#China #Shenzhen #financial results #fiscal year 2024 #ZJK Industrial

ZJK Industrial's Financial Performance

ZJK Industrial Co., Ltd. (Nasdaq: ZJK) recently published its financial results for the first six months of fiscal year 2024, which ended on June 30, 2024. The report highlighted a significant growth trajectory, with a staggering 72.81% increase in revenue, reaching $16.23 million compared to $9.39 million during the same period last year.

Financial Highlights

The financial insight indicates a remarkable leap in gross profit, which surged 134.31%, totaling $7.56 million, up from $3.23 million. The operational income showcased an even more impressive rise of 149.33% to $4.91 million, while net income saw an increase of 106.98%, reaching $5.43 million. Achieving basic and diluted earnings per share of $0.09, the figures were notably better than the previous year’s $0.04.

Mr. Ning Ding, the Chief Executive Officer and Chairman of the company, expressed his excitement regarding the results. In his statement, he said, "We are thrilled to report outstanding performance in the first half of fiscal year 2024, with revenues surging 72.81% to US$16.23 million. This growth reflects our strategic efforts to expand our market presence and meet the high demand for our product offerings amidst the rapidly evolving technology revolution."

Key Drivers of Growth

The surge in revenue can be attributed to the company's unwavering commitment to innovation and advances in production technology. ZJK Industrial also emphasized stringent cost control measures and adapted sales and marketing strategies, which ultimately contributed to increasing their average unit sales price. This resulted in the gross profit margin improving significantly—from 34.34% to 46.57%.

To meet the burgeoning demand, ZJK Industrial expanded its production capacity by leasing three additional factories. Furthermore, it enhanced sales and marketing efforts to propel sales, along with consistent investments in research and development.

Revenue Breakdown

When dissecting the revenue sources, it becomes evident that the hardware product sales were pivotal to the overall increase. The number of units sold saw a 44.55% rise, while the average unit sales price grew 21.91% when compared to last year's numbers. More specifically:

• - The average unit price for turned parts increased by 28.25% alongside a 39.73% rise in the sales volume, resulting in a revenue boost of $3.29 million.
• - For screws, the average unit price increased by 8.10%, and a 45.98% increase in sales volume brought an additional $2.51 million in revenue.
• - Additionally, sales of stamping parts grew by 12.84%, adding $0.79 million to overall figures.

Expenditure Insights

However, expenses also experienced an upward trend:

• - Cost of revenues grew by 40.64% to $8.67 million, which aligned with the 44.55% growth in total sales volume.
• - Administrative costs inflated by 245.36%, totaling $1.22 million primarily due to an increase in professional service fees.
• - Marketing costs saw a jump of 123.17% to $1.18 million, driven by heightened sales activities.

Conversely, research and development costs saw a decline by 35.69%—an interesting twist given the company's focus on innovation.

Looking Ahead

ZJK Industrial's leadership is optimistic about the future. The CEO noted, “Our steadfast focus on technology innovation and specialized advanced solutions will continue to distinguish us from our competitors. By deeply cultivating our expertise in sub-assembly and assembly manufacturing, we believe we are poised to deliver long-term value to our shareholders.”

As ZJK continues to evolve amidst the competitive landscape, it pledges to leverage its expertise in high-tech manufacturing to explore additional growth opportunities.

Conclusion

In conclusion, ZJK Industrial Co., Ltd. portrayed a robust growth narrative for the first half of fiscal year 2024, showcasing its resilience in navigating market demands. With a solid financial foundation and proactive business strategies, it is well-positioned for sustained success in the future.