#China #revenue growth #Wuxi #Mingteng International #automotive mold

Mingteng International Corporation Inc. Reports Financial Results for Fiscal Year 2024

Mingteng International Corporation Inc. (Nasdaq: MTEN), a prominent automotive mold developer and supplier based in Wuxi, China, has released its financial results for the fiscal year ended December 31, 2024. The company has experienced considerable developments, indicating resilience and strategy in a competitive environment.

Strategic Initiatives and Growth

Mr. Yingkai Xu, Chairman and CEO of Mingteng International, noted that the past year involved crucial strategic decisions, including an expansion of production capacity and workforce increments to better navigate market dynamics and heightened competition. Although these strategic undertakings led to increased investments and operational costs, Mingteng has registered a remarkable revenue growth of 23.0% over the last fiscal year, rising to $10.12 million from $8.23 million in 2023.

Significantly, the company’s machining services have surged as a vital growth engine. This segment grew an astounding 327.6% compared to the previous year, now contributing 21.2% of the total revenue. This shift illustrates the effectiveness of Mingteng's strategic resource allocation.

Financial Overview

Despite revenue growth, the larger operational scale also resulted in a rise in the cost of revenues which climbed faster, totaling $7.05 million, up from $4.90 million in 2023. However, Mingteng maintained a solid gross margin of 30.3%, down from 40.4% the prior year. The gross profit for 2024 was $3.07 million.

Fiscal Year 2024 Financial Highlights:

• - Total Revenue: $10.12 million (up 23.0% YoY)
• - Gross Profit: $3.07 million (down from $3.32 million in FY2023)
• - Net Loss: $5.68 million, a decline from a net income of $1.51 million reported in 2023.
• - Basic and Diluted Losses per Share: $0.97 compared to earnings of $0.30 last year.

Cost and Profit Margins

The operational expenses ballooned to $8.18 million in FY 2024, a significant increase driven mainly by general and administrative expenses, which soared by 827.8% to $7.39 million. This spike includes substantial costs related to the IPO, including share-based compensation and consultancy fees, all incurred to position Mingteng strategically for future endeavors.

Operating in the mold production sector, Mingteng reported that its mold revenue was $6.87 million (up 3.5% YoY), and mold repair garnered $1.10 million (up 1.7%). Notably, revenues from machining services reached $2.14 million, leading to a notable transformation of revenue streams.

Looking Forward

As Mingteng International continues to innovate and enhance production capabilities, the outlook remains promising. Underlined by a robust commitment to technical expertise and service quality, the company’s leadership expresses confidence in harnessing further growth opportunities. The advancements made in 2024 lay a solid groundwork for ongoing development, with ambitions for long-term sustainability.

Conclusion

Mingteng International’s fiscal year 2024 announces both challenges and achievements—a testament to the company's adaptive strategies amidst market volatility. As they focus on enhancing capacity and capabilities, stakeholders can anticipate continued evolution within this sector, driven by an unwavering commitment to excellence and customer satisfaction.

For more detailed information on the financial performance and strategic direction of Mingteng International Corporation Inc., please visit the company’s investor relations page.