Tungray Reports Unaudited 2025 First Half Results, Revenue Up 37% and Returns to Profitability

Total Revenues Increased by 37.0% YoY to $7.4 million
Operating Income Increased to $0.3 million from -$0.9 million
Net Income Increased to $0.5 million from -$0.8 million

SINGAPORE, Sept. 30, 2025 /PRNewswire/ -- Tungray Technologies Inc ("Tungray" or the "Company"), a global Engineer-to-Order (ETO) company, today reported its unaudited financial results for the six months ended June 30, 2025.

First Half 2025Financial Highlights

• Total revenues for the six months ended June 30, 2025 increased by 37.0% to $7.4 million, compared to $5.4 million in the same period of 2024.
  

• Gross margin for the six months ended June 30, 2025 was 48.6%, compared to 46.7% for the same period in 2024.
  

• Operating income for the six months ended June 30, 2025, was $0.3 million, compared to an operating loss of $0.9 million for the same period in 2024.
  

• Net income for the six months ended June 30, 2025, was $0.5 million, compared to net loss of $0.8 million for the same period in 2024.

Recent Developments and Strategic Highlights: Tungray Drives Revenue Growth and Reduces Costs

Revenue Enhancement:
To drive sales growth, the Company is exploring potential horizontal strategic partnerships to access new, high-value capabilities.

These initiatives include:

• Introducing new lines of business through potential partnerships with existing companies.
  

• Utilizing the "market-for-tech" model to leverage Singapore's hub position for regional business expansion.

  [* Exploring technologies and services such as standardized manufacturing of medical components, and contract repair work for aviation components, such as aircraft engine fan blades and turbines.   ]

  • Enhancing sales and market penetration by hiring a dedicated business-focused market and sales manager. This initiative will focus on:
    

• Increasing market penetration of non-printer related markets in the Southeast Asia (SEA) region.

  [* Focusing primarily on the semiconductor, automotive and non\-printer related consumer product sectors. ]

Cost-Cutting Measures:
The Company has implemented targeted cost control actions aimed at reducing expenses, enhancing operational efficiency, and renegotiating supplier contracts.

These actions include:

• Identifying and utilizing high-trade volume suppliers.
  • Leveraging volume to negotiate favorable rates for common-use components.

Management Commentary

Mr. Wanjun Yao, Chairman and Chief Executive Officer of Tungray, commented, "We achieved solid top line growth during the first half of the year with revenue up 37.0% reaching $7.4 million compared to the same period last year. Despite rising raw material and labor costs, our gross margin showed material improvement with gross margin of 48.6% in the first half of the year, compared with 46.7% in the same period last year. This 190 basis points improvement combined with leverage opportunities in our business model helped drive our return to profitability with net income of $0.5 million in the first half of the year, compared with a net loss of $0.8 million in the same period last year."

"During the first half of 2025, we invested $0.5 million in R&D, an increase of 6.2% compared to the same period of 2024, demonstrating continued commitment to innovation as we target high-growth areas such as automation equipment, semiconductor-related solutions, and mechatronics. In Singapore, we advanced modularization of equipment components to reduce variance-related costs and rolled out after-sale service initiatives that reinforce our customer-first approach. In addition, we increased R&D in highly automated equipment to meet growing demand. In the mechatronics segment, we benefitted from increased orders linked to rising demand for automotive refrigerators in new energy vehicles (NEVs) during the first half of 2025."

"We will continue to allocate resources strategically to ensure long-term product and technology advancement. These initiatives not only support near-term competitiveness but also lay the foundation for sustainable growth. We believe our efforts will enhance Tungray's market presence, create new revenue streams, and deliver greater value for our shareholders as market conditions improve."

Mr. Henry Guo, Chief Financial Officer of Tungray, commented, "To remain competitive amidst pricing pressure, we are implementing aggressive cost-cutting measures and pursuing operational efficiencies. At the same time, we are expanding our revenue base by developing higher-margin products, strengthening partnerships, and pursuing new market opportunities."

"In the longer term, we believe our business strategies should continue to fuel Tungray's top-line growth and margin expansion."

First Half 2025 Financial Results

Total Revenues

Our total revenues increased by 37.0% to $7.4 million for the six months ended June 30, 2025, compared to $5.4 million for the six months ended June 30, 2024.

• Revenues from customized products increased by $0.8 million, or 18.4%, compared to the same period in 2024, primarily driven by the sales increase of a major customer during the period.
  

