HUHUTECH International Group Inc. Announces Fiscal Year 2024 Financial Results
Rhea-AI Summary
HUHUTECH, a factory facility management systems provider, reported its fiscal year 2024 results with total revenue of $18.1 million, up 8.5% year-over-year. The company achieved a gross profit of $6.6 million, marking a 21.1% increase, while gross margin improved to 36.1% from 32.3%.
Key highlights include:
- Successful Nasdaq IPO in October 2024, raising $4.69 million
- Launch of semiconductor warehousing center in Kumamoto, Japan
- Product sales revenue increased 340.3% to $1.2 million
- System integration revenue grew 2% to $16.6 million
However, the company reported a net loss of $1.9 million in 2024, compared to a net income of $2.3 million in 2023. Operating expenses increased 149.6% to $8.1 million, primarily due to Japanese operations expansion and increased R&D spending. Cash position stood at $3.1 million as of December 31, 2024.
Positive
- Revenue increased 8.5% YoY to $18.1M in FY2024
- Gross profit up 21.1% to $6.6M
- Gross margin improved to 36.1% from 32.3%
- Product sales revenue grew 340.3% to $1.2M
- Engineering consulting revenue increased 76.3%
- Successful IPO raising $4.69M in gross proceeds
- Cash position improved to $3.1M from $2.7M
- Expanded Japanese market presence with new semiconductor facility
Negative
- Swung to net loss of $1.9M from $2.3M profit in FY2023
- EPS declined to -$0.1 from $0.47
- Operating expenses surged 149.6% to $8.1M
- R&D expenses increased 114.7% to $2.9M
- Selling expenses up 137.2% to $2.1M
- G&A expenses rose 205% to $3.2M
- Net cash used in operations -$3.0M vs +$3.0M in FY2023
News Market Reaction
On the day this news was published, HUHU gained 5.10%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Mr. Yujun Xiao, Chief Executive Officer of HUHUTECH, commented, "Fiscal year 2024 was a year of expansion as we strengthened our market presence both domestically and internationally, laying a solid foundation for long-term success. We delivered
Our strategic expansion in the Japanese market was underscored by the successful launch of our semiconductor industry-supporting warehousing and logistics center in Kumamoto. In line with
Mr. Xiao continued, "Looking ahead, we will continue to build on this momentum by expanding our marketing and sales teams, deepening client relationships, and advancing targeted R&D—particularly in exploring the development of Factory Management and Control System and related new equipment. We also plan to broaden our product and service offerings to further penetrate key markets. Through these efforts, we are confident in delivering innovative solutions that improve efficiency, elevate performance, and set new standards in factory facility management across an evolving industrial landscape."
Fiscal Year 2024 Financial Highlights
- Total revenue was
$18.1 million 8.5% from$16.7 million - Gross profit was
$6.6 million 21.1% from$5.4 million - Gross margin was
36.1% in fiscal year 2024, increased from32.3% in fiscal year 2023. - Net loss was
$1.9 million $2.3 million - Basic and diluted loss per share were
$0.1 $0.47
Fiscal Year 2024 Financial Results
Revenues
Total revenue was
- Revenue from system integration projects was
$16.6 million 2.0% from$16.3 million - Revenue from engineering consulting services was
$0.4 million 76.3% from$0.2 million - Revenue from product sales was
$1.2 million 340.3% from$0.3 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
$2.1 million 137.2% from$0.9 million - General and administrative expenses were
$3.2 million 205.0% from$1.0 million - Research and development expenses were
$2.9 million 114.7% from$1.3 million $0.1 million $1
Net Loss
Net loss was
Basic and Diluted Loss per Share
Basic and diluted loss per share were
Financial Condition
As of December 31, 2024, the Company had cash of
Net cash used in operating activities in fiscal year 2024 was
Net cash used in investing activities in fiscal year 2024 was
Net cash provided by financing activities in fiscal year 2024 was
Recent Development
