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Mingteng International Corp Inc.

Mingteng International Corp Inc.MTEN決算レポート

Nasdaq · 金属製のドア、窓枠、フレーム材、型枠及びトリム

What changed in Mingteng International Corp Inc.'s 20-F — 2023 vs 2024

Top changes in Mingteng International Corp Inc.'s 2024 20-F

279 paragraphs added · 243 removed · 193 edited across 5 sections

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

51 edited+9 added−7 removed219 unchanged
The Foreign Investment Law provides that foreign investors shall not invest in the “prohibited” industries and shall meet certain requirements as stipulated under the Negative List for investing in “restricted” industries. 60 In addition, the Foreign Investment Law also provides several protective rules and principles for foreign investors and their investments in the PRC, including, among others, (i) that local governments shall abide by their commitments to the foreign investors; (ii) FIEs are allowed to issue stock and corporate bonds; except for special circumstances, in which case statutory procedures shall be followed and fair and reasonable compensation shall be made in a timely manner, expropriation or requisition of the investment of foreign investors is prohibited; (iii) mandatory technology transfer is prohibited; and (iv) the capital contributions, profits, capital gains, proceeds out of asset disposal, licensing fees of intellectual property rights, indemnity or compensation legally obtained, or proceeds received upon settlement by foreign investors within the PRC, may be freely remitted inward and outward in RMB or a foreign currency.
The Foreign Investment Law provides that foreign investors shall not invest in the “prohibited” industries and shall meet certain requirements as stipulated under the Negative List for investing in “restricted” industries. 59 In addition, the Foreign Investment Law also provides several protective rules and principles for foreign investors and their investments in the PRC, including, among others, (i) that local governments shall abide by their commitments to the foreign investors; (ii) FIEs are allowed to issue stock and corporate bonds; except for special circumstances, in which case statutory procedures shall be followed and fair and reasonable compensation shall be made in a timely manner, expropriation or requisition of the investment of foreign investors is prohibited; (iii) mandatory technology transfer is prohibited; and (iv) the capital contributions, profits, capital gains, proceeds out of asset disposal, licensing fees of intellectual property rights, indemnity or compensation legally obtained, or proceeds received upon settlement by foreign investors within the PRC, may be freely remitted inward and outward in RMB or a foreign currency.
This circular also provides an integrated standard for the conversion of foreign currency under capital account items (including, but not limited to, foreign currency capital and foreign debts) on a self-discretionary basis, which applies to all enterprises registered in China. 64 On January 26, 2017, SAFE promulgated the Circular on Further Improving Reform of Foreign Exchange Administration and Optimizing Genuineness and Compliance Verification, which stipulates several capital control measures with respect to the outbound remittance of profits from domestic entities to offshore entities, including (i) banks should check board resolutions regarding profit distribution, the original version of tax filing records, and audited financial statements pursuant to the principle of genuine transactions; and (ii) domestic entities should hold income to account for previous years’ losses before remitting the profits.
This circular also provides an integrated standard for the conversion of foreign currency under capital account items (including, but not limited to, foreign currency capital and foreign debts) on a self-discretionary basis, which applies to all enterprises registered in China. 63 On January 26, 2017, SAFE promulgated the Circular on Further Improving Reform of Foreign Exchange Administration and Optimizing Genuineness and Compliance Verification, which stipulates several capital control measures with respect to the outbound remittance of profits from domestic entities to offshore entities, including (i) banks should check board resolutions regarding profit distribution, the original version of tax filing records, and audited financial statements pursuant to the principle of genuine transactions; and (ii) domestic entities should hold income to account for previous years’ losses before remitting the profits.
It is uncertain which mechanism will be adopted by the PBOC and SAFE in the future and what statutory limits will be imposed on us when providing loans to our PRC Subsidiaries. 65 Offshore Investment Under the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip Investment Through Special Purpose Vehicles, or SAFE Circular 37, effective on July 4, 2014, PRC residents are required to register with the local SAFE branch prior to the establishment or control of an offshore special purpose vehicle, which is defined as an offshore enterprise directly established or indirectly controlled by PRC residents for investment and financing purposes, with the enterprise assets or interests PRC residents hold in China or overseas.
It is uncertain which mechanism will be adopted by the PBOC and SAFE in the future and what statutory limits will be imposed on us when providing loans to our PRC Subsidiaries. 64 Offshore Investment Under the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip Investment Through Special Purpose Vehicles, or SAFE Circular 37, effective on July 4, 2014, PRC residents are required to register with the local SAFE branch prior to the establishment or control of an offshore special purpose vehicle, which is defined as an offshore enterprise directly established or indirectly controlled by PRC residents for investment and financing purposes, with the enterprise assets or interests PRC residents hold in China or overseas.
