Technology

Tuya Reports Fourth Quarter 2023 Unaudited Financial Results

Published

10 months ago

February 27, 2024

SANTA CLARA, Calif., Feb. 27, 2024 /PRNewswire/ — Tuya Inc. (“Tuya” or the “Company”) (NYSE: TUYA; HKEX: 2391), a global leading IoT cloud development platform, today announced its unaudited financial results for the fourth quarter ended December 31, 2023.

Fourth Quarter 2023 Financial Highlights

Total revenue was US$64.4 million, up approximately 42.2% year over year (4Q2022: US$45.3 million).

IoT platform-as-a-service (“PaaS”) revenue was US$47.2 million, up approximately 44.6% year over year (4Q2022: US$32.6 million).

Software-as-a-service (“SaaS”) and others revenue was US$9.5 million, up approximately 19.3% year over year (4Q2022: US$7.9 million).

Overall gross margin increased to 47.3%, up 2.7 percentage points year over year (4Q2022: 44.6%). Gross margin of IoT PaaS increased to 44.8%, up 3.3 percentage points year over year (4Q2022: 41.5%).

Operating margin was negative 36.7%, improved by 35.8 percentage points year over year (4Q2022: negative 72.5%). Non-GAAP operating margin was negative 0.4%, improved by 33.4 percentage points year over year (4Q2022: negative 33.8%).

Net margin was negative 16.8%, improved by 33.4 percentage points year over year (4Q2022: negative 50.2%). Non-GAAP net margin was 19.5%, improved by 31.0 percentage points year over year (4Q2022: negative 11.5%).

Net cash generated from operating activities was US$31.8 million (4Q2022: net cash used in operating activities was US$0.1 million).

Total cash and cash equivalents, time deposits and U.S. treasury securities recorded as short-term and long-term investments were US$984.3 million as of December 31, 2023, compared to US$952.0 million as of December 31, 2022.

For further information on the non-GAAP financial measures presented above, see the section headed “Use of Non-GAAP Financial Measures.”

Fourth Quarter 2023 Operating Highlights

IoT PaaS customers1 for the fourth quarter of 2023 were approximately 2,200 (4Q2022: approximately 2,400). Total customers for the fourth quarter of 2023 were approximately 3,200 (4Q2022: approximately 3,400). The Company’s implementation of key-account strategy has enabled it to be more focused on serving strategic customers.

Premium IoT PaaS customers2 for the trailing 12 months ended December 31, 2023 were 265 (4Q2022: 263). In the fourth quarter of 2023, the Company’s premium IoT PaaS customers contributed approximately 82.7% of its IoT PaaS revenue (4Q2022: approximately 77.0%).

Dollar-based net expansion rate (“DBNER”)3 of IoT PaaS for the trailing 12 months ended December 31, 2023 was 103% (4Q2022: 51%).

Registered IoT device and software developers were approximately 993,000 as of December 31, 2023, up 40.3% from approximately 708,000 developers as of December 31, 2022.

1. The Company defines an IoT PaaS customer for a given period as a customer who has directly placed orders for IoT PaaS with the Company during that period.

2. The Company defines a premium IoT PaaS customer as a customer as of a given date that contributed more than US$100,000 of IoT PaaS revenue during the immediately preceding 12-month period.

3. The Company calculates DBNER of IoT PaaS for a trailing 12-month period by first identifying all customers in the prior 12-month period (i.e., those have placed at least one order for IoT PaaS during that period), and then calculating the quotient from dividing the IoT PaaS revenue generated from such customers in the current trailing 12-month period by the IoT PaaS revenue generated from the same Company of customers in the prior 12-month period. The Company’s DBNER may change from period to period, due to a combination of various factors, including changes in the customers’ purchase cycles and amounts and the Company’s customer mix, among other things. DBNER indicates the Company’s ability to expand customer use of the Tuya platform over time and generate revenue growth from existing customers.

Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, “In the fourth quarter of 2023, we continued to execute our proven development strategies of focusing on key account customers and enhancing our product capabilities to boost our value proposition, while also essentially completing our organization adjustment. These combined efforts enabled us to conclude the year with strong sequential growth momentum. Notably, we achieved a 42.2% year-over-year revenue increase, reaching approximately $64.4 million in the quarter, alongside a record-high blended gross margin of 47.3%. These results reflect the substantial value of our platform, products, and services offer to our customers, affirming our confidence in Tuya’s resilience and its capability to navigate industry cycles with improved operational leverage and financial performance.”

Ms. Yao (Jessie) Liu, Director and Chief Financial Officer of Tuya, added, “The fourth quarter marked our transition from recovery to growth, efficiency enhancements, and margin expansion. During the quarter, all three business sectors recorded robust revenue growth, and their margins either improved or remained steady, a testament to the effectiveness of our product focus and enrichment strategy. Our strategic commitment to cost management and operational efficiency, coupled with the steady growth of gross profits, resulted in continued record-high non-GAAP net profits and positive net operating cashflow. As we advance into 2024, we are confident that Tuya’s solid financial position and momentum will sustain our business expansion and product profitability.”

Fourth Quarter 2023 Unaudited Financial Results

REVENUE

Total revenue in the fourth quarter of 2023 increased by 42.2% to US$64.4 million from US$45.3 million in the same period of 2022, mainly due to the increase in IoT PaaS revenue, SaaS and others revenue and smart device distribution revenue.

IoT PaaS revenue in the fourth quarter of 2023 increased by 44.6% to US$47.2 million from US$32.6 million in the same period of 2022, primarily due to the relief of downstream inventory backlog and a global economic improvement compared with the same period of 2022, along with the effective customer-focus and product-enhancement strategies the Company adopted to navigate through the macroeconomic headwinds. Correspondingly, the Company’s DBNER of IoT PaaS for the trailing 12 months ended December 31, 2023 increased to 103% from 51% for the trailing 12 months ended December 31, 2022.

SaaS and others revenue in the fourth quarter of 2023 increased by 19.3% to US$9.5 million from US$7.9 million in the same period of 2022, primarily due to an increase in revenue from cloud software products. The Company remained committed to offering value-added services and a diverse range of software products with compelling value propositions to its customers.

Smart device distribution revenue in the fourth quarter of 2023 increased by 64.6% to US$7.8 million from US$4.7 million in the same period of 2022, primarily due to an increase in revenue from smart device solutions and the variations in the timing and volume of customer demands and purchases.

