#Singapore #Tungray Technologies #ETO Company #financial report

Tungray Technologies Inc Reports 2024 Financial Results

Tungray Technologies Inc, a prominent player in the Engineer-to-Order (ETO) manufacturing sector, released its financial results for the year ending December 31, 2024. The results indicate a difficult year, with total revenues declining by 10.8% to $12.8 million, down from $14.4 million in 2023. This reduction can be attributed to competitive market dynamics and strategic pricing adjustments aimed at maintaining market share.

Financial Highlights

• - Total Revenues: Revenues decreased by 10.8% to $12.8 million for 2024.
• - Gross Margin: The gross margin fell to 43.7%, a decrease from 46.7% in the previous year.
• - Operating Loss: The company experienced an operating loss of $0.7 million, compared to an operating income of $1.1 million in 2023.
• - Net Loss: The net loss for 2024 was $0.6 million, contrasting with a net income of $0.8 million in the prior year.

Recent Developments

In response to these financial challenges, Tungray has enacted several strategic measures aimed at enhancing cost management and improving operational efficiency. Among the key initiatives highlighted are:

• - Cost-Cutting Measures: The company has taken steps to control expenses, including renegotiating supplier contracts and focusing on high-volume suppliers to secure better pricing for essential components.
• - Revenue Enhancement Strategies: Tungray is looking to expand its market reach by forming new partnerships that provide additional high-value capabilities. This includes exploring business opportunities in burgeoning sectors such as metal 3D printing for precision engineering and standardized manufacturing of medical components.

Management Insights

Mr. Wanjun Yao, the Chairman and CEO of Tungray, expressed cautious optimism regarding the company's future. He acknowledged the ongoing pressures on revenue and profitability yet emphasized the successful expansion of the customer base despite these obstacles. Yao pointed out that the market, particularly in China and Singapore’s manufacturing spaces, has faced intense competition and economic challenges.

"Our investment in research and development has seen a substantial year-over-year increase of 34.3%. This commitment reflects our goal to bolster product offerings and innovation, positioning us for long-term success, particularly within high-demand sectors," Yao stated.

Looking Ahead

As Tungray navigates these tumultuous market dynamics, the company is set on pursuing opportunities that align with emerging technology trends. Specifically, Tungray is focused on integrating 3D metal printing solutions to cater to industries such as commercial aviation and offshore marine, thereby strengthening its competitive edge and enhancing shareholder value.

Conclusion

In summary, while 2024 proved challenging for Tungray Technologies Inc, the proactive measures being implemented signal a strategic pivot for recovery and growth. The focus on enhancing customer relationships and expanding technological capabilities may enable the company to stabilize and thrive in the evolving marketplace. Stakeholders can stay informed by visiting Tungray's website as the company continues to adapt and prepare for a more promising future in the coming years.