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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SOURCE ZJK Industrial Co., Ltd.
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September 22, 2025 08:00 ET (12:00 GMT)