Mingteng International Corporation Inc. Announces Financial Results for Fiscal Year 2024
PR Newswire
WUXI, China, April 30, 2025
WUXI, China, April 30, 2025 /PRNewswire/ -- Mingteng International Corporation Inc. (Nasdaq: MTEN) (the "Company" or "Mingteng International"), an automotive mold developer and supplier in China, today announced its financial results for the fiscal year ended December 31, 2024.
Mr. Yingkai Xu, Chairman and Chief Executive Officer of Mingteng International, remarked, "In fiscal year 2024, we made several strategic decisions, including expanding our production capacity and increasing our workforce, to adapt to evolving market dynamics and rising competition. While these initiatives resulted in higher investments and operating expenses, we achieved solid revenue growth of 23.0%, underscoring the effectiveness of our business strategy and the strength of our long-standing relationships with major customers. Notably, our machining services have become a key growth driver due to prioritized resource allocation. This segment grew by an impressive 327.6% during this year, surpassing our mold repair business to become the second-largest revenue contributor, accounting for the 21.2% of total revenue in fiscal year 2024.
As a result of scaling up our operations, our cost of revenues rose at a faster pace. However, we managed to maintain a healthy gross margin above 30%, despite increased costs and relatively stable selling prices. This demonstrates our ability to sustain profitability while building a strong business foundation for the future growth. Overall, we remained committed to our core strengths in technical expertise, service reputation, and product quality, even in the face of external challenges. The past year was a transformative for Mingteng International, marked by significant expansion, we believe these efforts have laid a robust foundation for long-term, sustainable growth. Backed by the dedication of our team and the successful execution of our strategic initiatives, we are confident in our ability to unlock further development opportunities and elevate our business to the next level with enhanced capabilities and infrastructure."
Fiscal Year 2024 Financial Summary
Total revenue was $10.12 million in fiscal year 2024, an increase of 23.0% from $8.23 million in the fiscal year 2023.
Gross profit was 3.07 million in fiscal year 2024, compared to $3.32 million in fiscal year 2023.
Gross margin was 30.3% in fiscal year 2024, compared to 40.4% in fiscal year 2023.
Net loss was $5.68 million in fiscal year 2024, compared to net income $1.51 million in fiscal year 2023.
Basic and diluted losses per share were $0.97 in fiscal year 2024, compared to basic and diluted earnings per share $0.30 in fiscal year 2023.
Fiscal Year 2024 Financial Results
Revenues
Total revenue was $10.12 million in fiscal year 2024, an increase of 23.0% from $8.23 million in fiscal year 2023. After consideration of the impact of rising exchange rates, total revenue increased by 24.3% or 14.1 million in RMB base currency.
For the Year Ended December 31,
-------------------------------------------------------------
2024 2023
----------------------------- ------------------------------
Cost of Gross Cost of Gross
($ millions) Revenue Revenue Margin Revenue Revenue Margin
------- --------- --------- ------- --------- ----------
Mold
production 6.87 4.86 29.3 % 6.64 4.20 36.7 %
Mold repair 1.10 0.48 56.5 % 1.08 0.43 60.8 %
Machining
services 2.14 1.71 20.1 % 0.50 0.27 45.2 %
Total 10.12 7.05 30.3 % 8.23 4.90 40.4 %
------- --------- --------- ------- --------- ----------
Revenue from mold production was $6.87 million in fiscal year 2024, an increase of 3.5% from $6.64 million in fiscal year 2023. Despite the adverse impact of exchange rate fluctuations, mold production volume and revenues still represented a slight increase, this indicates that Wuxi Mingteng Mould Technology Co., Ltd. ("Wuxi Mingteng Mould") maintains long-term relationships with major customers and continues to open up the mold market in fiscal year 2025.
Revenue from mold repair was $1.10 million in fiscal year 2024, an increase of 1.7% from $1.08 million in fiscal year 2023.
Revenue from machining services was $2.14 million in fiscal year 2024, an increase of 327.6% from $0.50 million in fiscal year 2023. The increase was mainly attributed to the Company continuing investment in improving the production capacity in the second half of year 2023 and the first half of year 2024. Revenues from machining services gradually serve as a main source of revenue for the Company in the year 2024. Currently, Kehua Holding Co., Ltd. and Suzhou Green Control Transmission Technology Co., Ltd. are our major customers in machine services.
