EX-99.1 2 e6864_ex99-1.htm EXHIBIT 99.1

 

 

EXHIBIT 99.1

 

ZJK Industrial Co., Ltd. Reports Financial Results for the First Six Months of Fiscal Year 2025

 

Shenzhen, China, September 22, 2025 /PRNewswire/ -- ZJK Industrial Co., Ltd. (NASDAQ: ZJK) (“ZJK Industrial”, “ZJK” or the “Company”), a high-tech precision parts and hardware manufacturer for artificial intelligence (AI) infrastructure, consumer electronics, electric vehicles, aerospace and other smart technologies, today announced its unaudited financial results for the first six months of fiscal year 2025 ended June 30, 2025.

 

First Six Months of Fiscal Year 2025 Financial Highlights

 

  Revenue increased by 52.21%, to US$24.70 million for the six months ended June 30, 2025, from US$16.23 million for the same period of last year.
     
  Gross profit increased by 63.01%, to US$12.32 million for the six months ended June 30, 2025, from US$7.56 million for the same period of last year.
     
  Income from operations increased by 19.22%, to US$5.86 million for the six months ended June 30, 2025, from US$4.92 million for the same period of last year.
     
  Net income increased by 7.59%, to US$5.84 million for the six months ended June 30, 2025, from US$5.43 million for the same period of last year.
     
  Basic and diluted earnings per share was US$0.10 for the six months ended June 30, 2025, increased from US$0.09 for the same period of last year.

 

Mr. Ning Ding, Chief Executive Officer and Chairman, commented, “We are pleased to report strong performance for the first half of fiscal year 2025. Thanks to the consistent efforts of our entire team and the firm execution of our deliberate and robust strategy, revenue increased by 52.21%, accompanied by a 63.01% growth in gross profit during the period. Specifically, our sales volumes of hardware products, including turned parts, screws and stamping parts, grew strongly by 33.13%, 45.59% and 177.47%, respectively. This momentum was driven by rising market demand for higher precision and quality, together with our agile pricing strategies that balanced both price increases and reductions across different product categories.

 

While securing customer orders through flexible and targeted pricing strategies, we also maintained a positive margin trajectory, with gross margin increased by 7.09%. This was mainly attributable to price increases on products requiring stricter precision and quality standards, as well as cost reductions achieved through technological innovation, improved production processes, and higher sales of self-manufactured products.

 

During this period, we also advanced our global expansion to reach a broader customer base and establish a forward-looking market presence. This is reflected in higher general and administrative expenses, particularly professional service fees related to our follow-on offering and increased consulting fees for strategic growth initiatives, and in selling and marketing expenses to drive sales generation and market expansion. Over the six months, these expenses rose by 119.66% and 201.87%, respectively, further strengthening the foundation for our long-term expansion and sustainable growth.

 

 

 

At the same time, we are enhancing operations and advancing technology. To meet the rising demand for precision parts, we are expanding production capacity with upgraded facilities and new equipment, including high-precision Computer Numerical Control (CNC) lathes, milling machines, special designed automation equipment and multi-station cold-forging machines. Our sustained investment in research and development is also blossoming, as several patented systems and equipment have delivered significant improvements in manufacturing efficiency and customized processing. With these technological advancements, we are confident in strengthening our industry leadership and market share.

 

Looking ahead, we remain committed to technology innovation and sustainable expansion. To achieve this strategy, we will continue to strengthen our internal capabilities while staying attuned to market trends and business opportunities in the fast-evolving era of AI-driven innovation.”

 

First Six Months of Fiscal Year 2025 Financial Results

 

Revenue

 

Revenue increased by 52.21%, to US$24.70 million for the six months ended June 30, 2025, from US$16.23 million for the same period of last year. Revenues generated from customers in China accounted for 86.50% and 87.91% of the total revenue for the six months ended June 30, 2024 and 2025, respectively.

 

Revenue from sales of hardware products increased by 52.21%, to US$24.70 million for the six months ended June 30, 2025, from US$16.23 million for the same period of last year. The increase was mainly due to the sales volume of the Company’s products for the six months ended June 30, 2025 increased by 44.27% compared to that for the six months ended June 30, 2024, with a slightly increase in average unit sales price of the Company’s products.