COST OF REVENUE

Cost of revenue in the fourth quarter of 2023 increased by 35.3% to US$33.9 million from US$25.1 million in the same period of 2022, generally in line with the increase in the Company’s total revenue.

GROSS PROFIT AND GROSS MARGIN

Total gross profit in the fourth quarter of 2023 increased by 50.9% to US$30.5 million from US$20.2 million in the same period of 2022 and gross margin increased to 47.3% in the fourth quarter of 2023 from 44.6% in the same period of 2022.

IoT PaaS gross margin in the fourth quarter of 2023 was 44.8%, compared to 41.5% in the same period of 2022, primarily due to the changes in product mix, enhancement in product value, and the decrease in provision recorded for certain slow-moving IoT chips and raw materials compared to the fourth quarter of last year.

SaaS and others gross margin in the fourth quarter of 2023 was 74.2%, which remained relatively stable, compared to 75.2% in the same period of 2022.

Smart device distribution gross margin in the fourth quarter of 2023 was 29.7%, compared to 14.6% in the same period of 2022, primarily due to higher-value product solutions we provided to our customers during the fourth quarter of 2023.

OPERATING EXPENSES

Operating expenses increased by 2.0% to US$54.1 million in the fourth quarter of 2023 from US$53.0 million in the same period of 2022.

Non-GAAP operating expenses, defined as operating expenses excluding share-based compensation expenses and credit loss of long-term investments, decreased by 13.5% to US$30.7 million in the fourth quarter of 2023 from US$35.5 million in the same period of 2022. Share-based compensation expenses in the fourth quarter of 2023 were US$15.9 million, compared to US$17.5 million in the same period of 2022. Credit loss of long-term investments was US$7.4 million in the fourth quarter of 2023, compared to nil in the same period of 2022.

Research and development expenses in the fourth quarter of 2023 were US$22.8 million, down 17.9% from US$27.8 million in the same period of 2022, primarily because of the strategic streamlining of the Company’s research and development team and operations. During this quarter, average salaried employee headcount of the Company’s research and development team was down approximately 21.9% year over year, compared to the same quarter in last year. Non-GAAP adjusted research and development expenses in the fourth quarter of 2023 were US$19.4 million, compared to US$23.8 million in the same period of 2022.

Sales and marketing expenses in the fourth quarter of 2023 were US$10.9 million, down 2.4% from US$11.2 million in the same period of 2022, primarily due to the strategic streamlining of the Company’s sales and marketing team, partially offset by increased spending in marketing events as the revenue returned to a year-over-year growth trajectory since the third quarter of 2023. Non-GAAP adjusted sales and marketing expenses in the fourth quarter of 2023 were US$9.5 million, compared to US$9.6 million in the same period of 2022.

General and administrative expenses in the fourth quarter of 2023 were US$23.8 million, up 46.8% compared to US$16.2 million in the same period of 2022, primarily due to the credit loss of US$7.4 million of long-term investments. Non-GAAP adjusted general and administrative expenses in the fourth quarter of 2023 were US$5.3 million, compared to US$4.3 million in the same period of 2022.

Other operating income, net in the fourth quarter of 2023 was US$3.4 million, primarily due to the receipt of software value-added tax refunds and various general subsidies for enterprises.

LOSS FROM OPERATIONS AND OPERATING MARGIN

Loss from operations in the fourth quarter of 2023 narrowed by 28.0% to US$23.6 million from US$32.8 million in the same period of 2022. Non-GAAP loss from operations in the fourth quarter of 2023 narrowed by 98.3% to US$0.3 million from US$15.3 million in the same period of 2022.

Operating margin in the fourth quarter of 2023 was negative 36.7%, improved by 35.8 percentage points from negative 72.5% in the same period of 2022. Non-GAAP operating margin in the fourth quarter of 2023 was negative 0.4%, improved by 33.4 percentage points from negative 33.8% in the same period of 2022.

NET LOSS/PROFIT AND NET MARGIN

Net loss in the fourth quarter of 2023 narrowed by 52.4% to US$10.8 million from US$22.7 million in the same period of 2022. The difference between loss from operations and net loss in the fourth quarter of 2023 was primarily because of a US$13.1 million interest income achieved mainly due to well implemented treasury strategies on the Company’s cash and bank time deposits recorded as short-term and long-term investments.

The Company had a non-GAAP net profit of US$12.6 million in the fourth quarter of 2023, compared to a non-GAAP net loss of US$5.2 million in the same period of 2022, demonstrating the Company’s ability to sustain profitability on a non-GAAP basis.

Net margin in the fourth quarter of 2023 was negative 16.8%, improving by 33.4 percentage points from negative 50.2% in the same period of 2022. Non-GAAP net margin in the fourth quarter of 2023 was 19.5%, improving by 31.0 percentage points from negative 11.5% in the same period of 2022.

BASIC AND DILUTED NET LOSS/PROFIT PER ADS

Basic and diluted net loss per ADS was US$0.02 in the fourth quarter of 2023, compared to US$0.04 in the same period of 2022. Each ADS represents one Class A ordinary share.

Non-GAAP basic and diluted net profit per ADS was US$0.02 in the fourth quarter of 2023, compared to non-GAAP basic and diluted net loss of US$0.01 in the same period of 2022.

CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND U.S. TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTS

Cash and cash equivalents, time deposits and U.S. treasury securities recorded as short-term and long-term investments were US$984.3 million as of December 31, 2023, compared to US$952.0 million as of December 31, 2022, which the Company believes is sufficient to meet its current liquidity and working capital needs.

NET CASH GENERATED FROM OPERATING ACTIVITIES

Net cash generated from operating activities in the fourth quarter of 2023 was US$31.8 million, compared to net cash used in operating activities US$0.1 million in the same period of 2022. The net cash generated from operating activities for the fourth quarter of 2023 improved mainly due to the increase in the Company’s revenue, and the decrease in operating expenses, particularly employee-related costs, and working capital changes in the ordinary course of business.

For further information on non-GAAP financial measures presented above, see the section headed “Use of Non-GAAP Financial Measures.”

Business Outlook

In the fourth quarter of 2023, we continued to observe a moderately declining yet persisting overall inflation, which is expected to continually influence the discretionary consumer electronics spending. On the supply chain front, we expect downstream inventory levels to be normalizing ongoingly, providing downstream smart device manufacturers, brands, and retail channels with greater flexibility and resilience to adapt their operational and procurement plans as necessary. This, in turn, will revitalize their investment in smart business. Overall, discretionary consumer electronic spending alongside enterprise procurement are expected to prioritize cost-effectiveness, reflecting a balanced approach widely adopted in the current economic climate.

