HUHUTECH International Group Inc. Announces First Half of Fiscal Year 2025 Financial Results
Rhea-AI Summary
HUHUTECH (NASDAQ:HUHU) reported mixed financial results for H1 FY2025. Total revenue increased 10.9% to $9.8 million, driven by significant expansion in the Japanese market, which contributed 60.9% of total revenue with 155 completed projects. However, the company swung to a net loss of $8.7 million, compared to net income of $0.8 million in the prior year period.
The company's gross margin declined to 32.0% from 35.6%, while operating expenses surged 511.5% to $11.8 million, primarily due to an $8.8 million increase in share-based compensation. HUHUTECH has expanded globally by establishing a U.S. subsidiary and acquiring a German operation to penetrate key semiconductor markets. The company ended the period with $3.0 million in cash.
Positive
- Revenue grew 10.9% year-over-year to $9.8 million
- Japanese operations expanded significantly with 155 projects, contributing 60.9% of total revenue
- Strategic expansion into U.S. and German semiconductor markets through new subsidiary establishment and acquisition
- Product sales revenue increased 1,029.8% to $0.4 million
Negative
- Swung to net loss of $8.7 million from $0.8 million profit last year
- Operating expenses surged 511.5% to $11.8 million due to increased share-based compensation
- Gross margin declined to 32.0% from 35.6% year-over-year
- Cash position decreased to $3.0 million from $3.1 million at end of 2024
- Net cash used in operating activities was $0.5 million versus $0.3 million provided last year
News Market Reaction – HUHU
On the day this news was published, HUHU declined 32.76%, reflecting a significant negative market reaction. Argus tracked a trough of -9.9% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $87M from the company's valuation, bringing the market cap to $178M at that time.
Data tracked by StockTitan Argus on the day of publication.
Mr. Yujun Xiao, Chief Executive Officer of HUHUTECH, commented, "We are pleased to report a
Mr. Xiao continued, "In line with our global growth strategy, we have established a subsidiary in
First Half of Fiscal Year 2025 Financial Summary
- Total revenue was
$9.8 million 10.9% from$8.9 million - Gross profit was
$3.1 million $3.2 million - Gross margin was
32.0% for the first half of fiscal year 2025, compared to35.6% for the same period of last year. - Net loss was
$8.7 million $0.8 million - Basic and diluted loss per share were
$0.38 $0.04
First Half of Fiscal Year 2025 Financial Results
Revenues
Total revenue was
- Revenue from system integration projects was
$9.4 million 8.5% from$8.7 million - 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 - Revenue from product sales was
$0.4 million 029.8% from$0.04 million
Cost of Revenues
Cost of revenue was
Gross Profit and Gross Margin
Gross profit was
Gross margin was
Operating Expenses
Total operating expenses were
- Selling expenses were
$0.9 million 79.9% from$0.5 million - General and administrative expenses were
$10.3 million 035.3% from$0.9 million $8.8 million $0.2 million $0.2 million - R&D expenses stayed at
$0.5 million
Net Income (Loss)
Net loss was
Basic and Diluted Earnings (Loss) per Share
Basic and diluted loss per share were
Financial Condition
As of June 30, 2025, the Company had cash of
Net cash used in operating activities for the first half of fiscal year 2025 was
Net cash used in investing activities for the first half of fiscal year 2025 was
Net cash used in financing activities for the first half of fiscal year 2025 was
About HUHUTECH International Group Inc.
HUHUTECH International Group Inc. is a professional provider of factory facility management and monitoring systems. Through its subsidiaries in
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-F and other filings with the
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 SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
As of June 30, | As of December 31, | |||||||
2025 | 2024 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 2,978,868 | $ | 3,102,865 | ||||
Restricted cash | 57,151 | 220,261 | ||||||
Note receivable | 6,587 | 254,092 | ||||||
Accounts receivable, net | 11,170,072 | 9,633,289 | ||||||
Accounts receivable – a related party | 950,052 | — | ||||||
Inventories | 982,954 | 1,175,241 | ||||||
Advance to vendors | 348,713 | 150,637 | ||||||
Prepayments and other assets, net | 181,046 | 80,137 | ||||||
TOTAL CURRENT ASSETS | 16,675,443 | 14,616,522 | ||||||
Property, plant and equipment, net | 5,016,051 | 4,978,080 | ||||||
Intangible assets, net | 65,793 | 79,985 | ||||||
Deferred tax assets | 526,349 | 326,087 | ||||||
Right-of-use assets, net | 168,375 | 183,815 | ||||||
TOTAL ASSETS | $ | 22,452,011 | $ | 20,184,489 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short term bank loans | $ | 2,861,690 | $ | 5,273,678 | ||||
Long-term bank loan - current | 251,270 | — | ||||||
Loan payable from third-party | 500,000 | — | ||||||
Notes payable | 190,501 | 733,996 | ||||||
Accounts payable | 5,014,033 | 4,466,933 | ||||||
Due to a related party | 506,115 | 246,454 | ||||||