 

For turned parts, the sales volume increased by 33.13% and the average sales unit price increased by 13.68% for the six months ended June 30, 2025, compared to those for the same period of last year, resulting in an increase of US$3.97 million in revenue. The sales volume and the average sales unit price of turned parts increased mainly due to the growing demand from customers whose projects required stricter precision and quality requirements for the six months ended June 30, 2025. For screws products, the sales volume of screws increased by 45.59% with a slightly decrease in average unit sales price for the six months ended June 30, 2025, compared to those for the same period of last year, resulting in an increase of US$2.69 million in revenue. For stamping parts, the sales volume increased by 177.47% with a slightly decrease in average unit sales price for the six months ended June 30, 2025, compared to that for the same period of last year, resulting in an increase of US$1.54 million in revenue. The sales volume of both screws products and stamping parts increased mainly due to a price reduction strategy to maintain customer order share for the six months ended June 30, 2025.

 

Cost of Revenue

 

Cost of revenues increased by 42.80%, to US$12.38 million for the six months ended June 30, 2025, from US$8.67 million for the same period of last year, which was mainly due to the increasing sales volume of the Company’s products.

 

Gross Profit and Gross Profit Margin

 

Gross profit increased by 63.01%, to US$12.32 million for the six months ended June 30, 2025, from US$7.56 million for the same period of last year. The gross profit increased mainly due to the increased sales volume of the Company’s hardware products.

 

The gross profit margin increased by 7.09% for the six months ended June 30, 2025.

 

 

 

General and administrative expenses

 

The general and administrative expenses increased by 119.66%, to US$2.69 million for the six months ended June 30, 2025, from US$1.22 million for the same period of last year, which was primarily attributable to (i) an increase of US$0.85 million in professional service fees, primarily including increased legal fees related to the Company’s follow-on offering, and increased consulting fees for strategic growth initiatives in North America, (ii) an increase of US$0.30 million in salaries and benefits for administrative personnel due to an increase of employee headcounts resulting from the Company’s business growth, and (iii) an increase of US$0.13 million in office expenses, primarily driven by higher headcount, which led to greater demand for office supplies and related expenses.

 

Selling and marketing expenses

 

The selling and marketing expenses increased by 201.87%, to US$3.56 million for the six months ended June 30, 2025, from US$1.18 million for the same period of last year, which was primarily due to (i) an increase of US$1.97 million in sales commission resulting from business expansion into markets such as North America, Singapore, and Taiwan, China, (ii) an increase of US$0.2 million in salaries and benefits for sales and marketing personnel due to higher headcounts to support the Company’s business expansion, and (iii) an increase of US$0.12 million in freight costs for sale of products reflecting expanded overseas shipping demands.

 

Income from operations

 

Income from operations increased by 19.22%, to US$5.86 million for the six months ended June 30, 2025, from US$4.92 million for the same period of last year.

 

Other income, net

 

Other income, net increased by 51.97%, to US$1.91 million for the six months ended June 30, 2025, from US$1.26 million for the same period of last year, which was primarily attributable to (i) an increase of US$0.32 million in investment income from long-term equity investment in PSM-ZJK Fasteners (Shenzhen) Co., Ltd, (ii) an increase of US$0.11 million in income from disposal of scrap materials, and (iii) an increase of US$0.11 million in interest income from structured deposits and time deposits, (iv) an increase of US$0.10 million in currency exchange gain.

 

Net Income

 

Net income increased by 7.59% to US$5.84 million for the six months ended June 30, 2025, from US$5.43 million for the same period of last year.

 

Basic and Diluted Earnings per Share

 

Basic and diluted earnings per share was US$0.10 for the six months ended June 30, 2025, compared to US$0.09 for the same period of last year.

 

Financial Condition

 

As of June 30, 2025, the Company had cash and cash equivalents of US$14.45 million and restricted cash of US$1.49 million, compared to US$12.26 million and US$0.80 million as of December 31, 2024, respectively. Net cash provided by operating activities was US$2.48 million for the six months ended June 30, 2025, compared to US$7.73 million for the same period of last year.

 

 

 

Net cash provided by investing activities was US$0.13 million for the six months ended June 30, 2025, compared to net cash used in investing activities of US$0.32 million for the same period of last year.

 

Net cash provided by financing activities was US$0.06 million for the six months ended June 30, 2025, compared to net cash used in financing activities of US$0.47 million for the same period of last year.

 

Recent Development

 

For the first six months of fiscal year 2025, the Company achieved several milestones. It presented at the Microcap Conference in Atlantic City to engage investors, expanded operations with advanced Computer Numerical Control (CNC) and multi-station cold-forging machines to meet surging demand, and was named a Top 100 enterprise in Shenzhen Pingshan New District. In addition, ZJK secured a patent for an image recognition-based surface-mount technology (SMT) inspection-control system, enhancing automation and efficiency in precision manufacturing.