In response to this evolving market environment, the Company will remain committed to continuously iterating and improving its products and services, further enhancing software and hardware capabilities, expanding key customer base, investing in innovations and new opportunities, diversifying revenue streams, and further optimizing operating efficiency. At the same time, the Company understands that future trajectories may encounter challenges, including shifting consumer spending patterns, regional economic disparities, inventory management, foreign exchange rate volatility, and broader geopolitical uncertainties.

Conference Call Information

The Company’s management will hold a conference call at 07:30 P.M. Eastern Time on Tuesday, February 27, 2024 (08:30 A.M. Beijing Time on Wednesday, February 28, 2024) to discuss the financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this conference including a conference access code, a PIN number (personal access code), the dial-in number, and an e-mail with detailed instructions to join the conference call.

Online registration: https://www.netroadshow.com/events/login?show=a98d0a81&confId=60968

The replay will be accessible through March 5, 2024 by dialing the following numbers:

International:

+1–929–458–6194

United States:

+1–866–813–9403

Access Code:

925036

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.tuya.com.

About Tuya Inc.

Tuya Inc. (NYSE: TUYA; HKEX: 2391) is a global leading IoT cloud development platform with a mission to build an IoT developer ecosystem and enable everything to be smart. Tuya has pioneered a purpose-built IoT cloud development platform that delivers a full suite of offerings, including Platform-as-a-Service, or PaaS, and Software-as-a-Service, or SaaS, to businesses and developers. Through its IoT cloud development platform, Tuya has enabled developers to activate a vibrant IoT ecosystem of brands, OEMs, partners and end users to engage and communicate through a broad range of smart devices.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating expenses, non-GAAP loss from operations (including non-GAAP operating margin), non-GAAP net (loss)/profit (including non-GAAP net margin), and non-GAAP basic and diluted net (loss)/profit per ADS, as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company defines non-GAAP measures by excluding the impact of share-based compensation expenses and credit-related impairment of long-term investments from the respective GAAP measures. The Company presents the non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company also believes that the use of the non-GAAP measures facilitates investors’ assessment of its operating performance.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the aforementioned non-GAAP financial measures is that they do not reflect all items of expenses that affect the Company’s operations. Share-based compensation expenses and credit-related impairment of long-term investments have been and may continue to be incurred in the business and are not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of Tuya’s non-GAAP financial measures to the most comparable U.S. GAAP measures are included at the end of this press release.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. The forward-looking statements included in this press release are only made as of the date hereof, and the Company disclaims any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

Investor Relations Contact

Tuya Inc.
Investor Relations
Email: ir@tuya.com

The Blueshirt Group
Gary Dvorchak, CFA
Phone: +1 (323) 240-5796
Email: gary@blueshirtgroup.com

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2022 AND 2023

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

As of December 31,

2022

2023

ASSETS
Current assets:
Cash and cash equivalents

133,161

498,688

Short-term investments

821,134

291,023

Accounts receivable, net

12,172

9,214

Notes receivable, net

2,767

4,955

Inventories, net

45,380

32,865

Prepayments and other current assets, net

8,752

11,053

Total current assets

1,023,366

847,798

Non-current assets:
Property, equipment and software, net

3,827

2,589

Operating lease right-of-use assets, net

9,736

7,647

Long-term investments

18,031

207,489

Other non-current assets, net

1,179

877

Total non-current assets

32,773

218,602

Total assets

1,056,139

1,066,400

LIABILITIES AND SHAREHOLDERS‘ EQUITY
Current liabilities:
Accounts payable

9,595

11,577

Advances from customers

27,633

31,776

Deferred revenue, current

6,821

6,802

Accruals and other current liabilities

33,383

32,807

Incomes tax payables

–

689

Lease liabilities, current

3,850

3,883

Total current liabilities

81,282

87,534

Non-current liabilities:
Lease liabilities, non-current

5,292

3,904

Deferred revenue, non-current

394

506

Other non-current liabilities

7,004

3,891

Total non-current liabilities

12,690

8,301

Total liabilities

93,972

95,835

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

AS OF DECEMBER 31, 2022 AND 2023

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

As of

December 31,

As of

December 31,

2022

2023

Shareholders’ equity:

Ordinary shares

–

Class A ordinary shares

Class B ordinary shares

Treasury stock

(86,438)

(53,630)

Additional paid–in capital

1,584,764

1,616,105

Accumulated other comprehensive loss

(22,115)

(17,091)

Accumulated deficit

(514,073)

(574,848)

Total shareholders’ equity

962,167

970,565

Total liabilities and shareholders’ equity

1,056,139

1,066,400

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE LOSS

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

December 31,
2022

December 31,
2023

Revenue

45,286

64,411

Cost of revenue

(25,100)

(33,948)

Gross profit

20,186

30,463

Operating expenses:

Research and development expenses

(27,792)

(22,806)

Sales and marketing expenses

(11,203)

(10,937)

General and administrative expenses

(16,181)

(23,754)

Other operating incomes, net

2,160

3,410

Total operating expenses

(53,016)

(54,087)

Loss from operations

(32,830)

(23,624)

Other income/(loss)

Other non-operating income, net

779

778

Financial income, net

10,234

13,135

Foreign exchange (loss)/gain, net

(102)

Loss before income tax expense

(21,919)

(9,694)

Income tax expense

(811)

(1,122)

Net loss

(22,730)

(10,816)

Net loss attributable to Tuya Inc.

(22,730)

(10,816)

Net loss attribute to ordinary shareholders

(22,730)

(10,816)

Net loss

(22,730)

(10,816)

Other comprehensive (loss)/income

Changes in fair value of long-term investments

(8,347)

(5,321)

Transfer out of fair value changes of long-term investments

–

7,487

Foreign currency translation

2,090

1,772

Total comprehensive loss attributable to Tuya Inc.

(28,987)

(6,878)

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE LOSS (CONTINUED)

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

December 31,

2022

December 31,

2023

Net loss attributable to Tuya Inc.

