ZJK Industrial Co., Ltd. Announces Financial Results for Fiscal Year 2024
SHENZHEN, China, April 28, 2025 /PRNewswire/ -- ZJK Industrial Co., Ltd. (NASDAQ:ZJK) ("ZJK Industrial", "ZJK" or the "Company"), a high-tech precision parts and hardware manufacturer for artificial intelligence (AI) infrastructure, consumer electronics, electric vehicles, aerospace and other smart technologies, today announced its financial results for the fiscal year ended December 31, 2024.
Mr. Ning Ding, Chief Executive Officer of ZJK Industrial, commented: "We are pleased to report strong performance for fiscal year 2024. During this period, our revenue increased by 30.13%, driven by robust growth in sales volume for the year ended December 31, 2024. Amid the ongoing AI-related industry growth, sales volume increased across all product segments—ranging from over 7% to 50%—thanks to our flexible pricing strategy tailored to the rise in AI-related projects. To meet rising demand and fulfill a growing pipeline of purchase orders, we have been expanding our production capabilities by upgrading our facilities and adding new equipment. As a result of these initiatives, our gross profit rose by 23.09%, although our gross margin slightly declined to 35.88% from 37.93%.
In 2024, selling and marketing expenses increased significantly—by approximately 169.08%—as we pursued business expansion in global markets. At the same time, we increased our research and development (R&D) investment by 20.36% to recruit top talent and support our continued growth, reflecting our deep commitment to technological innovation and high quality.
These efforts are bearing fruit, as evidenced by our emerging new products and advanced technologies—for example, a series of high-quality innovative products launched at NVIDIA's GPU Technology Conference in March 2025—as well as our recognition as one of the Top 100 Enterprises by the local government in April 2025, in acknowledgment of our outstanding performance and contributions to the region's economic and technological development.
We will continue to execute our business strategy and operational initiatives to seize opportunities presented by the next wave of technological innovation. At the same time, we will strengthen our supply chain resilience to diversify and mitigate risks associated with global uncertainties."
Fiscal Year 2024 Financial Summary
- Revenues were US$37.81 million in fiscal year 2024, an increase of 30.13% from US$29.05 million in fiscal year 2023.
- Gross profit was US$13.57 million in fiscal year 2024, an increase of 23.09% from US$11.02 million in fiscal year 2023.
- Gross margin was 35.88% in fiscal year 2024, compared to 37.93% in fiscal year 2023.
- Net income was US$3.66 million in fiscal year 2024, compared to US$7.69 million in fiscal year 2023.
- Basic and diluted earnings per share were US$0.06 in fiscal year 2024, compared to US$0.13 in fiscal year 2023.
Fiscal Year 2024 Financial Results
Revenues
Total revenues were US$37.81 million in fiscal year 2024, an increase of 30.13% from US$29.05 million in fiscal year 2023. The increase was mainly due to the sales volume of products for fiscal year 2024 increased by 27.58% compared to that for fiscal year 2023, with a slightly increase in average unit sales price of products, particularly in AI-related projects added in 2024.
For screws products, the sales volume for fiscal year 2024 increase by 32.17% with a slightly decrease in average unit sales price, compared to that for fiscal year 2023, contributing an increase of US$3.77 million in revenue. The sales volume increased mainly due to a price reduction strategy to maintain customer order share in 2024. For turned parts, the sales volume and the average sales unit price for fiscal year 2024 increase by 7.35% and 15.69%, respectively, compared to that for fiscal year 2023, contributing an increase of US$3.22 million in revenue. For stamping parts, the sales volume and the average sales unit price for fiscal year 2024 increased by 50.62% and 99.07%, respectively compared to that for fiscal year 2023, contributing an increase of US$1.68 million in revenue. The sales volume and the average sales unit price of both turned parts and stamping parts increased mainly due to the addition of AI-related projects and customers with premium pricing in 2024, particularly in stamping parts.
Cost of Revenues
Cost of revenue was US$24.24 million in fiscal year 2024, an increase of 34.43% from US$18.03 million in fiscal year 2023, which was mainly due to the increasing sales volume of products.
