Press Release: ZJK Industrial Co., Ltd. Reports Financial Results for Fiscal Year 2025

Dow Jones04-29 20:00
   -- Record revenues and earnings driven by strong demand and high-value 
      product strategy 
 
   -- Well-positioned for continued growth in 2026 supported by AI, electric 
      vehicles and advanced smart technologies 

SHENZHEN, China, April 29, 2026 (GLOBE NEWSWIRE) -- ZJK Industrial Co., Ltd. (NASDAQ: ZJK) ("ZJK" or the "Company"), a high-tech precision parts and hardware manufacturer serving artificial intelligence (AI) infrastructure, consumer electronics, electric vehicles, aerospace, and other smart technologies, today announced its financial results for the fiscal year ended December 31, 2025.

Fiscal Year 2025 Financial Highlights

   -- Revenues were an all-time high of US$56.10 million for 2025, an increase 
      of 48.39% from US$37.81 million for 2024. 
 
   -- Gross profit was US$24.50 million for 2025, up 80.62% from US$13.57 
      million for 2024. 
 
   -- Gross margin was 43.67% for 2025, an increase of 7.79% from 35.88% for 
      2024. 
 
   -- Income from operations was US$9.46 million for 2025, an increase of 
      478.90% from US$1.63 million for 2024. 
 
   -- Net income reached a record of US$10.15 million for 2025, up 177.21% 
      from US$3.66 million for 2024. 
 
   -- Basic and diluted earnings per share were both US$0.16 for 2025, an 
      increase of 166.67% from US$0.06 for 2024. 
 
   -- Net cash provided by operating activities was US$6.56 million for 2025, 
      an increase of 22.78% from US$5.34 million for 2024. 
 
   -- Cash and cash equivalents, restricted short-term deposits, and short-term 
      investments amounted to US$18.62 million as of December 31, 2025, up 
      19.28% from US$15.61 million as of December 31, 2024. 

Mr. Ning Ding, Chief Executive Officer and Chairman, commented, "We are very excited to cap 2025 with stellar results and carry strong momentum into 2026, driven by consistent execution of our long-term growth strategy. Specifically, we achieved record revenues of US$56.10 million and net income of US$10.15 million in 2025, representing year-over-year growth of 48.39% and 177.21%, respectively. This performance demonstrates our ability to scale efficiently and meet growing demand in key end markets like AI, consumer electronics, and new energy vehicles, while validating the effectiveness of our strategic focus on higher-precision, higher-value products and continued operational investments.

We are particularly encouraged by the progress we are making in our product portfolio. The transition of new projects into stable mass production, combined with growing customer recognition of our precision and quality standards, drove gross margin to 43.67%, up 7.79% year-over-year, and strengthened our competitive position in ways we believe will continue to compound over time.

We also saw meaningful traction in executing our global expansion strategy across both supply and demand. By advancing localized manufacturing capabilities in Vietnam, we are building a more diversified, flexible and resilient global production network. We are also considering establishing our presence in U.S. In parallel, we increased spending in market development across North America, Singapore and Taiwan, expanding our presence in key regions and strengthening our global customer base to support long-term growth.

Importantly, our sustained investment in advanced manufacturing machinery, equipment, and research and development is delivering tangible results. Through continuous innovation in manufacturing processes, automation and precision engineering, we are improving efficiency, optimizing cost structures, and expanding our portfolio of high-performance products. These capabilities enable us to meet the increasingly stringent requirements of high-end applications such as AI servers, semiconductor equipment and automated production systems, positioning ZJK as a critical enabler within the global high-end manufacturing ecosystem.

Looking ahead, we remain confident in our growth trajectory. We see significant opportunities ahead as the accelerating adoption of AI infrastructure, electric vehicles and advanced smart technologies drives rising demand for high-precision components. With our continued focus on innovation, operational excellence and targeted global expansion, we believe we are well positioned to deliver sustainable growth and long-term value for our shareholders."

Fiscal Year 2025 Financial Results

Revenues

Revenues were US$56.10 million for 2025, an increase of 48.39% from US$37.81 million for 2024. This increase was driven by a rise in sales volume, which grew by 28.54%, along with higher average unit sales prices.

Cost of Revenues

Cost of revenues were US$31.60 million for 2025, an increase of 30.35% from US$24.24 million for 2024. This increase was mainly due to increased sales volume of the Company's products.

Gross Profit and Gross Profit Margin

Gross profit was US$24.50 million for 2025, an increase of 80.62% from US$13.57 million for 2024. This increase was mainly due to the increased sales volume and increased average unit sales price of our hardware products.

The gross profit margin was 43.67% for 2025, up 7.79% from 35.88% for 2024, mainly due to (i) an increase in average unit sales prices, supported by a shift towards more complex, high-precision, and value-added products, which improved our market competitiveness; (ii) a decrease in average unit costs, due to the optimization of our production technology and economies of scale resulting from increased production volumes; and (iii) the successful transition of new projects into mass production, which helped to dilute fixed costs and contributed to overall margin expansion.

Total Operating Expenses

Total operating expenses were US$15.04 million for 2025, compared with US$11.93 million for 2024.

   -- General and administrative expenses were US$6.75 million for 2025, 
      remaining relatively stable compared with US$6.71 million for 2024. 
 
   -- Selling and marketing expenses were US$7.17 million for 2025, an increase 
      of 52.18% from US$4.71 million for 2024. This increase was primarily due 
      to (i) an increase of US$1.72 million in sales commission resulting from 
      business expansion into markets such as North America, Singapore, and 
      Taiwan, China, (ii) an increase of US$0.48 million in salaries and 
      benefits for sales and marketing personnel due to higher headcounts to 
      support our business expansion, and (iii) an increase of US$0.23 million 
      in freight costs for sale of products mainly reflecting expanded overseas 
      shipping demands. 
 
   -- Research and development expenses were US$1.11 million for 2025, an 
      increase of 103.07% from US$0.55 million for 2024. This increase was 
      primarily attributable to (i) an increase of US$0.40 million in material 
      consumption driven by a growing number of product development projects 
      and the transition of several projects into the trial production stage, 
      and (ii) an increase of US$0.17 million in salaries and benefits for 
      research and development personnel, reflecting performance-based salary 
      adjustments to retain core technical staff. 

Income from operations

Income from operations surged to US$9.46 million for 2025, an increase of 478.90% from US$1.63 million for 2024.

Other income, net

Other income, net was US$4.36 million for 2025, an increase of 32.33% from US$3.29 million for 2024. This increase was primarily attributable to (i) an increase in investment income of US$0.79 million generated from long-term equity investment in PSM-ZJK Fasteners (Shenzhen) Co., Ltd, (ii) an increase of US$0.23 million in interest income from structured deposits and time deposits.

Net Income

Net income was US$10.15 million for 2025, an increase of 177.21% from US$3.66 million for 2024.

Basic and Diluted Earnings per Share

Basic and diluted earnings per share were both US$0.16 for 2025, an increase of 166.67% from US$0.06 for 2024.

Financial Condition

As of December 31, 2025, the Company had cash and cash equivalents, restricted short-term deposits and short-term investments of US$18.62 million, compared to US$15.61 million as of December 31, 2024.

About ZJK Industrial Co., Ltd.

ZJK Industrial Co., Ltd. is a high-tech precision parts and hardware manufacturer serving artificial intelligence (AI) infrastructure, consumer electronics, electric vehicles, aerospace, and other smart technologies. With over 15 years in the precision metal parts manufacturing industry, the Company maintains a skilled professional team, a series of highly automated and precision manufacturing equipment, a stable and diversified customer base, and comprehensive 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

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