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 ...

Share Capital and Dividends - Mingteng International's authorized share capital is US$50,000, divided into 5,000,000,000 Ordinary Shares, with 6,839,600 Ordinary Shares issued and outstanding as of April 15, 2025[29]. - Mingteng International declared cash dividends of RMB 2.5 million (approximately $0.35 million) to shareholders, paid by Wuxi Mingteng Mould in December 2022[35]. - Mingteng International relies on dividends from its PRC subsidiary, Wuxi Mingteng Mould, to fund cash needs and pay dividends to shareholders[126]. - Wuxi Mingteng Mould generates primarily all of its revenue in RMB, which is not freely convertible, potentially limiting dividend payments to Mingteng International[128]. - Under PRC laws, PRC subsidiaries can only pay dividends from accumulated profits as per PRC accounting standards, and must set aside at least 10% of after-tax profits for a statutory reserve until it reaches 50% of registered capital[127]. Regulatory Environment - The company is subject to PRC foreign exchange regulations, which govern the payment of dividends and capital transfers[34]. - As of the date of the report, Mingteng International is not required to obtain additional permissions or approvals from Chinese authorities to operate its business[41]. - The company has not received any regulatory objections regarding its previous offerings to foreign investors[42]. - The PRC Foreign Investment Law establishes a framework for foreign investments, granting national treatment to foreign-invested entities except in restricted or prohibited industries[115]. - The PRC government may impose a withholding tax rate of up to 10% on dividends payable to non-PRC-resident enterprises[106]. - The PRC government imposes a withholding tax rate of 10% on dividends payable by Chinese companies to non-PRC-resident enterprises unless reduced under treaties[129]. Financial Reporting and Compliance - The company has identified material weaknesses in its internal control over financial reporting, which could lead to inaccuracies in financial statements[96]. - The company may not be able to produce timely and accurate financial statements if it fails to comply with the requirements of the Sarbanes-Oxley Act[101]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of reduced reporting requirements[206]. - The company is a foreign private issuer, exempt from certain provisions applicable to U.S. domestic public companies, which may afford less protection to shareholders[209]. - The company may face challenges in utilizing proceeds from future offerings due to regulatory approvals required for loans or capital contributions to PRC subsidiaries[169]. Operational Challenges - The COVID-19 pandemic has had a long-term impact on the company's operations, particularly in major production areas like Shanghai and Changchun, affecting order volume and production activities[67]. - The company plans to reasonably dispatch employees and arrange working hours to ensure steady production progress in response to the pandemic[67]. - Any disruptions in production due to natural or man-made disasters could significantly affect operations and customer demand[80][81]. - The company is exposed to risks associated with the transportation of products, which could lead to operational disruptions and financial losses[83]. - Quality problems with products may result in customer loss and potential product liability claims, adversely affecting the company's reputation and financial condition[84][85]. Market and Economic Conditions - The automobile industry is significantly affected by macroeconomic conditions, leading to potential decreases in orders and payment difficulties if the economy slows down[76][77]. - The company faces uncertainties due to the current international trade tensions, which could negatively impact customer confidence and business opportunities[193]. - International trade disputes and tariffs, including a potential 245% tariff on imports from China, may increase operating costs and disrupt the supply chain[192]. Research and Development - The core R&D team consists of 31 employees, focusing on developing new technologies related to car casting molds, with ongoing projects showing some success[78]. - The company has registered 19 patents in the PRC as of the date of the annual report, highlighting its focus on intellectual property[88]. - The company is currently applying for five patents in China, which may not be approved[93]. Taxation and Financial Implications - The PRC tax authorities may classify the company as a PRC resident enterprise, subjecting it to a 25% enterprise income tax on global income[157]. - If classified as a PRC resident enterprise, the company may also need to withhold a 10% tax on dividends paid to non-resident shareholders[158]. - The company benefits from preferential tax treatments, potentially reducing the enterprise income tax rate from 25% to 15% for high and new technology enterprises[161]. - Any revocation of tax incentives or government subsidies could adversely affect the company's financial condition and results of operations[161]. Currency and Exchange Rate Risks - The company's PRC subsidiary generates essentially all of its revenue in Renminbi, which is not freely convertible into other currencies[104]. - Changes in currency conversion rates between RMB and USD may significantly affect the financial condition and cash flows of Mingteng International[130]. - The PRC government imposes controls on the convertibility of the RMB into foreign currencies, affecting the company's ability to utilize net revenues effectively[136]. - The RMB appreciated approximately 7% against the U.S. dollar in 2017, but depreciated by about 5% in 2018[132]. Corporate Governance and Audit - The PCAOB determined on December 15, 2022, that it could secure complete access to inspect and investigate registered public accounting firms in mainland China and Hong Kong, vacating previous restrictions[49]. - As of the date of the annual report, neither the former auditor Wei, Wei & Co., LLP nor the current auditor HTL INTERNATIONAL, LLC is subject to PCAOB inspection restrictions, which could affect trading of the company's securities in the U.S.[50]. - The company's Ordinary Shares may face delisting risks under the HFCAA if the PCAOB cannot inspect its auditor for two consecutive years, which could materially impact investment value[179]. - The SEC has implemented rules requiring foreign companies to certify they are not controlled by foreign governments if PCAOB cannot audit them, with potential trading prohibitions for non-compliance[181]. Future Outlook - The company does not expect to pay dividends in the foreseeable future, relying instead on price appreciation for returns on investment[202]. - The trading price of the company's Ordinary Shares is likely to be volatile, influenced by both market factors and specific operational issues[198]. - The company completed its IPO on April 22, 2024, issuing 1,050,000 Ordinary Shares at a price of $4.00 per share, raising total gross proceeds of $4.2 million[219]. - The over-allotment option was fully exercised on May 10, 2024, resulting in the purchase of an additional 157,500 Ordinary Shares for total gross proceeds of $630,000[220].

