SHENZHEN, China, Dec. 17,
2024 /PRNewswire/ -- ZJK Industrial Co., Ltd.
(Nasdaq: ZJK) ("ZJK Industrial", "ZJK", or the "Company"), a
high-tech enterprise specialized in the manufacturing and sale of
precision fasteners, structural parts and other precision metal
parts products for new energy vehicles and intelligent electronic
devices, today announced its unaudited financial results for the
first six months of fiscal year 2024 ended June 30, 2024.
First Six Months of Fiscal Year 2024 Financial
Highlights
- Revenue increased by 72.81%, to US$16.23
million for the six months ended June
30, 2024, from US$9.39 million
for the same period of last year.
- Gross profit increased by 134.31%, to US$7.56 million for the six months ended
June 30, 2024, from US$3.23 million for the same period of last
year.
- Income from operations increased by 149.33%, to US$4.91 million for the six months
ended June 30, 2024, from US$1.97 million for the
same period of last year.
- Net income increased by 106.98%, to US$5.43 million for the six months
ended June 30, 2024, from US$2.62 million for the
same period of last year.
- Basic and diluted earnings per share was US$0.09 for
the six months ended June 30, 2024, increased
from US$0.04 for the same period of last year.
Mr. Ning Ding, Chief Executive Officer and Chairman,
commented, "We are thrilled to report outstanding performance in
the first half of fiscal year 2024, with revenues surging 72.81% to
US$16.23 million. This growth
reflects our strategic efforts to expand our market presence and
meet the high demand for our product offerings amidst the rapidly
evolving technology revolution.
Our remarkable growth has been driven primarily by our
unwavering commitment to innovation, advancements in production
technology, stringent cost control measures, and adaptive sales and
marketing strategies. These efforts contributed to an increase in
our average unit sales price, resulting in gross profit rising
134.31% to US$7.6 million for the
period, while gross profit margin improved significantly from
34.34% to 46.57%.
To meet surging demand, we expanded our production capacity by
leasing three additional factories during this period.
Simultaneously, we enhanced sales and marketing initiatives to
drive sales and maintained investment in research and development,
even as mature product models required less material
consumption.
Looking ahead, we remain
optimistic and confident in our sustainable growth potential. Our
steadfast focus on technology innovation and specialized advanced
solutions will continue to distinguish us from our competitors. By
deeply cultivating our expertise in sub-assembly and assembly
manufacturing, we believe we are poised to deliver long-term value
to our shareholders."
First Six Months of Fiscal Year 2024 Financial
Results
Revenue
Revenue increased by 72.81%, to US$16.23
million for the six months ended June
30, 2024, from US$9.39 million
for the same period of last year. Revenues generated from customers
in China accounted for 97.27% and
86.50% of the total revenue for the six months ended June 30, 2023, and 2024, respectively.
Revenue from sales of hardware products increased by 72.81%, to
US$16.23 million for the six months
ended June 30, 2024, from
US$9.39 million for the same period
of last year. The increase was mainly due to (i) the total sales
volume of the Company's products for the six months ended
June 30, 2024 increased by 44.55%
compared to that for the same period of last year and (ii) the
average unit sales price of the Company's products for the six
months ended June 30, 2024 increased
by 21.91% compared to that for the same period of last year as the
Company reduced the discount provided to one of its major customers
with stable cooperation.
For turned parts, the average unit sales price increased by
28.25% and the sales volume increased by 39.73% for the six months
ended June 30, 2024, compared to
those for the same period of last year, resulting in an increase of
US$3.29 million in revenue. For
screws, the average unit sales price of screws increased by 8.10%
and the sales volume increased by 45.98% for the six months ended
June 30, 2024, compared to those for
the same period of last year, resulting in a total increase of
US$2.51 million in revenue. For
stamping parts, the sales volume increased by 12.84% for the six
months ended June 30, 2024, compared
to that for the same period of last year, resulting in a total
increase of US$0.79 million in
revenue.
Cost of Revenue
Cost of revenues increased by 40.64%, to US$8.67 million for the six months ended
June 30, 2024, from US$6.17 million for the same period of last year,
which was in line with the increase of sales volume of
self-production products and products from third party
manufacturers, and the total sales volume increased by 44.55% for
the six months ended June 30, 2024
compared to that for the same period of last year.
