HUHUTECH International Group Inc. Announces First Half of Fiscal Year 2025 Financial Results

HUHUTECH International Group Inc. (Nasdaq: HUHU) (the “Company” or “HUHUTECH”), a professional provider of factory facility management and monitoring systems, today announced its unaudited financial results for the first half of fiscal year 2025 ended June 30, 2025.

Mr. Yujun Xiao, Chief Executive Officer of HUHUTECH, commented, “We are pleased to report a 10.9% increase in total revenue for the first half of fiscal year 2025, reaching $9.8 million. This growth is primarily driven by our strategic expansion into the Japanese market, where we have significantly increased our client base and project volume. Our Japanese subsidiary has completed 155 projects and contributed 60.9% of our total revenue in the first half of fiscal year 2025, a significant increase from 54 projects and 47.6% of total revenue in the same period last year. Excluding the impact of increased share-based compensation, our underlying business performance remained stable, and we are confident that our equity incentive plan is a long-term investment in our people that will enhance our ability to attract and retain talent, aligning our team's commitment with the interests of our shareholders.”

Mr. Xiao continued, “In line with our global growth strategy, we have established a subsidiary in the United States and acquired our German subsidiary, extending our reach into two of the world's most dynamic semiconductor markets. By providing comprehensive and localized system integration solutions, we are well positioned to empower the development of infrastructure for local semiconductor manufacturing clusters. Looking ahead, we will continue to invest in our international operations and expand our capabilities to serve an increasingly global customer base. We remain confident in our strategic direction and are committed to delivering growing long-term value to our shareholders.”

First Half of Fiscal Year 2025 Financial Summary

— Total revenue was $9.8 million for the first half of fiscal year 2025, an increase of 10.9% from $8.9 million for the same period of last year.

— Gross profit was $3.1 million for the first half of fiscal year 2025, compared to $3.2 million for the same period of last year.

— Gross margin was 32.0% for the first half of fiscal year 2025, compared to 35.6% for the same period of last year.

— Net loss was $8.7 million for the first half of fiscal year 2025, compared to net income of $0.8 million for the same period of last year.

— Basic and diluted loss per share were $0.38 for the first half of fiscal year 2025, compared to basic and diluted earnings per share of $0.04 for the same period of last year.

First Half of Fiscal Year 2025 Financial Results

Revenues

Total revenue was $9.8 million for the first half of fiscal year 2025, an increase of 10.9% from $8.9 million for the same period of last year. The overall increase in total revenue was primarily attributable to a $0.7 million increase in revenue from system integration projects and a $0.4 million increase in revenue from product sales.

— Revenue from system integration projects was $9.4 million for the first half of fiscal year 2025, an increase of 8.5% from $8.7 million for the same period of last year. The increase was due to the expansion of the Company's business in the Japanese market for the first half of fiscal year 2025.

— The Company did not generate revenue from engineering consulting services for the first half of fiscal year 2025. Revenue from engineering consulting services was $0.2 million for the same period of last year. The decrease was mainly due to a shift of focus on system integration projects for first half of fiscal year 2025.

— Revenue from product sales was $0.4 million for the first half of fiscal year 2025, an increase of 1,029.8% from $0.04 million for the same period of last year. The increase of product sales revenue was due to increase in product needs along with system integration projects for the first half of fiscal year 2025.

Cost of Revenues

Cost of revenue was $6.7 million for the first half of fiscal year 2025, an increase of 17.1% from $5.7 million for the same period of last year.

Gross Profit and Gross Margin

Gross profit was $3.1 million for the first half of fiscal year 2025, a decrease of 0.4% from $3.2 million for the same period of last year. Gross profit for system integration projects was $3.1 million for the first half of fiscal year 2025, an increase of 2.7% from $3.0 million for the same period of last year. Gross profit for product sales was $39,864 for the first half of fiscal year 2025, an increase of 296.7% from $10,049 for the same period of last year.

Gross margin was 32.0% for the first half of fiscal year 2025, decreased from 35.6% for the same period of last year.

Operating Expenses

Total operating expenses were $11.8 million for the first half of fiscal year 2025, an increase of 511.5% from $1.9 million for the same period of last year.

— Selling expenses were $0.9 million for the first half of fiscal year 2025, an increase of 79.9% from $0.5 million for the same period of last year. The increase was mainly due to the operation increased business promotion expenses of HUHU Technology Co., Ltd. (“HUHU Japan”).

