ZJK Industrial Expands Market Presence, Strengthens Key Collaborations and Responds to Supply-Chain Shifts
Rhea-AI Summary
ZJK Industrial (NASDAQ: ZJK) has announced significant growth throughout 2024, with preliminary unaudited financials suggesting similar revenue growth to fiscal year 2023, which saw a more than 30% revenue increase. Sales proceeds from projects with NVIDIA more than doubled in 2024.
The high-tech precision parts manufacturer, which supplies components for AI infrastructure, consumer electronics, electric vehicles, and aerospace technologies, is expanding its operations in Vietnam to respond to shifting customer supply chain requirements. The company continues to scale production capacity to meet increased demand.
CEO Ning Ding attributed the strong growth to surging demand for ZJK's high-precision components across AI data centers, consumer electronics, and new energy sectors. The company expects to release its 2024 audited financials on or before April 30th, 2025.
Positive
- Revenue growth similar to 2023's 30% increase
- Sales from NVIDIA projects more than doubled in 2024
- Expanding operations in Vietnam to address supply chain shifts
- Scaling production capacity to meet increased demand
- Strong growth in high-margin AI data center component sales
Negative
- Reliance on preliminary unaudited financial data
- Potential challenges in managing rapid international expansion
- Increasing competition in precision manufacturing sector
Insights
ZJK Industrial's latest announcement signals substantial business momentum in high-growth technology sectors, with preliminary 2024 revenue growth tracking similar to FY2023's 30% increase. Most notably, sales from NVIDIA projects have more than doubled in 2024, positioning ZJK as a direct beneficiary of the ongoing AI infrastructure buildout.
This NVIDIA relationship deserves particular attention. As AI data center construction accelerates globally, NVIDIA's dominant position in AI chips creates a powerful downstream effect for specialized component suppliers. ZJK's precision parts likely include critical fasteners and thermal management components essential for high-performance computing environments where reliability is non-negotiable. This represents a classic "picks and shovels" investment approach to the AI boom – supplying essential infrastructure components without facing the direct R&D and market acceptance risks of chip designers.
The Vietnam expansion strategy addresses two critical business imperatives. First, it diversifies manufacturing away from China amid ongoing geopolitical tensions affecting technology supply chains. Many Western technology companies are requiring suppliers to establish capacity outside China, making this expansion potentially necessary to retain and grow key customer relationships. Second, it potentially offers cost advantages as manufacturing wages in China continue to rise.
ZJK's mention of "sub-assembly and advanced manufacturing solutions" suggests a strategic move up the value chain from simple components toward more complex, integrated products. This vertical integration typically commands higher margins and creates stronger customer relationships through increased switching costs.
However, investors should approach with measured optimism. The announcement lacks specific financial figures beyond percentage comparisons, and the full audited financials won't be available until April 30th. The capital expenditure required for the Vietnam expansion may temporarily pressure margins despite long-term strategic benefits. Additionally, increasing concentration of sales with NVIDIA, while positive in the current environment, creates potential vulnerability to any slowdown in AI infrastructure spending.
The preliminary nature of this data and absence of margin information makes it difficult to fully assess ZJK's financial health. Prudent investors should await the complete audited financials before making significant portfolio decisions based on this announcement.
Shenzhen, China, Feb. 25, 2025 (GLOBE NEWSWIRE) -- ZJK Industrial Co. Ltd. (NASDAQ: ZJK) (“ZJK Industrial”, “ZJK” or the “Company”), a high-tech precision parts and hardware manufacturer for AI infrastructure, consumer electronics, electric vehicles, aerospace and other smart technologies, today announced updates to the Company’s growth throughout 2024 – driven by increasing sales and the expansion of key collaborations with industry leaders – ZJK’s proactive response to supply chain shifts, and outlined its plans for continued advancement in precision manufacturing for high-performance applications.
ZJK Industrial primarily generates revenue from sales of precision metal parts, including fasteners supplied to some global leading AI computing companies and global leading consumer electronics companies. According to the unaudited financials for fiscal year 2024, the Company’s preliminary data suggests similar revenue growth to fiscal year 2023, which saw a more than
Response to Supply-Chain Shifts:
To meet the increased demand for its products, the Company continues to scale its production capacity to facilitate new opportunities and is expanding its operations in Vietnam to respond to the shift in customer supply chain requirements.
Future Outlook:
To distinguish itself from its competitors, ZJK continues to leverage its expertise in sub-assembly and advanced manufacturing solutions to support the rapidly evolving technological landscape, access additional high-margin market opportunities and deliver value to its shareholders.
ZJK Industrial CEO, Ning Ding, commented, “ZJK's strong growth in 2024 is a testament to the surging demand for our high-precision components across AI data centers, consumer electronics, and new energy sectors. As a trusted supplier to many global leaders, we are proud to deliver reliable, cutting-edge solutions that power the next generation of technology. Our unwavering commitment to customer first orientation, providing first-class innovative solutions and expanding our existing strategic collaborations continues to strengthen our position in precision manufacturing.”
About ZJK Industrial Co., Ltd.
ZJK Industrial Co., Ltd. is a high-tech enterprise specializing in the manufacturing and sale of precision fasteners, structural parts and other precision metal parts applied in a variety of industries, including intelligent electronic equipment, new energy vehicles, aerospace, energy storage systems, medical and liquid cooling systems used in artificial intelligence supercomputers. With over fourteen years in the precision metal parts manufacturing industry, the Company maintains a skilled professional team, a series of highly automated and precision manufacturing equipment, stable and strong customer group, and complete quality management systems. ZJK mainly offers standard screws, precision screws and nuts, high-strength bolts and nuts, turning parts, stamping parts and Computer Numerical Control (CNC) machining parts, CNC milling parts, high precision structural components, Surface Mounting Technology (SMT) for miniature parts packaging, and technology service for research and development from a professional engineering team. For more information, please visit the Company's website at https://ir.zjk-industrial.com/.
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 “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “likely to” 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 filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
ZJK Industrial Co., Ltd.
Phone: +86-755-28341175
Email: ir@zjk-industrial.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
FAQ
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