Gross Profit and Gross Profit Margin
Gross profit was US$13.57 million in fiscal year 2024, an increase of 23.09% from US$11.02 million in fiscal year 2023. Gross profit increased mainly due to the increased sales volume and the increased average sales unit price of turned parts and stamping parts.
Gross profit margin was 35.88% in fiscal year 2024, decreased from 37.93% in fiscal year 2023. The decrease was mainly due to (i) higher sales of lower-margin screws, exacerbated by increasing volume of free samples that reduced effective revenue per unit; (ii) reductions in unit price for screws to maintain the cooperative relationship with existing customers. However, the decline was partially offset by margin improvements in turned parts and stamping parts.
Total Operating Expenses
Total operating expenses were US$11.93 million in fiscal year 2024, an increase from US$4.74 million in fiscal year 2023.
- General and administrative expenses were US$6.71 million in fiscal year 2024, an increase of 164.88% from US$2.53 million in fiscal year 2023, which was primarily attributable to (i) an increase of US$3.92 million in professional service fees due to increases of audit fee arising from the initial public offering and financing consulting fees, and (ii) an increase of US$0.34 million in salaries and benefits for administrative personnel due to an increase of employee headcounts resulting from business growth.
- Selling and marketing expenses were US$4.71 million in fiscal year 2024, an increase of 169.08% from US$1.75 million in fiscal year 2023, which was primarily due to (i) an increase of US$2.21 million in sales commission resulting from business expansion into markets such as North America, Singapore, and Taiwan, China, and (ii) an increase of US$0.55 million in freight costs for sale of products mainly due to expanded shipping demands for deliveries to overseas regions such as Taiwan, China, North America, Singapore and India, as business operations scaled up in 2024.
- Research and development expenses were US$0.55 million in fiscal year 2024, an increase of 20.36% from US$0.46 million in fiscal year 2023, which was primarily attributable to an increase of US$0.11 million in salaries and benefits for research and development personnel due to an increase of employee headcounts resulting from business growth, and was partially offset by a decrease of US$0.02 million in material consumption as the types of products the Company developed in 2024 have a less material consumption than that in 2023.
Net Income
Net income was US$3.66 million in fiscal year 2024, a decrease of 52.37% from US$7.69 million in fiscal year 2023.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were US$0.06 in fiscal year 2024, compared to US$0.13 in fiscal year 2023.
Financial Condition
As of December 31, 2024, the Company had cash and cash equivalents of US$12.26 million, an increase from US$2.83 million as of December 31, 2023.
Net cash provided by operating activities in fiscal year 2024 was US$5.34 million, an increase from US$4.12 million in fiscal year 2023.
Net cash used in investing activities was US$2.80 million in fiscal year 2024, compared to net cash provided by investing activities US$1.29 million in fiscal year 2023.
Net cash provided by financing activities was US$6.75 million in fiscal year 2024, compared to net cash used in financing activities of US$2.95 million in fiscal year 2023.
Recent Development
On October 1, 2024, the Company completed its initial public offering (the "Offering") of 1,250,000 ordinary shares at a public offering price of US$5.00 per ordinary share. On October 30, 2024, the underwriters of the Offering partially exercised their over-allotment option to purchase an additional 131,249 ordinary shares at the public offering price of US$5.00 per share. The gross proceeds were US$6.91 million, before deducting underwriting discounts and other related expenses. The ordinary shares began trading on the Nasdaq Capital Market on September 30, 2024 under the ticker symbol "ZJK."
About ZJK Industrial Co., Ltd.
ZJK Industrial Co., Ltd. is a high-tech enterprise specializing in the manufacturing and sale of precision fasteners, structural parts and other precision metal parts applied in a variety of industries, including intelligent electronic equipment, new energy vehicles, aerospace, energy storage systems, medical and liquid cooling systems used in artificial intelligence supercomputers. With over fourteen years in the precision metal parts manufacturing industry, the Company maintains a skilled professional team, a series of highly automated and precision manufacturing equipment, stable and strong customer group, and complete quality management systems. ZJK mainly offers standard screws, precision screws and nuts, high-strength bolts and nuts, turning parts, stamping parts and Computer Numerical Control (CNC) machining parts, CNC milling parts, high precision structural components, Surface Mounting Technology (SMT) for miniature parts packaging, and technology service for research and development from a professional engineering team. For more information, please visit the Company's website at https://ir.zjk-industrial.com/.