Gross Profit and Gross Profit Margin
Gross profit increased by 134.31%, to US$7.56 million for the six months ended
June 30, 2024, from US$3.23 million for the same period of last
year. The gross profit increased mainly due to the increased
sales volume and the increased average unit sales price of turned
parts and stamping parts.
The gross profit margin increased by 12.23%, to 46.57% for the
six months ended June 30, 2024, from
34.34% for the same period of last year, mainly due to (i) the
average unit sales price of the Company's products increased as the
Company reduced the discount provided to one of its major customers
with stable cooperation; (ii) the average unit cost decreased
resulting from the improvement of the Company's production
technology and the discount provided by its suppliers.
General and administrative expenses
The general and administrative expenses increased by 245.36%, to
US$1.22 million for the six months
ended June 30, 2024, from
US$0.35 million for the same period
of last year, which was primarily attributable to (i) an increase
of US$0.58 million in professional
service fees due to an increase of accounting advisory fee, (ii) an
increase of US$0.04 million in
salaries and benefits for administrative personnel due to an
increase of employee headcounts resulting from the Company's
business growth, (iii) an increase of US$0.04 million in rental expenses as the Company
entered into a lease agreement for a factory in Vietnam in April
2023 and two lease agreements for factories in Qingyuan,
China in June 2024 to expand its production scale.
Selling and marketing expenses
The selling and marketing expenses increased by 123.17%, to
US$1.18 million for the six months
ended June 30, 2024, from
US$0.53 million for the same period
of last year, which was primarily due to an increase of
US$0.38 million in sales commission
and an increase of US$0.24 million in
freight for selling activities which were both attribute to the
increase of the Company's revenue for the six months ended
June 30, 2024.
Research and development costs
The research and development costs decreased by 35.69%, from
US$0.37 million for the six months
ended June 30, 2024, to US$0.24 million for the same period of last year,
which was primarily attributable to a decrease of US$0.13 million in material consumption as the
types of products the Company developed in 2024 have a less
material consumption than what the Company's consumed for the same
period of last year.
Income from operations
Income from operations increased by 149.33%, to US$4.91 million for the six months ended
June 30, 2024, from US$1.97 million for the same period of last
year.
Other income, net
Other income, net increased by 31.78%, to US$1.26 million for the six months ended
June 30, 2024, from US$0.95 million for the same period of last year,
which was primarily attributable to (i) an increase in investment
income of US$0.19 million generated
from long-term equity investment in PSM-ZJK Fasteners (Shenzhen) Co., Ltd, (ii) a decrease of
US$0.06 million in interest expenses
due to the decrease of commercial vehicle mortgage loan for the six
months ended June 30, 2024.
Net Income
Net income increased by 106.98% to US$5.43 million for the six months ended
June 30, 2024, from US$2.62 million for the same period of last
year.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share was US$0.09 for
the six months ended June 30, 2024, compared
to US$0.04 for the same period of last year.
Financial Condition
As of June 30, 2024, the Company
had cash of US$8.56 million and
restricted cash of US$1.70 million,
compared to US$2.83 million and
US$1.08 million as of December 31, 2023, respectively. Net cash
provided by operating activities was US$7.73
million for the six months ended June
30, 2024, compared to US$3.93
million for the same period of last year.
Net cash used in investing activities was US$0.32 million for the six months ended
June 30, 2024, compared to
US$0.04 million for the same period
of last year.
Net cash used in financing activities was US$0.47 million for the six months ended
June 30, 2024, compared to
US$0.51 million for the same period
of last year.
Recent Development
On October 1, 2024, the Company completed its initial
public offering (the "Offering") of 1,250,000 ordinary shares at a
public price of US$5.00 per share. On October 30,
2024, the underwriters of the Offering partially exercised their
over-allotment option to purchase an additional 131,249 ordinary
shares of the Company at the public offering price
of US$5.00 per share. The gross proceeds
were US$6.91 million from the Offering, before deducting
underwriting discounts and commissions, and other expenses. The
Company's ordinary shares began trading on the Nasdaq Capital
Market on September 30, 2024, under the ticker symbol
"ZJK."
About ZJK Industrial Co., Ltd.
ZJK Industrial Co., Ltd. is a high-tech enterprise specializing
in the manufacturing and sale of precision fasteners, structural
parts and other precision metal parts applied in a variety of
industries, including intelligent electronic equipment, new energy
vehicles, aerospace, energy storage systems, medical and liquid
cooling systems used in artificial intelligence supercomputers.