(22,730)

(10,816)

Net loss attributable to ordinary shareholders

(22,730)

(10,816)

Weighted average number of ordinary shares used in computing

net loss per share, basic and diluted

554,121,595

557,103,923

Net loss per share attributable to ordinary shareholders, basic

and diluted

(0.04)

(0.02)

Share–based compensation expenses were included in:

Research and development expenses

4,032

3,446

Sales and marketing expenses

1,611

1,462

General and administrative expenses

11,867

11,028

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

December 31,
2022

December 31,
2023

Net cash (used in)/generated from operating activities

(138)

31,760

Net cash (used in)/generated from investing activities

(165,305)

299,763

Net cash (used in)/generated from financing activities

(3,432)

162

Effect of exchange rate changes on cash and cash equivalents,
restricted cash

2,138

729

Net (decrease)/increase in cash and cash equivalents,
restricted cash

(166,737)

332,414

Cash and cash equivalents, restricted cash at the beginning of period

299,898

166,274

Cash and cash equivalents, restricted cash at the end of period

133,161

498,688

TUYA INC.

UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY

COMPARABLE FINANCIAL MEASURES

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

December 31,

2022

December 31,

2023

Reconciliation of operating expenses to

non–GAAP operating expenses

Research and development expenses

(27,792)

(22,806)

Add: Share–based compensation expenses

4,032

3,446

Adjusted Research and development expenses

(23,760)

(19,360)

Sales and marketing expenses

(11,203)

(10,937)

Add: Share–based compensation expenses

1,611

1,462

Adjusted Sales and marketing expenses

(9,592)

(9,475)

General and administrative expenses

(16,181)

(23,754)

Add: Share–based compensation expenses

11,867

11,028

Add: Credit-related impairment of long-term investments

–

7,435

Adjusted General and administrative expenses

(4,314)

(5,291)

Reconciliation of loss from operations to

non–GAAP loss from operations

Loss from operations

(32,830)

(23,624)

Operating margin

(72.5) %

(36.7) %

Add: Share–based compensation expenses

17,510

15,936

Add: Credit-related impairment of long-term investments

–

7,435

Non–GAAP Loss from operations

(15,320)

(253)

Non–GAAP Operating margin

(33.8) %

(0.4) %

Reconciliation of net loss to non–GAAP net (loss)/profit

Net loss

(22,730)

(10,816)

Net margin

(50.2) %

(16.8) %

Add: Share–based compensation expenses

17,510

15,936

Add: Credit-related impairment of long-term investments

–

7,435

Non–GAAP Net (loss)/profit

(5,220)

12,555

Non–GAAP Net margin

(11.5) %

19.5 %

Weighted average number of ordinary shares used in

computing non–GAAP net loss per share

– Basic

554,121,595

557,103,923

– Diluted

554,121,595

589,438,606

Non–GAAP net (loss)/profit per share attributable

to ordinary shareholders

– Basic

(0.01)

0.02

– Diluted

(0.01)

0.02

View original content:https://www.prnewswire.com/news-releases/tuya-reports-fourth-quarter-2023-unaudited-financial-results-302073314.html

SOURCE Tuya Inc.

Technology

Boqii Announces Fiscal 2025 First Half Unaudited Financial Results

Published

1 hour ago

December 31, 2024

SHANGHAI, Dec. 31, 2024 /PRNewswire/ — Boqii Holding Limited (“We,” “Boqii” or the “Company”) (NYSE American: BQ), a leading pet-focused platform in China, today announced its unaudited financial results for the first half of fiscal 2025 (i.e., the six months ended September 30, 2024).

Fiscal 2025 First Half Operational and Financial Highlights

Total revenues were RMB249.7 million (US$35.6 million), compared to RMB389.4 million in the first half of fiscal 2024.

Loss from operations was RMB27.0 million (US$3.9 million), representing a decrease of 14.7% from RMB31.7 million for the first half of fiscal 2024.

Net loss was RMB29.6 million (US$4.2 million), representing a decrease of 21.6% from RMB37.7 million in the first half of fiscal 2024.

Diluted net loss per share was RMB0.28 (US$0.04), representing a decrease of 46.7% from diluted net loss per share of RMB0.52 for the first half of fiscal 2024.

EBITDA[1] was a loss of RMB25.0 million (US$3.6 million), representing a decrease of 25.4% from a loss of RMB 33.5 million in the first half of fiscal 2024.

Total GMV[2] was RMB538.2 million (US$76.7 million), compared to RMB903.0 million in the first half of fiscal 2024.

[1] EBITDA refers to net income/(loss) excluding income tax expenses, interest expense, interest income, depreciation and amortization expenses. EBITDA is a Non-GAAP financial measurement. See the section titled “Non-GAAP Financial Measures” for more information about EBITDA.

[2] GMV refers to gross merchandise volume, which is the total value of confirmed orders placed with us and sold through distribution model or drop shipping model where we act as a principal in the transaction regardless of whether the products are delivered or returned, calculated based on the listed prices of the ordered products without taking into consideration any discounts. The total GMV amount (i) includes GMV of products sold by Nanjing Xingmu Biotechnology Co., Ltd., (ii) excludes products sold through consignment model and (iii) excludes the value of services offered by us. GMV is subject to future adjustments (such as refunds) and represents only one measure of the Company’s performance and should not be relied on as an indicator of our financial results, which depend on a variety of factors.

CEO & CFO Quote

Mr. Hao Liang, Boqii’s Founder, Chairman and Chief Executive Officer commented, “Despite persistently pessimistic social expectations and increasingly weak consumption in the first half of fiscal 2025, we have demonstrated our resilience. Our private labels are riding a wave of thriving development, showing the effectiveness of our strategic focus on that area. The number of SKUs for our private labels has increased from 3,088 in the first half of fiscal 2024 to 3,546 in the firt half of fiscal 2025, the revenue share of our private labels increased from 27.5% to 29.0%, and we also saw the gross margin of our private labels rose by 330 basis points from 29.9% to 33.2%. This gives us a strong foundation and we remain energized for the future.”

Ms. Yingzhi (Lisa) Tang, Boqii’s Co-Founder, Co-CEO and CFO commented, “Besides fostering the progress of our private labels, we have implemented cost-saving measures and enhanced efficiency by optimizing our supply chain operations and simplifying our organizational hierarchy in the first half of fiscal 2025. The implementation of these measures has resulted in a reduction of our fulfillment expenses as a percentage of total revenue, from 8.9% in the first half of fiscal 2024 to 7.5% in the first half of fiscal 2025. This reduction has underpinned a positive shift in our post-fulfillment profit margin, which saw an increase from 11.2% to 13.3%. Furthermore, there has been a notable decrease in our sales and marketing expenses by 21.3% and our general and administrative expenses by 22.5%, when compared to the corresponding period in fiscal 2024. These adjustments have collectively contributed to a 21.6% decrease in our net loss. We believe the strengthening of our financial results affirms that our business approach and strategic initiatives are effectively aligned with our goals, and we are committed to generating ongoing value for our consumers and investors alike in the time ahead.”

