Core Viewpoint - HUHUTECH International Group Inc. reported a year of expansion in fiscal year 2024, achieving significant revenue growth and strategic milestones, particularly in the Japanese market, while also facing a net loss due to increased operating expenses and investments in growth initiatives [2][3]. Financial Performance - Total revenue for fiscal year 2024 was 18.1million,anincreaseof8.516.7 million in fiscal year 2023, driven by growth in product sales and system integration projects [5][7]. - Gross profit rose 21.1% to 6.6million,withgrossmarginimprovingto36.11.9 million, compared to net income of 2.3millioninfiscalyear2023,withbasicanddilutedlosspershareat0.1 [11][12]. Revenue Breakdown - Revenue from system integration projects was 16.6million,a2.016.3 million in fiscal year 2023, attributed to expansion in the Japanese market [8]. - Revenue from engineering consulting services increased by 76.3% to 0.4million,whilerevenuefromproductsalessurged340.31.2 million [8]. Operating Expenses - Total operating expenses increased by 149.6% to 8.1million,primarilyduetotheoperationsofHUHUJapan[10][18].−Sellingexpensesrose137.22.1 million, general and administrative expenses increased by 205.0% to 3.2million,andresearchanddevelopmentexpensesgrewby114.72.9 million [18]. Cash Flow and Financial Condition - As of December 31, 2024, the company had cash of 3.1million,upfrom2.7 million in the previous year, with net cash used in operating activities at 3.0million[13].−Netcashprovidedbyfinancingactivitieswas7.5 million, compared to net cash used in financing activities of 0.6millioninfiscalyear2023[14].RecentDevelopments−ThecompanycompleteditsinitialpublicofferingonOctober23,2024,raisinggrossproceedsof4.69 million, enhancing its position for future growth and innovation [15].
