Mingteng International Corporation Inc. Announces Financial Results for Fiscal Year 2024
Rhea-AI Summary
Mingteng International, a Chinese automotive mold developer, reported mixed financial results for fiscal year 2024. Revenue grew 23% to $10.12 million, driven by significant expansion in machining services, which surged 327.6% to become the second-largest revenue contributor at 21.2% of total revenue.
Despite revenue growth, the company posted a net loss of $5.68 million in 2024, compared to a net income of $1.51 million in 2023. Gross margin declined to 30.3% from 40.4%, while operating expenses increased 417.4% to $8.18 million, primarily due to IPO-related costs and share-based compensation.
The company's strategic investments included expanding production capacity and workforce, resulting in higher costs. Cash position improved to $2.08 million by year-end 2024. Mold production remained the largest revenue segment at $6.87 million, while machining services reached $2.14 million, and mold repair contributed $1.10 million.
Positive
- Revenue grew 23% YoY to $10.12M in FY2024
- Machining services revenue surged 327.6% to $2.14M, becoming second-largest revenue segment
- Maintained healthy gross margin above 30% despite cost pressures
- Cash and equivalents increased to $2.08M from $1.06M YoY
- Successfully completed IPO in April 2024
Negative
- Net loss of $5.68M in FY2024 vs net income of $1.51M in FY2023
- Gross margin declined to 30.3% from 40.4% YoY
- Operating expenses soared 417.4% to $8.18M
- G&A expenses increased 827.8% to $7.4M
- Operating cash flow decreased to $0.29M from $1.30M YoY
- Basic and diluted EPS dropped to -$0.97 from $0.30 YoY
Insights
Mingteng's 23% revenue growth overshadowed by concerning swing to $5.68M net loss with significant margin compression across all business segments.
Mingteng's FY2024 results reveal a critical disconnect between top-line growth and bottom-line performance. Despite achieving
The gross margin deterioration from
Operating expenses ballooned by
The cash position improved to
Strategic capacity expansion driving revenue growth but causing severe margin compression; execution challenges evident in disproportionate cost increases.
Mingteng's manufacturing expansion strategy shows mixed operational results. The company's investment in production capacity for machining services has yielded impressive
The
The labor productivity metrics are particularly troubling – the expanded workforce led to an
Most concerning is the dramatic margin collapse in the high-growth machining services segment from
This operational data indicates execution challenges in the company's expansion strategy – while successfully growing revenue, the cost structure has become significantly less efficient, raising questions about the sustainable economics of their manufacturing model.
Mr. Yingkai Xu, Chairman and Chief Executive Officer of Mingteng International, remarked, "In fiscal year 2024, we made several strategic decisions, including expanding our production capacity and increasing our workforce, to adapt to evolving market dynamics and rising competition. While these initiatives resulted in higher investments and operating expenses, we achieved solid revenue growth of
As a result of scaling up our operations, our cost of revenues rose at a faster pace. However, we managed to maintain a healthy gross margin above
Fiscal Year 2024 Financial Summary
Total revenue was
Gross profit was 3.07 million in fiscal year 2024, compared to
Gross margin was
Net loss was
Basic and diluted losses per share were
Fiscal Year 2024 Financial Results
Revenues
Total revenue was
For the Year Ended December 31, | |||||||
2024 | 2023 | ||||||
($ millions) | Revenue | Cost of Revenue | Revenue | Cost of Revenue | Gross Margin | ||
Mold production | 6.87 | 4.86 | 29.3 % | 6.64 | 4.20 | 36.7 % | |
Mold repair | 1.10 | 0.48 | 56.5 % | 1.08 | 0.43 | 60.8 % | |
Machining services | 2.14 | 1.71 | 20.1 % | 0.50 | 0.27 | 45.2 % | |
Total | 10.12 | 7.05 | 30.3 % | 8.23 | 4.90 | 40.4 % | |
Revenue from mold production was
Revenue from mold repair was
Revenue from machining services was
Cost of Revenues
Cost of revenues was
First, in order to promote the future development of machining service and expand production capacity, Wuxi Mingteng Mould hired more production labor in fiscal year 2024, which lead to an increase of
Second, in order to pursue the future development of the aluminum alloy pressure casting mold business and machining service and expand production capacity, the total investment of production machinery and equipment was
Last, due to the expansion of sales, the production orders increased, which means the materials assumptions also increased accordingly, the assumption of materials increased by
Gross Profit and Gross Margin
Gross profit was
Gross margins for mold production, mold repair and machining services were
Operating Expenses
Operating expenses were
Selling expenses were
General and administrative expenses were
Research and development expenses were
Net Income (Loss)
Net loss was
Basic and Diluted Earnings (Losses) per Share
Basic and diluted losses per share were
Financial Condition
As of December 31, 2024, the Company had cash and cash equivalents of
Net cash provided by operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
About Mingteng International Corporation Inc.