With thirteen-year involvement in the precision metal parts
manufacturing industry, the Company maintains a skilled
professional team, a series of highly automated and precision
manufacturing equipment, stable and strong customer group, and
complete quality management systems. ZJK mainly offers standard
screws, precision screws and nuts, high-strength bolts and nuts,
turning and Computer Numerical Control (CNC) machining parts,
Surface Mounting Technology (SMT) for miniature parts packaging,
and technology service for research and development from a
professional engineering team. For more information, please visit
the Company's website at https://ir.zjk-industrial.com/.
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 "may," "will," "expect," "anticipate," "aim," "estimate,"
"intend," "plan," "believe," "likely to" 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 registration statement and other filings with the U.S.
Securities and Exchange Commission.
For more information, please contact:
ZJK Industrial Co., Ltd.
Phone: +86-755-28341175
Email: ir@zjk-industrial.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
|
ZJK Industrial
Co., Ltd.
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In U.S. dollars,
except for numbers of shares data)
|
|
|
|
As of
|
|
|
December 31,
2023
|
|
June 30,
2024
|
|
|
|
|
(Unaudited)
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
|
2,826,725
|
|
8,559,892
|
|
Restricted
cash
|
|
1,075,047
|
|
1,704,278
|
|
Accounts receivable,
net
|
|
10,268,807
|
|
6,982,123
|
|
Accounts receivable-due
from a related party
|
|
8,816,184
|
|
5,295,551
|
|
Inventories,
net
|
|
4,765,742
|
|
6,721,310
|
|
Prepaid expenses and
other current assets, net
|
|
503,914
|
|
644,290
|
|
Other receivables-due
from related parties
|
|
277,786
|
|
309,243
|
|
Deferred initial public
offering ("IPO") costs, current
|
|
-
|
|
697,613
|
|
Total current
assets
|
|
28,534,205
|
|
30,914,300
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
5,596,699
|
|
5,758,823
|
|
Operating lease
right-of-use assets
|
|
522,148
|
|
1,200,188
|
|
Finance lease
right-of-use assets
|
|
336,257
|
|
168,463
|
|
Construction in
progress
|
|
41,200
|
|
57,167
|
|
Long-term
investment
|
|
2,517,538
|
|
3,559,395
|
|
Deferred tax assets,
net
|
|
165,969
|
|
289,959
|
|
Deferred IPO costs,
non-current
|
|
566,417
|
|
-
|
|
Total non-current
assets
|
|
9,746,228
|
|
11,033,995
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
38,280,433
|
|
41,948,295
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term bank
borrowings
|
|
37,184
|
|
97,699
|
|
Accounts
payable
|
|
11,569,828
|
|
10,454,466
|
|
Income tax
payable
|
|
1,035,152
|
|
1,367,684
|
|
Accrued expenses and
other current liabilities
|
|
841,402
|
|
712,785
|
|
Other payables-due to
related parties
|
|
1,867,459
|
|
1,537,393
|
|
Operating lease
liability, current
|
|
157,980
|
|
328,383
|
|
Finance lease
liability, current
|
|
230,460
|
|
92,947
|
|
Other long-term debt,
current
|
|
9,379
|
|
-
|
|
Total current
liabilities
|
|
15,748,844
|
|
14,591,357
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Operating lease
liability, non-current
|
|
290,684
|
|
790,147
|
|
Other long-term debt,
non-current
|
|
20,321
|
|
-
|
|
Deferred tax
liabilities
|
|
518,156
|
|
418,331
|
|
Total non-current
liabilities
|
|
829,161
|
|
1,208,478
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
16,578,005
|
|
15,799,835
|
|
|
|
|
|
|
Commitments and
contingencies (Note 14)
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Ordinary shares,
$0.000016666667 par value, 3,000,000,000 shares
authorized, 60,000,000 and 60,000,000 shares issued and
outstanding as of December 31, 2023 and June 30, 2024,
respectively*
|
|
1,000
|
|
1,000
|
|
Additional paid-in
capital
|
|
1,792,559
|
|
1,792,559
|
|
Statutory surplus
reserves
|
|
2,283,180
|
|
2,283,180
|
|
Retained
earnings
|
|
18,644,082
|
|
24,070,993
|
|
Accumulated other
comprehensive loss
|
|
(1,016,563)
|
|
(1,999,098)
|
|
Total ZJK Industrial
Co., Ltd. shareholders' equity
|
|
21,704,258
|
|
26,148,634
|
|
Non-controlling
interests
|
|
(1,830)
|
|
(174)
|
|
Total shareholders'
equity
|
|
21,702,428
|
|
26,148,460
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
38,280,433
|
|
41,948,295
|
* The shares and per share information are presented on a
retroactive basis to reflect the reorganization completed on
March 28, 2023 (Note 1) and the two
share splits that occurred on June 19,
2023 and June 6, 2024,
respectively (Note 15).
|
ZJK Industrial
Co., Ltd.
