Tungray Reports Unaudited 2025 First Half Results, Revenue Up 37% and Returns to Profitability

Rhea-AI Summary

Tungray Technologies (TRSG) reported strong financial results for H1 2025, marking a significant turnaround with a return to profitability. Total revenue increased 37.0% year-over-year to $7.4 million, while gross margin improved to 48.6% from 46.7% in the previous year.

The company achieved a net income of $0.5 million, compared to a net loss of $0.8 million in H1 2024, driven by revenue growth in both customized (+18.4%) and standardized products (+130.6%). Operating income reached $0.3 million, recovering from a $0.9 million loss in the prior year period.

Tungray's growth strategy focuses on exploring strategic partnerships, expanding into new markets, and implementing cost-cutting measures while maintaining a $0.5 million investment in R&D, up 6.2% YoY, particularly in automation equipment and semiconductor-related solutions.

Positive

• Revenue growth of 37.0% YoY to $7.4 million
• Return to profitability with $0.5 million net income vs $0.8 million loss in H1 2024
• Gross margin improvement of 190 basis points to 48.6%
• Significant growth in standardized products revenue (+130.6%)
• Operating expenses decreased by 4.1% despite business expansion
• R&D investment increased by 6.2% to support innovation and growth

Negative

• Selling expenses increased by 16.3% due to higher salary and travel costs
• Standardized products gross margin declined to 44.3% from 46.4% YoY
• Rising raw material and labor costs impacting operations

Insights

Financial Analyst

Tungray's impressive 37% revenue growth and return to profitability demonstrates successful implementation of their strategic initiatives and improved operational efficiency.

Tungray's financial performance for H1 2025 shows significant improvement across all key metrics. Revenue jumped 37% to $7.4 million, while the company swung from an operating loss of $0.9 million to an operating income of $0.3 million. The bottom line similarly improved from a net loss of $0.8 million to a profit of $0.5 million.

What's particularly impressive is that Tungray achieved margin expansion despite inflationary pressures. Gross margin improved by 190 basis points to 48.6%, indicating strengthening pricing power and operational efficiency. This margin improvement, combined with a 4.1% reduction in operating expenses, demonstrates effective cost management while growing the top line.

The revenue breakdown reveals two growth engines: customized products increased 18.4%, while standardized products surged 130.6%. The latter is particularly significant as it's driven by increasing demand for automotive refrigerators in new energy vehicles (NEVs), positioning Tungray in a high-growth sector. The company's standardized products maintain a healthy gross margin of 44.3%, though slightly down from 46.4% last year, likely due to scaling costs.

Tungray's strategic initiatives show a balanced approach to growth and profitability. The 6.2% increase in R&D spending to $0.5 million reflects continued investment in innovation, while the 8% reduction in G&A expenses demonstrates discipline in overhead management. Their focus on automation equipment, semiconductor solutions, and mechatronics targets high-growth segments with potentially higher margins.

The company's exploration of horizontal strategic partnerships and new business lines, combined with the hiring of a dedicated sales manager focusing on non-printer markets, indicates a deliberate diversification strategy beyond their traditional business. This could reduce customer concentration risk and open new revenue streams in the semiconductor and automotive sectors.

Total Revenues Increased by 37.0% YoY to $7.4 million
Operating Income Increased to $0.3 million from -$0.9 million
Net Income Increased to $0.5 million from -$0.8 million

SINGAPORE, Sept. 30, 2025 /PRNewswire/ -- Tungray Technologies Inc ("Tungray" or the "Company"), a global Engineer-to-Order (ETO) company, today reported its unaudited financial results for the six months ended June 30, 2025.

First Half 202 5 Financial Highlights

• Total revenues for the six months ended June 30, 2025 increased by 37.0% to $7.4 million, compared to $5.4 million in the same period of 2024.
  
  
• Gross margin for the six months ended June 30, 2025 was 48.6%, compared to 46.7% for the same period in 2024.
  
