Benzinga·2025-05-05 17:36Core Viewpoint - ZJK Industrial Co. Ltd. reported a 30% revenue growth last year, with international markets now accounting for about one-third of its business, up from 14% in 2023 [2][15]. Financial Performance - ZJK's revenue increased to $37.8 million in 2024 from $29.1 million in 2023, accelerating from a 17% growth rate the previous year [8][13]. - The company's profit fell by approximately 50% to $3.66 million from $7.69 million in 2024, attributed to a decline in gross margin and rising marketing and administrative costs [18]. - Gross margin decreased by 2 percentage points to 35.9% in 2024, down from 37.9% in 2023, due to pricing pressures [17]. Market Expansion - The revenue growth was primarily driven by foreign markets, particularly Taiwan and Singapore, with Taiwan's revenue nearly quadrupling to $7.63 million, now representing 20% of total revenue [14][15]. - Revenue from Singapore grew to $3.2 million, accounting for 13% of total revenue, while revenue from the Americas fell to $546,000 [14][15]. - Global markets now account for about one-third of ZJK's revenue, more than double the 14% from 2023 [15]. Strategic Focus - ZJK is focusing on its core business of fasteners rather than hyping potential partnerships, such as with Nvidia, to avoid stock volatility [5][6]. - The company is positioning itself to benefit from the AI boom by supplying high-precision fasteners to major clients, including Nvidia and Foxconn [7][8]. - ZJK's ongoing geographic diversification aims to reduce reliance on China, which is crucial given the current economic slowdown and trade tensions [12][16]. Operational Developments - The company has significantly increased its sales and marketing expenses by about 165% to support its global expansion efforts [16]. - ZJK launched a new factory in Vietnam in April last year, contributing to increased operational costs [16].