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SINGAPORE - Tungray Technologies Inc (TRSG), a global Engineer-to-Order company with a market capitalization of $23.4 million, reported a 37% year-over-year revenue increase to $7.4 million for the first half of 2025, according to a press release issued Tuesday. The company’s shares, currently trading at $1.43, have declined 35% year-to-date, according to InvestingPro data.
The company returned to profitability with net income of $0.5 million, compared to a net loss of $0.8 million in the same period last year. Operating income improved to $0.3 million from an operating loss of $0.9 million in the first half of 2024. This marks a significant turnaround, though InvestingPro data shows the company remains unprofitable over the last twelve months, with a -$0.27 million EBITDA.
Gross margin increased to 48.6% from 46.7% in the prior-year period. Revenue from customized products rose 18.4% while standardized products saw a 130.6% increase, driven primarily by higher demand for automotive refrigerators used in new energy vehicles.
"Despite rising raw material and labor costs, our gross margin showed material improvement," said Wanjun Yao, Chairman and CEO of Tungray, in the statement. "This 190 basis points improvement combined with leverage opportunities in our business model helped drive our return to profitability."
The company reported a 4.1% decrease in total operating expenses to $3.3 million. General and administrative expenses fell 8% to $2.5 million, reflecting tighter cost management. Research and development expenses increased 6.2% to $475,000.
Tungray’s strategic initiatives include exploring horizontal partnerships to access new capabilities and implementing cost control measures such as identifying high-trade volume suppliers and negotiating favorable rates for common-use components.
The company provides customized industrial manufacturing solutions to OEMs in the semiconductors, printers, electronics, and home appliances industries, with operations in Singapore and China. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 1.86 and holds more cash than debt on its balance sheet. Subscribers can access additional insights, including 3 more ProTips and comprehensive financial metrics, to make more informed investment decisions.
In other recent news, Tungray Technologies Inc has announced the appointment of Qi (Henry) Guo as its new Chief Financial Officer. This change in leadership is effective immediately, as stated in a press release. Guo takes over from Nina Hangyu Qian, who will continue with the company in the role of Senior Director of Finance. This leadership transition marks a significant development for Tungray Technologies. The company has not disclosed any additional details regarding this appointment. These recent developments reflect ongoing changes within the company’s financial leadership team.
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