  
• Operating income for the six months ended June 30, 2025, was $0.3 million, compared to an operating loss of $0.9 million for the same period in 2024.
  
  
• Net income for the six months ended June 30, 2025, was $0.5 million, compared to net loss of $0.8 million for the same period in 2024.

Recent Developments and Strategic Highlights: Tungray Drives Revenue Growth and Reduces Costs

Revenue Enhancement:
To drive sales growth, the Company is exploring potential horizontal strategic partnerships to access new, high-value capabilities.

These initiatives include:

• • Introducing new lines of business through potential partnerships with existing companies.
    
    
    • Utilizing the "market-for-tech" model to leverage Singapore's hub position for regional business expansion.
    • Exploring technologies and services such as standardized manufacturing of medical components, and contract repair work for aviation components, such as aircraft engine fan blades and turbines.
      
      
  • Enhancing sales and market penetration by hiring a dedicated business-focused market and sales manager. This initiative will focus on:
    
    
    • Increasing market penetration of non-printer related markets in the Southeast Asia (SEA) region.
    • Focusing primarily on the semiconductor, automotive and non-printer related consumer product sectors.

Cost-Cutting Measures:
The Company has implemented targeted cost control actions aimed at reducing expenses, enhancing operational efficiency, and renegotiating supplier contracts.

These actions include:

• • Identifying and utilizing high-trade volume suppliers.
  • Leveraging volume to negotiate favorable rates for common-use components.

Management Commentary

Mr. Wanjun Yao, Chairman and Chief Executive Officer of Tungray, commented, "We achieved solid top line growth during the first half of the year with revenue up 37.0% reaching $7.4 million compared to the same period last year. Despite rising raw material and labor costs, our gross margin showed material improvement with gross margin of 48.6% in the first half of the year, compared with 46.7% in the same period last year. This 190 basis points improvement combined with leverage opportunities in our business model helped drive our return to profitability with net income of $0.5 million in the first half of the year, compared with a net loss of $0.8 million in the same period last year."

"During the first half of 2025, we invested $0.5 million in R&D, an increase of 6.2% compared to the same period of 2024, demonstrating continued commitment to innovation as we target high-growth areas such as automation equipment, semiconductor-related solutions, and mechatronics. In Singapore, we advanced modularization of equipment components to reduce variance-related costs and rolled out after-sale service initiatives that reinforce our customer-first approach. In addition, we increased R&D in highly automated equipment to meet growing demand. In the mechatronics segment, we benefitted from increased orders linked to rising demand for automotive refrigerators in new energy vehicles (NEVs) during the first half of 2025."

"We will continue to allocate resources strategically to ensure long-term product and technology advancement. These initiatives not only support near-term competitiveness but also lay the foundation for sustainable growth. We believe our efforts will enhance Tungray's market presence, create new revenue streams, and deliver greater value for our shareholders as market conditions improve."

Mr. Henry Guo, Chief Financial Officer of Tungray, commented, "To remain competitive amidst pricing pressure, we are implementing aggressive cost-cutting measures and pursuing operational efficiencies. At the same time, we are expanding our revenue base by developing higher-margin products, strengthening partnerships, and pursuing new market opportunities."

"In the longer term, we believe our business strategies should continue to fuel Tungray's top-line growth and margin expansion."

First Half 2025 Financial Results

Total Revenues

Our total revenues increased by 37.0% to $7.4 million for the six months ended June 30, 2025, compared to $5.4 million for the six months ended June 30, 2024.

• Revenues from customized products increased by $0.8 million, or 18.4%, compared to the same period in 2024, primarily driven by the sales increase of a major customer during the period.
  
  
• Revenues from standardized products increased by $1.2 million, or 130.6%, compared to the same period in 2024, primarily increased orders driven by rising demand for automotive refrigerators used in new energy vehicles (NEVs) during the first half of 2025. This growth demonstrates the Company's ability to respond to emerging market needs and capitalize on industry trends.

