MKDWELL Tech Inc. Reports First Half of Fiscal Year 2025 Unaudited Financial Results
Rhea-AI Summary
MKDWELL Tech (Nasdaq: MKDW) reported unaudited results for the six months ended June 30, 2025.
Total revenue rose to US$1.37M (+68.3% YoY) driven by product sales and processing services; gross profit was US$0.09M with a 6.5% margin (down from 8.2%).
Net loss was US$1.70M (down 1.5% YoY). Working capital surplus was US$2.96M, accumulated deficit US$15.14M, and net cash used in operations was US$1.46M. The company has a convertible note with principal US$1.851M amended and extended to June 9, 2026, with monthly balance increases of 0.5% and conditional monthly $100,000 payments during a standstill.
Positive
- Total revenue +68.3% to US$1.37M
- Sales of manufactured products +102.8% to US$1.20M
- Working capital surplus of US$2.96M
- Net cash used in operations improved slightly to US$1.46M
Negative
- Gross margin fell from 8.2% to 6.5%
- Net loss of US$1.70M persists
- Accumulated deficit of US$15.14M
- Convertible note principal US$1.851M extended to June 9, 2026
News Market Reaction – MKDW
On the day this news was published, MKDW declined 4.12%, reflecting a moderate negative market reaction. Argus tracked a trough of -8.8% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $1M from the company's valuation, bringing the market cap to $25M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
No peer stocks or sector momentum data were provided, suggesting the context is company-specific rather than sector-driven.
Market Pulse Summary
This announcement details H1 2025 unaudited results, highlighting revenue of US$1.37 million, up 68.3% year over year, but with gross margin narrowing to 6.5% and net loss at US$1.70 million. The company reports a working capital surplus of US$2.96 million alongside an outstanding US$1,851,000 convertible note. Investors may watch future earnings for margin trends, loss trajectory, and progress on managing this convertible obligation.
Key Terms
convertible promissory note financial
forbearance and standstill agreement regulatory
spot rate financial
AI-generated analysis. Not financial advice.
New York, Dec. 29, 2025 (GLOBE NEWSWIRE) -- MKDWELL Tech Inc. (the “Company”, “we”, “our”, or “us”) (Nasdaq: MKDW), a business company incorporated in the British Virgin Islands (“BVI”) with operations in Mainland China and Taiwan, today announced its unaudited financial results for the six months ended June 30, 2025.
First Half 2025 Financial Highlights
| ● | Total revenues in the first half of 2025 were US | |
| ● | Gross profit in the first half of 2025 was US | |
| ● | Loss from operations in the first half of 2025 was US | |
| ● | Net loss in the first half of 2025 was US | |
Management Commentary
In the first half of 2025, as a key strategic customer entered mass production, we successfully secured a substantial increase in orders from it, which helped keep our losses stable year-on-year. We will continue to actively seek new customers to further drive performance improvement.
First Half 2025 Financial Results
Revenues
Our revenues consist of (i) sales of manufactured electronic products, (ii) commissioned processing service, (iii) rental income, and (iv) others. Others mainly consist of electricity and technical services revenues.
Our breakdown of revenues for the six months ended June 30, 2024 and 2025 are summarized as below:
| For the six months ended June 30, | Change | |||||||||||||||
| 2024 | 2025 | Amount | % | |||||||||||||
| US$ | US$ | US$ | ||||||||||||||
| By revenue type | ||||||||||||||||
| Sales of manufactured electronic products | $ | 589,231 | $ | 1,195,012 | $ | 605,781 | 102.8 | % | ||||||||
| Commissioned processing service | 72,020 | 164,838 | 92,818 | 128.9 | % | |||||||||||
| Rental income | 113,952 | 2,024 | (111,928 | ) | (98.2 | )% | ||||||||||
| Others | 35,838 | 3,410 | (32,428 | ) | (90.5 | )% | ||||||||||
| Total | $ | 811,041 | $ | 1,365,284 | $ | 554,243 | 68.3 | % | ||||||||
Our total revenues increased by US
Revenues from our sales of manufactured electronic products increased by US
Revenues from our commissioned processing service increased by US
Rental income decreased by US
Revenues from others decreased by US
Cost of revenues
Cost of revenues consists primarily of (i) purchase of electronic materials, (ii) payroll, (iii) depreciation and other costs related to the business operation, (iv) inventories write-down.
Our cost of revenues increased by US
Gross profit and gross profit margin
Gross profit represents our revenues less cost of revenues. Gross profit margin represents our gross profit as a percentage of our revenues.
Gross profit increased by US
Selling expenses
Selling expenses primarily consist of: (i) salaries and benefits for sales personnel, (ii) freight expenses, (iii) rental and depreciation allocated to selling department, (iv) certain other expenses.