On October 23, 2024, the Company completed its initial public offering (the "Offering") of 1,050,000 ordinary shares at a public offering price of
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 prospectus. 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 registration statement 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 | ||||||||
As of December 31, | ||||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 3,102,865 | $ | 2,739,530 | ||||
Restricted cash | 220,261 | 107,129 | ||||||
Notes receivable | 254,092 | — | ||||||
Accounts receivable, net | 9,633,289 | 8,708,075 | ||||||
Inventories | 1,175,241 | 530,048 | ||||||
Advance to vendors | 150,637 | 64,750 | ||||||
Prepayments and other assets, net | 80,137 | 181,371 | ||||||
TOTAL CURRENT ASSETS | 14,616,522 | 12,330,903 | ||||||
Property, plant and equipment, net | 4,978,080 | 1,528,982 | ||||||
Intangible assets, net | 79,985 | 124,679 | ||||||
Deferred tax assets | 326,087 | 56,931 | ||||||
Deferred offering costs | — | 805,889 | ||||||
Right-of-use assets, net | 183,815 | 255,573 | ||||||
TOTAL ASSETS | $ | 20,184,489 | $ | 15,102,957 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short term bank loans | $ | 5,273,678 | $ | 1,690,165 | ||||
Notes payable | 733,996 | 103,943 | ||||||
Accounts payable | 4,466,933 | 4,532,958 | ||||||
Due to related parties | 246,454 | 868,438 | ||||||
Advance from customers | 1,403,628 | 943,348 | ||||||
Accrued expenses and other liabilities | 732,419 | 561,439 | ||||||
Taxes payable | 356,889 | 400,071 | ||||||
Operating lease liabilities – current | 104,088 | 107,424 | ||||||
TOTAL CURRENT LIABILITIES | 13,318,085 | 9,207,786 | ||||||
Long term loans | 260,299 | — | ||||||
Operating lease liabilities – non-current | 80,636 | 114,374 | ||||||
TOTAL LIABILITIES | 13,659,020 | 9,322,160 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 13) | ||||||||
SHAREHOLDERS' EQUITY: | ||||||||
Ordinary shares, 21,173,413 and 20,000,000 shares issued and outstanding as of December 31, 2024 and 2023*, respectively | 53 | 50 | ||||||
Additional paid-in capital | 4,695,350 | 1,738,179 | ||||||
Statutory reserves | 343,077 | 343,077 | ||||||
Retained earnings | 2,026,786 | 3,958,029 | ||||||
Accumulated other comprehensive loss | (539,797) | (258,538) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 6,525,469 | 5,780,797 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 20,184,489 | $ | 15,102,957 | ||||
* | Share and per share data are presented on a retroactive basis to reflect the reorganization and the forward split at a ratio of 1-for-4, with effective date of July 15, 2024. |
HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Revenues | $ | 18,149,244 | $ | 16,732,688 | $ | 11,374,257 | ||||||
Cost of revenues – third parties | 10,919,792 | 11,110,545 | 7,018,597 | |||||||||
Cost of revenues – related party | 676,889 | 210,251 | 805,679 | |||||||||
Total cost of revenues | 11,596,681 | 11,320,796 | 7,824,276 | |||||||||
Gross profit | 6,552,563 | 5,411,892 | 3,549,981 | |||||||||
Operating expenses: | ||||||||||||
Selling expenses | 2,068,278 | 871,797 | 391,013 | |||||||||
General and administrative expenses | 3,162,801 | 1,036,922 | 1,033,079 | |||||||||
Research and development expenses | 2,879,183 | 1,341,221 | 1,213,529 | |||||||||
Total operating expenses | 8,110,262 | 3,249,940 | 2,637,621 | |||||||||
(Loss) income from operations | (1,557,699) | 2,161,952 | 912,360 | |||||||||
Other income (expense): | ||||||||||||
Interest income | 8,691 | 7,279 | 4,021 | |||||||||
Interest expense | (113,657) | (72,197) | (51,985) | |||||||||
Other income, net | 5,821 | 492,123 | 99,920 | |||||||||
Total other (expense) income, net | (99,145) | 427,205 | 51,956 | |||||||||
(Loss) income before income taxes | (1,656,844) | 2,589,157 | 964,316 | |||||||||
Provision for income taxes | 274,399 | 255,570 | 34,307 | |||||||||
Net (loss) income | (1,931,243) | 2,333,587 | 930,009 | |||||||||
Other comprehensive loss | ||||||||||||
Foreign currency translation adjustments | (281,259) | (105,029) | (238,627) | |||||||||
Comprehensive (loss) income | $ | (2,212,502) | $ | 2,228,558 | $ | 691,382 | ||||||
