WUXI, China, Sept. 19, 2025 /PRNewswire/ -- HUHUTECH International Group Inc. (Nasdaq: HUHU) (the "Company" or "HUHUTECH"), a professional provider of factory facility management and monitoring systems, today announced its unaudited financial results for the first half of fiscal year 2025 ended June 30, 2025.
Mr. Yujun Xiao, Chief Executive Officer of HUHUTECH, commented, "We are pleased to report a 10.9% increase in total revenue for the first half of fiscal year 2025, reaching $9.8 million. This growth is primarily driven by our strategic expansion into the Japanese market, where we have significantly increased our client base and project volume. Our Japanese subsidiary has completed 155 projects and contributed 60.9% of our total revenue in the first half of fiscal year 2025, a significant increase from 54 projects and 47.6% of total revenue in the same period last year. Excluding the impact of increased share-based compensation, our underlying business performance remained stable, and we are confident that our equity incentive plan is a long-term investment in our people that will enhance our ability to attract and retain talent, aligning our team's commitment with the interests of our shareholders."
Mr. Xiao continued, "In line with our global growth strategy, we have established a subsidiary in the United States and acquired our German subsidiary, extending our reach into two of the world's most dynamic semiconductor markets. By providing comprehensive and localized system integration solutions, we are well positioned to empower the development of infrastructure for local semiconductor manufacturing clusters. Looking ahead, we will continue to invest in our international operations and expand our capabilities to serve an increasingly global customer base. We remain confident in our strategic direction and are committed to delivering growing long-term value to our shareholders."
First Half of Fiscal Year 2025 Financial Summary
-- Total revenue was $9.8 million for the first half of fiscal year 2025, an
increase of 10.9% from $8.9 million for the same period of last year.
-- Gross profit was $3.1 million for the first half of fiscal year 2025,
compared to $3.2 million for the same period of last year.
-- Gross margin was 32.0% for the first half of fiscal year 2025, compared
to 35.6% for the same period of last year.
-- Net loss was $8.7 million for the first half of fiscal year 2025,
compared to net income of $0.8 million for the same period of last year.
-- Basic and diluted loss per share were $0.38 for the first half of fiscal
year 2025, compared to basic and diluted earnings per share of $0.04 for
the same period of last year.
First Half of Fiscal Year 2025 Financial Results
Revenues
Total revenue was $9.8 million for the first half of fiscal year 2025, an increase of 10.9% from $8.9 million for the same period of last year. The overall increase in total revenue was primarily attributable to a $0.7 million increase in revenue from system integration projects and a $0.4 million increase in revenue from product sales.
-- Revenue from system integration projects was $9.4 million for the first
half of fiscal year 2025, an increase of 8.5% from $8.7 million for the
same period of last year. The increase was due to the expansion of the
Company's business in the Japanese market for the first half of fiscal
year 2025.
-- The Company did not generate revenue from engineering consulting services
for the first half of fiscal year 2025. Revenue from engineering
consulting services was $0.2 million for the same period of last year.
The decrease was mainly due to a shift of focus on system integration
projects for first half of fiscal year 2025.
-- Revenue from product sales was $0.4 million for the first half of fiscal
year 2025, an increase of 1,029.8% from $0.04 million for the same period
of last year. The increase of product sales revenue was due to increase
in product needs along with system integration projects for the first
half of fiscal year 2025.
Cost of Revenues
Cost of revenue was $6.7 million for the first half of fiscal year 2025, an increase of 17.1% from $5.7 million for the same period of last year.
Gross Profit and Gross Margin
Gross profit was $3.1 million for the first half of fiscal year 2025, a decrease of 0.4% from $3.2 million for the same period of last year. Gross profit for system integration projects was $3.1 million for the first half of fiscal year 2025, an increase of 2.7% from $3.0 million for the same period of last year. Gross profit for product sales was $39,864 for the first half of fiscal year 2025, an increase of 296.7% from $10,049 for the same period of last year.
Gross margin was 32.0% for the first half of fiscal year 2025, decreased from 35.6% for the same period of last year.
Operating Expenses
Total operating expenses were $11.8 million for the first half of fiscal year 2025, an increase of 511.5% from $1.9 million for the same period of last year.
-- Selling expenses were $0.9 million for the first half of fiscal year
2025, an increase of 79.9% from $0.5 million for the same period of last
year. The increase was mainly due to the operation increased business
promotion expenses of HUHU Technology Co., Ltd. ("HUHU Japan").