Fiscal 2025 First Half Financial Results

Total revenues were RMB249.7 million (US$35.6 million), compared to RMB389.4 million for the first half of fiscal 2024. The decrease was a result of our business strategy to focus more on increasing profitability instead of volume of sales.

Revenues

(in millions, except for percentages)

Six Months Ended September 30,

2024

2023

Change

RMB

Product sales

232.7

374.1

(37.8)

• Boqii Mall

112.5

149.9

(24.9)

• Third party e-commerce platforms

120.2

224.2

(46.4)

Online marketing and information services and other revenue

17.0

15.3

11.1

Total

249.7

389.4

(35.9)

Gross profit was RMB51.7 million (US$7.4 million), compared to RMB77.9 million for the first half of fiscal 2024.

Gross margin was 20.7%, representing an increase of 70 basis points from 20.0% for the first half of fiscal 2024.

Operating expenses were RMB79.3 million (US$11.3 million), representing a decrease of 29.3% from RMB112.0 million for the first half of fiscal 2024.

Fulfillment expenses were RMB18.6 million (US$2.7 million), representing a decrease of 46.0% from RMB34.5 million for the first half of fiscal 2024, which is primarily due to the decrease in shipping and warehousing expenses, resulting from more utilization of fulfillment centers. Fulfillment expenses as a percentage of total revenues were 7.5%, down from 8.9% for the first half of fiscal 2024.

Sales and marketing expenses were RMB35.8 million (US$5.1 million), representing a decrease of 21.3% from RMB45.4 million for the first half of fiscal 2024. The decrease was primarily due to (i) the decrease in advertising expenses of RMB1.0 million, as a result of cost-saving efforts; (ii) the decrease in third-party commisions of RMB3.2 million as a result of decline in revenues; and (iii) the decrease in staff costs of RMB4.4 million related to the employee layoffs.

General and administrative expenses were RMB24.9 million (US$3.6 million), representing a decrease of 22.5% from RMB32.2 million for the first half of fiscal 2024. The decrease was primarily due to (i) the decrease in professional fees amount to RMB2.1 million, resulting from less financing transactions in the first half of fiscal 2025, (ii) the decrease in allowance for expected credit losses of RMB2.5 million, and (iii) the decrease in staff costs of RMB2.0 million related to the employee layoffs.

Loss from operations was RMB27.0 million (US$3.9 million), representing a decrease of 14.7% from RMB31.7 million for the first half of fiscal 2024.

Net loss was RMB29.6 million (US$4.2 million), representing a decrease of 21.6% from a loss of RMB37.7 million in the first half of fiscal 2024.

EBITDA was a loss of RMB25.0 million (US$3.6 million), representing a decrease of 25.4% from a loss of RMB 33.5 million in the first half of fiscal 2024. See the section titled “Non-GAAP Financial Measures” for more information about EBITDA.

Diluted net loss per share was RMB0.28 (US$0.04), representing a decrease of 46.7% from diluted net loss per share of RMB0.52 for the first half of fiscal 2024.

Total cash and cash equivalents and short-term investments were RMB46.2 million (US$6.6 million) as of September 30, 2024, compared to RMB72.7 million as of March 31, 2024.

About Boqii Holding Limited

Boqii Holding Limited (NYSE American: BQ) is a leading pet-focused platform in China. The Company is the leading online destination for pet products and supplies in China with its broad selection of high-quality products including global leading brands, local emerging brands, and its own private label, Yoken, Mocare and D-cat, offered at competitive prices. The Company’s online sales platforms, including Boqii Mall and its flagship stores on third-party e-commerce platforms, provide customers with convenient access to a wide selection of high-quality pet products and an engaging and personalized shopping experience. The Company’s Boqii Community provides an informative and interactive content platform for users to share their knowledge and love for pets.

Forward Looking Statements

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Further information regarding such risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date hereof, and the Company does not undertake any duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures, namely non-GAAP net income/(loss), non-GAAP net loss margin, EBITDA and EBITDA margin, in evaluating its operating results and for financial and operational decision-making purposes. The Company defines (i) non-GAAP net income/(loss) as net income/(loss) excluding fair value change of derivative liabilities and share-based compensation expenses, (ii) non-GAAP net loss margin as non-GAAP net loss as a percentage of total revenues, (iii) EBITDA as net income/(loss) excluding income tax expenses, interest expenses, interest income, depreciation and amortization, and (iv) EBITDA margin as EBITDA as a percentage of total revenues. The Company believes non-GAAP net income/(loss), non-GAAP net loss margin, EBITDA and EBITDA margin enhance investors’ overall understanding of its financial performance and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

The non-GAAP financial measures have limitations as analytical tools. The Company’s non-GAAP financial measures do not reflect all items of income and expense that affect the Company’s operations or not represent the residual cash flow available for discretionary expenditures. These non-GAAP financial measures may not be calculated in the same manner by all companies, and they may not be comparable to other similarly titled measures used by other companies. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company’s performance. For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of accompanying tables titled “Reconciliation of GAAP and Non-GAAP Results.” The Company encourages investors and others to review its financial information in its entirety and not rely on any single financial measure.

Exchange Rate

This press release contains translations of certain RMB amounts into U.S. dollars (“USD,”or “US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.0176 US$1.00, the exchange rate on September 30, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all.