Core Viewpoint - Mingteng International Corporation Inc. reported a modest revenue increase in fiscal year 2023, driven by growth in mold production and machining services, while facing challenges from rising costs and fluctuating exchange rates [2][4][6]. Financial Performance - Total revenue for fiscal year 2023 was $8.23 million, a 2.5% increase from $8.03 million in fiscal year 2022, primarily due to higher revenues from mold production and machining services [4][6]. - Gross profit decreased to $3.32 million in fiscal year 2023 from $3.91 million in fiscal year 2022, resulting in a gross margin of 40.4%, down from 48.8% [6][10]. - Net income fell to $1.51 million in fiscal year 2023, compared to $2.13 million in fiscal year 2022, with basic and diluted earnings per share at $0.30, down from $0.43 [6][16][17]. Revenue Breakdown - Revenue from mold production was $6.64 million, a slight increase of 0.8% from $6.58 million in fiscal year 2022, indicating stable relationships with major customers [5][6]. - Revenue from mold repair decreased by 4.6% to $1.08 million, despite a 10% increase in order volume, attributed to exchange rate fluctuations [8]. - Revenue from machining services surged by 64.2% to $0.50 million, driven by improved production capacity [9]. Cost and Expenses - Cost of revenues increased by 19.5% to $4.83 million, primarily due to rising raw material, manufacturing, and labor costs [10]. - Operating expenses rose slightly by 1.9% to $1.58 million, with research and development expenses increasing by 28.1% to $630,752, reflecting a focus on innovation [12][15]. Cash Flow and Financial Condition - As of December 31, 2023, cash and cash equivalents were $1.06 million, down from $1.79 million in 2022, with net cash provided by operating activities at $1.30 million [18][28]. - The company experienced net cash used in financing activities of $1.25 million in fiscal year 2023, compared to net cash provided of $0.17 million in fiscal year 2022 [19]. Recent Developments - Mingteng International's ordinary shares began trading on the Nasdaq Capital Market on April 18, 2024, following an initial public offering that raised gross proceeds of $4.83 million [20].

Wuxi, China, May 10, 2024 (GLOBE NEWSWIRE) -- Mingteng International Corporation Inc. (the "Company" or "Mingteng International") (NASDAQ:MTEN), an automotive mold developer and supplier in China, today announced the underwriters of its previously announced initial public offering (the "Offering") have exercised their over-allotment option in full to purchase an additional 157,500 ordinary shares at the public offering price of US$4.00 per share, resulting in additional gross proceeds of $630,000. After giv ...

Wuxi, China, April 22, 2024 (GLOBE NEWSWIRE) -- Mingteng International Corporation Inc. (the "Company" or "Mingteng International") (NASDAQ:MTEN), an automotive mold developer and supplier in China, today announced the closing of its initial public offering (the "Offering") of 1,050,000 ordinary shares at a public offering price of US$4.00 per ordinary share. The ordinary shares began trading on the Nasdaq Capital Market on April 18, 2024, under the ticker symbol "MTEN." The Company received aggregate gross ...

Wuxi, China, April 18, 2024 (GLOBE NEWSWIRE) -- Mingteng International Corporation Inc. (the "Company" or "Mingteng International"), an automotive mold developer and supplier in China, today announced the pricing of its initial public offering (the "Offering") of 1,275,000 ordinary shares, 1,050,000 of which are being offered by the Company and 225,000 by a selling shareholder, at a public offering price of US$4.00 per ordinary share. The ordinary shares have been approved for listing on the Nasdaq Capital ...