Cost of Revenues
Cost of revenues was $7.05 million in fiscal year 2024, an increase of 43.9% from $4.90 million in fiscal year 2023. The cost of revenues mainly comes from raw material costs, manufacturing costs and labor costs. The revenues had not increased significantly, the reasons that costs growth has far exceed the growth of revenues as follows:
First, in order to promote the future development of machining service and expand production capacity, Wuxi Mingteng Mould hired more production labor in fiscal year 2024, which lead to an increase of $821,025 in labor cost in fiscal year 2023.
Second, in order to pursue the future development of the aluminum alloy pressure casting mold business and machining service and expand production capacity, the total investment of production machinery and equipment was $1,131,506 in fiscal year 2024, an increase from $650,982 in fiscal year 2023, resulting in an increase of depreciation expense which allocated to production costs of $59,817. The depreciation expense increased to $412,992 in fiscal year 2024 compared to $353,175 in fiscal year 2023. In addition, due to the expansion of production scale in fiscal year 2024, the indirect manufacturing costs also increased, such as the low-value consumption materials (mainly metal processing tools) increased by $446,490, amount to $972,225 in fiscal year 2024 from $525,735 in fiscal year 2023, and the charges for water and electricity increased by $106,101, amount to $260,541 in fiscal year 2024 from $154,440 in fiscal year 2023.
Last, due to the expansion of sales, the production orders increased, which means the materials assumptions also increased accordingly, the assumption of materials increased by $572,183, amount to $2,092,519 in fiscal year 2024 from $1,520,336 in fiscal year 2023.
Gross Profit and Gross Margin
Gross profit was $3.07 million in fiscal year 2024, a decrease from $3.32 million in fiscal year 2023. Gross margin was 30.3% for fiscal year 2024, compared to 40.4% in fiscal year 2023. Compared to fiscal year 2023, the labor costs and manufacturing expenses increased more significantly than the cost of raw materials in fiscal year 2024, leading to a relative decline in the proportion of raw materials within the total cost structure.
Gross margins for mold production, mold repair and machining services were 29.3%, 56.5%, and 20.1%, respectively, in fiscal year 2024, compared to 36.7%, 60.8%, and 45.2%, respectively, in fiscal year 2023.
Operating Expenses
Operating expenses were $8.18 million in fiscal year 2024, an increase of 417.4% from $1.58 million in fiscal year 2023.
Selling expenses were $150,418 in fiscal year 2024, a decrease of 1.8% from $153,213 in fiscal year 2023.The selling expenses remain stable.
General and administrative expenses were $7,395,559 in fiscal year 2024, an increase of 827.8% from $797,140 in fiscal year 2023, primarily due to a) share based compensation $4,408,200; b) the increase of consulting fee in fiscal year 2024 by $1,023,451 compared to fiscal year 2023, the Company paid large amount of consulting and professional fees for the Initial Public Offering ("IPO") in April 2024; and c) due to the number of employees increased, the employee welfare expenses increased by $201,854; d) the increase in personal income tax accrued for stock-based payment of $736,473; e) after the successful listing of the Company, three independent directors were hired, resulting in an increase in salaries of $67,500.
Research and development expenses were $634,046 in fiscal year 2024, an increase of 0.5% from $630,752 in fiscal year 2023. Research and development expenses remain stable with a slight increase.
Net Income (Loss)
Net loss was $5.68 million in fiscal year 2024, compared to net income of $1.51 million in fiscal year 2023.
Basic and Diluted Earnings (Losses) per Share
Basic and diluted losses per share were $0.97 in fiscal year 2024, compared to basic and diluted earnings per share of $0.30 in fiscal year 2023.
Financial Condition
As of December 31, 2024, the Company had cash and cash equivalents of $2.08 million, compared to $1.06 million as of December 31, 2023.
Net cash provided by operating activities was $0.29 million in fiscal year 2024, compared to $1.30 million in fiscal year 2023.
Net cash used in investing activities was $3.43 million in fiscal year 2024, compared to $0.76 million in fiscal year 2023.
Net cash provided by financing activities was $4.15 million in fiscal year 2024, compared to net cash used in financing activities of $1.25 million in fiscal year 2023.
About Mingteng International Corporation Inc.
Based in China, Mingteng International Corporation Inc. is an automotive mold developer and supplier that focuses on molds used in auto parts. The Company provides customers with comprehensive and personalized and integrated mold services, covering mold design and development, mold production, assembly, testing, repair and after-sales service. With its production plant located in Wuxi, China, the Company aims to build a systematic solution for automobile mold services and create a personalized and integrated "Turnkey Project" for customers. The Company's main products are casting molds for turbocharger systems, braking systems, steering and differential system, and other automotive system parts. The Company also produces molds for new energy electric vehicle motor drive systems, battery pack systems, and engineering hydraulic components, which are widely used in automobile, construction machinery and other manufacturing industries. For more information, please visit the Company's website: https://ir.wxmtmj.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 "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions. 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. The Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to read the risk factors contained in the Company's final prospectus and other reports its files with the SEC before making any investment decisions regarding the Company's securities. 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.