Cost of Revenues

Total costs increased by 32.0% to $3.8 million for the six months ended June 30, 2025, compared to $2.9 million for the six months ended June 30 2024.

• The cost of revenues for customized products rose by $0.3 million, or 10.4% compared to the same period ended June 30, 2024, in line with the revenue increase.
  
  
• The cost of revenues for standardized products increased by $0.7 million, or 139.6% compared to the same period ended June 30, 2024, corresponding with the revenue increase.

Gross Profit

Gross profit was $3.6 million for the six months ended June 30, 2025, up from $2.5 million for the six months ended June 30, 2024. Gross margin was 48.6%, compared to 46.7% for the same period last year. The improvement in gross profit was mainly driven by revenue growth that outpaced cost increases.

• Gross profit for customized products was $2.7 million for the six months ended June 30, 2025, an increase of 27.7% as compared to $2.1 million for the six months ended June 30, 2024. Gross margin for customized products was 50.4% for the six months ended June 30, 2025, as compared to 46.7% for the six months ended June 30, 2024.
  
• Gross profit for standardized products was $0.9 million for the six months ended June 30, 2025, an increase of 120.2% as compared to $0.4 million for the six months ended June 30, 2024. Gross margin for standardized products was 44.3% for the six months ended June 30, 2025, and 46.4% for the six months ended June 30, 2024.

Operating Expenses

Total operating expenses were $3.3 million for the six months ended June 30, 2025, compared to $3.5 million for the prior year period, representing a 4.1% decrease.

• Selling expenses increased by 16.3% to $349.0 thousand for the six months ended June 30, 2025, compared to $300.1 thousand for the six months ended June 30, 2024. The increase was mainly due to an increase of salary expenses and travel related expenses for business expansion.
  
  
• General and administrative expenses decreased by 8.0% to $2.5 million from $2.7 million for the six months ended June 30, 2024, reflecting tighter cost management.
  
  
• R&D expenses increased by 6.2% to $475.0 thousand, compared to $447.2 thousand for the same period of last year. The increase was consistent with the R&D plan the Company previously set out.

Income (Loss) from operations

Income from operations was $0.3 million for the six months ended June 30, 2025, compared to loss from operations of $0.9 million for the six months ended June 30, 2024.

Other Income, net

Total other income was $0.2 million for the six months ended June 30, 2025 and 2024.

Income tax expense

Income tax expense decreased by approximately $94.9 thousand, or 75.2%, from $126.2 thousand for the six months ended June 30, 2024 to $31.3 thousand for the six months ended June 30, 2025.

Net Income (Loss)

Net income was $0.5 million for the six months ended June 30, 2025, compared to net loss of $0.8 million for the six months ended June 30, 2024.

About Tungray Technologies Inc

Tungray Technologies Inc is an Engineer-to-Order (ETO) company that provides customized industrial manufacturing solutions to original equipment manufacturers (OEMs) in the semiconductors, printers, electronics, and home appliances industries. With research, development and manufacturing bases in Singapore and China, Tungray designs, develops, and delivers a wide range of industrial products ranging from customized manufacturing machineries, direct drive and linear direct current motors, to induction welding equipment. As an ETO company with more than two decades of experience, Tungray takes pride in its ability to deliver quality customized industrial solutions that fulfil its customers' unique needs and specifications. For more information, visit the Company's website at http://tungray.com/.

Forward-Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update 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 in its other filings with the SEC.

