Financial Performance - Total revenues for the six months ended June 30, 2025, increased to $5,261,469, representing a 13.2% growth compared to $4,646,389 for the same period in 2024[5] - Gross profit for the six months ended June 30, 2025, was $1,468,420, a decrease of 11.0% from $1,651,788 in 2024[5] - Net loss for the six months ended June 30, 2025, was $1,356,773, compared to a net loss of $265,842 in 2024, indicating a significant increase in losses[5] - Mold production revenue was $3,634,475 for the six months ended June 30, 2025, compared to $3,312,007 in 2024, reflecting an increase of about 9.7%[56] - Machining services revenue rose to $1,135,540 in the first half of 2025, up from $816,082 in 2024, marking a significant increase of approximately 39.1%[56] - The basic and diluted loss per share for the six months ended June 30, 2025, was $(0.20), compared to $(0.05) for the same period in 2024, with a net loss of $1,356,773,000[126] Assets and Liabilities - Total current assets as of June 30, 2025, were $9,019,850, up from $8,641,942 as of December 31, 2024[4] - Total assets decreased to $12,816,280 as of June 30, 2025, from $13,961,603 as of December 31, 2024[4] - Total liabilities increased to $5,689,118 as of June 30, 2025, compared to $5,507,972 as of December 31, 2024[4] - Cash and cash equivalents decreased to $1,755,205 as of June 30, 2025, from $2,080,715 as of December 31, 2024[4] - Trade accounts receivable as of June 30, 2025, amounted to $3,959,338, a decrease from $4,187,946 as of December 31, 2024[91] - Total inventories as of June 30, 2025, were valued at $1,485,361, compared to $1,183,572 as of December 31, 2024[93] - Total other liabilities increased to $2,269,998 as of June 30, 2025, up from $1,829,642 as of December 31, 2024, primarily due to an increase in payroll payable and loans from third parties[103] Research and Development - Research and development expenses increased to $409,623 for the six months ended June 30, 2025, compared to $288,182 in 2024, reflecting a 42.0% increase[5] - Research and development expenses include costs for projects such as adjustable casting molds for automotive parts, which are expensed as incurred[61] Equity and Shareholder Information - The weighted average number of ordinary shares outstanding increased to 6,839,600 for the six months ended June 30, 2025, from 5,448,846 in 2024[5] - The total shareholders' equity as of June 30, 2025, was $7,127,162,000, reflecting the re-designation of ordinary shares to Class A and Class B[133] Foreign Currency and Taxation - The company reported a foreign currency translation loss of $30,304 for the six months ended June 30, 2025[5] - The effective tax rate for the Company for the six months ended June 30, 2025, was (4.7)%, compared to 2.8% for the same period in 2024[118] - The provision for income taxes for the six months ended June 30, 2025, was $61,212, compared to a benefit of $(7,548) for the same period in 2024[118] Initial Public Offering - Mingteng International completed its initial public offering on April 22, 2024, issuing 1,050,000 shares at $4.00 per share, raising gross proceeds of $4.20 million[13] - An additional 157,500 shares were issued on May 10, 2024, related to the over-allotment arrangement, generating gross proceeds of $0.63 million[13] - The total net proceeds received by the company after deducting expenses from the IPO amounted to $3,293,096[13] Impairments and Provisions - The Company recorded impairment for contract costs of $13,165 for the six months ended June 30, 2025, compared to nil in 2024[58] - The company did not record any impairment charges for long-lived assets for the six months ended June 30, 2025[34] - As of June 30, 2025, the Company recognized impairment charges on equity investments amounting to $1,356,618 due to a write-down of the investment's fair value to zero[98] Legal and Compliance - The company has no outstanding litigation as of June 30, 2025, indicating a stable legal standing[124] - The Company has no significant unrecognized uncertain tax positions as of June 30, 2025[66] Miscellaneous - The Company recognized lease liabilities based on the present value of fixed lease payments, with most leases having initial terms ranging from 1 to 3 years[46] - The Company has not used any derivative financial instruments to manage interest rate risk exposure, which is considered not material[83] - The foreign currency risk indicates that the RMB is not freely convertible, affecting the company's financial operations[125]
Mingteng(MTEN) - 2025 Q2 - Quarterly Report