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
|
|
(In U.S. dollars,
except for the number of shares data)
|
|
|
|
For the six months
ended June 30,
|
|
|
2023
|
|
2024
|
|
|
(Unaudited)
|
|
Revenues
|
|
|
|
|
|
Third-party
sales
|
|
4,211,947
|
|
8,508,295
|
|
Related-party
sales
|
|
5,179,789
|
|
7,721,659
|
|
Total
revenues
|
|
9,391,736
|
|
16,229,954
|
|
Cost of
revenues
|
|
|
|
|
|
Third-party
sales
|
|
(1,755,183)
|
|
(3,553,017)
|
|
Related-party
sales
|
|
(4,411,119)
|
|
(5,119,335)
|
|
Total cost of
revenues
|
|
(6,166,302)
|
|
(8,672,352)
|
|
Gross
profit
|
|
3,225,434
|
|
7,557,602
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling and marketing
expenses
|
|
(527,810)
|
|
(1,177,918)
|
|
General and
administrative expenses
|
|
(354,610)
|
|
(1,224,664)
|
|
Research and
development costs
|
|
(371,298)
|
|
(238,779)
|
|
Gain from disposal of
property, plant and equipment
|
|
80
|
|
-
|
|
Total operating
expenses
|
|
(1,253,638)
|
|
(2,641,361)
|
|
|
|
|
|
|
Income from
operations
|
|
1,971,796
|
|
4,916,241
|
|
|
|
|
|
|
Other income,
net
|
|
|
|
|
|
Interest
expenses
|
|
(73,591)
|
|
(12,474)
|
|
Interest
income
|
|
7,764
|
|
35,678
|
|
Share of profits from
equity method investment
|
|
917,045
|
|
1,107,771
|
|
Currency exchange
(loss) gain
|
|
(7,457)
|
|
45,534
|
|
Other income,
net
|
|
110,200
|
|
80,639
|
|
Total other income,
net
|
|
953,961
|
|
1,257,148
|
|
|
|
|
|
|
Income before income
tax provision
|
|
2,925,757
|
|
6,173,389
|
|
Income tax
provision
|
|
(303,021)
|
|
(744,853)
|
|
Net
income
|
|
2,622,736
|
|
5,428,536
|
|
Less: net income
attributable to non-controlling interests
|
|
1,470
|
|
1,625
|
|
Net income
attributable to ZJK Industrial Co., Ltd.'s
shareholders
|
|
2,621,266
|
|
5,426,911
|
|
|
|
|
|
|
Other comprehensive
(loss) income
|
|
|
|
|
|
Foreign currency
translation adjustment attributable to parent
company
|
|
(808,054)
|
|
(982,535)
|
|
Foreign currency
translation adjustment attributable to non-
controlling interest
|
|
(27)
|
|
31
|
|
Total comprehensive
income
|
|
1,814,655
|
|
4,446,032
|
|
Comprehensive income
attributable to non-controlling interests
|
|
1,443
|
|
1,656
|
|
Comprehensive income
attributable to ZJK Industrial Co., Ltd.'s
shareholders
|
|
1,813,212
|
|
4,444,376
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
Basic and
Diluted*
|
|
0.04
|
|
0.09
|
|
|
|
|
|
|
Weighted average
shares used in calculating earnings per
share
|
|
|
|
|
|
Basic and
Diluted*
|
|
60,000,000
|
|
60,000,000
|
* The shares and per share information are presented on a
retroactive basis to reflect the reorganization completed on
March 28, 2023 (Note 1) and the two
share splits that occurred on June 19,
2023 and June 6, 2024,
respectively (Note 15).
|
ZJK Industrial
Co., Ltd.