For investor and media inquiries, please contact:
Mingteng International Corporation Inc.
Investor Relations Department
Email: ir@wxmtmj.cn
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
MINGTENG INTERNATIONAL CORPORATION INC.
CONSOLIDATED BALANCE SHEETS
As of December 31,
------------------------
2024 2023
----------- -----------
ASSETS
Current Assets
Cash and cash equivalents $ 2,080,715 $ 1,056,236
Accounts receivable, net 4,171,809 3,517,632
Other receivables-bank acceptance notes,
net 971,044 471,166
Advances to suppliers 122,456 388,110
Other receivables 15,690 12,344
Inventories, net 1,183,572 1,217,045
Contract costs, net 96,656 -
---------- ----------
Total current assets 8,641,942 6,662,533
---------- ----------
Non-current Assets
Property and equipment, net 3,857,200 3,335,187
Intangible assets 67,710 -
Operating lease right-of-use assets, net 38,133 -
Deferred offering costs - 715,771
Long-term investments 1,356,618 -
---------- ----------
Total non-current assets 5,319,661 4,050,958
---------- ----------
Total Assets $13,961,603 $10,713,491
========== ==========
LIABILITIES AND EQUITY
Current Liabilities
Short-term loans $ 1,391,130 $ 282,378
Accounts payable 1,276,419 1,053,215
Other payables and other current
liabilities 1,829,642 1,041,910
Advance from customers 515,650 401,935
Amounts due to related parties 240,166 240,309
Current portion of lease liabilities 13,006 -
---------- ----------
Total current liabilities 5,266,013 3,019,747
---------- ----------
Non-current Liabilities
Deferred tax liabilities 221,551 246,893
Non-current portion of lease liabilities 20,408 -
---------- ----------
Total non-current liabilities 241,959 246,893
---------- ----------
Total liabilities 5,507,972 3,266,640
---------- ----------
Commitments and contingencies
Shareholders' Equity:
Ordinary shares (Par value US$0.00001
per share, 5,000,000,000 shares
authorized, 6,839,600 and 5,000,000
shares issued and outstanding as of
December 31, 2024 and 2023) 68 50
Additional paid-in capital 7,620,339 897,308
Statutory reserves 465,572 465,572
Retained earnings 787,211 6,466,293
Accumulated other comprehensive loss (419,559) (382,372)
---------- ----------
Total shareholders' equity 8,453,631 7,446,851
---------- ----------
Total Liabilities and Shareholders'
Equity $13,961,603 $10,713,491
========== ==========
MINGTENG INTERNATIONAL CORPORATION INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
For the Years Ended December 31,
----------------------------------------
2024 2023 2022
------------ ------------ ------------
Revenues $ 10,120,257 $ 8,225,911 $ 8,026,764
Cost of revenues (7,052,835) (4,902,078) (4,113,661)
----------- ----------- -----------
Gross profit 3,067,422 3,323,833 3,913,103
----------- ----------- -----------
Operating expenses:
Selling expenses 150,418 153,213 132,542
General and
administrative
expenses 7,395,559 797,140 926,786
Research and
development expenses 634,046 630,752 492,526
----------- ----------- -----------
Total operating
expenses 8,180,023 1,581,105 1,551,854
----------- ----------- -----------
(Loss) income from
operations (5,112,601) 1,742,728 2,361,249
----------- ----------- -----------
Other income
(expenses):
Government subsidies 651,267 129,138 92,832
Interest income 1,226 4,459 2,171
Interest expense (36,769) (59,477) (53,991)
Other-than-temporary
impairment (1,121,382) - -
Other income, net 19,183 34,440 58,311
----------- ----------- -----------
Total other income
(expenses), net (486,475) 108,560 99,323
----------- ----------- -----------
(Loss) income before
income taxes (5,599,076) 1,851,288 2,460,572
Provision for income
taxes (80,006) (344,586) (327,384)
----------- ----------- -----------
Net (loss) income $(5,679,082) $ 1,506,702 $ 2,133,188
=========== =========== ===========
Comprehensive income
(loss)
Net (loss) income $(5,679,082) $ 1,506,702 $ 2,133,188
Foreign currency
translation loss (37,187) (133,740) (479,845)
----------- ----------- -----------
Total comprehensive
(loss) income $(5,716,269) $ 1,372,962 $ 1,653,343
