SINGAPORE, May 14, 2025 /PRNewswire/ -- Tungray Technologies Inc ("Tungray" or the "Company"), a global Engineer-to-Order (ETO) company, today reported its  financial results for the twelve months ended December 31, 2024.Full Year 2024 Financial Highlights Total revenues for the year ended December 31, 2024 decreased by 10.8% to $12.8 million, compared to $14.4 million for 2023. Gross margin for the year ended December 31, 2024 was 43.7%, compared to 46.7% for 2023. Operating loss for the year ended Decembe ...

Revenue and Market Performance - For the year ended December 31, 2024, 80% of revenues were generated from customized industrial manufacturing solutions, 5% from direct drive and linear DC motors, and 15% from induction welding equipment [267]. - Revenue distribution for the year ended December 31, 2024, was 54% from Singapore and 46% from China, compared to 62.9% and 37.1% respectively for 2023 [268]. - The company reported a revenue of $1.2 billion for Q2 2023, representing a 15% increase year-over-year [295]. - The company provided guidance for Q3 2023, expecting revenue between $1.3 billion and $1.5 billion, indicating a potential growth of 10% to 25% [295]. - The company reported a revenue of ZL 3.56 billion for the quarter ending September 2023, reflecting a year-over-year increase of 5.9% [1]. - The company has set a performance guidance for 2024, projecting a revenue increase of 7% to ZL 4.2 billion [1]. - The company is expanding its market presence in Asia, targeting a 15% increase in market share by the end of 2024 [1]. - Market expansion plans include entering three new international markets by the end of 2024, targeting a 30% increase in global market share [295]. Research and Development - R&D expenses totaled approximately $1.1 million for the year ended December 31, 2024, up from $0.8 million in 2023, indicating a focus on product development and technological advancements [288]. - The company anticipates increased R&D expenses as it continues to develop new products and enhance existing technologies [289]. - The company is investing $50 million in R&D for new technologies aimed at enhancing automation in production processes [295]. - The company is investing ZL 500 million in R&D for new electric motor technologies over the next two years [1]. - Research and development expenses for the year ended December 31, 2024, were approximately $1.1 million, an increase from $0.8 million in both 2023 and 2022 [409]. - Research and development expenses increased by approximately $271,000, or 34.3%, from approximately $792,000 in 2023 to approximately $1.1 million in 2024 [429]. Product Development and Innovation - The company has developed multiple patents for induction welding technology, with significant advancements expected by 2035 [294]. - New product development includes the launch of a high-frequency electric brazing system, expected to enhance production efficiency by 30% [1]. - The introduction of high-frequency induction welding machines with built-in cooling equipment is anticipated to improve product performance by 2025 [294]. - The company has developed a new series of fully automated welding stations that utilize patented technologies to increase welding efficiency [306]. - The company is focusing on intelligent robotic control software for induction welding, aiming for market introduction by 2069 [294]. - The company aims to increase its production capacity by 20% through the implementation of new manufacturing technologies by mid-2024 [1]. Financial Performance - The company reported a net income of $150 million, a 20% increase compared to the same quarter last year [295]. - Tungray's total revenues for the year ended December 31, 2024, were approximately $12.8 million, a decrease of $1.6 million, or 10.8%, from $14.4 million in 2023 [397]. - Gross profit for the year ended December 31, 2024, was approximately $5.6 million, representing a decrease of $1.1 million, or 16.6%, from $6.7 million in 2023 [397]. - Net loss for 2024 was $572,000 compared to net income of $757,000 in 2023, with comprehensive loss of approximately $1.2 million in 2024 [433]. - Income tax expense decreased by approximately $260,000, or 48.3%, from approximately $538,000 in 2023 to approximately $278,000 in 2024 [432]. Customer Relations and Satisfaction - Customer satisfaction ratings improved to 90%, reflecting the success of recent service enhancements [295]. - The company continues to focus on enhancing customer retention strategies and expanding high-value customer relationships to drive sustainable revenue growth [408]. - The number of customers increased from 142 in 2023 to 182 in 2024, while the average revenue per customer decreased from approximately $101,000 in 2023 to $70,000 in 2024 [406][407]. Strategic Acquisitions and Market Expansion - The company completed a strategic acquisition of a competitor for $300 million, expected to enhance its product offerings and customer base [295]. - A strategic acquisition of a robotics firm is anticipated to be finalized by Q1 2024, which is expected to enhance automation capabilities [1]. - The company aims to pursue strategic acquisitions to complement its technology and expand its market reach [308]. Operational Efficiency and Cost Management - The gross margin improved to 45%, up from 40% in the previous quarter, due to cost optimization strategies [295]. - The company has implemented a robust internal cost control system, allowing it to offer attractive pricing to customers [302]. - A focus on sustainability initiatives is expected to reduce operational costs by 10% over the next three years [1]. Employment and Regulatory Environment - The Employment Act in Singapore governs employee rights, including annual leave and sick leave, for those earning up to S$4,500 monthly [325]. - The minimum qualifying salary for new S Pass applications is S$3,150 for most sectors and S$3,650 for financial services, while Employment Pass applications require S$5,000 and S$5,500 respectively [327]. - Employers must provide written contracts to employees and comply with local minimum wage standards [365].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Tungray Technologies Inc due to allegations of materially misleading business information issued by the company [1] Group 1: Legal Actions and Investor Rights - Shareholders who purchased Tungray Technologies securities may be entitled to compensation through a class action without any out-of-pocket fees [2] - The Rosen Law Firm is preparing a class action to seek recovery of investor losses [2] Group 2: Financial Reporting Issues - On December 31, 2024, Tungray Technologies filed a report with the U.S. Securities and Exchange Commission stating that its financial statements for the years ended December 31, 2023, 2022, and 2021 should no longer be relied upon [3] - The report indicated that related communications and reports describing the company's financial statements for these periods are also unreliable [3] Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time [3] - The firm was ranked No. 1 for the number of securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions for investors [3] - In 2019, the firm secured over $438 million for investors, showcasing its capability in handling significant cases [3]

