Mingteng International Corporation Inc. (the “Company” or “Mingteng International”) (Nasdaq: MTEN), an automotive mold developer and supplier in China, today announced its unaudited financial results for the first half of fiscal year 2025 ended June 30, 2025.
Mr.Yingkai Xu, Chairman and Chief Executive Officer of Mingteng International, remarked, “In the first half of fiscal year 2025, we adopted a balanced and agile strategy to navigate market volatility and emerging trends. This included expanding our operations of machining services to diversify our revenue streams, while maintaining relationships with our long-term customers and expanding further in the mold market. Revenue from mold production grew steadily by 9.7%, while our machining services segment maintained the momentum with a 39.1% increase in revenue and a 19.0% rise in gross profit. This reinforced the machining service's position as our second-largest revenue contributor and helped drive total revenue growth of 13.2%, despite challenging industry conditions.”
With greater production capacity and a stronger workforce, we are now better positioned to pursue complex, customized, and longer-cycle products that command premium pricing and open new opportunities for value-added services. We expect this enhanced productivity to further strengthen our competitive edge in an increasingly competitive environment.
At the same time, we have continued to invest in advancing our technologies. Our research and development (R&D) spending rose 42.1%, underscoring our long-term commitment to innovation as a core pillar of our business.
Looking ahead, we believe our current strategy, combined with our focus on innovation, will continue to provide a solid foundation for sustainable growth and value creation, even in a macro environment shaped by both headwinds and tailwinds.”
First Half of Fiscal Year 2025FinancialSummary
Total revenuewas$5.26 millionfor the first half of fiscal year 2025, an increase of 13.2% from$4.65 millionfor the same period of last year.
Gross profitwas $1.47 million for the first half of fiscal year 2025, compared to$1.65 millionfor the same period of last year.
Gross marginwas 27.9% for the first half of fiscal year 2025, compared to 35.5% for the same period of last year.
Net losswas$1.36 millionfor the first half of fiscal year 2025, compared to $0.27 millionfor the same period of last year.
Basic and diluted losses per sharewere$0.20for the first half of fiscal year 2025, compared to $0.05for the same period of last year.
FirstHalf ofFiscalYear 2025 Financial Results
Revenues
Total revenue was$5.26millionfor the first half of fiscal year 2025, an increase of 13.2% from$4.65million for the same period of last year. After consideration of the impact of rising exchange rates, total revenue increased by 14.5% or $4.8 million in RMB base currency.
Revenue from mold productionwas$3.63million for the first half of fiscal year 2025, an increase of 9.7% from$3.31 millionfor the same period of last year. This indicates that Wuxi Mingteng Mould Technology Co., Ltd. (“Wuxi Mingteng Mould”)maintains long-term relationships with major customers and continues to open up the mold market in fiscal year 2025.
Revenue from mold repair was$0.49 millionfor the first half of fiscal year 2025, a decrease of 5.2% from$0.52 millionfor the same period of last year. The decrease is attributable to an economic downturn in the market, compelling the Company to maintain its business by reducing prices.
Revenue frommachining services was$1.14 millionfor the first half of fiscal year 2025, an increase of 39.1% from$0.82million for the same period of last year. The increase was mainly attributed to the Company's commencement of a new machining business operation, which requires the supply of raw materials. The complexity of this operation contributed to an increase in revenue.
Cost of Revenues
Cost of revenues was$3.79million for the first half of fiscal year 2025, an increase of 26.7% from$3.00million for the same period of last year. The increase was mainly due to the increase in outside processing services, labor cost and manufacturing costs.
The reasons for the cost increase much more than revenue are as follows:
Firstly, the increase in material costs. Due to the change in the sales model for machining services for the first half of fiscal year 2025, the Company now provides the processing materials, which has resulted in an additional material cost of $163,642 compared for the same period of last year.
Secondly, the headcount of production workers increased from 124 to 136 for the first half of fiscal year 2025, with the average monthly wage also rising by $124 per person. Labor costs have increased overall $112,089 compared for the same period of last year.