For more information, please contact:

Investor Relations:
Bill Zima
Email: tungray@icrinc.com

                                                               
        
          Tungray Technologies Inc and Subsidiaries


                                                            
        
          Unaudited Condensed Consolidated Balance Sheets


                                                  
        
          (Stated in U.S. Dollars, except for share data, or otherwise noted)




                                                                                                                                                      As of             As of
                                                                                                                                          30-Jun-25         31-Dec-24



        ASSETS





        CURRENT ASSETS



        Cash                                                                                                                                    $8,534,954         $8,968,814



        Restricted cash                                                                                                                                              503,544



        Accounts and notes receivable, net                                                                                                       3,345,278          2,393,902



        Accounts receivable - related parties                                                                                                      333,996            327,556



        Inventories, net                                                                                                                         2,348,620          2,206,329



        Prepayments, net                                                                                                                           724,373            726,991



        Prepayments - related parties, net                                                                                                       1,601,838          3,815,321



        Other receivables and other current assets, net                                                                                            340,983            507,523



        Other receivables - related parties                                                                                                      1,131,174            320,447



        Total current assets                                                                                                                    18,361,216         19,770,427





        NON-CURRENT ASSETS



        Prepaid expenses and deposits                                                                                                               76,753             79,088



        Prepayment for land use right                                                                                                                              1,987,685



        Long-term investment                                                                                                                       209,392            205,499



        Operating right-of-use assets and land use rights                                                                                        3,368,272          1,411,033



        Finance right-of-use assets                                                                                                                214,493            221,847



        Intangible assets, net                                                                                                                     129,392             59,148



        Deferred tax assets                                                                                                                         32,884



        Property and equipment, net                                                                                                              6,469,929          6,173,176



        Total non-current assets                                                                                                                10,501,115         10,137,476





        Total assets                                                                                                                            28,862,331         29,907,903





        LIABILITIES AND SHAREHOLDERS' EQUITY





        CURRENT LIABILITIES



        Accounts payable                                                                                                                         1,809,327          1,359,244



        Accounts payable - related parties                                                                                                         163,837             79,988



        Contract liabilities                                                                                                                     2,967,980          6,115,315



        Accrued expenses and other payables                                                                                                      1,143,049          1,450,005



        Other payables - related parties                                                                                                           371,146            338,453



        Current portion of banking facilities                                                                                                       94,432             80,588



        Short-term loans - banks                                                                                                                   697,973



        Current portion of operating lease liabilities                                                                                             187,752            184,201



        Current portion of operating lease liabilities - related party                                                                              76,950            168,551



        Current portion of finance lease liabilities                                                                                                64,740            123,762



        Taxes payable                                                                                                                              552,987            703,264



        Total current liabilities                                                                                                                8,130,173         10,603,371





        OTHER LIABILITIES



        Banking facilities                                                                                                                       1,217,800          1,161,174



        Operating lease liabilities                                                                                                                624,863            692,329



        Operating lease liabilities - related party                                                                                                156,787            190,752



        Deferred revenue                                                                                                                            97,870



        Total other liabilities                                                                                                                  2,097,320          2,044,255





        Total liabilities                                                                                                                       10,227,493         12,647,626





        COMMITMENTS AND CONTINGENCIES





        SHAREHOLDERS' EQUITY



        Class A ordinary shares ($0.0001 par value; 400,000,000 and 400,000,000                                                                      1,179              1,179
shares authorized as of June 30, 2025 and December 31, 2024, respectively;
11,793,485 and 11,793,485 shares issued and outstanding as of June 30,
2025 and December 31, 2024, respectively)



        Class B ordinary shares ($0.0001 par value; 100,000,000 and 100,000,000                                                                        456                456
shares authorized as of June 30, 2025 and December 31, 2024, respectively;
4,560,000 and 4,560,000 shares issued and outstanding as of June 30, 2025
and December 31, 2024, respectively)



        Additional paid-in capital                                                                                                               3,135,124          3,135,124



        Retained earnings                                                                                                                       15,600,685         15,050,543



        Statutory reserves                                                                                                                         248,761            248,761



        Accumulated other comprehensive loss                                                                                                     (116,634)       (1,012,187)



        Total Tungray Technologies Inc shareholders' equity                                                                                     18,869,571         17,423,876





        NONCONTROLLING INTERESTS                                                                                                                 (234,733)         (163,599)





