Press Release: ZJK Industrial Co., Ltd. Reports Financial Results for the First Six Months of Fiscal Year 2025

Dow Jones
09/22

SHENZHEN, China, Sept. 22, 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 unaudited financial results for the first six months of fiscal year 2025 ended June 30, 2025.

First Six Months of Fiscal Year 2025 Financial Highlights

   -- Revenue increased by 52.21%, to US$24.70 million for the six months 
      ended June 30, 2025, from US$16.23 million for the same period of last 
      year. 
 
   -- Gross profit increased by 63.01%, to US$12.32 million for the six months 
      ended June 30, 2025, from US$7.56 million for the same period of last 
      year. 
 
   -- Income from operations increased by 19.22%, to US$5.86 million for the 
      six months ended June 30, 2025, from US$4.92 million for the same period 
      of last year. 
 
   -- Net income increased by 7.59%, to US$5.84 million for the six months 
      ended June 30, 2025, from US$5.43 million for the same period of last 
      year. 
 
   -- Basic and diluted earnings per share was US$0.10 for the six months 
      ended June 30, 2025, increased from US$0.09 for the same period of last 
      year. 

Mr. Ning Ding, Chief Executive Officer and Chairman, commented, "We are pleased to report strong performance for the first half of fiscal year 2025. Thanks to the consistent efforts of our entire team and the firm execution of our deliberate and robust strategy, revenue increased by 52.21%, accompanied by a 63.01% growth in gross profit during the period. Specifically, our sales volumes of hardware products, including turned parts, screws and stamping parts, grew strongly by 33.13%, 45.59% and 177.47%, respectively. This momentum was driven by rising market demand for higher precision and quality, together with our agile pricing strategies that balanced both price increases and reductions across different product categories.

While securing customer orders through flexible and targeted pricing strategies, we also maintained a positive margin trajectory, with gross margin increased by 7.09%. This was mainly attributable to price increases on products requiring stricter precision and quality standards, as well as cost reductions achieved through technological innovation, improved production processes, and higher sales of self-manufactured products.

During this period, we also advanced our global expansion to reach a broader customer base and establish a forward-looking market presence. This is reflected in higher general and administrative expenses, particularly professional service fees related to our follow-on offering and increased consulting fees for strategic growth initiatives, and in selling and marketing expenses to drive sales generation and market expansion. Over the six months, these expenses rose by 119.66% and 201.87%, respectively, further strengthening the foundation for our long-term expansion and sustainable growth.

At the same time, we are enhancing operations and advancing technology. To meet the rising demand for precision parts, we are expanding production capacity with upgraded facilities and new equipment, including high-precision Computer Numerical Control $(CNC)$ lathes, milling machines, special designed automation equipment and multi-station cold-forging machines. Our sustained investment in research and development is also blossoming, as several patented systems and equipment have delivered significant improvements in manufacturing efficiency and customized processing. With these technological advancements, we are confident in strengthening our industry leadership and market share.

Looking ahead, we remain committed to technology innovation and sustainable expansion. To achieve this strategy, we will continue to strengthen our internal capabilities while staying attuned to market trends and business opportunities in the fast-evolving era of AI-driven innovation."

First Six Months of Fiscal Year 2025 Financial Results

Revenue

Revenue increased by 52.21%, to US$24.70 million for the six months ended June 30, 2025, from US$16.23 million for the same period of last year. Revenues generated from customers in China accounted for 86.50% and 87.91% of the total revenue for the six months ended June 30, 2024 and 2025, respectively.

Revenue from sales of hardware products increased by 52.21%, to US$24.70 million for the six months ended June 30, 2025, from US$16.23 million for the same period of last year. The increase was mainly due to the sales volume of the Company's products for the six months ended June 30, 2025 increased by 44.27% compared to that for the six months ended June 30, 2024, with a slightly increase in average unit sales price of the Company's products.