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 "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" 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 SEC.
For investor and media inquiries, please contact:
ZJK Industrial Co., Ltd.
Phone: +86-755-28341175
Email: [email protected]
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: [email protected]
ZJK Industrial Co., Ltd. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(In U.S. dollars, except for numbers of shares data) | ||||||||
As of December 31, | ||||||||
2023 | 2024 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 2,826,725 | 12,255,213 | ||||||
Restricted cash | 1,075,047 | 797,241 | ||||||
Short-term investments | — | 2,559,362 | ||||||
Accounts receivable, net | 10,268,807 | 10,282,857 | ||||||
Accounts receivable-due from a related party | 8,816,184 | 9,165,068 | ||||||
Inventories, net | 4,765,742 | 7,316,029 | ||||||
Prepaid expenses and other current assets, net | 503,914 | 872,753 | ||||||
Other receivables-due from related parties | 277,786 | 249,235 | ||||||
Deferred initial public offering ("IPO") costs | 566,417 | — | ||||||
Total current assets | 29,100,622 | 43,497,758 | ||||||
Non-current assets | ||||||||
Property, plant and equipment, net | 5,596,699 | 6,668,612 | ||||||
Intangible assets, net | — | 33,008 | ||||||
Operating lease right-of-use assets | 522,148 | 1,242,524 | ||||||
Finance lease right-of-use assets | 336,257 | 38,160 | ||||||
Construction in progress | 41,200 | — | ||||||
Long-term investment | 2,517,538 | 2,747,493 | ||||||
Deferred tax assets, net | 165,969 | 397,691 | ||||||
Other non-current assets | — | 1,146,010 | ||||||
Total non-current assets | 9,179,811 | 12,273,498 | ||||||
TOTAL ASSETS | 38,280,433 | 55,771,256 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Short-term bank borrowings | 37,184 | 1,223,405 | ||||||
Accounts payable | 11,094,287 | 14,998,590 | ||||||
Notes payable | 475,541 | 1,903,194 | ||||||
Income tax payable | 1,035,152 | 1,600,300 | ||||||
Accrued expenses and other current liabilities | 841,402 | 2,051,588 | ||||||
Other payables-due to related parties | 1,867,459 | 1,778,175 | ||||||
Operating lease liabilities, current | 157,980 | 423,214 | ||||||
Finance lease liabilities, current | 230,460 | — | ||||||
Other long-term debts, current | 9,379 | — | ||||||
Total current liabilities | 15,748,844 | 23,978,466 | ||||||
Non-current liabilities | ||||||||
Operating lease liabilities, non-current | 290,684 | 755,395 | ||||||
Other long-term debts, non-current | 20,321 | — | ||||||
Deferred tax liabilities | 518,156 | 970,520 | ||||||
Total non-current liabilities | 829,161 | 1,725,915 | ||||||
TOTAL LIABILITIES | 16,578,005 | 25,704,381 | ||||||
Commitments and contingencies (Note 15) | ||||||||
Shareholders' equity | ||||||||
Ordinary share, $0.000016666667 par value, 3,000,000,000 | 1,000 | 1,023 | ||||||
Additional paid-in capital | 1,792,559 | 7,060,050 | ||||||
Statutory surplus reserves | 2,283,180 | 2,658,112 | ||||||
Retained earnings | 18,644,082 | 21,951,873 | ||||||
Accumulated other comprehensive loss | (1,016,563) | (1,635,291) | ||||||
Total ZJK Industrial Co., Ltd. shareholders' equity | 21,704,258 | 30,035,767 | ||||||
Non-controlling interests | (1,830) | 31,108 | ||||||
Total shareholders' equity | 21,702,428 | 30,066,875 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 38,280,433 | 55,771,256 | ||||||
* The shares and per share information are presented on a retroactive basis to reflect the reorganization completed | ||||||||
ZJK Industrial Co., Ltd. | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||
(In U.S. dollars, except for the number of shares data) | ||||||||||||
For the years ended December 31, | ||||||||||||
2022 | 2023 | 2024 | ||||||||||
Revenues | ||||||||||||