 

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 over fourteen years 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 parts, stamping parts and Computer Numerical Control (CNC) machining parts, CNC milling parts, high precision structural components, 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 “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” 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.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In U.S. dollars, except for numbers of shares data)

 

    As of
    December 31, 2024   June 30, 2025
        (Unaudited)
ASSETS                
Current assets                
Cash and cash equivalents     12,255,213       14,450,968  
Restricted cash     797,241       1,485,008  
Short-term investments     2,559,362       2,316,484  
Accounts receivable, net     10,282,857       12,095,736  
Accounts receivable-due from a related party     9,165,068       8,071,413  
Inventories, net     7,316,029       9,543,736  
Prepaid expenses and other current assets, net     872,753       2,393,488  
Other receivables-due from related parties     249,235       745,479  
Total current assets     43,497,758       51,102,312  
                 
Non-current assets                
Property, plant and equipment, net     6,668,612       8,017,134  
Intangible assets, net     33,008       50,442  
Operating lease right-of-use assets     1,242,524       1,037,959  
Finance lease right-of-use assets     38,160        
Construction in progress           212,459  
Long-term investment     2,747,493       1,650,516  
Deferred tax assets, net     397,691       438,006  
Other non-current assets     1,146,010       1,505,849  
Total non-current assets     12,273,498       12,912,365  
                 
TOTAL ASSETS     55,771,256       64,014,677  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
Current liabilities                
Short-term bank borrowings     1,223,405       1,312,189  
Accounts payable     14,998,590       12,942,233  
Notes payable     1,903,194       2,700,929  
Income tax payable     1,600,300       2,793,010  
Accrued expenses and other current liabilities     2,051,588       2,790,139  
Other payables-due to related parties     1,778,175       2,195,738  
Operating lease liabilities, current     423,214       432,730  
Total current liabilities     23,978,466       25,166,968  
                 
Non-current liabilities                
Operating lease liabilities, non-current     755,395       548,771  
Deferred tax liabilities     970,520       1,154,421  
Total non-current liabilities     1,725,915       1,703,192  
                 
TOTAL LIABILITIES     25,704,381       26,870,160  
                 
Commitments and contingencies                
                 
Shareholders’ equity                
Ordinary share, $0.000016666667 par value, 3,000,000,000 shares authorized, 61,381,249 and 63,181,249 shares issued and outstanding as of December 31, 2024 and June 30, 2025, respectively*     1,023       1,053  
Additional paid-in capital     7,060,050       7,736,645  
Statutory surplus reserves     2,658,112       2,658,112  
Retained earnings     21,951,873       27,802,955  
Accumulated other comprehensive loss     (1,635,291 )     (1,075,504 )
Total ZJK Industrial Co., Ltd. shareholders’ equity     30,035,767       37,123,261  
Non-controlling interests     31,108       21,256  
Total shareholders’ equity     30,066,875       37,144,517  
                 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY     55,771,256       64,014,677  

 

* The shares and per share information are presented on a retroactive basis to reflect the reorganization completed on March 28, 2023, the two share splits that occurred on June 19, 2023 and June 6, 2024, respectively.

 

 

 

 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,
    2024   2025
    (Unaudited)
Revenues                
Third-party sales     8,508,295       15,153,800  
Related-party sales     7,721,659       9,549,460  
Total revenues     16,229,954       24,703,260  
Cost of revenues                
Third-party sales     (3,553,017 )     (5,653,621 )
Related-party sales     (5,119,335 )     (6,730,162 )
Total cost of revenues     (8,672,352 )     (12,383,783 )
Gross profit     7,557,602       12,319,477  
                 
Operating expenses                
Selling and marketing expenses     (1,177,918 )     (3,555,816 )
General and administrative expenses     (1,224,664 )     (2,690,131 )
Research and development costs     (238,779 )     (212,193 )
Total operating expenses     (2,641,361 )     (6,458,140 )
                 
Income from operations     4,916,241       5,861,337  
                 
Other income, net                
Interest expenses     (12,474 )     (6,291 )
Interest income     35,678       149,496  
Share of profits from equity method investment     1,107,771       1,431,032  
Currency exchange gain     45,534       149,352  
Other income, net     80,639       186,949  
Total other income, net     1,257,148       1,910,538  
                 