For investor inquiries, please contact:

Boqii Holding Limited
Investor Relations
Tel: +86-21-6882-6051
Email: ir@boqii.com

BOQII HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share and per share data, unless otherwise noted)

As of

March 31,

2024

As of

September 30,

2024

As of

September 30,

2024

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

72,722

46,244

6,590

Accounts receivable, net

50,118

47,133

6,716

Inventories, net

55,189

45,122

6,430

Prepayments and other current assets

94,518

110,604

15,762

Amounts due from related parties

5,704

19,692

2,806

Total current assets

278,251

268,795

38,304

Non-current assets:

Property and equipment, net

3,103

3,769

537

Intangible assets

17,910

16,115

2,296

Operating lease right-of-use assets

8,951

6,832

974

Long-term investments

65,887

65,656

9,356

Amounts due from related parties, non-current

5,658

4,464

636

Other non-current asset

3,455

1,718

245

Total non-current assets

104,964

98,554

14,044

Total assets

383,215

367,349

52,348

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT

Current liabilities

Short-term borrowings

15,213

13,138

1,872

Accounts payable

24,279

42,735

6,090

Salary and welfare payable

2,972

2,173

310

Accrued liabilities and other current liabilities

16,667

16,989

2,421

Contract liabilities

1,579

119

Operating lease liabilities, current

5,613

5,264

750

Derivative liabilities

5,721

815

Total current liabilities

72,044

86,139

12,275

Non-current liabilities

Deferred tax liabilities

3,234

2,789

397

Operating lease liabilities, non-current

3,115

1,352

193

Other debts, non-current

43,941

40,727

5,804

Total non-current liabilities

50,290

44,868

6,394

Total liabilities

122,334

131,007

18,669

Mezzanine equity

Redeemable non-controlling interests

7,963

8,372

1,193

Total mezzanine equity

7,963

8,372

1,193

Stockholders’ equity:

Class A ordinary shares

962

137

Class B ordinary shares

Additional paid-in capital

3,329,675

3,329,727

474,482

Statutory reserves

3,876

552

Accumulated other comprehensive loss

(39,478)

(40,430)

(5,761)

Accumulated deficit

(3,060,405)

(3,088,140)

(440,056)

Receivable for issuance of ordinary shares

(16,031)

(10,093)

(1,438)

Total Boqii Holding Limited shareholders’ equity

218,681

195,984

27,928

Non-controlling interests

34,237

31,986

4,558

Total shareholders’ equity

252,918

227,970

32,486

Total liabilities, mezzanine equity and shareholders’ equity

383,215

367,349

52,348

BOQII HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(All amounts in thousands, except for share and per share data, unless otherwise noted)

Six Months Ended September 30,

2023

2024

RMB

US$

Net revenues:

Product sales

374,102

232,713

33,161

Online marketing and information services and other revenue

15,269

16,942

2,414

Total revenues

389,371

249,655

35,575

Total cost of revenue

(311,435)

(197,961)

(28,209)

Gross profit

77,936

51,694

7,366

Operating expenses:

Fulfillment expenses

(34,499)

(18,614)

(2,652)

Sales and marketing expenses

(45,370)

(35,726)

(5,091)

General and administrative expenses

(32,169)

(24,919)

(3,551)

Other income, net

2,401

523

Loss from operations

(31,701)

(27,042)

(3,853)

Interest income

2,008

730

104

Interest expense

(3,079)

(3,163)

(451)

Other gain/(losses), net

(2,283)

(447)

(64)

Fair value change of derivative liabilities

(3,216)

–

Loss before income tax expenses and share of results of equity investees

(38,271)

(29,922)

(4,264)

Income taxes expenses

482

445

Share of results of equity investees

(100)

(14)

Net loss

(37,722)

(29,577)

(4,215)

Less: Net loss attributable to the non-controlling interest shareholders

(677)

(2,251)

(321)

Net loss attributable to Boqii Holding Limited

(37,045)

(27,326)

(3,894)

Accretion on redeemable non-controlling interests to redemption value

(371)

(410)

(58)

Net loss attributable to Boqii Holding Limited’s ordinary shareholders

(37,416)

(27,736)

(3,952)

Net loss

(37,722)

(29,577)

(4,215)

Other comprehensive income/(loss):

Foreign currency translation adjustment, net of nil tax

2,849

(952)

(136)

Unrealized securities holding loss

(1,425)

–

Total comprehensive loss

(36,298)

(30,529)

(4,351)

Less: Total comprehensive loss attributable to non-controlling interest
shareholders

(677)

(2,251)

(321)

Total comprehensive loss attributable to Boqii Holding Limited

(35,621)

(28,278)

(4,030)

Net loss attributable to Boqii Holding Limited’s ordinary shareholders

— basic

(0.52)

(0.28)

(0.04)

— diluted

(0.52)

(0.28)

(0.04)

Weighted average number of ordinary shares

— basic

72,332,794

100,637,760

— diluted

72,332,794

100,637,760

Boqii Holding Limited

Reconciliation of GAAP and Non-GAAP Results

(All amounts in thousands, except for percentages)

Six Months Ended September 30,

2023

2024

RMB

Net loss

(37,722)

(29,577)

Fair value change of derivative liabilities

3,216

–

Share-based compensation expenses

290

Non-GAAP net loss

(34,216)

(29,525)

Non-GAAP net loss margin

(8.8 %)

(11.8 %)

Six Months Ended September 30,

2023

2024

RMB

Net loss

(37,722)

(29,577)

Income tax expenses

(482)

(445)

Interest expenses

3,079

3,163

Interest income

(2,008)

(730)

Depreciation and amortization

3,641

2,617

EBITDA

(33,492)

(24,972)

EBITDA margin

(8.6 %)

(10.0 %)

View original content:https://www.prnewswire.com/news-releases/boqii-announces-fiscal-2025-first-half-unaudited-financial-results-302340648.html

SOURCE Boqii Holding Limited

Technology

Tungray Technologies Inc Reports Unaudited 2024 First Half Financial Results

Published

1 hour ago

December 31, 2024

SINGAPORE, Dec. 31, 2024 /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, 2024.

First Half 2024 Financial Highlights

Total revenues for the six months ended June 30, 2024 increased by 1.5% to $5.4 million, compared to $5.3 million in the same period of 2023.Gross margin for the six months ended June 30, 2024 was 46.7%, compared to 53.5% for the same period in 2023.Operating loss for the six months ended June 30, 2024, was $0.9 million, compared to an operating income of $0.1 million for the same period in 2023.Net loss for the six months ended June 30, 2024, was $0.8 million, compared to net income of $0.2 million for the same period in 2023.

Recent Developments and Strategic Highlights:

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.

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 metal 3D printing for precision engineering, 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.

Restatement of Previously Issued Financial Statements

During the course of preparing the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, the Company identified misstatements in its previously issued consolidated financial statements for the six months ended June 30, 2023 as below, and as a result the Company has restated the previously issued consolidated financial statements for the six months ended June 30, 2023 in accordance with ASC 250 Accounting Changes and Error Corrections, to reflect the effects of the restatement adjustments and to make certain corresponding disclosures.