• Revenues from standardized products increased by $1.2 million, or 130.6%, compared to the same period in 2024, primarily increased orders driven by rising demand for automotive refrigerators used in new energy vehicles (NEVs) during the first half of 2025. This growth demonstrates the Company's ability to respond to emerging market needs and capitalize on industry trends.

Cost of Revenues

Total costs increased by 32.0% to $3.8 million for the six months ended June 30, 2025, compared to $2.9 million for the six months ended June 30 2024\.

• The cost of revenues for customized products rose by $0.3 million, or 10.4% compared to the same period ended June 30, 2024, in line with the revenue increase.
  

• The cost of revenues for standardized products increased by $0.7 million, or 139.6% compared to the same period ended June 30, 2024, corresponding with the revenue increase.

Gross Profit

Gross profit was $3.6 million for the six months ended June 30, 2025, up from $2.5 million for the six months ended June 30, 2024. Gross margin was 48.6%, compared to 46.7% for the same period last year. The improvement in gross profit was mainly driven by revenue growth that outpaced cost increases.

• Gross profit for customized products was $2.7 million for the six months ended June 30, 2025, an increase of 27.7% as compared to $2.1 million for the six months ended June 30, 2024. Gross margin for customized products was 50.4% for the six months ended June 30, 2025, as compared to 46.7% for the six months ended June 30, 2024.
  

• Gross profit for standardized products was $0.9 million for the six months ended June 30, 2025, an increase of 120.2% as compared to $0.4 million for the six months ended June 30, 2024. Gross margin for standardized products was 44.3% for the six months ended June 30, 2025, and 46.4% for the six months ended June 30, 2024.

Operating Expenses

Total operating expenses were $3.3 million for the six months ended June 30, 2025, compared to $3.5 million for the prior year period, representing a 4.1% decrease.

• Selling expenses increased by 16.3% to $349.0 thousand for the six months ended June 30, 2025, compared to $300.1 thousand for the six months ended June 30, 2024. The increase was mainly due to an increase of salary expenses and travel related expenses for business expansion.
  

• General and administrative expenses decreased by 8.0% to $2.5 million from $2.7 million for the six months ended June 30, 2024, reflecting tighter cost management.
  

• R&D expenses increased by 6.2% to $475.0 thousand, compared to $447.2 thousand for the same period of last year. The increase was consistent with the R&D plan the Company previously set out.

Income (Loss) from operations

Income from operations was $0.3 million for the six months ended June 30, 2025, compared to loss from operations of $0.9 million for the six months ended June 30, 2024.

Other Income, net

Total other income was $0.2 million for the six months ended June 30, 2025 and 2024.

Income tax expense

Income tax expense decreased by approximately $94.9 thousand, or 75.2%, from $126.2 thousand for the six months ended June 30, 2024 to $31.3 thousand for the six months ended June 30, 2025.

Net Income (Loss)

Net income was $0.5 million for the six months ended June 30, 2025, compared to net loss of $0.8 million for the six months ended June 30, 2024.

About Tungray Technologies Inc

Tungray Technologies Inc is an Engineer-to-Order (ETO) company that provides customized industrial manufacturing solutions to original equipment manufacturers (OEMs) in the semiconductors, printers, electronics, and home appliances industries. With research, development and manufacturing bases in Singapore and China, Tungray designs, develops, and delivers a wide range of industrial products ranging from customized manufacturing machineries, direct drive and linear direct current motors, to induction welding equipment. As an ETO company with more than two decades of experience, Tungray takes pride in its ability to deliver quality customized industrial solutions that fulfil its customers' unique needs and specifications. For more information, visit the Company's website at http://tungray.com/.

Forward-Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update 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 in its other filings with the SEC.

