WUXI, China, Sept. 20, 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
June 30,
As of
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