The categories of adjustments and their impacts on previously issued financial statements are described below and identified in the column entitled “Reference”:

a. The Company failed to record the correct income tax expense, taxes payable and retained earnings due to improper identification of non-deductible expenses which were not detected because of not performing a reconciliation between the financial statements and tax return. Such failure has resulted in the misstatements of “Income tax expense”, “Net income attributable to Tungray Technologies Inc”, and “Foreign currency translation adjustment” for the six months ended June 30, 2023. The impact to the accumulated other comprehensive loss and foreign currency translation adjustment was a result of the foreign currency translation difference to the misstatement.

b. The Company failed to take the purchase option into consideration for the finance lease and used the incorrect useful life for the assets amortization. Such failure has resulted in the misstatement of “Cost of revenue”, “Net income attributable to Tungray Technologies Inc” and “Foreign currency translation adjustment” for the six months ended June 30, 2023. The impact to the accumulated other comprehensive loss and foreign currency translation adjustment was a result of the foreign currency translation difference to the misstatement.

The effects of restatement adjustments to the line items are as below:

For the six months ended June 30,

2023

As previously

reported

Adjustment

Reference

As restated

Cost of revenues

2,480,629

12,590

2,493,219

Income tax expense

(88,638)

(16,853)

(105,491)

Foreign currency translation adjustment

(305,719)

12,507

a, b

(293,212)

Management Commentary

Mr. Wanjun Yao, Chairman and Chief Executive Officer of Tungray, commented, “This year, we faced challenges that impacted our year-over-year performance, particularly in revenue growth and profit margins. To remain viable amidst the price competition, we are implementing aggressive cost-cutting measures and seeking efficiencies in production. In addition, to complement our cost-cutting measures, we are also exploring new revenue streams and focusing on higher-margin products to improve profitability.”

“Despite significant headwinds from fierce price competition, our commitment to innovation and quality improvements remains unchanged, and we remain focused on delivering sustainable growth and innovation as our long-term strategy. During this reporting period, we expensed $0.4 million in R&D expenses, a slight increase compared to the same period last year. We are confident that our ongoing initiatives will position us well when market conditions improve.”

“As we move forward, we are dedicated to adapting to the evolving market landscape. To enhance Tungray’s business portfolio and adapt to high-growth markets, we are actively exploring 3D metal printing solutions tailored for high-end sectors such as commercial aviation, offshore marine, and oil & gas industries in which Singapore serves as a strategic hub. We believe potential expansion into 3D metal printing will complement our current product and service offerings and positions us to compete well in the provision of advanced, precision-engineered components. We are confident that this strategic initiative will elevate Tungray’s market presence, generate new revenue streams, and ultimately create greater value for our shareholders. We anticipate that the steps we’re taking now will yield improvements and help us return to a sustained growth trajectory in the upcoming years.”

First Half 2024 Financial Results

Total Revenues

Total revenues increased slightly by 1.5% to $5.4 million for the six months ended June 30, 2024, compared to $5.3 million for the six months ended June 30, 2023.

Revenues from customized products increased by $0.5 million or 11.6% for the six months ended June 30, 2024, primarily driven by the delivery of a major customization project during the period.Revenues from standardized products decreased by $0.4 million, or 30.5% for the six months ended June 30, 2024, mainly due to the impact of increasing industry competition resulting in lower sales pricing.

Cost of Revenues

Total costs increased by 16.2% to $2.9 million for the six months ended June 30, 2024, compared to $2.5 million for the six months ended June 30, 2023.

The cost of revenues for customized products rose by $0.6 million, or 31.3% for the same period ended June 30, 2024, in line with the revenue increase.The cost of revenues for standardized products decreased by $0.2 million, or 21.1% for the same period ended June 30, 2024, corresponding with the revenue decline due to increased industry competition.

Gross Profit

Gross profit was $2.5 million for the six months ended June 30, 2024, representing a decrease of 11.4% year over year from $2.9 million for the six months ended June 30, 2023. Gross margin was 46.7% for the six months ended June 30, 2024, compared to 53.5% for the same period in 2023. The decrease in gross profit and gross margin was mainly due to the increase of raw materials and labor costs.

Gross profit for customized products was $2.2 million for the six months ended June 30, 2024, a decrease of 3.6% as compared to $2.3 million for the six months ended June 30, 2023. Gross margin for customized products was 48.6% for the six months ended June 30, 2024, and 56.3% for the six months ended June 30, 2023.Gross profit for standardized products was $0.3 million for the six months ended June 30, 2024, a decrease of 42.1% as compared to $0.6 million for the six months ended June 30, 2023. Gross margin for standardized products was 37.2% for the six months ended June 30, 2024, and 44.6% for the six months ended June 30, 2023.

Operating Expenses

Total operating expenses were $3.5 million for the six months ended June 30, 2024, representing an increase of 26.5% year over year from $2.8 million for the six months ended June 30, 2023.

Selling expenses increased by $0.1 million or 38.8% from $0.2 million for the six months ended June 30, 2023 to $0.3 million for the six months ended June 30, 2024. The increase was mainly due to an increase of advertisement expense for business expansion.General and administrative expenses increased by $0.6 million or 29.8% from $2.1 million for the six months ended June 30, 2023 to $2.7 million for the six months ended June 30, 2024. The increase was mainly attributed to a $0.5 million increase in salary and benefits for talent retention, as well as a $0.1 million increase in professional service fee related to the Company’s initial public offering during the six months ended June 30, 2024 as compared with the same period last year.R&D expenses increased slightly by 3.8% for the six months ended June 30, 2024 as compared with the same period last year. The increase was consistent with the R&D plan the Company previously set out.

(Loss) Income from operations

Loss from operations was $0.9 million for the six months ended June 30, 2024, compared to income from operations of $0.1 million for the six months ended June 30, 2023.

Other Income, net

Total other income was $0.2 million for the six months ended June 30, 2024 and 2023.

Income tax expense

Income tax expense increased by approximately $20,000 or 19.6%, from $0.1 million for the six months ended June 30, 2023 to $0.1 million for the six months ended June 30, 2024.

Net (Loss) Income

Net loss was $0.8 million for the six months ended June 30, 2024, compared to net income of $0.2 million for the six months ended June 30, 2023.