Our selling expenses increased by US
General and administrative expenses
General and administrative expenses primarily consist of: (i) professional service fees; (ii) salaries and benefits for general and administrative personnel, (iii) rental and depreciation allocated to general and administrative department, and (iv) other corporate expenses.
Our general and administrative expenses decreased by US
Research and development expenses
Research and development expenses primarily include (i) salaries and benefits for research and development personnel, (ii) material and supplies expenses in relation to research and development activities, (iii) rental and depreciation allocated to the research and development department, (iv) certain other expense.
Our research and development expenses slightly increased by US
Interest expenses, net
Interest expenses, net consists of interest expenses for bank borrowings and financing through sales and lease back, and interest income earned on cash deposits in banks.
Our interest expenses, net increased by US
Other income/(expenses), net
Other income/(expenses), net consists of government subsidies, foreign currency exchange gain or loss, and others.
Our other income, net increased by US
Taxation
British Virgin Islands (“BVI”)
The Company is incorporated in the BVI. Under the current laws of the BVI, the Company is not subject to income or capital gains taxes. Additionally, dividend payments are not subject to withholdings tax in the BVI.
Samoa
One of our subsidiaries was incorporated in Samoa and, under the current laws of Samoa, is not subject to tax on its income or capital gains. Additionally, dividend payments are not subject to withholdings tax in Samoa.
Mainland China
Generally, our subsidiaries, which are considered PRC resident enterprises under PRC tax law, are subject to enterprise income tax on their worldwide taxable income as determined under PRC tax laws and accounting standards at a rate of
Taiwan
We are subject to a tax rate of
Net loss
As a result of the foregoing, our net loss decreased by US
Liquidity and Capital Resources
Our unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities during the normal course of operations. We incurred net losses of US
We intend to finance our future working capital requirements and capital expenditures from cash generated from operating activities and financing activities. We may, however, require additional cash resources due to changing business conditions or other future developments, including acquisitions or investments we may decide to selectively pursue. If our existing cash resources are insufficient to meet our requirements, we may seek to issue equity or debt securities or obtain credit facilities. The issue of additional equity securities, including convertible debt securities, would result in further dilution to our shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result in operating covenants that would restrict our operations. We cannot assure you that financing will be available in the amounts we need or on terms acceptable to us, if at all. If we are unable to obtain additional equity or debt financing as required, our business operations and prospects may suffer.
Subsequent events
We entered into a securities purchase agreement dated November 26, 2024 with Streeterville Capital, LLC, a Utah limited liability company (the “Investor”), pursuant to which the Company issued to the Investor an unsecured convertible promissory note, on November 26, 2024, in the principal amount of
On December 2, 2025, the Company and the Investor entered into a Forbearance and Standstill Agreement pursuant to which the Investor will temporarily forbear from exercising enforcement rights arising from a default of not delivering certain conversion shares under the Note, and to extend the Note’s maturity date to June 9, 2026, by which the Company has agreed to repay any remaining balance of the Note in cash. In connection with the extension of the Note’s maturity date, the outstanding balance will increase by
Exchange Rate
This press release contains translations of certain Chinese Renminbi (“RMB”) and New Taiwan dollar (“NT$”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the readers. The following table outlines the currency exchange rates that were used in preparing the unaudited condensed consolidated financial statements, as set forth in the H.10 Statistical release of the Board of Governors of the Federal Reserve System:
| June 30, 2024 | December 31, 2024 | June 30, 2025 | ||||||||||
| Six months-ended spot rate | Average rate | Year-end spot rate | Average rate | Six months-ended spot rate | Average rate | |||||||
| US$ against RMB | US | US | US | US | US | US | ||||||
| US$ against NT$ | US | US | US | US | US | US | ||||||
About MKDWELL Tech Inc.
Through our operating subsidiaries, we are a manufacturer and supplier of automotive electronics for passenger cars, modified commercial vehicles, camper vans and logistics vehicles. Our business coverage extends from research and development, design, and production to sales of automotive electronic products. Our main products are intelligent camper vans control systems, LiDAR sensors, intelligent container control systems for logistics vehicles, vehicle seat control system, and we provide customers with ODM and OEM customized services. We design, manufacture and supply our products to our customers through our design center located in Hsinchu Science Park, Taiwan and our manufacturing plant in Jiaxing Science and Technology City, Jiaxing City, Zhejiang Province, China. Our customers are mainly based in Mainland China and Taiwan.
For further information, please contact:
MKDWELL Tech Inc.
Email: ir@mkdwell.com
FAQ
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What are the key terms of MKDWELL Tech's convertible note with Streeterville (MKDW)?
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