Core Insights - Tungray Technologies Inc reported a decrease in total revenues by 10.8% to $12.8 million for the year ended December 31, 2024, compared to $14.4 million in 2023 [4][7] - The company faced challenges in revenue and profitability due to lower revenue per customer and intense price competition in the manufacturing automation industry, particularly in China and Singapore [3][4] - Despite the revenue decline, the company increased its R&D investment by 34.3% year-over-year, supporting the launch of over a dozen new projects aimed at expanding its product portfolio [3][13] Financial Performance - Total revenues decreased by 10.8% to $12.8 million for the year ended December 31, 2024, compared to $14.4 million for 2023 [4][7] - Gross margin decreased to 43.7% in 2024 from 46.7% in 2023, with gross profit declining by 16.6% to $5.6 million [9][4] - Operating loss was $0.7 million for 2024, a significant decline from an operating income of $1.1 million in 2023 [14][4] - Net loss for 2024 was $0.6 million, compared to a net income of $0.8 million in 2023 [17][4] Cost Management and Strategic Initiatives - The company implemented targeted cost control measures to reduce expenses and enhance operational efficiency [3] - Efforts to enhance revenue include exploring horizontal strategic partnerships and introducing new lines of business [5][3] - Selling expenses increased by 41.3% to $0.6 million, primarily due to higher advertising and compensation expenses related to business expansion [11][10] Market Dynamics and Future Outlook - The company is adapting to evolving market conditions and is exploring 3D metal printing solutions for high-end sectors such as commercial aviation and oil & gas [6] - Management emphasized the importance of strengthening customer retention and enhancing service offerings to support sustainable revenue growth [3][6] - The focus remains on delivering long-term shareholder value while strategically positioning the company for sustainable growth [6]