Tungray Technologies Inc Reports 2024 Full Year Financial Results
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: [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 | $ | - | |||
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SOURCE Tungray Technologies Inc