Third-party sales | 13,618,185 | 13,961,495 | 21,250,363 | |||||||||
Related-party sales | 11,174,044 | 15,093,811 | 16,559,102 | |||||||||
Total revenues | 24,792,229 | 29,055,306 | 37,809,465 | |||||||||
Cost of revenues | ||||||||||||
Third-party sales | (8,084,957) | (9,486,512) | (12,281,086) | |||||||||
Related-party sales | (7,694,032) | (8,547,906) | (11,963,141) | |||||||||
Total cost of revenues | (15,778,989) | (18,034,418) | (24,244,227) | |||||||||
Gross profit | 9,013,240 | 11,020,888 | 13,565,238 | |||||||||
Operating expenses | ||||||||||||
Selling and marketing expenses | (928,339) | (1,750,877) | (4,711,294) | |||||||||
General and administrative expenses | (1,416,186) | (2,531,630) | (6,705,791) | |||||||||
Research and development costs | (487,543) | (455,398) | (548,122) | |||||||||
Gain from disposal of property, plant and equipment | 95,250 | 78 | 34,878 | |||||||||
Total operating expenses | (2,736,818) | (4,737,827) | (11,930,329) | |||||||||
Income from operations | 6,276,422 | 6,283,061 | 1,634,909 | |||||||||
Other income, net | ||||||||||||
Interest expenses | (124,104) | (109,003) | (15,085) | |||||||||
Interest income | 17,521 | 18,239 | 113,736 | |||||||||
Share of profits from equity method investment | 1,956,797 | 2,335,281 | 2,622,348 | |||||||||
Currency exchange gain | 18,314 | 12,433 | 97,506 | |||||||||
Other income, net | 246,947 | 434,031 | 474,348 | |||||||||
Total other income, net | 2,115,475 | 2,690,981 | 3,292,853 | |||||||||
Income before income tax provision | 8,391,897 | 8,974,042 | 4,927,762 | |||||||||
Income tax provision | (1,113,066) | (1,284,203) | (1,264,933) | |||||||||
Net income | 7,278,831 | 7,689,839 | 3,662,829 | |||||||||
Less: net loss attributable to non-controlling interests | (4,012) | (1,246) | (19,894) | |||||||||
Net income attributable to ZJK Industrial Co., | 7,282,843 | 7,691,085 | 3,682,723 | |||||||||
Other comprehensive (loss)/income | ||||||||||||
Foreign currency translation adjustment attributable | (758,083) | (460,025) | (618,728) | |||||||||
Foreign currency translation adjustment attributable | (190) | 19 | 332 | |||||||||
Total comprehensive income | 6,520,558 | 7,229,833 | 3,044,433 | |||||||||
Comprehensive loss attributable to non-controlling | (4,202) | (1,227) | (19,562) | |||||||||
Comprehensive income attributable to ZJK Industrial | 6,524,760 | 7,231,060 | 3,063,995 | |||||||||
Earnings per share | ||||||||||||
Basic and Diluted* | 0.12 | 0.13 | 0.06 | |||||||||
Weighted average shares used in calculating | ||||||||||||
Basic and Diluted* | 60,000,000 | 60,000,000 | 60,336,800 | |||||||||
* The shares and per share information are presented on a retroactive basis to reflect the reorganization completed | ||||||||||||
ZJK Industrial Co., Ltd. | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(In U.S. dollars, except for the number of shares data) | ||||||||||||
For the years ended December 31, | ||||||||||||
2022 | 2023 | 2024 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | 7,278,831 | 7,689,839 | 3,662,829 | |||||||||
Adjustments to reconcile net income to net cash | ||||||||||||
Provision for credit loss | 37 | 17,071 | 15,394 | |||||||||
Depreciation of property, plant and equipment | 387,005 | 504,370 | 560,846 | |||||||||
Amortization of intangible assets | — | — | 10,431 | |||||||||
Amortization of operating lease right-of-use assets | 236,053 | 286,220 | 347,177 | |||||||||
Amortization of finance lease right-of-use assets | 32,306 | 281,849 | 293,169 | |||||||||
Interest expense of finance lease liabilities | — | 13,794 | 4,346 | |||||||||
Gain from disposal of property, plant and equipment | (95,250) | (78) | (34,878) | |||||||||
Provision for inventories | 507,293 | 373,264 | 997,587 | |||||||||
Share of profits from equity method investment | (1,956,797) | (2,335,281) | (2,622,348) | |||||||||