Core Viewpoint - Bronstein, Gewirtz & Grossman, LLC is encouraging shareholders of Tungray Technologies Inc (TRSG) to inquire about a securities investigation related to the company [1] Group 1 - The law firm is investigating potential securities violations by Tungray Technologies Inc [1] - Shareholders are urged to contact the firm for more information regarding the investigation [1] - The investigation may involve issues that could affect the value of TRSG shares [1]

Group 1 - Bronstein, Gewirtz & Grossman, LLC is investigating Tungray Technologies Inc (TRSG) for potential shareholder concerns [1] - The investigation aims to determine if the company has engaged in any wrongdoing that could affect shareholder value [1] - Shareholders are encouraged to connect with the firm to discuss their rights and potential claims [1]

Company Overview - Tungray Technologies Inc. was founded in 2022 and is headquartered in Singapore, providing customized industrial solutions such as testing systems, welding machines, automation equipment, and robotics. The company operates in both China and Singapore [3]. Allegations and Investigation - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving Tungray Technologies due to allegations of providing misleading business information to investors [1]. - On December 31, 2024, Tungray Technologies submitted a Form 6-K to the U.S. Securities and Exchange Commission, revealing that the Board of Directors determined the financial statements for the fiscal years ending December 31, 2021, 2022, and 2023 were no longer reliable. This finding also affects related reports, press releases, earnings announcements, and investor communications included in the company's Annual Report on Form 20-F filed on April 26, 2024 [4].