-- General and administrative expenses were $10.3 million for the first half
of fiscal year 2025, an increase of 1,035.3% from $0.9 million for the
same period of last year. The significant increase in G&A expenses was
contributed by (i) an approximately $8.8 million increase in share-based
compensation; (ii) an approximately $0.2 million increase in salary and
compensation; (iii) an approximately $0.2 million increase in other items
including lease expenses and office expenses.
-- R&D expenses stayed at $0.5 million for the first half of fiscal year
2025 and 2024.
Net Income (Loss)
Net loss was $8.7 million for the first half of fiscal year 2025, compared to net income of $0.8 million for the same period of last year.
Basic and Diluted Earnings (Loss) per Share
Basic and diluted loss per share were $0.38 for the first half of fiscal year 2025, compared to basic and diluted earnings per share of $0.04 for the same period of last year.
Financial Condition
As of June 30, 2025, the Company had cash of $3.0 million, compared to $3.1 million as of December 31, 2024.
Net cash used in operating activities for the first half of fiscal year 2025 was $0.5 million, compared to net cash provided by operating activities of $0.3 million for the same period of last year.
Net cash used in investing activities for the first half of fiscal year 2025 was $0.1 million, compared to $1.6 million for the same period of last year.
Net cash used in financing activities for the first half of fiscal year 2025 was $0.04 million, compared to net cash provided by financing activities of $3.0 million for the same period of last year.
About HUHUTECH International Group Inc.
HUHUTECH International Group Inc. is a professional provider of factory facility management and monitoring systems. Through its subsidiaries in China, Japan, the United States, and Germany, HUHUTECH designs and provides customized high-purity gas and chemical production system and equipment. The Company's products mainly include high-purity process systems $(HPS)$ and factory management control systems (FMCS), which effectively increase operation efficiency by using standardized module software. The modularity of HUHUTECH's software solution reduces the errors caused by frequent updates of the program. As a nationally recognized brand, HUHUTECH serves major players in the pan-semiconductor industry. Its products and services are widely used by semi-conductor manufacturers, LED and micro-electronics factories, as well as some pharmaceutical, food and beverage manufacturers. For more information, please visit the Company's website: ir.huhutech.com.cn.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," or other similar expressions in this announcement. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's Annual Report on Form 20-F and other filings with the U.S. Securities and Exchange Commission ("SEC").
For more information, please contact:
HUHUTECH International Group Inc.
Investor Relations Department
Email: ir@huhutech.com.cn
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of
As of
June 30, December 31,
2025 2024
------------ ---------------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 2,978,868 $ 3,102,865
Restricted cash 57,151 220,261
Note receivable 6,587 254,092
Accounts receivable, net 11,170,072 9,633,289
Accounts receivable -- a related
party 950,052 --
Inventories 982,954 1,175,241
Advance to vendors 348,713 150,637
Prepayments and other assets, net 181,046 80,137
----------- -----------
TOTAL CURRENT ASSETS 16,675,443 14,616,522
Property, plant and equipment, net 5,016,051 4,978,080
Intangible assets, net 65,793 79,985
Deferred tax assets 526,349 326,087
Right-of-use assets, net 168,375 183,815
----------- -----------
TOTAL ASSETS $ 22,452,011 $ 20,184,489
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short term bank loans $ 2,861,690 $ 5,273,678
Long-term bank loan - current 251,270 --
Loan payable from third-party 500,000 --
Notes payable 190,501 733,996
Accounts payable 5,014,033 4,466,933
Due to a related party 506,115 246,454
Advance from customers 2,028,683 1,403,628
Accrued expenses and other
liabilities 1,398,421 732,419
Taxes payable 204,332 356,889
Operating lease
liabilities -- current 119,579 104,088
----------- -----------
TOTAL CURRENT LIABILITIES 13,074,624 13,318,085
Long term bank loans 2,421,807 260,299
Operating lease
liabilities -- non-current 13,867 80,636
----------- -----------
TOTAL LIABILITIES 15,510,298 13,659,020
----------- -----------
COMMITMENTS AND CONTINGENCIES
(Note 13)
SHAREHOLDERS' EQUITY:
Ordinary shares, $0.0000025 par
value, 20,000,000,000 shares
authorized, 23,173,413 and
21,173,413 shares issued and
outstanding as of June 30, 2025
and December 31, 2024,
respectively 58 53
Additional paid-in capital 13,495,345 4,695,350
Statutory reserves 343,077 343,077
(Accumulated deficit) retained
earnings (6,704,455) 2,026,786
Accumulated other comprehensive loss (192,312) (539,797)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 6,941,713 6,525,469