=========== =========== ===========
(Losses)/earnings per
share
- Basic and diluted $ (0.97) $ 0.30 $ 0.43
=========== =========== ===========
Weighted average
number of ordinary
shares outstanding
- Basic and diluted 5,884,590 5,000,000 5,000,000
=========== =========== ===========
MINGTENG INTERNATIONAL CORPORATION INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31,
----------------------------------------
2024 2023 2022
------------ ------------ ------------
Cash flows from
operating
activities
Net (loss) income $(5,679,082) $ 1,506,702 $ 2,133,188
Adjustments to
reconcile net
(loss) income to
net cash provided
by operating
activities:
Depreciation of
property and
equipment 515,982 404,881 272,237
Amortization of
intangible
assets 6,213 - -
Amortization of
right-of-use
assets 1,031 97,095 158,180
Share-based
compensation
expenses 4,408,200 - -
Impairment loss on
long-term
investments 1,121,382 - -
Provision for
impairment of
inventory 55,510 5,936 -
Provision for
impairment of
contract costs 11,827 - -
(Recovery)
provision of
credit loss (6,650) (5,079) 17,606
Deferred income
tax (21,916) 254,224 (4,304)
Loss on disposal
of property and
equipment 24,905 648 -
Changes in
operating assets
and liabilities:
Accounts
receivable (705,865) (1,129,372) (489,078)
Other
receivables-bank
acceptance notes (511,554) 302,846 (294,440)
Advances to
suppliers 196,125 (151,983) (223,562)
Other receivables 28,631 (35,657) 760,209
Inventories (39,787) (180,335) 194,674
Contract costs (109,388) - -
Accounts payable 75,993 348,641 224,538
Advances from
customers 120,746 343,470 (34,598)
Other payables 7,696 - 50,474
Payroll payable 134,421 (32,932) 166,388
Taxes payable 662,925 (269,691) 354,593
Amounts due to
related parties 3,422 (70,819) (348,333)
Change in
operating lease
liabilities (5,794) (88,586) (85,075)
----------- ----------- -----------
Net cash provided
by operating
activities 294,973 1,299,989 2,852,697
----------- ----------- -----------
Cash flows from
investing
activities
Purchase of
property and
equipment (945,918) (761,792) (1,439,365)
Purchase of
intangible asset (37,698) - -
Proceeds from
disposal of
property and
equipment 28,083 - 6,558
Purchase of
long-term
investment (2,478,000) - -
----------- ----------- -----------
Net cash used in
investing
activities (3,433,533) (761,792) (1,432,807)
----------- ----------- -----------
Cash flows from
financing
activities
Proceeds from
short-term loans 1,404,163 1,419,094 1,709,764
Shareholder
contribution - - 148,675
Dividends - - (352,123)
Repayment of
short-term loans (280,833) (2,483,415) (966,388)
Proceeds from
initial public
offering, net 3,293,096 - -
Payments of
deferred offering
costs (264,950) (172,179) (144,000)
Principal payments
under finance
lease
obligations - (12,488) (230,372)
----------- ----------- -----------
Net cash provided
by (used in)
financing
activities 4,151,476 (1,248,988) 165,556
----------- ----------- -----------
Effect of foreign
exchange rate
change on cash
and cash
equivalents 11,563 (26,296) (99,156)
----------- ----------- -----------
Net increase
(decrease) in
cash and cash
equivalents 1,024,479 (737,087) 1,486,290
Cash and cash
equivalents at
the beginning of
the year 1,056,236 1,793,323 307,033
----------- ----------- -----------
Cash and cash
equivalents at
the end of the
year $ 2,080,715 $ 1,056,236 $ 1,793,323
=========== =========== ===========
Supplemental
disclosures of
cash flow
information:
Interest paid $ 36,769 $ 59,477 $ 101,459
Income taxes paid $ 113,108 $ 205,761 $ 53,991
Non-cash
investing
activities:
Right-of-use
assets acquired
under operating
lease $ 39,526 $ - $ -
Liabilities
incurred for
purchase of
property and
equipment $ 208,651 $ 21,257 $ -
Liabilities
incurred for
purchase of
intangible
assets $ 36,859 $ - $ -
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SOURCE Mingteng International Corporation Inc.
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April 30, 2025 18:00 ET (22:00 GMT)
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