For turned parts, the sales volume increased by 33.13% and the average sales unit price increased by 13.68% for the six months ended June 30, 2025, compared to those for the same period of last year, resulting in an increase of US$3.97 million in revenue. The sales volume and the average sales unit price of turned parts increased mainly due to the growing demand from customers whose projects required stricter precision and quality requirements for the six months ended June 30, 2025. For screws products, the sales volume of screws increased by 45.59% with a slightly decrease in average unit sales price for the six months ended June 30, 2025, compared to those for the same period of last year, resulting in an increase of US$2.69 million in revenue. For stamping parts, the sales volume increased by 177.47% with a slightly decrease in average unit sales price for the six months ended June 30, 2025, compared to that for the same period of last year, resulting in an increase of US$1.54 million in revenue. The sales volume of both screws products and stamping parts increased mainly due to a price reduction strategy to maintain customer order share for the six months ended June 30, 2025.

Cost of Revenue

Cost of revenues increased by 42.80%, to US$12.38 million for the six months ended June 30, 2025, from US$8.67 million for the same period of last year, which was mainly due to the increasing sales volume of the Company's products.

Gross Profit and Gross Profit Margin

Gross profit increased by 63.01%, to US$12.32 million for the six months ended June 30, 2025, from US$7.56 million for the same period of last year. The gross profit increased mainly due to the increased sales volume of the Company's hardware products.

The gross profit margin increased by 7.09% for the six months ended June 30, 2025.

General and administrative expenses

The general and administrative expenses increased by 119.66%, to US$2.69 million for the six months ended June 30, 2025, from US$1.22 million for the same period of last year, which was primarily attributable to (i) an increase of US$0.85 million in professional service fees, primarily including increased legal fees related to the Company's follow-on offering, and increased consulting fees for strategic growth initiatives in North America, (ii) an increase of US$0.30 million in salaries and benefits for administrative personnel due to an increase of employee headcounts resulting from the Company's business growth, and (iii) an increase of US$0.13 million in office expenses, primarily driven by higher headcount, which led to greater demand for office supplies and related expenses.

Selling and marketing expenses

The selling and marketing expenses increased by 201.87%, to US$3.56 million for the six months ended June 30, 2025, from US$1.18 million for the same period of last year, which was primarily due to (i) an increase of US$1.97 million in sales commission resulting from business expansion into markets such as North America, Singapore, and Taiwan, China, (ii) an increase of US$0.2 million in salaries and benefits for sales and marketing personnel due to higher headcounts to support the Company's business expansion, and (iii) an increase of US$0.12 million in freight costs for sale of products reflecting expanded overseas shipping demands.

Income from operations

Income from operations increased by 19.22%, to US$5.86 million for the six months ended June 30, 2025, from US$4.92 million for the same period of last year.

Other income, net

Other income, net increased by 51.97%, to US$1.91 million for the six months ended June 30, 2025, from US$1.26 million for the same period of last year, which was primarily attributable to (i) an increase of US$0.32 million in investment income from long-term equity investment in PSM-ZJK Fasteners (Shenzhen) Co., Ltd, (ii) an increase of US$0.11 million in income from disposal of scrap materials, and (iii) an increase of US$0.11 million in interest income from structured deposits and time deposits, (iv) an increase of US$0.10 million in currency exchange gain.

Net Income

Net income increased by 7.59% to US$5.84 million for the six months ended June 30, 2025, from US$5.43 million for the same period of last year.

Basic and Diluted Earnings per Share

Basic and diluted earnings per share was US$0.10 for the six months ended June 30, 2025, compared to US$0.09 for the same period of last year.

Financial Condition

As of June 30, 2025, the Company had cash and cash equivalents of US$14.45 million and restricted cash of US$1.49 million, compared to US$12.26 million and US$0.80 million as of December 31, 2024, respectively. Net cash provided by operating activities was US$2.48 million for the six months ended June 30, 2025, compared to US$7.73 million for the same period of last year.

Net cash provided by investing activities was US$0.13 million for the six months ended June 30, 2025, compared to net cash used in investing activities of US$0.32 million for the same period of last year.

Net cash provided by financing activities was US$0.06 million for the six months ended June 30, 2025, compared to net cash used in financing activities of US$0.47 million for the same period of last year.