— General and administrative expenses were $10.3 million for the first half of fiscal year 2025, an increase of 1,035.3% from $0.9 million for the same period of last year. The significant increase in G&A expenses was contributed by (i) an approximately $8.8 million increase in share-based compensation; (ii) an approximately $0.2 million increase in salary and compensation; (iii) an approximately $0.2 million increase in other items including lease expenses and office expenses.

— R&D expenses stayed at $0.5 million for the first half of fiscal year 2025 and 2024.

Net Income (Loss)

Net loss was $8.7 million for the first half of fiscal year 2025, compared to net income of $0.8 million for the same period of last year.

Basic and Diluted Earnings (Loss) per Share

Basic and diluted loss per share were $0.38 for the first half of fiscal year 2025, compared to basic and diluted earnings per share of $0.04 for the same period of last year.

Financial Condition

As of June 30, 2025, the Company had cash of $3.0 million, compared to $3.1 million as of December 31, 2024.

Net cash used in operating activities for the first half of fiscal year 2025 was $0.5 million, compared to net cash provided by operating activities of $0.3 million for the same period of last year.

Net cash used in investing activities for the first half of fiscal year 2025 was $0.1 million, compared to $1.6 million for the same period of last year.

Net cash used in financing activities for the first half of fiscal year 2025 was $0.04 million, compared to net cash provided by financing activities of $3.0 million for the same period of last year.

About HUHUTECH International Group Inc.

HUHUTECH International Group Inc. is a professional provider of factory facility management and monitoring systems. Through its subsidiaries in China, Japan, the United States, and Germany, HUHUTECH designs and provides customized high-purity gas and chemical production system and equipment. The Company's products mainly include high-purity process systems (HPS) and factory management control systems (FMCS), which effectively increase operation efficiency by using standardized module software. The modularity of HUHUTECH's software solution reduces the errors caused by frequent updates of the program. As a nationally recognized brand, HUHUTECH serves major players in the pan-semiconductor industry. Its products and services are widely used by semi-conductor manufacturers, LED and micro-electronics factories, as well as some pharmaceutical, food and beverage manufacturers. For more information, please visit the Company's website: ir.huhutech.com.cn.

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 “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” 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 Annual Report on Form 20-Fand other filings with the U.S. Securities and Exchange Commission (“SEC”).

For more information, please contact:

HUHUTECH International Group Inc. Investor Relations Department Email: ir@huhutech.com.cn

Ascent Investor Relations LLC Tina Xiao Phone: +1-646-932-7242 Email: investors@ascent-ir.com