Core Summary - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Tungray Technologies Inc (NASDAQ: TRSG) due to allegations that the company may have issued materially misleading business information to the public [1] - Tungray Technologies disclosed in a Form 6-K filing with the SEC that its financial statements for the years ended December 31, 2023, 2022, and 2021, as well as related reports and communications, should no longer be relied upon [3] Legal Action - Shareholders who purchased Tungray Technologies securities may be entitled to compensation through a contingency fee arrangement without any out-of-pocket costs [2] - Rosen Law Firm is preparing a class action lawsuit to recover investor losses [2] Company Disclosure - On December 31, 2024, Tungray Technologies filed a current report with the SEC stating that its financial statements for the years 2021-2023 should no longer be relied upon [3] - The decision was made by the Board of Directors upon recommendation from the Audit Committee and after discussions with management [3] Rosen Law Firm Background - Rosen Law Firm specializes in securities class actions and shareholder derivative litigation, representing investors globally [3] - The firm has a track record of significant settlements, including the largest ever securities class action settlement against a Chinese company at the time [3] - In 2019, the firm secured over $438 million for investors [3] - Rosen Law Firm has been ranked in the top 4 for securities class action settlements each year since 2013 [3]

Financial Performance - Total revenues for the six months ended June 30, 2024, increased by 1.5% to $5.4 million, compared to $5.3 million for the same period in 2023[10] - Operating loss for the six months ended June 30, 2024, was $0.9 million, compared to operating income of $0.1 million for the same period in 2023[16] - Net loss for the six months ended June 30, 2024, was $0.8 million, compared to net income of $0.2 million for the same period in 2023[19] - The net loss attributable to Tungray Technologies Inc for the six months ended June 30, 2024, was $814,007, compared to a net income of $203,162 in 2023[26] - The company reported a comprehensive loss of $1,474,158 for the six months ended June 30, 2024, compared to a comprehensive loss of $128,476 in 2023[26] Cost and Expense Analysis - Gross margin for the six months ended June 30, 2024, was 46.7%, down from 53.5% for the same period in 2023[13] - Total costs increased by 16.2% to $2.9 million for the six months ended June 30, 2024, compared to $2.5 million for the same period in 2023[11] - Selling expenses increased by $0.1 million or 38.8% from $0.2 million for the six months ended June 30, 2023, to $0.3 million for the same period in 2024[15] - Operating expenses increased to $3,483,191 for the six months ended June 30, 2024, up from $2,753,929 in 2023, primarily due to higher general and administrative expenses[26] - Research and development expenses increased to $447,234 for the six months ended June 30, 2024, compared to $430,809 in 2023, indicating continued investment in innovation[26] Revenue Breakdown - Revenues from customized products increased by $0.5 million or 11.6% for the six months ended June 30, 2024[10] - Total revenues for the six months ended June 30, 2024, were $5,435,786, a slight increase from $5,356,424 in the same period of 2023[26] Asset and Liability Overview - Total current assets decreased to $17,978,518 as of June 30, 2024, from $18,528,704 as of December 31, 2023[24] - Total liabilities decreased slightly to $11,011,438 as of June 30, 2024, from $11,335,904 as of December 31, 2023[25] - Cash reserves decreased to $9,965,474 as of June 30, 2024, down from $10,802,405 as of December 31, 2023[24] - Total shareholders' equity increased to $17,092,967 as of June 30, 2024, from $15,714,440 as of December 31, 2023, reflecting improved capital structure[25] Strategic Initiatives - The company is exploring 3D metal printing solutions for high-end sectors such as commercial aviation and oil & gas industries[9] - The company anticipates that current strategic initiatives will help return to a sustained growth trajectory in the upcoming years[9]

