HUHUTECH International Group Inc. Announces First Half of Fiscal Year 2025 Financial Results

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