Income before income tax provision     6,173,389       7,771,875  
Income tax provision     (744,853 )     (1,931,362 )
Net income     5,428,536       5,840,513  
Less: net income/(loss) attributable to non-controlling interests     1,625       (10,569 )
Net income attributable to ZJK Industrial Co., Ltd.’s shareholders     5,426,911       5,851,082  
                 
Other comprehensive (loss)/income                
 Foreign currency translation adjustment attributable to parent company     (982,535 )     559,787  
 Foreign currency translation adjustment attributable to non-controlling interests     31       717  
Total comprehensive income     4,446,032       6,401,017  
Comprehensive income/(loss) attributable to non-controlling interests     1,656       (9,852 )
Comprehensive income attributable to ZJK Industrial Co., Ltd.’s shareholders     4,444,376       6,410,869  
                 
Earnings per share*                
Basic     0.09       0.10  
Diluted     0.09       0.10  
                 
Weighted average shares used in calculating earnings per share*                
Basic     60,000,000       61,490,641  
Diluted     60,000,000       61,510,641  

 

 * The shares and per share information are presented on a retroactive basis to reflect the reorganization completed on March 28, 2023 and the two share splits that occurred on June 19, 2023 and June 6, 2024, respectively.

 

 

 

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,
    2024   2025
    (Unaudited)
Cash flows from operating activities:                
Net income     5,428,536       5,840,513  
Adjustments to reconcile net income to net cash provided by operating activities:                
Provision/(reversal) for credit loss     8,575       (64 )
Depreciation of property, plant and equipment     274,016       333,037  
Amortization of intangible assets           11,769  
Amortization of operating lease right-of-use assets     158,590       213,488  
Amortization of finance lease right-of-use assets     161,212       38,495  
Interest expense of finance lease liabilities     3,344        
Provision for inventories     134,294       552,180  
Share of profits from equity method investment     (1,107,771 )     (1,431,032 )
Provisions for deferred income tax     (218,239 )     131,411  
Share-based compensation           676,625  
Changes in operating assets and liabilities:                
Accounts receivable     3,063,777       (1,601,880 )
Accounts receivable-due from a related party     3,341,677       1,254,624  
Inventories     (2,214,518 )     (2,620,454 )
Prepaid expenses and other current assets     (153,075 )     (274,981 )
Other receivables-due from related parties     (6,248 )     (355,145 )
Accounts payable     (2,098,296 )     (3,037,042 )
Notes payable     897,608       754,083  
Income tax payable     358,940       1,150,797  
Accrued expenses and other current liabilities     (62,010 )     681,688  
Other payables-due to related parties     (67,392 )     380,049  
Operating lease liabilities     (177,538 )     (217,245 )
Net cash provided by operating activities     7,725,482       2,480,916  
                 
Cash flows from investing activities:                
Purchase of property, plant and equipment     (221,552 )     (873,418 )
Purchase of intangible assets           (28,410 )
Net proceeds from short-term investment           288,453  
Purchase of construction in progress     (65,066 )     (483,781 )
Dividends received from long-term equity investment           1,354,377  
Loans to related parties     (230,710 )     (310,510 )
Collection of loans to related parties     198,832       179,036  
Net cash (used in)/provided by investing activities     (318,496 )     125,747  
                 
Cash flows from financing activities:                
Proceeds from short-term bank borrowings     69,300       1,382,017  
Repayments of short-term bank borrowings     (7,484 )     (1,317,062 )
Repayments of long-term debts     (29,226 )      
Repayments of financing lease liabilities     (136,508 )      
Repayments of loans from related parties     (221,760 )      
Deferred initial public offering (“IPO”) costs     (145,279 )      
Net cash (used in)/provided by financing activities     (470,957 )     64,955  
                 
Effect of exchange rate changes     (573,631 )     211,903  
                 
Net change in cash, cash equivalents and restricted cash     6,362,398       2,883,521  
                 
Cash, cash equivalents and restricted cash at the beginning of period     3,901,772       13,052,455  
Cash, cash equivalents and restricted cash at the end of period     10,264,170       15,935,976  
                 
Supplemental disclosure of cash flow information:                
Income tax paid     605,294       781,335  
Interest expenses paid     8,140       6,064  
                 
Supplemental disclosures of non-cash activities:                
Obtaining operating right-of-use assets in exchange for operating lease liabilities     862,655        
Acquiring property, plant and equipment transferred from construction in progress           284,456  
Acquiring property, plant and equipment in exchange for accounts payable     345,535       719,921