Recent Development

For the first six months of fiscal year 2025, the Company achieved several milestones. It presented at the Microcap Conference in Atlantic City to engage investors, expanded operations with advanced Computer Numerical Control (CNC) and multi-station cold-forging machines to meet surging demand, and was named a Top 100 enterprise in Shenzhen Pingshan New District. In addition, ZJK secured a patent for an image recognition-based surface-mount technology (SMT) inspection-control system, enhancing automation and efficiency in precision manufacturing.

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 announcement. 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.

For more information, please contact:

ZJK Industrial Co., Ltd.

Phone: +86-755-28341175

Email: ir@zjk-industrial.com

Ascent Investor Relations LLC

Tina Xiao

Phone: +1-646-932-7242

Email: investors@ascent-ir.com

 
                      ZJK Industrial Co., Ltd. 
               CONDENSED CONSOLIDATED BALANCE SHEETS 
        (In U.S. dollars, except for numbers of shares data) 
 
                                                As of 
                                 ----------------------------------- 
                                 December 31, 2024    June 30, 2025 
                                 ------------------  --------------- 
                                                       (Unaudited) 
ASSETS 
Current assets 
Cash and cash equivalents                12,255,213     14,450,968 
Restricted cash                             797,241      1,485,008 
Short-term investments                    2,559,362      2,316,484 
Accounts receivable, net                 10,282,857     12,095,736 
Accounts receivable-due from a 
 related party                            9,165,068      8,071,413 
Inventories, net                          7,316,029      9,543,736 
Prepaid expenses and other 
 current assets, net                        872,753      2,393,488 
Other receivables-due from 
 related parties                            249,235        745,479 
Total current assets                     43,497,758     51,102,312 
                                  -----------------  ------------- 
 
Non-current assets 
Property, plant and equipment, 
 net                                      6,668,612      8,017,134 
Intangible assets, net                       33,008         50,442 
Operating lease right-of-use 
 assets                                   1,242,524      1,037,959 
Finance lease right-of-use 
assets                                       38,160             -- 
Construction in progress                         --        212,459 
Long-term investment                      2,747,493      1,650,516 
Deferred tax assets, net                    397,691        438,006 
Other non-current assets                  1,146,010      1,505,849 
                                  -----------------  ------------- 
Total non-current assets                 12,273,498     12,912,365 
                                  -----------------  ------------- 
 
TOTAL ASSETS                             55,771,256     64,014,677 
                                  =================  ============= 
 
LIABILITIES AND SHAREHOLDERS' 
EQUITY 
Current liabilities 
Short-term bank borrowings                1,223,405      1,312,189 
Accounts payable                         14,998,590     12,942,233 
Notes payable                             1,903,194      2,700,929 
Income tax payable                        1,600,300      2,793,010 
Accrued expenses and other 
 current liabilities                      2,051,588      2,790,139 
Other payables-due to related 
 parties                                  1,778,175      2,195,738 
Operating lease liabilities, 
 current                                    423,214        432,730 
Total current liabilities                23,978,466     25,166,968 
                                  -----------------  ------------- 
 
Non-current liabilities 
Operating lease liabilities, 
 non-current                                755,395        548,771 
Deferred tax liabilities                    970,520      1,154,421 
                                  -----------------  ------------- 
Total non-current liabilities             1,725,915      1,703,192 
                                  -----------------  ------------- 
 
TOTAL LIABILITIES                        25,704,381     26,870,160 
                                  =================  ============= 
 
Commitments and contingencies 
 
Shareholders' equity 
Ordinary share, $0.000016666667 
 par value,   3,000,000,000 
 shares authorized, 61,381,249 
 and   63,181,249 shares issued 
 and outstanding as of 
   December 31, 2024 and June 
 30, 2025, respectively*                      1,023          1,053 
Additional paid-in capital                7,060,050      7,736,645 
Statutory surplus reserves                2,658,112      2,658,112 
Retained earnings                        21,951,873     27,802,955 
Accumulated other comprehensive 
 loss                                   (1,635,291)    (1,075,504) 
                                  -----------------  ------------- 
Total ZJK Industrial Co., Ltd. 
 shareholders' equity                    30,035,767     37,123,261 
                                  -----------------  ------------- 
Non-controlling interests                    31,108         21,256 
                                  -----------------  ------------- 
Total shareholders' equity               30,066,875     37,144,517 
                                  -----------------  ------------- 
 
TOTAL LIABILITIES AND 
 SHAREHOLDERS'   EQUITY                  55,771,256     64,014,677 
                                  =================  ============= 
 
* The shares and per share information are presented on a 
 retroactive basis to reflect the reorganization completed on 
 March 28, 2023, the two share splits that occurred on June 19, 
 2023 and June 6, 2024, respectively. 
 