Lastly, the customized nature of the products led to more complex manufacturing techniques, which extended the processing time and consequently increased direct processing costs by $493,423 for the first half of fiscal year 2025.
Gross Profit and Gross Margin
Gross profitwas$1.47millionfor the first half of fiscal year 2025, a decrease of 11.1%from$1.65 millionfor the same period of last year. Gross marginwas 27.9% for the first half of fiscal year 2025, compared to 35.5% for the same period of last year.
Gross margins for mold production, mold repair and machining services were 25.6%, 56.2%, and 23.1%, respectively, for the first half of fiscal year 2025, compared to 33.8%, 59.9%, and 27.0%, respectively, for the same period of last year.
OperatingExpenses
Operating expenseswere$1.47million for the first half of fiscal year 2025, a decrease of23.9% from$1.93million for the same period of last year.
Selling expenses were$53,764 for the first half of fiscal year 2025, a decrease of57.2% from$125,535for the same period of last year. The decrease was primarily due to lower promotion and publicity expenses.
General and administrative expenses were$1.00 millionfor the first half of fiscal year 2025, a decreaseof 33.7%from$1.51 millionfor the same period of last year. The decrease was mainly due to the decrease of consulting and professional fee for the first half of fiscal year 2025 by $0.63 million compared with the same period of last year. The Company paid large amount of consulting and professional fees for the Initial Public Offering(“IPO”) in April 2024, while such decrease was partially offset by the increase in the staff costs by $0.09 million due to the increased number of employees.
Research and development expenses were$409,623for the first half of fiscal year 2025, an increase of 42.1% from$288,182for the same period of last year.The increase is mainly attributable to, a) increase in labor expenses by $118,914 for the first half of fiscal year 2025 due to the increased number of employees involved in R&D work and the increase in average salary; b) increase in the depreciation expense increased by $1,365 for the first half of fiscal year 2025 compared with the same period of last year.
Net Loss
Net loss was$1.36 millionfor the first half of fiscal year 2025, compared to $0.27 millionfor the same period of last year.
Basic and Diluted Losses per Share
Basic and diluted losses per share were$0.20for the first half of fiscal year 2025, compared to$0.05for the same period of last year.
Financial Condition
As ofJune 30, 2025, the Company had cashand cash equivalents of$1.76million, compared to$2.08 millionas ofDecember 31, 2024.
Net cash used in operating activities was$0.23million for the first half of fiscal year 2025, compared to$0.66million for the same period of last year.
Net cash used in investing activities was$0.30million for the first half of fiscal year 2025, compared to$3.16 millionfor the same period of last year.
Net cash provided by financing activities was$0.19million for the first half of fiscal year 2025, compared to $4.15million for the same period of last year.
About Mingteng International Corporation Inc.
Based in China, Mingteng International Corporation Inc. is an automotive mold developer and supplier that focuses on molds used in auto parts. The Company provides customers with comprehensive and personalized mold services, covering mold design and development, mold production, assembly, testing, repair and after-sales service. With its production plant located in Wuxi, China, the Company aims to build a systematic solution for automobile mold services and create a personalized and integrated “Turnkey Project” for customers. The Company's main products are casting molds for turbocharger systems, braking systems, steering and differential system, and other automotive system parts. The Company also produces molds for new energy electric vehicle motor drive systems, battery pack systems, and engineering hydraulic components, which are widely used in automobile, construction machinery and other manufacturing industries. For more information, please visit the Company's website: https://ir.wxmtmj.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 “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. 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. The Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to read the risk factors contained in the Company's final prospectus and other reports it files with the SEC before making any investment decisions regarding the Company's securities. 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.
For investor and media inquiries, please contact:
Mingteng International Corporation Inc. Investor Relations Department Email:ir@wxmtmj.cn
Ascent Investor Relations LLC Tina Xiao Phone: +1-646-932-7242 Email:investors@ascent-ir.com
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