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

June 30, 2024

As of

December 31, 2023

As Restated

ASSETS

CURRENT ASSETS

Cash

9,965,474

10,802,405

Accounts and notes receivable, net

2,732,116

3,574,739

Accounts receivable – related parties

295,487

319,589

Inventories, net

1,424,207

2,283,809

Prepayments, net

831,679

259,950

Prepayments – related parties

1,462,583

1,048,745

Other receivables and other current assets, net

805,048

215,651

Other receivables – related parties

461,924

23,816

Total current assets

17,978,518

18,528,704

PROPERTY AND EQUIPMENT, NET

6,184,336

6,326,369

OTHER ASSETS

Prepaid expenses and deposits

79,592

23,163

Prepayment for land use right

1,988,386

–

Long-term investment

206,407

211,271

Operating right-of-use assets

1,594,282

712,261

Intangible assets, net

72,884

55,842

Deferred initial public offering (“IPO”) costs

–

1,192,734

Total non-current assets

3,941,551

2,195,271

Total assets

28,104,405

27,050,344

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable

1,280,101

1,048,271

Accounts payable – related parties

515,276

498,923

Contract liabilities

3,859,463

4,010,832

Accrued expenses and other payables

965,192

1,289,941

Other payables – related parties

284,235

670,866

Current portion of banking facilities

156,654

140,162

Current portion of operating lease liabilities

236,305

46,232

Current portion of operating lease liabilities – related party

269,960

123,094

Taxes payable

635,216

1,206,141

Total current liabilities

8,202,402

9,034,462

OTHER LIABILITIES

Banking facilities

1,810,412

1,951,389

Operating lease liabilities

769,997

10,603

Operating lease liabilities – related party

228,627

339,450

Total other liabilities

2,809,036

2,301,442

Total liabilities

11,011,438

11,335,904

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY

Class A ordinary shares ($0.0001 par value; 400,000,000 and 400,000,000 shares authorized as of June 30, 2024 and December 31, 2023, respectively; 11,793,485 and 10,440,000 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively)

1,179

1,044

Class B ordinary shares ($0.0001 par value; 100,000,000 and 100,000,000 shares authorized as of June 30, 2024 and December 31, 2023, respectively; 4,560,000 and 4,560,000 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively)

456

Additional paid-in capital

3,135,124

332,574

Retained earnings

14,716,555

15,530,562

Statutory reserves

248,761

Accumulated other comprehensive loss

(913,916)

(284,444)

Total Tungray Technologies Inc shareholders’ equity

17,188,159

15,828,953

NONCONTROLLING INTERESTS

(95,192)

(114,513)

TOTAL EQUITY

17,092,967

15,714,440

Total liabilities and equity

28,104,405

27,050,344

Tungray Technologies Inc and Subsidiaries

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

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

For the six months ended

June 30,

2024

2023

(Unaudited)

As Restated

(Unaudited)

Revenue – products

5,435,786

5,313,634

Revenue – related party

–

42,790

Total revenues

5,435,786

5,356,424

Cost of revenue – products

2,897,866

2,460,361

Cost of revenue – related party

–

32,858

Total cost of revenues

2,897,866

2,493,219

Gross profit

2,537,920

2,863,205

Operating expenses:

Selling expenses

300,122

216,168

General and administrative expenses

2,735,835

2,106,952

Research and development expenses

447,234

430,809

Total operating expenses

3,483,191

2,753,929

(Loss) Income from operations

(945,271)

109,276

Other income

Other income, net

172,687

128,614

Lease income – related party

9,855

10,263

Financial expenses, net

44,262

22,074

Total other income, net

226,804

160,951

(Loss) Income before income taxes

(718,467)

270,227

Income tax expense

(126,219)

(105,491)

Net (loss) income

(844,686)

164,736

Less: net loss attributable to noncontrolling interests

(30,679)

(38,426)

Net (loss) income attributable to Tungray Technologies Inc

(814,007)

203,162

Net (loss) income

(844,686)

164,736

Foreign currency translation adjustment

(629,472)

(293,212)

Comprehensive loss

(1,474,158)

(128,476)

Less: comprehensive loss attributable to noncontrolling interests

(30,679)

(36,732)

Total comprehensive loss attributable to Tungray Technologies Inc

(1,443,479)

(91,744)

Weighted average number of common shares outstanding – basic and diluted

15,539,074

15,000,000

(Loss) Earnings per common share – basic and diluted

(0.05)

0.01

View original content:https://www.prnewswire.com/news-releases/tungray-technologies-inc-reports-unaudited-2024-first-half-financial-results-302340750.html

SOURCE Tungray Technologies Inc

Technology

CoNetrix Honored Again with Comparably Awards for Best Company Culture and Best CEO

Published

2 hours ago

December 31, 2024

CoNetrix again ranks among the top 100 for the Best Company Culture and Best CEO (Marvin Crossnoe) for small to medium-sized businesses in 2024.

LUBBOCK, Texas, Dec. 31, 2024 /PRNewswire-PRWeb/ — CoNetrix has once again ranked among the top 100 for the Best Company Culture and Best CEO (Marvin Crossnoe) for small to medium-sized businesses in 2024.

“In my decade plus at the company, I’ve watched CoNetrix leadership actively nurture a culture of integrity, wisdom, ambition, and team spirit,” said Leticia Saiid, Chief of Staff and Chief Learning Officer.

The Comparably Awards are based on sentiment ratings anonymously provided by employees about their workplaces in multiple categories on Comparably.com over a 12-month period. Winners are selected using 20 core culture metrics, including work-life balance, environment, compensation, and career growth.

CoNetrix’s CEO, Marvin Crossnoe, has also been recognized for the second consecutive year with the “Best CEO” award, placing him among the top 5% of 2,034 similar-sized companies (51-200 employees) on Comparably.

Russ Horn, President of CoNetrix, expressed his enthusiasm, stating, “Marvin’s leadership is the foundation of our success. His commitment to excellence and his genuine care for our team members make it no surprise that he ranks among the top CEOs again this year.”

About CoNetrix 
CoNetrix, LLC is a family of technology companies. CoNetrix Technology offers managed IT services as well as a suite of secure cloud computing offerings called Aspire. CoNetrix Security provides cybersecurity testing, IT audits, and information security consulting. Tandem Security & Compliance Software® is online software helping organizations comply with information security requirements and regulations. AccountingWare® offers a suite of accounting software (ERP) modules to companies throughout the United States and Canada.

To learn more about CoNetrix, visit https://conetrix.com.

Find open job postings at CoNetrix by visiting https://conetrix.com/careers.

Media Contact

Brian Whipple, CoNetrix, 800-356-6568, info@conetrix.com, https://conetrix.com/

View original content to download multimedia:https://www.prweb.com/releases/conetrix-honored-again-with-comparably-awards-for-best-company-culture-and-best-ceo-302340688.html

SOURCE CoNetrix