For more information, please contact:

Investor Relations:
Bill Zima
Email:

Tungray Technologies Inc and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

(Stated in U.S. Dollars, except for share data, or otherwise noted)

As of
30-Jun-25

As of
31-Dec-24

ASSETS

CURRENT ASSETS

Cash

$ 8,534,954

$ 8,968,814

Restricted cash

-

503,544

Accounts and notes receivable, net

3,345,278

2,393,902

Accounts receivable - related parties

333,996

327,556

Inventories, net

2,348,620

2,206,329

Prepayments, net

724,373

726,991

Prepayments - related parties, net

1,601,838

3,815,321

Other receivables and other current assets, net

340,983

507,523

Other receivables – related parties

1,131,174

320,447

Total current assets

18,361,216

19,770,427

NON-CURRENT ASSETS

Prepaid expenses and deposits

76,753

79,088

Prepayment for land use right

-

1,987,685

Long-term investment

209,392

205,499

Operating right-of-use assets and land use rights

3,368,272

1,411,033

Finance right-of-use assets

214,493

221,847

Intangible assets, net

129,392

59,148

Deferred tax assets

32,884

-

Property and equipment, net

6,469,929

6,173,176

Total non-current assets

10,501,115

10,137,476

Total assets

28,862,331

29,907,903

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

1,809,327

1,359,244

Accounts payable - related parties

163,837

79,988

Contract liabilities

2,967,980

6,115,315

Accrued expenses and other payables

1,143,049

1,450,005

Other payables - related parties

371,146

338,453

Current portion of banking facilities

94,432

80,588

Short-term loans - banks

697,973

-

Current portion of operating lease liabilities

187,752

184,201

Current portion of operating lease liabilities - related party

76,950

168,551

Current portion of finance lease liabilities

64,740

123,762

Taxes payable

552,987

703,264

Total current liabilities

8,130,173

10,603,371

OTHER LIABILITIES

Banking facilities

1,217,800

1,161,174

Operating lease liabilities

624,863

692,329

Operating lease liabilities - related party

156,787

190,752

Deferred revenue

97,870

-

Total other liabilities

2,097,320

2,044,255

Total liabilities

10,227,493

12,647,626

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY

Class A ordinary shares ($0.0001 par value; 400,000,000 and 400,000,000
shares authorized as of June 30, 2025 and December 31, 2024, respectively;
11,793,485 and 11,793,485 shares issued and outstanding as of June 30,
2025 and December 31, 2024, respectively)

1,179

1,179

Class B ordinary shares ($0.0001 par value; 100,000,000 and 100,000,000
shares authorized as of June 30, 2025 and December 31, 2024, respectively;
4,560,000 and 4,560,000 shares issued and outstanding as of June 30, 2025
and December 31, 2024, respectively)

456

456

Additional paid-in capital

3,135,124

3,135,124

Retained earnings

15,600,685

15,050,543

Statutory reserves

248,761

248,761

Accumulated other comprehensive loss

(116,634)

(1,012,187)

Total Tungray Technologies Inc shareholders' equity

18,869,571

17,423,876

NONCONTROLLING INTERESTS

(234,733)

(163,599)

TOTAL EQUITY

18,634,838

17,260,277

Total liabilities and equity

$ 28,862,331

$ 29,907,903

Tungray Technologies Inc and Subsidiaries

Unaudited Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

(Stated in U.S. Dollars, except for share data, or otherwise noted)

For the six months ended

June 30,

2025

2024

Revenue - products

$ 7,445,174

$ 5,435,786

Revenue - related party

205

-

Total revenues

7,445,379

5,435,786

Cost of revenue - products

3,824,129

2,897,866

Cost of revenue - related party

209

-

Total cost of revenues

3,824,338

2,897,866

Gross profit

3,621,041

2,537,920

Operating expenses:

Selling expenses

349,032

300,122

General and administrative expenses

2,516,927

2,735,835

Research and development expenses

474,959

447,234

Total operating expenses

3,340,918

3,483,191

Income (Loss) from operations

280,123

(945,271)

Other income

Other income, net

205,095

172,687

Lease income - related party

9,803

9,855

Financial income, net

8,619

44,262

Total other income, net

223,517

226,804

Income (Loss) before income taxes

503,640

(718,467)

Income tax expense

(31,270)

(126,219)

Net income (loss)

472,370

(844,686)

Less: net loss attributable to noncontrolling interests

(77,772)

(30,679)

Net income (loss) attributable to Tungray Technologies Inc

550,142

(814,007)

Net income (loss)

472,370

(844,686)

Foreign currency translation adjustment

902,191

(629,472)

Comprehensive income (loss)

1,374,561

(1,474,158)

Less: comprehensive loss attributable to noncontrolling interests

(71,134)

(30,679)

Total comprehensive income (loss) attributable to Tungray Technologies Inc

1,445,695

(1,443,479)

Weighted average number of common shares outstanding - basic and diluted

16,353,485

15,539,074

Earnings (Loss) per common share - basic and diluted

0.03

(0.05)