — | (65,358) | |||||||||
Advances from related parties | — | 325,642 | — | |||||||||
Proceeds from initial public offering | 4,117,955 | — | — | |||||||||
Proceeds from (repayments of) proceeds from bank acceptance notes payable, net | 642,004 | (389,894) | 426,965 | |||||||||
Proceeds from short-term bank loans | 7,905,066 | 3,135,195 | 5,079,409 | |||||||||
Repayment of short-term bank loans | (4,223,122) | (3,417,645) | (3,952,709) | |||||||||
Proceeds from long-term bank loans | 694,859 | — | — | |||||||||
Repayment of long-term bank loans | (430,813) | — | — | |||||||||
Payment of offering costs | (382,333) | (247,874) | (171,023) | |||||||||
Net cash provided by (used in) provided by financing activities | 7,455,178 | (594,576) | 1,317,284 | |||||||||
Effect of exchange rate changes on cash and restricted cash | (117,659) | (88,057) | (5,196) | |||||||||
Net increase in cash and restricted cash | 476,467 | 1,158,043 | 1,077,101 | |||||||||
Cash and restricted cash, beginning of year | 2,846,659 | 1,688,616 | 611,515 | |||||||||
Cash and restricted cash, end of year | $ | 3,323,126 | $ | 2,846,659 | $ | 1,688,616 | ||||||
Reconciliation of cash and restricted cash, end of year | ||||||||||||
Cash | $ | 3,102,865 | $ | 2,739,530 | $ | 1,361,728 | ||||||
Restricted cash | 220,261 | 107,129 | 326,888 | |||||||||
Cash and restricted cash, end of year | $ | 3,323,126 | $ | 2,846,659 | $ | 1,688,616 | ||||||
Supplemental cash flow disclosures: | ||||||||||||
Cash paid for income tax | $ | 97,101 | $ | 68,649 | $ | 31,015 | ||||||
Cash paid for interest | $ | 36,403 | $ | 68,255 | $ | 51,985 | ||||||
Non-cash activities: | ||||||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | 79,591 | $ | 323,290 | $ | 7,372 | ||||||
Reclassification of deferred offering costs | $ | 1,160,781 | $ | — | $ | — | ||||||
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