 
                      ZJK Industrial Co., Ltd. 
     UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND 
                        COMPREHENSIVE INCOME 
      (In U.S. dollars, except for the number of shares data) 
 
                                For the six months ended June 30, 
                              -------------------------------------- 
                                    2024                2025 
                              -----------------  ------------------- 
                                           (Unaudited) 
Revenues 
Third-party sales                     8,508,295         15,153,800 
Related-party sales                   7,721,659          9,549,460 
                               ----------------  ----------------- 
Total revenues                       16,229,954         24,703,260 
Cost of revenues 
Third-party sales                   (3,553,017)        (5,653,621) 
Related-party sales                 (5,119,335)        (6,730,162) 
                               ----------------  ----------------- 
Total cost of revenues              (8,672,352)       (12,383,783) 
                               ----------------  ----------------- 
Gross profit                          7,557,602         12,319,477 
 
Operating expenses 
Selling and marketing 
 expenses                           (1,177,918)        (3,555,816) 
General and administrative 
 expenses                           (1,224,664)        (2,690,131) 
Research and development 
 costs                                (238,779)          (212,193) 
Total operating expenses            (2,641,361)        (6,458,140) 
 
Income from operations                4,916,241          5,861,337 
                               ----------------  ----------------- 
 
Other income, net 
Interest expenses                      (12,474)            (6,291) 
Interest income                          35,678            149,496 
Share of profits from equity 
 method investment                    1,107,771          1,431,032 
Currency exchange gain                   45,534            149,352 
Other income, net                        80,639            186,949 
                               ----------------  ----------------- 
Total other income, net               1,257,148          1,910,538 
                               ----------------  ----------------- 
 
Income before income tax 
 provision                            6,173,389          7,771,875 
Income tax provision                  (744,853)        (1,931,362) 
                               ----------------  ----------------- 
Net income                            5,428,536          5,840,513 
                               ================  ================= 
Less: net income/(loss) 
 attributable to 
 non-controlling   interests              1,625           (10,569) 
                               ----------------  ----------------- 
Net income attributable to 
 ZJK Industrial Co., Ltd.'s 
   shareholders                       5,426,911          5,851,082 
                               ================  ================= 
 
Other comprehensive 
(loss)/income 
 Foreign currency translation 
  adjustment attributable to 
    parent company                    (982,535)            559,787 
 Foreign currency translation 
  adjustment attributable to 
    non-controlling 
  interests                                  31                717 
                               ----------------  ----------------- 
Total comprehensive income            4,446,032          6,401,017 
                               ================  ================= 
Comprehensive income/(loss) 
 attributable to non- 
   controlling interests                  1,656            (9,852) 
Comprehensive income 
 attributable to ZJK 
 Industrial   Co., Ltd.'s 
 shareholders                         4,444,376          6,410,869 
 
Earnings per share* 
Basic                                      0.09               0.10 
Diluted                                    0.09               0.10 
 
Weighted average shares 
used in calculating 
earnings   per share* 
Basic                                60,000,000         61,490,641 
Diluted                              60,000,000         61,510,641 
 
* The shares and per share information are presented on a 
 retroactive basis to reflect the reorganization completed on 
 March 28, 2023 and the two share splits that occurred on June 19, 
 2023 and June 6, 2024, respectively. 
 