(Loss) earnings per share* | ||||||||||||
Basic and diluted | $ | (0.10) | $ | 0.47 | $ | 0.19 | ||||||
Weighted average number of shares outstanding* | ||||||||||||
Basic and diluted | 20,208,803 | 20,000,000 | 20,000,000 | |||||||||
* | Share and per share data are presented on a retroactive basis to reflect the reorganization and the forward split at a ratio of 1-for-4, with effective date of July 15, 2024. |
HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net (loss) income | $ | (1,931,243) | $ | 2,333,587 | $ | 930,009 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 326,471 | 214,106 | 138,572 | |||||||||
Provision for (recovery of) credit losses | 1,900 | 25,335 | (52,229) | |||||||||
Deferred tax (benefits) expense | (274,609) | 11,950 | 33,739 | |||||||||
Amortization of operating lease right-of-use assets | 62,062 | 53,307 | 19,643 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (1,179,061) | (2,817,167) | (1,370,494) | |||||||||
Notes receivable | (257,751) | — | — | |||||||||
Inventories | (669,170) | 851,308 | (979,451) | |||||||||
Prepayments and other assets | 97,665 | 50,862 | (171,856) | |||||||||
Advance to vendors | (88,917) | (5,119) | 28,844 | |||||||||
Accounts payable | 52,879 | 1,603,497 | 674,460 | |||||||||
Accrued expenses and other liabilities | 188,280 | 115,482 | 60,707 | |||||||||
Advance from customers | 493,048 | 446,802 | 485,270 | |||||||||
Taxes payable | (40,645) | 246,100 | 82,890 | |||||||||
Due from related parties | 250,495 | — | — | |||||||||
Operating leases liabilities | (66,909) | (81,121) | (19,643) | |||||||||
Net cash (used in) provided by operating activities | (3,035,505) | 3,048,929 | (139,539) | |||||||||
Cash flows from investing activities: | ||||||||||||
Additions to property, plant, and equipment | (3,825,547) | (1,205,784) | (95,448) | |||||||||
Acquisition of intangible asset | — | (2,469) | — | |||||||||
Net cash used in investing activities | (3,825,547) | (1,208,253) | (95,448) | |||||||||
Cash flows from financing activities: | ||||||||||||
Payments to related parties | (868,438) | — | (65,358) | |||||||||
Advances from related parties | — | 325,642 | — | |||||||||
Proceeds from initial public offering | 4,117,955 | — | — | |||||||||
Proceeds from (repayments of) proceeds from bank acceptance notes payable, net | 642,004 | (389,894) | 426,965 | |||||||||
Proceeds from short-term bank loans | 7,905,066 | 3,135,195 | 5,079,409 | |||||||||
Repayment of short-term bank loans | (4,223,122) | (3,417,645) | (3,952,709) | |||||||||
Proceeds from long-term bank loans | 694,859 | — | — | |||||||||
Repayment of long-term bank loans | (430,813) | — | — | |||||||||
Payment of offering costs | (382,333) | (247,874) | (171,023) | |||||||||
Net cash provided by (used in) provided by financing activities | 7,455,178 | (594,576) | 1,317,284 | |||||||||
Effect of exchange rate changes on cash and restricted cash | (117,659) | (88,057) | (5,196) | |||||||||
Net increase in cash and restricted cash | 476,467 | 1,158,043 | 1,077,101 | |||||||||
Cash and restricted cash, beginning of year | 2,846,659 | 1,688,616 | 611,515 | |||||||||
Cash and restricted cash, end of year | $ | 3,323,126 | $ | 2,846,659 | $ | 1,688,616 | ||||||
Reconciliation of cash and restricted cash, end of year | ||||||||||||
Cash | $ | 3,102,865 | $ | 2,739,530 | $ | 1,361,728 | ||||||
Restricted cash | 220,261 | 107,129 | 326,888 | |||||||||
Cash and restricted cash, end of year | $ | 3,323,126 | $ | 2,846,659 | $ | 1,688,616 | ||||||
Supplemental cash flow disclosures: | ||||||||||||
Cash paid for income tax | $ | 97,101 | $ | 68,649 | $ | 31,015 | ||||||
Cash paid for interest | $ | 36,403 | $ | 68,255 | $ | 51,985 | ||||||
Non-cash activities: | ||||||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | 79,591 | $ | 323,290 | $ | 7,372 | ||||||
Reclassification of deferred offering costs | $ | 1,160,781 | $ | — | $ | — | ||||||
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SOURCE HUHUTECH International Group Inc.
FAQ
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