        TOTAL EQUITY                                                                                                                            18,634,838         17,260,277





        Total liabilities and equity                                                                                                           $28,862,331        $29,907,903

                                               
          
            Tungray Technologies Inc and Subsidiaries


                      
          
            Unaudited Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)


                                  
          
            (Stated in U.S. Dollars, except for share data, or otherwise noted)




                                                                                                                                                       For the six months ended


                                                                                                                                                       June 30,


                                                                                                                                                 2025        2024



 Revenue - products                                                                                                                       $7,445,174  $5,435,786



 Revenue - related party                                                                                                                         205



 Total revenues                                                                                                                            7,445,379   5,435,786





 Cost of revenue - products                                                                                                                3,824,129   2,897,866



 Cost of revenue - related party                                                                                                                 209



 Total cost of revenues                                                                                                                    3,824,338   2,897,866





 Gross profit                                                                                                                              3,621,041   2,537,920





 Operating expenses:



 Selling expenses                                                                                                                            349,032     300,122



 General and administrative expenses                                                                                                       2,516,927   2,735,835



 Research and development expenses                                                                                                           474,959     447,234



 Total operating expenses                                                                                                                  3,340,918   3,483,191





 Income (Loss) from operations                                                                                                               280,123   (945,271)





 Other income



 Other income, net                                                                                                                           205,095     172,687



 Lease income - related party                                                                                                                  9,803       9,855



 Financial income, net                                                                                                                         8,619      44,262



 Total other income, net                                                                                                                     223,517     226,804





 Income (Loss) before income taxes                                                                                                           503,640   (718,467)





 Income tax expense                                                                                                                         (31,270)  (126,219)





 Net income (loss)                                                                                                                           472,370   (844,686)





 Less: net loss attributable to noncontrolling interests                                                                                    (77,772)   (30,679)





 Net income (loss) attributable to Tungray Technologies Inc                                                                                  550,142   (814,007)





 Net income (loss)                                                                                                                           472,370   (844,686)





 Foreign currency translation adjustment                                                                                                     902,191   (629,472)





 Comprehensive income (loss)                                                                                                               1,374,561 (1,474,158)





 Less: comprehensive loss attributable to noncontrolling interests                                                                          (71,134)   (30,679)





 Total comprehensive income (loss) attributable to Tungray Technologies Inc                                                                1,445,695 (1,443,479)





 Weighted average number of common shares outstanding - basic and diluted                                                                 16,353,485  15,539,074





 Earnings (Loss) per common share - basic and diluted                                                                                           0.03      (0.05)

View original content:https://www.prnewswire.com/news-releases/tungray-reports-unaudited-2025-first-half-results-revenue-up-37-and-returns-to-profitability-302570552.html

SOURCE Tungray Technologies Inc

FAQ

What were Tungray's (TRSG) key financial results for H1 2025?

Tungray reported revenue of $7.4 million (up 37.0% YoY), net income of $0.5 million (vs. $0.8M loss in H1 2024), and improved gross margin of 48.6% (up from 46.7%).

How did Tungray's standardized products perform in H1 2025?

Standardized products revenue increased by 130.6% YoY, driven by rising demand for automotive refrigerators in new energy vehicles (NEVs), though gross margin declined to 44.3% from 46.4%.

What is Tungray's strategy for future growth in 2025?

Tungray is focusing on strategic partnerships, expanding into new markets, implementing cost-cutting measures, and investing in R&D ($0.5M, up 6.2% YoY) for automation equipment and semiconductor solutions.

How did Tungray's operating expenses change in H1 2025?

Total operating expenses decreased by 4.1% to $3.3 million, with general and administrative expenses down 8.0%, though selling expenses increased 16.3% due to business expansion costs.

What drove Tungray's return to profitability in H1 2025?

The return to profitability was driven by 37.0% revenue growth, improved gross margins (48.6%), successful cost control measures, and strong performance in both customized and standardized products.