HUHUTECH INTERNATIONAL GROUP INC.AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS As of As of June 30, December 31, 2025 2024 (unaudited)ASSETSCURRENT ASSETS:Cash $ 2,978,868 $ 3,102,865Restricted cash 57,151 220,261Note receivable 6,587 254,092Accounts receivable, net 11,170,072 9,633,289Accounts receivable – a related party 950,052 -Inventories 982,954 1,175,241Advance to vendors 348,713 150,637Prepayments and other assets, net 181,046 80,137TOTAL CURRENT ASSETS 16,675,443 14,616,522Property, plant and equipment, net 5,016,051 4,978,080Intangible assets, net 65,793 79,985Deferred tax assets 526,349 326,087Right-of-use assets, net 168,375 183,815TOTAL ASSETS $ 22,452,011 $ 20,184,489LIABILITIES AND SHAREHOLDERS' EQUITYCURRENT LIABILITIES:Short term bank loans $ 2,861,690 $ 5,273,678Long-term bank loan – current 251,270 -Loan payable from third-party 500,000 -Notes payable 190,501 733,996Accounts payable 5,014,033 4,466,933Due to a related party 506,115 246,454Advance from customers 2,028,683 1,403,628Accrued expenses and other liabilities 1,398,421 732,419Taxes payable 204,332 356,889Operating lease liabilities-current 119,579 104,088TOTAL CURRENT LIABILITIES 13,074,624 13,318,085Long term bank loans 2,421,807 260,299Operating lease liabilities-non-current 13,867 80,636TOTAL LIABILITIES 15,510,298 13,659,020COMMITMENTS AND CONTINGENCIES (Note13)SHAREHOLDERS' EQUITY:Ordinary shares, $0.0000025 par value, 20,000,000,000 shares authorized, 58 5323,173,413 and 21,173,413 shares issued and outstanding as of June 30, 2025 andDecember 31, 2024, respectivelyAdditional paid-in capital 13,495,345 4,695,350Statutory reserves 343,077 343,077(Accumulated deficit) retained earnings (6,704,455) 2,026,786Accumulated other comprehensive loss (192,312) (539,797)TOTAL SHAREHOLDERS' EQUITY 6,941,713 6,525,469TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 22,452,011 $ 20,184,489HUHUTECH INTERNATIONAL GROUP INC.AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME(unaudited) For the Six Months Ended June 30, 2025 2024Revenues -third parties $ 9,337,289 $ 8,853,479Revenues – related party 480,183 -Total Revenues 9,817,472 8,853,479Cost of revenues-third parties 6,533,648 5,137,460Cost of revenues-related party 144,628 565,466Total cost of revenues 6,678,276 5,702,926Gross profit 3,139,196 3,150,553Operating expenses:Selling expenses 899,367 500,032General and administrative expenses 10,330,446 909,952Research and development expenses 520,479 511,674Total operating expenses 11,750,292 1,921,658(Loss) Income from operations (8,611,096) 1,228,895Other income (expense):Interest income 6,736 1,523Interest expense (64,246) (49,185)Other expense, net 2,051 (100,698)Total other expense, net (55,459) (148,360)(Loss) income before income taxes (8,666,555) 1,080,535Provision for income taxes 64,686 231,208Net (loss) income (8,731,241) 849,327Comprehensive income (loss)Foreign currency translation adjustments 347,485 (336,141)Comprehensive (loss) income $ (8,383,756) $ 513,186(Loss) earnings per shareBasic and diluted $ (0.38) $ 0.04Weighted average number of shares outstandingBasic and diluted 23,018,717 20,000,000HUHUTECH INTERNATIONAL GROUP INC.AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited) For the Six Months Ended June 30, 2025 2024Cash flows from operating activities:Net (loss) income $ (8,731,241) $ 849,327Adjustments to reconcile net income to net cash (used in) provided by operatingactivities:Depreciation and amortization 169,951 223,891Provision for credit losses 30,265 26,263Deferred tax benefit (191,703) (3,939)Amortization of operating lease right-of-use assets 73,034 55,659Share-based compensation 8,800,000 -Changes in operating assets and liabilities:Accounts receivable (1,375,962) (1,365,703)Accounts receivable – related party (938,394) -Notes receivable 249,223 (3,881)Inventories 211,917 (277,321)Prepayments and other assets (98,286) (19,867)Advance to vendors (195,164) (687,971)Advance to vendors – related party – (69,300)Due from related parties – (578,513)Accounts payable 467,452 48,242Accrued expenses and other liabilities 645,080 159,134Advance from customers 591,122 1,710,559Taxes payable (157,026) 291,930Operating leases liabilities (73,671) (55,428)Net cash (used in) provided by operating activities (523,403) 303,082Cash flows from investing activities:Additions to property, plant, and equipment (93,665) (1,556,739)Additions to intangible assets (5,236) -Net cash used in investing activities (98,901) (1,556,739)Cash flows from financing activities:Repayments to related parties – (868,438)Advances from related parties 261,158 -Loan from third-party 500,000 -(Repayments of) proceeds from bank acceptance notes payable, net (550,559) 427,044Proceeds from short-term bank loans 5,403,440 4,487,582Repayment of short-term bank loans (7,995,277) (1,663,202)Proceeds from long-term bank loans 2,412,000 693,001Repayment of long-term bank loans (74,088) -Payment of offering costs – (89,667)Net cash (used in) provided by financing activities (43,326) 2,986,320Effect of exchange rate changes on cash and restricted cash 378,523 (265,228)Net (decrease) increase in cash and restricted cash (287,107) 1,467,435Cash and restricted cash at the beginning of period 3,323,126 2,846,659Cash and restricted cash at the end of period $ 3,036,019 $ 4,314,094Reconciliation of cash and restricted cash, end of periodCash $ 2,978,868 $ 4,120,178Restricted cash 57,151 193,916Cash and restricted cash at the end of period $ 3,036,019 $ 4,314,094Supplemental cash flow disclosures:Cash paid for income tax $ 1,795 $ 97,101Cash paid for interest $ 40,657 $ 36,403Non-cash investing activities:Right-of-use assets obtained in exchange for operating lease obligations $ 54,345 $ 15,287

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