Advance from customers | 2,028,683 | 1,403,628 | ||||||
Accrued expenses and other liabilities | 1,398,421 | 732,419 | ||||||
Taxes payable | 204,332 | 356,889 | ||||||
Operating lease liabilities – current | 119,579 | 104,088 | ||||||
TOTAL CURRENT LIABILITIES | 13,074,624 | 13,318,085 | ||||||
Long term bank loans | 2,421,807 | 260,299 | ||||||
Operating lease liabilities – non-current | 13,867 | 80,636 | ||||||
TOTAL LIABILITIES | 15,510,298 | 13,659,020 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 13) | ||||||||
SHAREHOLDERS' EQUITY: | ||||||||
Ordinary shares, | 58 | 53 | ||||||
Additional paid-in capital | 13,495,345 | 4,695,350 | ||||||
Statutory reserves | 343,077 | 343,077 | ||||||
(Accumulated deficit) retained earnings | (6,704,455) | 2,026,786 | ||||||
Accumulated other comprehensive loss | (192,312) | (539,797) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 6,941,713 | 6,525,469 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,452,011 | $ | 20,184,489 | ||||
HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited) | ||||||||
For the Six Months Ended June 30, | ||||||||
2025 | 2024 | |||||||
Revenues – third parties | $ | 9,337,289 | $ | 8,853,479 | ||||
Revenues – related party | 480,183 | — | ||||||
Total Revenues | 9,817,472 | 8,853,479 | ||||||
Cost of revenues – third parties | 6,533,648 | 5,137,460 | ||||||
Cost of revenues – related party | 144,628 | 565,466 | ||||||
Total cost of revenues | 6,678,276 | 5,702,926 | ||||||
Gross profit | 3,139,196 | 3,150,553 | ||||||
Operating expenses: | ||||||||
Selling expenses | 899,367 | 500,032 | ||||||
General and administrative expenses | 10,330,446 | 909,952 | ||||||
Research and development expenses | 520,479 | 511,674 | ||||||
Total operating expenses | 11,750,292 | 1,921,658 | ||||||
(Loss) Income from operations | (8,611,096) | 1,228,895 | ||||||
Other income (expense): | ||||||||
Interest income | 6,736 | 1,523 | ||||||
Interest 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) | 1,080,535 | ||||||
Provision for income taxes | 64,686 | 231,208 | ||||||
Net (loss) income | (8,731,241) | 849,327 | ||||||
Comprehensive income (loss) | ||||||||
Foreign currency translation adjustments | 347,485 | (336,141) | ||||||
Comprehensive (loss) income | $ | (8,383,756) | $ | 513,186 | ||||
(Loss) earnings per share | ||||||||
Basic and diluted | $ | (0.38) | $ | 0.04 | ||||
Weighted average number of shares outstanding | ||||||||
Basic and diluted | 23,018,717 | 20,000,000 | ||||||
HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
For the Six Months Ended June 30, | ||||||||
2025 | 2024 | |||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | (8,731,241) | $ | 849,327 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating | ||||||||
Depreciation and amortization | 169,951 | 223,891 | ||||||
Provision for credit losses | 30,265 | 26,263 | ||||||
Deferred tax benefit | (191,703) | (3,939) | ||||||
Amortization of operating lease right-of-use assets | 73,034 | 55,659 | ||||||
Share-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 | 48,242 | ||||||
Accrued expenses and other liabilities | 645,080 | 159,134 | ||||||
Advance from customers | 591,122 | 1,710,559 | ||||||
Taxes payable | (157,026) | 291,930 | ||||||
Operating leases liabilities | (73,671) | (55,428) | ||||||
Net cash (used in) provided by operating activities | (523,403) | 303,082 | ||||||
Cash 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) | 427,044 | ||||||
Proceeds from short-term bank loans | 5,403,440 | 4,487,582 | ||||||
Repayment of short-term bank loans | (7,995,277) | (1,663,202) | ||||||
Proceeds from long-term bank loans | 2,412,000 | 693,001 | ||||||
Repayment of long-term bank loans | (74,088) | — | ||||||
Payment of offering costs | — | (89,667) | ||||||
Net cash (used in) provided by financing activities | (43,326) | 2,986,320 | ||||||
Effect of exchange rate changes on cash and restricted cash | 378,523 | (265,228) | ||||||
Net (decrease) increase in cash and restricted cash | (287,107) | 1,467,435 | ||||||
Cash and restricted cash at the beginning of period | 3,323,126 | 2,846,659 | ||||||
Cash and restricted cash at the end of period | $ | 3,036,019 | $ | 4,314,094 | ||||
Reconciliation of cash and restricted cash, end of period | ||||||||
Cash | $ | 2,978,868 | $ | 4,120,178 | ||||
Restricted cash | 57,151 | 193,916 | ||||||
Cash and restricted cash at the end of period | $ | 3,036,019 | $ | 4,314,094 | ||||
Supplemental cash flow disclosures: | ||||||||
Cash paid for income tax | $ | 1,795 | $ | 97,101 | ||||
Cash paid for interest | $ | 40,657 | $ | 36,403 | ||||
Non-cash investing activities: | ||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | 54,345 | $ | 15,287 | ||||
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SOURCE HUHUTECH International Group Inc.
FAQ
What were HUHUTECH's (HUHU) key financial results for H1 FY2025?
Why did HUHUTECH (HUHU) report a net loss in H1 FY2025?
How significant is HUHUTECH's Japanese market performance in H1 FY2025?
What strategic expansions did HUHUTECH (HUHU) make in H1 FY2025?
How much cash does HUHUTECH (HUHU) have as of June 30, 2025?