Financial Performance - For the year ended December 31, 2023, 82% of revenues were generated from customized industrial manufacturing solutions, 6% from direct drive and linear DC motors, and 12% from induction welding equipment [125]. - Revenue distribution by geography for the year ended December 31, 2023, was 62.9% from Singapore and 37.1% from China [125]. - Tungray has not experienced a material impact from inflation to date, but high future inflation could adversely affect gross margin and operating expenses as a percentage of sales revenue [254]. - The company has not disclosed any trends or uncertainties likely to materially affect net revenues or profitability for the period from January 1, 2023, to December 31, 2023 [257]. Research and Development - R&D expenses totaled approximately US$0.8 million for both 2023 and 2022, and US$0.7 million for 2021, with an expectation of increased R&D spending in the future [137]. - The company is actively pursuing new patents and technologies to enhance its product lineup [142]. - The company plans to continue investing in R&D and technology innovations to enhance its ETO solution capabilities [152]. - The company focuses on developing new products such as automatic induction welding systems and intelligent control software [141]. Competitive Positioning - The company faces intense competition in the ETO market, particularly from Sigma Design & Engineering Pte Ltd, which has a significant presence in North America and China [131]. - The company has established a reputation for excellence in product quality and service, differentiating itself from peers in ETO customized industrial manufacturing solutions [146]. - The company’s automatic induction welding units utilize patented machine vision technologies, enhancing their competitive edge in the market [129]. - The core technology of the company is versatile and leveragable, contributing to its competitive strengths [145]. Market Strategy - The company aims to expand its market presence through continuous improvement in product offerings and customer service [146]. - The company aims to expand sales in ASEAN countries, particularly in Vietnam and Thailand, to leverage the demand for smart manufacturing solutions [151]. - The company intends to pursue strategic acquisitions to complement its technology and growth strategy [156]. Operations and Manufacturing - The company has experienced a shift in revenue sources, with a notable increase in the share from customized industrial manufacturing solutions from 76% in 2021 to 82% in 2023 [125]. - The company’s manufacturing capabilities are supported by subsidiaries in Singapore and China, enhancing its ability to deliver customized solutions [127]. - The company has developed a new series of fully automated welding stations that utilize patented technologies to increase welding efficiency [150]. - The company has a total of 170 full-time employees, with 41 in Singapore and 129 in China [159]. - The company owns approximately 1,200 square meters of factory facility in Singapore and leases about 6,000 square meters in China [157]. Customer Relations - Most customers are market-leading OEMs that prioritize quality, reliability, and cost-effectiveness in products [146]. - The company has established strong customer relationships, which help maintain direct access to decision-makers [150]. - The company offers a comprehensive product line, including manual and fully automatic induction welding equipment [150]. - The company has implemented a nationwide quick response service to ensure fast troubleshooting and resolution of product-related issues [150]. Regulatory Environment - The PRC Foreign Investment Law became effective on January 1, 2020, repealing previous laws governing foreign investments [176]. - The current Encouraged Catalog for foreign investment was promulgated on December 27, 2020, and became effective on January 27, 2021 [176]. - None of the businesses conducted by the Company's PRC Subsidiaries are on the 2021 Negative List, allowing operations without restrictions [176]. - The Patent Law of the People's Republic of China provides a twenty-year term for invention patents, a ten-year term for utility models, and a fifteen-year term for design patents [180]. Financial Management - The company adopted ASC 326 on January 1, 2023, which requires a broader range of information to estimate credit losses, impacting the allowance for credit losses [260]. - The allowance for credit losses is deducted from the cost of financial assets to present the net carrying value expected to be collected [260]. - Deferred tax assets are recognized based on the likelihood of future taxable income utilization, with a valuation allowance provided if it is more likely than not that some portion will not be utilized [262]. - The company reviews property and equipment for impairment whenever events indicate that the carrying amount may not be recoverable [261]. Employment and Labor - The minimum qualifying salary for new S Pass applications is currently S$3,150 for all sectors except financial services and S$3,650 for the financial services sector [172]. - The dependency ratio ceiling for migrant workers holding Work Permits in the services sector is currently 35% of the total workforce, and 60% in the manufacturing sector [172]. - Employers must provide written contracts to employees and comply with local minimum wage standards as per the Labor Law [192].