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 22,452,011 $ 20,184,489
=========== ===========
HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(unaudited)
For the Six Months
Ended
June 30,
-------------------------
2025 2024
------------ -----------
Revenues -- third parties $ 9,337,289 $ 8,853,479
Revenues -- related party 480,183 --
----------- ----------
Total Revenues 9,817,472 8,853,479
----------- ----------
Cost of revenues -- third parties 6,533,648 5,137,460
Cost of revenues -- related party 144,628 565,466
----------- ----------
Total cost of revenues 6,678,276 5,702,926
----------- ----------
Gross profit 3,139,196 3,150,553
----------- ----------
Operating expenses:
Selling expenses 899,367 500,032
General and administrative expenses 10,330,446 909,952
Research and development expenses 520,479 511,674
----------- ----------
Total operating expenses 11,750,292 1,921,658
----------- ----------
(Loss) Income from operations (8,611,096) 1,228,895
----------- ----------
Other income (expense):
Interest income 6,736 1,523
Interest expense (64,246) (49,185)
Other expense, net 2,051 (100,698)
----------- ----------
Total other expense, net (55,459) (148,360)
----------- ----------
(Loss) income before income taxes (8,666,555) 1,080,535
Provision for income taxes 64,686 231,208
----------- ----------
Net (loss) income (8,731,241) 849,327
Comprehensive income (loss)
Foreign currency translation
adjustments 347,485 (336,141)
Comprehensive (loss) income $(8,383,756) $ 513,186
=========== ==========
(Loss) earnings per share
Basic and diluted $ (0.38) $ 0.04
=========== ==========
Weighted average number of shares
outstanding
Basic and diluted 23,018,717 20,000,000
=========== ==========
HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For the Six Months
Ended
June 30,
--------------------------
2025 2024
------------ ------------
Cash flows from operating activities:
Net (loss) income $(8,731,241) $ 849,327
Adjustments to reconcile net
income to net cash (used in)
provided by operating
activities:
Depreciation and amortization 169,951 223,891
Provision for credit losses 30,265 26,263
Deferred tax benefit (191,703) (3,939)
Amortization of operating lease
right-of-use assets 73,034 55,659
Share-based compensation 8,800,000 --
Changes in operating assets and
liabilities:
Accounts receivable (1,375,962) (1,365,703)
Accounts receivable - related party (938,394) --
Notes receivable 249,223 (3,881)
Inventories 211,917 (277,321)
Prepayments and other assets (98,286) (19,867)
Advance to vendors (195,164) (687,971)
Advance to vendors -- related party -- (69,300)
Due from related parties -- (578,513)
Accounts payable 467,452 48,242
Accrued expenses and other
liabilities 645,080 159,134
Advance from customers 591,122 1,710,559
Taxes payable (157,026) 291,930
Operating leases liabilities (73,671) (55,428)
----------- -----------
Net cash (used in) provided by
operating activities (523,403) 303,082
----------- -----------
Cash flows from investing activities:
Additions to property, plant, and
equipment (93,665) (1,556,739)
Additions to intangible assets (5,236) --
----------- -----------
Net cash used in investing activities (98,901) (1,556,739)
----------- -----------
Cash flows from financing activities:
Repayments to related parties -- (868,438)
Advances from related parties 261,158 --
Loan from third-party 500,000 --
(Repayments of) proceeds from bank
acceptance notes payable, net (550,559) 427,044
Proceeds from short-term bank loans 5,403,440 4,487,582
Repayment of short-term bank loans (7,995,277) (1,663,202)
Proceeds from long-term bank loans 2,412,000 693,001
Repayment of long-term bank loans (74,088) --
Payment of offering costs -- (89,667)
----------- -----------
Net cash (used in) provided by
financing activities (43,326) 2,986,320
----------- -----------
Effect of exchange rate changes on
cash and restricted cash 378,523 (265,228)
----------- -----------
Net (decrease) increase in cash and
restricted cash (287,107) 1,467,435
Cash and restricted cash at the
beginning of period 3,323,126 2,846,659
----------- -----------
Cash and restricted cash at the end of
period $ 3,036,019 $ 4,314,094
=========== ===========
Reconciliation of cash and restricted
cash, end of period
Cash $ 2,978,868 $ 4,120,178
Restricted cash 57,151 193,916
----------- -----------
Cash and restricted cash at the end of
period $ 3,036,019 $ 4,314,094
=========== ===========
Supplemental cash flow disclosures:
Cash paid for income tax $ 1,795 $ 97,101
=========== ===========
Cash paid for interest $ 40,657 $ 36,403
=========== ===========
Non-cash investing activities:
Right-of-use assets obtained in
exchange for operating lease
obligations $ 54,345 $ 15,287
=========== ===========
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SOURCE HUHUTECH International Group Inc.
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September 19, 2025 16:25 ET (20:25 GMT)