Provisions for deferred income tax | 30,999 | 213,773 | 232,801 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (4,088,315) | (631,085) | (314,305) | |||||||||
Accounts receivable-due from a related party | (307,236) | (2,025,426) | (598,412) | |||||||||
Inventories | (3,648,954) | (427,290) | (3,717,561) | |||||||||
Prepaid expenses and other current assets | (55,527) | (378,164) | (388,242) | |||||||||
Other receivables-due from related parties | 269,546 | 69,344 | 30,393 | |||||||||
Loan receivables | 222,163 | — | — | |||||||||
Accounts payable | 2,370,468 | (124,132) | 3,877,173 | |||||||||
Notes payable | (12,534) | 75,567 | 1,461,872 | |||||||||
Income tax payable | 750,305 | 96,368 | 602,170 | |||||||||
Accrued expenses and other current liabilities | (1,126,723) | 225,204 | 1,225,041 | |||||||||
Other payables-due to related parties | 264,225 | 548,398 | 44,578 | |||||||||
Operating lease liabilities | (243,265) | (357,231) | (347,522) | |||||||||
Net cash provided by operating activities | 814,630 | 4,116,374 | 5,342,539 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of property, plant and equipment | (685,079) | (366,740) | (2,472,552) | |||||||||
Purchase of intangible assets | — | — | (43,926) | |||||||||
Payment of short-term investments | — | — | (2,597,076) | |||||||||
Purchase of construction in progress | (489,533) | — | — | |||||||||
Dividends received from long-term equity investment | 884,867 | 1,863,561 | 2,319,218 | |||||||||
Loans to related parties | — | (253,473) | (555,089) | |||||||||
Collection of loans to related parties | — | 51,125 | 545,969 | |||||||||
Net cash (used in)/provided by investing activities | (289,745) | 1,294,473 | (2,803,456) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from short-term bank borrowings | 1,039,723 | 183,367 | 1,390,183 | |||||||||
Repayments of short-term bank borrowings | (1,169,318) | (851,388) | (185,450) | |||||||||
Proceeds from long-term debts | 49,320 | — | — | |||||||||
Repayments of long-term debts | (57,018) | (1,750,598) | (29,314) | |||||||||
Repayments of financing lease liabilities | (60,056) | (377,467) | (231,814) | |||||||||
Proceeds from loans from related parties | — | 282,104 | — | |||||||||
Repayments of loans from related parties | — | (65,828) | (83,411) | |||||||||
Deferred IPO costs | (160,298) | (369,443) | (1,072,314) | |||||||||
Proceeds from IPO | — | — | 6,906,245 | |||||||||
Capital injection from a non-controlling shareholder | — | — | 52,500 | |||||||||
Net cash (used in)/provided by financing activities | (357,647) | (2,949,253) | 6,746,625 | |||||||||
Effect of exchange rate changes | (114,868) | (76,136) | (135,026) | |||||||||
Net change in cash, cash equivalents and | 52,370 | 2,385,458 | 9,150,682 | |||||||||
Cash, cash equivalents and restricted cash at the | 1,463,944 | 1,516,314 | 3,901,772 | |||||||||
Cash, cash equivalents and restricted cash at the | 1,516,314 | 3,901,772 | 13,052,454 | |||||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Income tax paid | 924,915 | 986,257 | 607,120 | |||||||||
Interest expenses paid | 96,775 | 71,606 | 8,164 | |||||||||
Supplemental disclosures of non-cash activities: | ||||||||||||
Obtaining finance lease right-of-use assets in | 201,219 | 457,731 | — | |||||||||
Obtaining operating right-of-use assets in exchange | — | 455,499 | 1,100,660 | |||||||||
Offset additional paid in capital with deferred IPO | — | — | 566,417 | |||||||||
Acquiring property, plant and equipment transferred | 3,371,592 | 50,132 | 66,965 | |||||||||
Acquiring property, plant and equipment in exchange | 498,577 | 427,015 | 392,199 | |||||||||
Obtaining long-term equity investment by property, | 366,495 | — | — | |||||||||
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SOURCE ZJK Industrial Co., Ltd.