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

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 Zima

Email: tungray@icrinc.com

Tungray Technologies Inc and Subsidiaries
Consolidated Balance Sheets

(Stated in U.S. Dollars)	As of		As of
(Stated in U.S. Dollars)	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 shares issued 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 or doubtful 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 finance lease right-of-use assets		11,951		-
Loss from disposal of property and equipment		1,046		-
Changes in operating assets and liabilities
Accounts and notes receivable		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 - related party		-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 and equipment		-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 from noncontrolling 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 cash and 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 flow information:
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 with loans receivable - related parties upon execution of offset agreement	$	-	$	-
Deferred IPO costs transfer to additional paid-in capital upon IPO	$	-1,192,734	$	-

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SOURCE Tungray Technologies Inc

Tungray Technologies Inc Reports 2024 Full Year Financial Results