 
                      ZJK Industrial Co., Ltd. 
     UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
      (In U.S. dollars, except for the number of shares data) 
 
                              For the six months ended June 30, 
                              -------------------------------------- 
                                     2024                2025 
                              ------------------  ------------------ 
                                           (Unaudited) 
Cash flows from operating 
activities: 
Net income                             5,428,536         5,840,513 
Adjustments to reconcile 
net income to net cash 
  provided by operating 
activities: 
Provision/(reversal) for 
 credit loss                               8,575              (64) 
Depreciation of property, 
 plant and equipment                     274,016           333,037 
Amortization of intangible 
 assets                                       --            11,769 
Amortization of operating 
 lease right-of-use assets               158,590           213,488 
Amortization of finance lease 
 right-of-use assets                     161,212            38,495 
Interest expense of finance 
lease liabilities                          3,344                -- 
Provision for inventories                134,294           552,180 
Share of profits from equity 
 method investment                   (1,107,771)       (1,431,032) 
Provisions for deferred 
 income tax                            (218,239)           131,411 
Share-based compensation                      --           676,625 
Changes in operating assets 
and liabilities: 
Accounts receivable                    3,063,777       (1,601,880) 
Accounts receivable-due from 
 a related party                       3,341,677         1,254,624 
Inventories                          (2,214,518)       (2,620,454) 
Prepaid expenses and other 
 current assets                        (153,075)         (274,981) 
Other receivables-due from 
 related parties                         (6,248)         (355,145) 
Accounts payable                     (2,098,296)       (3,037,042) 
Notes payable                            897,608           754,083 
Income tax payable                       358,940         1,150,797 
Accrued expenses and other 
 current liabilities                    (62,010)           681,688 
Other payables-due to related 
 parties                                (67,392)           380,049 
Operating lease liabilities            (177,538)         (217,245) 
                               -----------------  ---------------- 
Net cash provided by 
 operating activities                  7,725,482         2,480,916 
                               -----------------  ---------------- 
 
Cash flows from investing 
activities: 
Purchase of property, plant 
 and equipment                         (221,552)         (873,418) 
Purchase of intangible assets                 --          (28,410) 
Net proceeds from short-term 
 investment                                   --           288,453 
Purchase of construction in 
 progress                               (65,066)         (483,781) 
Dividends received from 
 long-term equity investment                  --         1,354,377 
Loans to related parties               (230,710)         (310,510) 
Collection of loans to 
 related parties                         198,832           179,036 
                               -----------------  ---------------- 
Net cash (used in)/provided 
 by investing activities               (318,496)           125,747 
                               -----------------  ---------------- 
 
Cash flows from financing 
activities: 
Proceeds from short-term bank 
 borrowings                               69,300         1,382,017 
Repayments of short-term bank 
 borrowings                              (7,484)       (1,317,062) 
Repayments of long-term 
debts                                   (29,226)                -- 
Repayments of financing 
lease liabilities                      (136,508)                -- 
Repayments of loans from 
related parties                        (221,760)                -- 
Deferred initial public 
offering ("IPO") costs                 (145,279)                -- 
                               -----------------  ---------------- 
Net cash (used in)/provided 
 by financing activities               (470,957)            64,955 
                               -----------------  ---------------- 
 
Effect of exchange rate 
 changes                               (573,631)           211,903 
 
Net change in cash, cash 
 equivalents and restricted 
   cash                                6,362,398         2,883,521 
                               -----------------  ---------------- 
 
Cash, cash equivalents and 
 restricted cash at the 
   beginning of period                 3,901,772        13,052,455 
                               -----------------  ---------------- 
Cash, cash equivalents and 
 restricted cash at the end 
   of period                          10,264,170        15,935,976 
                               =================  ================ 
 
Supplemental disclosure of 
cash flow information: 
Income tax paid                          605,294           781,335 
Interest expenses paid                     8,140             6,064 
 
Supplemental disclosures of 
non-cash activities: 
Obtaining operating 
right-of-use assets in 
exchange for   operating 
lease liabilities                        862,655                -- 
Acquiring property, plant and 
 equipment transferred from 
   construction in progress                   --           284,456 
Acquiring property, plant and 
 equipment in exchange for 
   accounts payable                      345,535           719,921 
 

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September 22, 2025 08:00 ET (12:00 GMT)

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