Based 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 "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 its 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
MINGTENG INTERNATIONAL CORPORATION INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
As of December 31, | ||||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 2,080,715 | $ | 1,056,236 | ||||
Accounts receivable, net | 4,171,809 | 3,517,632 | ||||||
Other receivables-bank acceptance notes, net | 971,044 | 471,166 | ||||||
Advances to suppliers | 122,456 | 388,110 | ||||||
Other receivables | 15,690 | 12,344 | ||||||
Inventories, net | 1,183,572 | 1,217,045 | ||||||
Contract costs, net | 96,656 | - | ||||||
Total current assets | 8,641,942 | 6,662,533 | ||||||
Non-current Assets | ||||||||
Property and equipment, net | 3,857,200 | 3,335,187 | ||||||
Intangible assets | 67,710 | - | ||||||
Operating lease right-of-use assets, net | 38,133 | - | ||||||
Deferred offering costs | - | 715,771 | ||||||
Long-term investments | 1,356,618 | - | ||||||
Total non-current assets | 5,319,661 | 4,050,958 | ||||||
Total Assets | $ | 13,961,603 | $ | 10,713,491 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Short-term loans | $ | 1,391,130 | $ | 282,378 | ||||
Accounts payable | 1,276,419 | 1,053,215 | ||||||
Other payables and other current liabilities | 1,829,642 | 1,041,910 | ||||||
Advance from customers | 515,650 | 401,935 | ||||||
Amounts due to related parties | 240,166 | 240,309 | ||||||
Current portion of lease liabilities | 13,006 | - | ||||||
Total current liabilities | 5,266,013 | 3,019,747 | ||||||
Non-current Liabilities | ||||||||
Deferred tax liabilities | 221,551 | 246,893 | ||||||
Non-current portion of lease liabilities | 20,408 | - | ||||||
Total non-current liabilities | 241,959 | 246,893 | ||||||
Total liabilities | 5,507,972 | 3,266,640 | ||||||
Commitments and contingencies | ||||||||
Shareholders' Equity: | ||||||||
Ordinary shares (Par value | 68 | 50 | ||||||
Additional paid-in capital | 7,620,339 | 897,308 | ||||||
Statutory reserves | 465,572 | 465,572 | ||||||
Retained earnings | 787,211 | 6,466,293 | ||||||
Accumulated other comprehensive loss | (419,559) | (382,372) | ||||||
Total shareholders' equity | 8,453,631 | 7,446,851 | ||||||
Total Liabilities and Shareholders' Equity | $ | 13,961,603 | $ | 10,713,491 | ||||
MINGTENG INTERNATIONAL CORPORATION INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Revenues | $ | 10,120,257 | $ | 8,225,911 | $ | 8,026,764 | ||||||
Cost of revenues | (7,052,835) | (4,902,078) | (4,113,661) | |||||||||
Gross profit | 3,067,422 | 3,323,833 | 3,913,103 | |||||||||
Operating expenses: | ||||||||||||
Selling expenses | 150,418 | 153,213 | 132,542 | |||||||||
General and administrative expenses | 7,395,559 | 797,140 | 926,786 | |||||||||
Research and development expenses | 634,046 | 630,752 | 492,526 | |||||||||
Total operating expenses | 8,180,023 | 1,581,105 | 1,551,854 | |||||||||
(Loss) income from operations | (5,112,601) | 1,742,728 | 2,361,249 | |||||||||
Other income (expenses): | ||||||||||||
Government subsidies | 651,267 | 129,138 | 92,832 | |||||||||
Interest income | 1,226 | 4,459 | 2,171 | |||||||||
Interest expense | (36,769) | (59,477) | (53,991) | |||||||||
Other-than-temporary impairment | (1,121,382) | - | - | |||||||||
Other income, net | 19,183 | 34,440 | 58,311 | |||||||||
Total other income (expenses), net | (486,475) | 108,560 | 99,323 | |||||||||
(Loss) income before income taxes | (5,599,076) | 1,851,288 | 2,460,572 | |||||||||
Provision for income taxes | (80,006) | (344,586) | (327,384) | |||||||||
Net (loss) income | $ | (5,679,082) | $ | 1,506,702 | $ | 2,133,188 | ||||||
Comprehensive income (loss) | ||||||||||||
Net (loss) income | $ | (5,679,082) | $ | 1,506,702 | $ | 2,133,188 | ||||||
Foreign currency translation loss | (37,187) | (133,740) | (479,845) | |||||||||
Total comprehensive (loss) income | $ | (5,716,269) | $ | 1,372,962 | $ | 1,653,343 | ||||||
(Losses)/earnings per share | ||||||||||||
- Basic and diluted | $ | (0.97) | $ | 0.30 | $ | 0.43 | ||||||
Weighted average number of ordinary shares outstanding | ||||||||||||
- Basic and diluted | 5,884,590 | 5,000,000 | 5,000,000 | |||||||||
