Wuxi, China, June 17, 2025 (GLOBE NEWSWIRE) -- HUHUTECH International Group Inc. (Nasdaq: HUHU) (the “Company” or “HUHUTECH”), a professional provider of factory facility management and monitoring systems, today announced that it previously established its wholly owned subsidiary, ASPIRATIONAL TECHNOLOGY CO. (“Aspirational Technology”) in Arizona, United States, on January 30, 2025. The strategic move marks HUHUTECH’s entrance into the U.S. market, a significant step in its global expansion, and positions t ...

Core Viewpoint - HUHUTECH International Group Inc. reported a year of expansion in fiscal year 2024, achieving significant revenue growth and strategic milestones, particularly in the Japanese market, while also facing a net loss due to increased operating expenses and investments in growth initiatives [2][3]. Financial Performance - Total revenue for fiscal year 2024 was $18.1 million, an increase of 8.5% from $16.7 million in fiscal year 2023, driven by growth in product sales and system integration projects [5][7]. - Gross profit rose 21.1% to $6.6 million, with gross margin improving to 36.1% from 32.3% in the previous year [7][9]. - Net loss for fiscal year 2024 was $1.9 million, compared to net income of $2.3 million in fiscal year 2023, with basic and diluted loss per share at $0.1 [11][12]. Revenue Breakdown - Revenue from system integration projects was $16.6 million, a 2.0% increase from $16.3 million in fiscal year 2023, attributed to expansion in the Japanese market [8]. - Revenue from engineering consulting services increased by 76.3% to $0.4 million, while revenue from product sales surged 340.3% to $1.2 million [8]. Operating Expenses - Total operating expenses increased by 149.6% to $8.1 million, primarily due to the operations of HUHU Japan [10][18]. - Selling expenses rose 137.2% to $2.1 million, general and administrative expenses increased by 205.0% to $3.2 million, and research and development expenses grew by 114.7% to $2.9 million [18]. Cash Flow and Financial Condition - As of December 31, 2024, the company had cash of $3.1 million, up from $2.7 million in the previous year, with net cash used in operating activities at $3.0 million [13]. - Net cash provided by financing activities was $7.5 million, compared to net cash used in financing activities of $0.6 million in fiscal year 2023 [14]. Recent Developments - The company completed its initial public offering on October 23, 2024, raising gross proceeds of $4.69 million, enhancing its position for future growth and innovation [15].

