Mingteng International Corporation Inc. Announces Financial Results for Fiscal Year 2023

Core Viewpoint - Mingteng International Corporation Inc. reported a modest revenue increase in fiscal year 2023, driven by growth in mold production and machining services, while facing challenges from rising costs and fluctuating exchange rates [2][4][6]. Financial Performance - Total revenue for fiscal year 2023 was $8.23 million, a 2.5% increase from $8.03 million in fiscal year 2022, primarily due to higher revenues from mold production and machining services [4][6]. - Gross profit decreased to $3.32 million in fiscal year 2023 from $3.91 million in fiscal year 2022, resulting in a gross margin of 40.4%, down from 48.8% [6][10]. - Net income fell to $1.51 million in fiscal year 2023, compared to $2.13 million in fiscal year 2022, with basic and diluted earnings per share at $0.30, down from $0.43 [6][16][17]. Revenue Breakdown - Revenue from mold production was $6.64 million, a slight increase of 0.8% from $6.58 million in fiscal year 2022, indicating stable relationships with major customers [5][6]. - Revenue from mold repair decreased by 4.6% to $1.08 million, despite a 10% increase in order volume, attributed to exchange rate fluctuations [8]. - Revenue from machining services surged by 64.2% to $0.50 million, driven by improved production capacity [9]. Cost and Expenses - Cost of revenues increased by 19.5% to $4.83 million, primarily due to rising raw material, manufacturing, and labor costs [10]. - Operating expenses rose slightly by 1.9% to $1.58 million, with research and development expenses increasing by 28.1% to $630,752, reflecting a focus on innovation [12][15]. Cash Flow and Financial Condition - As of December 31, 2023, cash and cash equivalents were $1.06 million, down from $1.79 million in 2022, with net cash provided by operating activities at $1.30 million [18][28]. - The company experienced net cash used in financing activities of $1.25 million in fiscal year 2023, compared to net cash provided of $0.17 million in fiscal year 2022 [19]. Recent Developments - Mingteng International's ordinary shares began trading on the Nasdaq Capital Market on April 18, 2024, following an initial public offering that raised gross proceeds of $4.83 million [20].