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In U.S. dollars,
except for the number of shares data)
|
|
|
|
|
For the six months
ended June 30,
|
|
|
2023
|
|
2024
|
|
|
(Unaudited)
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
|
2,622,736
|
|
5,428,536
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Provision for credit
loss
|
|
-
|
|
8,575
|
|
Depreciation of
property, plant and equipment
|
|
244,618
|
|
274,016
|
|
Amortization of
operating lease right-of-use assets
|
|
118,733
|
|
158,590
|
|
Amortization of finance
lease right-of-use assets
|
|
122,851
|
|
161,212
|
|
Interest expense of
finance lease liabilities
|
|
-
|
|
3,344
|
|
Gain from the disposal
of property, plant and equipment
|
|
(80)
|
|
-
|
|
Provision for
inventories
|
|
123,713
|
|
134,294
|
|
Share of profits from
equity method investment
|
|
(917,045)
|
|
(1,107,771)
|
|
Provisions for deferred
income tax
|
|
81,179
|
|
(218,239)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
4,171,981
|
|
3,063,777
|
|
Accounts receivable-due
from related parties
|
|
3,161,302
|
|
3,341,677
|
|
Inventories
|
|
(396,437)
|
|
(2,214,518)
|
|
Prepaid expenses and
other current assets
|
|
(220,824)
|
|
(153,075)
|
|
Other receivables-due
from related parties
|
|
(58,909)
|
|
(6,248)
|
|
Accounts
payable
|
|
(4,471,736)
|
|
(1,200,688)
|
|
Income tax
payable
|
|
(601,204)
|
|
358,940
|
|
Accrued expenses and
other current liabilities
|
|
(263,641)
|
|
(62,010)
|
|
Other payables-due to
related parties
|
|
334,138
|
|
(67,392)
|
|
Operating lease
liability
|
|
(122,221)
|
|
(177,538)
|
|
Net cash provided by
operating activities
|
|
3,929,154
|
|
7,725,482
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(36,378)
|
|
(221,552)
|
|
Purchase of
construction in progress
|
|
-
|
|
(65,066)
|
|
Loan to a related
party
|
|
-
|
|
(230,710)
|
|
Collection of loan to a
related party
|
|
-
|
|
198,832
|
|
Net cash used in
investing activities
|
|
(36,378)
|
|
(318,496)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from
short-term bank borrowings
|
|
43,035
|
|
69,300
|
|
Repayments of
short-term bank borrowings
|
|
-
|
|
(7,484)
|
|
Repayments of long-term
debts
|
|
(235,260)
|
|
(29,226)
|
|
Deferred IPO
costs
|
|
(112,389)
|
|
(145,279)
|
|
Repayments of financing
lease liabilities
|
|
(200,524)
|
|
(136,508)
|
|
Repayments of loan from
related parties
|
|
-
|
|
(221,760)
|
|
Net cash used in
financing activities
|
|
(505,138)
|
|
(470,957)
|
|
|
|
|
|
|
Effect of exchange rate
changes
|
|
(204,947)
|
|
(573,631)
|
|
|
|
|
|
|
Net change in cash
and restricted cash
|
|
3,182,691
|
|
6,362,398
|
|
|
|
|
|
|
Cash and restricted
cash at the beginning of period
|
|
1,516,314
|
|
3,901,772
|
|
Cash and restricted
cash at the end of period
|
|
4,699,005
|
|
10,264,170
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
Income tax
paid
|
|
155,321
|
|
605,294
|
|
Interest expenses
paid
|
|
14,387
|
|
8,140
|
|
|
|
|
|
|
Supplemental
disclosures of non-cash activities:
|
|
|
|
|
|
Obtaining finance
lease right-of-use assets in exchange for finance lease
liabilities
|
|
465,511
|
|
-
|
|
Obtaining
operating right-of-use assets in exchange for operating lease
liabilities
|
|
-
|
|
862,655
|
|
Acquiring property,
plant and equipment through accounts payable
|
|
-
|
|
345,535
|
|
Property, plant and
equipment transferred from construction in progress
|
|
22,622
|
|
-
|
The accompanying notes are an integral part of these unaudited
condensed consolidated financial statements.
View original
content:https://www.prnewswire.com/news-releases/zjk-industrial-co-ltd-reports-financial-results-for-the-first-six-months-of-fiscal-year-2024-302333440.html
SOURCE ZJK Industrial Co., Ltd.