Company Structure and Operations - HUHUTECH is a holding company with no operations of its own, conducting business through subsidiaries in China and Japan[22]. - As of the date of the report, HUHUTECH has 21,173,413 issued and outstanding Ordinary Shares, with an authorized share capital of US$50,000 divided into 20,000,000,000 Ordinary Shares[24]. - HUHUTECH intends to retain most, if not all, available funds and future earnings to support operations and finance business growth[32]. - HUHUTECH's ability to conduct operations may be materially affected if subsidiaries are unable to pay dividends when needed[31]. - The company relies on dividends from its PRC subsidiaries for cash needs, and any limitations on these dividends could affect its ability to cover expenses[114]. Regulatory Environment - The establishment and operation of companies in China are governed by the PRC Company Law and the PRC Foreign Investment Law, which provides a framework for foreign investments[39][40]. - The Foreign Investment Law prohibits expropriation of foreign investments without fair compensation and mandates that local governments adhere to commitments made to foreign investors[41]. - The 2020 Negative List allows foreign investments in industries not listed, with certain restrictions in place for specific sectors[43]. - The 2021 Negative List continues to open industries for foreign investments while maintaining restrictions in certain areas[44]. - The PRC Foreign Investment Law, effective January 1, 2020, replaced previous laws and aims to unify corporate legal requirements for foreign and domestic enterprises[131]. Financial Regulations and Taxation - Current PRC regulations permit the Company's PRC subsidiaries to pay dividends only out of their accumulated profits, which must be determined in accordance with Chinese accounting standards[35]. - Under the current regulatory regime, foreign investment enterprises in China may pay dividends only out of their retained earnings, with a requirement to set aside at least 10% of after-tax profits until reserves reach 50% of registered capital[75]. - The Enterprise Income Tax Law imposes a uniform corporate income tax rate of 25% on resident enterprises, while non-resident enterprises face a withholding income tax rate of 10% on income sourced from within China if they do not have permanent establishments[77]. - Dividends declared to non-PRC resident investors are subject to a withholding tax rate of 10%[79]. - The PRC government imposes a 10% withholding tax on dividends payable by Chinese companies to non-PRC-resident enterprises, which could limit the company's ability to pay dividends[145]. Intellectual Property and Compliance - The Patent Law protects three types of patents with varying protection periods: 20 years for invention patents, 10 years for utility model patents, and 15 years for design patents[51]. - The Copyright Law provides legal rights to copyright owners, including rights of publication and reproduction, and extends protection to internet activities[54]. - Infringers of copyright may face civil liabilities, including compensation for losses and potential criminal penalties in severe cases[54]. - The company may face challenges in protecting its intellectual property rights, which could impact its competitive advantage[118]. Labor and Employment Regulations - Employers in China are required to provide social insurance benefits covering various insurances, with penalties for non-compliance[85]. - Employers must register and deposit housing funds, contributing no less than 5% of the employee's monthly average salary from the previous year[86]. - Under the Japanese Labor Standards Law, employers must adhere to minimum wage standards and working conditions, with penalties for violations[101]. Currency and Cash Flow Management - The transfer of cash among subsidiaries is subject to PRC regulations, but there are currently no restrictions on transferring cash between subsidiaries[29]. - The PRC government may impose restrictions on foreign currency access for current account transactions, which could impact cash transfers[28]. - Funds or assets in the PRC or Hong Kong may not be available for operations outside these regions due to government restrictions on cash transfers[129]. - The company relies on dividend payments from PRC subsidiaries to fund cash requirements, but must obtain SAFE approval for converting Renminbi into foreign currency for capital expenses[194]. Risks and Uncertainties - The company faces substantial uncertainties regarding the interpretation and implementation of the PRC Foreign Investment Law, which may impact its corporate structure and operations[114]. - The company may encounter difficulties in expanding its business in Japan, which could adversely affect its operational results[118]. - The company has experienced significant disruptions due to the COVID-19 pandemic, which may continue to adversely affect its financial condition[118]. - The evolving regulatory landscape may require the company to enhance internal compliance measures and allocate additional resources to meet new requirements[159]. Compliance and Legal Risks - The company is subject to various laws and regulations in the construction industry in Japan, which may negatively impact its business[118]. - The company may face regulatory actions and legal proceedings that could harm its reputation and adversely affect its financial condition[119]. - The company may face stricter review and approval processes regarding foreign exchange activities, which could adversely affect its financial condition and operations[127]. - Non-compliance with cybersecurity regulations could result in significant financial penalties, operational disruptions, or revocation of business licenses[159]. International Trade and Market Conditions - The current international trade tensions, particularly between the U.S. and China, may adversely impact the company's business and financial condition[214]. - The U.S. government announced a 20% tariff on Chinese imports starting March 4, 2025, which may impact the company's supply chain and cost structure[215]. - Changes in international trade policies could affect demand for the company's services and its competitive position[214].

Core Insights - HUHUTECH International Group Inc. has officially opened its semiconductor industry-supporting warehousing and logistics center in Kumamoto, Japan, marking a significant step in its global expansion strategy [1][4] Group 1: Strategic Expansion - The Japanese government anticipates that 15 new high-end wafer fabrication facilities will be operational between 2025 and 2030, prompting global semiconductor leaders to accelerate factory construction in Kumamoto [2] - In response, HUHU Japan has invested in a state-of-the-art operation and storage center since 2023, focusing on system integration projects for High-Purity Gas Conveyor Systems, High-purity Chemical Conveyor Systems, and Factory Management and Control Systems [2] Group 2: Key Features - The Kumamoto Center spans 3,300 square meters and consists of three buildings, including two warehouses for secure storage and a two-story building with a logistics center and office space [3] - A dedicated team of 30 professionals provides 24/7 support services to ensure timely project material supply and agile incident response capabilities [3] Group 3: Strategic Significance - The CEO of HUHUTECH stated that the Kumamoto Center represents a major advancement in capabilities for semiconductor industry construction and service offerings in Japan, enhancing operational efficiency and competitive edge [4] - The integration of warehousing capabilities with system integration services is expected to accelerate project timelines and provide customers with stable spare parts supply and rapid incident response [4] Group 4: Company Overview - HUHUTECH International Group Inc. specializes in factory facility management and monitoring systems, providing customized high-purity gas and chemical production systems [5] - The company's products include high-purity process systems and factory management control systems, which improve operational efficiency through standardized module software [5]