MINGTENG INTERNATIONAL CORPORATION INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Cash flows from operating activities | ||||||||||||
Net (loss) income | $ | (5,679,082) | $ | 1,506,702 | $ | 2,133,188 | ||||||
Adjustments to reconcile net (loss) income to net cash provided by | ||||||||||||
Depreciation of property and equipment | 515,982 | 404,881 | 272,237 | |||||||||
Amortization of intangible assets | 6,213 | - | - | |||||||||
Amortization of right-of-use assets | 1,031 | 97,095 | 158,180 | |||||||||
Share-based compensation expenses | 4,408,200 | - | - | |||||||||
Impairment loss on long-term investments | 1,121,382 | - | - | |||||||||
Provision for impairment of inventory | 55,510 | 5,936 | - | |||||||||
Provision for impairment of contract costs | 11,827 | - | - | |||||||||
(Recovery) provision of credit loss | (6,650) | (5,079) | 17,606 | |||||||||
Deferred income tax | (21,916) | 254,224 | (4,304) | |||||||||
Loss on disposal of property and equipment | 24,905 | 648 | - | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (705,865) | (1,129,372) | (489,078) | |||||||||
Other receivables-bank acceptance notes | (511,554) | 302,846 | (294,440) | |||||||||
Advances to suppliers | 196,125 | (151,983) | (223,562) | |||||||||
Other receivables | 28,631 | (35,657) | 760,209 | |||||||||
Inventories | (39,787) | (180,335) | 194,674 | |||||||||
Contract costs | (109,388) | - | - | |||||||||
Accounts payable | 75,993 | 348,641 | 224,538 | |||||||||
Advances from customers | 120,746 | 343,470 | (34,598) | |||||||||
Other payables | 7,696 | - | 50,474 | |||||||||
Payroll payable | 134,421 | (32,932) | 166,388 | |||||||||
Taxes payable | 662,925 | (269,691) | 354,593 | |||||||||
Amounts due to related parties | 3,422 | (70,819) | (348,333) | |||||||||
Change in operating lease liabilities | (5,794) | (88,586) | (85,075) | |||||||||
Net cash provided by operating activities | 294,973 | 1,299,989 | 2,852,697 | |||||||||
Cash flows from investing activities | ||||||||||||
Purchase of property and equipment | (945,918) | (761,792) | (1,439,365) | |||||||||
Purchase of intangible asset | (37,698) | - | - | |||||||||
Proceeds from disposal of property and equipment | 28,083 | - | 6,558 | |||||||||
Purchase of long-term investment | (2,478,000) | - | - | |||||||||
Net cash used in investing activities | (3,433,533) | (761,792) | (1,432,807) | |||||||||
Cash flows from financing activities | ||||||||||||
Proceeds from short-term loans | 1,404,163 | 1,419,094 | 1,709,764 | |||||||||
Shareholder contribution | - | - | 148,675 | |||||||||
Dividends | - | - | (352,123) | |||||||||
Repayment of short-term loans | (280,833) | (2,483,415) | (966,388) | |||||||||
Proceeds from initial public offering, net | 3,293,096 | - | - | |||||||||
Payments of deferred offering costs | (264,950) | (172,179) | (144,000) | |||||||||
Principal payments under finance lease obligations | - | (12,488) | (230,372) | |||||||||
Net cash provided by (used in) financing activities | 4,151,476 | (1,248,988) | 165,556 | |||||||||
Effect of foreign exchange rate change on cash and cash equivalents | 11,563 | (26,296) | (99,156) | |||||||||
Net increase (decrease) in cash and cash equivalents | 1,024,479 | (737,087) | 1,486,290 | |||||||||
Cash and cash equivalents at the beginning of the year | 1,056,236 | 1,793,323 | 307,033 | |||||||||
Cash and cash equivalents at the end of the year | $ | 2,080,715 | $ | 1,056,236 | $ | 1,793,323 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Interest paid | $ | 36,769 | $ | 59,477 | $ | 101,459 | ||||||
Income taxes paid | $ | 113,108 | $ | 205,761 | $ | 53,991 | ||||||
Non-cash investing activities: | ||||||||||||
Right-of-use assets acquired under operating lease | $ | 39,526 | $ | - | $ | - | ||||||
Liabilities incurred for purchase of property and equipment | $ | 208,651 | $ | 21,257 | $ | - | ||||||
Liabilities incurred for purchase of intangible assets | $ | 36,859 | $ | - | $ | - | ||||||
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SOURCE Mingteng International Corporation Inc.
FAQ
What caused MTEN stock's net loss of $5.68 million in fiscal 2024?
How did MTEN's machining services perform in fiscal 2024?
Why did MTEN's gross margin drop to 30.3% in fiscal 2024?
What is MTEN's cash position after its 2024 IPO?
How much revenue did MTEN generate from mold production in 2024?