Core Viewpoint - HUHUTECH International Group Inc. successfully completed a partial exercise of the over-allotment option in its initial public offering, raising additional gross proceeds of approximately $493,652, bringing total gross proceeds to about $4.69 million [1] Group 1: Offering Details - The underwriters partially exercised their over-allotment option to purchase an additional 123,413 ordinary shares at a public offering price of $4.00 per share [1] - The total number of ordinary shares sold in the public offering increased to 1,173,413 ordinary shares [1] - The offering was conducted on a firm commitment basis, with Craft Capital Management LLC as the representative of the underwriters [2] Group 2: Use of Proceeds - Proceeds from the offering will be allocated for the construction of a 5,000 square meter R&D plant and the expansion of the R&D team [1] - Funds will also be used for the expansion and development of the Company's business in the PRC, working capital, team building, operating expenses, and other general corporate purposes [1] - Additional allocations include paying taxes, provident fund, and social security [1] Group 3: Company Overview - HUHUTECH International Group Inc. specializes in factory facility management and monitoring systems, providing customized high-purity gas and chemical production systems [5] - The Company's products include high-purity process systems (HPS) and factory management control systems (FMCS), aimed at increasing operational efficiency [5] - HUHUTECH serves major players in the pan-semiconductor industry, with applications in semiconductor manufacturing, LED and micro-electronics, as well as pharmaceutical and food and beverage sectors [5]

Core Viewpoint - HUHUTECH International Group Inc. successfully closed its initial public offering, raising US$4.2 million by offering 1,050,000 ordinary shares at a price of US$4.0 per share, with trading commencing on the Nasdaq Capital Market under the ticker symbol "HUHU" [1] Group 1: Offering Details - The offering consisted of 1,050,000 ordinary shares priced at US$4.0 each, generating gross proceeds of US$4.2 million before expenses [1] - Underwriters were granted a 45-day option to purchase an additional 157,500 ordinary shares at the public offering price [1][2] - The offering was conducted on a firm commitment basis, with Craft Capital Management LLC as the representative underwriter and EF Hutton LLC as the co-underwriter [2] Group 2: Use of Proceeds - Proceeds from the offering will be allocated for the construction of a 5,000 square meter R&D plant, expansion of the R&D team, and purchase of equipment for gas supply systems at the Wuxi plant [2] - Additional funds will support the expansion and development of the company's business in China, working capital, team building, operating expenses, and general corporate purposes [2] Group 3: Company Overview - HUHUTECH International Group Inc. specializes in factory facility management and monitoring systems, providing customized high-purity gas and chemical production systems [5] - The company's products include high-purity process systems and factory management control systems, aimed at enhancing operational efficiency [5] - HUHUTECH serves major players in the pan-semiconductor industry, with applications in semiconductor manufacturing, LED, micro-electronics, pharmaceuticals, and food and beverage sectors [5]

Core Viewpoint - HUHUTECH International Group Inc. has announced the pricing of its initial public offering (IPO) of 1,050,000 ordinary shares at a price of US$4.0 per share, aiming to raise approximately US$4.2 million before expenses, with trading expected to commence on October 22, 2024 under the ticker symbol "HUHU" [1][2]. Group 1: Offering Details - The IPO consists of 1,050,000 ordinary shares priced at US$4.0 each, with expected gross proceeds of US$4.2 million [1]. - Underwriters have a 45-day option to purchase an additional 157,500 ordinary shares at the public offering price [1]. - The offering is expected to close on or about October 23, 2024, subject to customary closing conditions [1]. Group 2: Use of Proceeds - Proceeds from the offering will be allocated for the construction of a 5,000 square meter R&D plant, expansion of the R&D team, and purchase of equipment for gas supply systems at the Wuxi plant [2]. - Funds will also support the expansion and development of the Company's business in the PRC, working capital, team building, operating expenses, and other general corporate purposes [2]. - Additional allocations include paying taxes, provident fund, and social security [2]. Group 3: Company Overview - HUHUTECH International Group Inc. specializes in factory facility management and monitoring systems, providing customized high-purity gas and chemical production systems [5]. - The Company’s products include high-purity process systems (HPS) and factory management control systems (FMCS), enhancing operational efficiency through standardized modular software [5]. - HUHUTECH serves major players in the pan-semiconductor industry, with applications in semiconductor manufacturing, LED and micro-electronics, as well as pharmaceutical and food and beverage sectors [5].