However, if non-resident enterprises have not formed permanent establishments or premises in China, or if they have formed permanent establishments or premises in China but there is no actual relationship between the relevant income derived in China and the established institutions or premises set up by them, withholding income tax is set at the rate of 10% with respect to their income sourced from inside the PRC. 66 Value-Added Tax The PRC Provisional Regulations on Value-Added Tax were promulgated by the State Council on December 13, 1993, became effective on January 1, 1994, and were subsequently amended from time to time.
However, if non-resident enterprises have not formed permanent establishments or premises in China, or if they have formed permanent establishments or premises in China but there is no actual relationship between the relevant income derived in China and the established institutions or premises set up by them, withholding income tax is set at the rate of 10% with respect to their income sourced from inside the PRC. 65 Value-Added Tax The PRC Provisional Regulations on Value-Added Tax were promulgated by the State Council on December 13, 1993, became effective on January 1, 1994, and were subsequently amended from time to time.
Any person applying for the registration of a trademark may not infringe on existing trademark rights first obtained by others, nor may any person register in advance a trademark that has already been used by another party and has already gained a “sufficient degree of reputation” through such other party’s use. 63 Regulations on Domain Names The MIIT promulgated the Measures on Administration of Internet Domain Names on August 24, 2017, which became effective on November 1, 2017, and replaced the Administrative Measures on China Internet Domain Names promulgated by the MIIT on November 5, 2004.
Any person applying for the registration of a trademark may not infringe on existing trademark rights first obtained by others, nor may any person register in advance a trademark that has already been used by another party and has already gained a “sufficient degree of reputation” through such other party’s use. 62 Regulations on Domain Names The MIIT promulgated the Measures on Administration of Internet Domain Names on August 24, 2017, which became effective on November 1, 2017, and replaced the Administrative Measures on China Internet Domain Names promulgated by the MIIT on November 5, 2004.
We believe that suitable additional or replacement space will become available in the future and on commercially reasonable terms to accommodate our foreseeable future expansion. Item 4A. Unresolved Staff Comments None. 71
We believe that suitable additional or replacement space will become available in the future and on commercially reasonable terms to accommodate our foreseeable future expansion. Item 4A. Unresolved Staff Comments None.
The M&A Rules also require that an offshore special purpose vehicle, or a special purpose vehicle formed for overseas listing purposes and controlled directly or indirectly by PRC companies or individuals, shall obtain the approval of the CSRC prior to overseas listing and trading of such special purpose vehicle’s securities on an overseas stock exchange. 68 Our PRC legal counsel has advised us that, based on its understanding of the current PRC laws and regulations, our corporate structure and arrangements are not subject to the M&A Rules.
The M&A Rules also require that an offshore special purpose vehicle, or a special purpose vehicle formed for overseas listing purposes and controlled directly or indirectly by PRC companies or individuals, shall obtain the approval of the CSRC prior to overseas listing and trading of such special purpose vehicle’s securities on an overseas stock exchange. 67 Our PRC legal counsel has advised us that, based on its understanding of the current PRC laws and regulations, our corporate structure and arrangements are not subject to the M&A Rules.
Bulletin 7 may be determined by the tax authorities to be applicable to our offshore transactions or sale of our shares or those of our offshore subsidiaries where non-resident enterprises, being the transferors, are involved. 67 Regulations on Employment Labor Contract Law The PRC Labor Contract Law, which became effective on January 1, 2008, and amended in 2012, primarily aims at regulating rights and obligations of employment relationships, including the establishment, performance, and termination of labor contracts.
Bulletin 7 may be determined by the tax authorities to be applicable to our offshore transactions or sale of our shares or those of our offshore subsidiaries where non-resident enterprises, being the transferors, are involved. 66 Regulations on Employment Labor Contract Law The PRC Labor Contract Law, which became effective on January 1, 2008, and amended in 2012, primarily aims at regulating rights and obligations of employment relationships, including the establishment, performance, and termination of labor contracts.
The revenue derived from machining services accounted for 6.1% and 3.8% of our total revenue for the years ended December 31, 2023 and 2022, respectively. Recent Developments On April 22, 2024, the Company completed its initial public offering on the Nasdaq Capital Market. In this offering, 1,050,000 Ordinary Shares were issued at a price of $4.00 per share.
The revenue derived from machining services accounted for 21.2%, 6.1% and 3.8% of our total revenue for the years ended December 31, 2024, 2023 and 2022, respectively. Recent Developments On April 22, 2024, the Company completed its initial public offering on the Nasdaq Capital Market. In this offering, 1,050,000 Ordinary Shares were issued at a price of $4.00 per share.
In the event that a patent is owned by two or more co-owners without an agreement regarding the distribution of revenue generated from the exploitation of any co-owner of the patent, such revenue shall be distributed among all the co-owners. 62 Existing patents can become narrowed, invalid or unenforceable due to a variety of grounds, including lack of novelty, creativity, and deficiencies in patent applications.
In the event that a patent is owned by two or more co-owners without an agreement regarding the distribution of revenue generated from the exploitation of any co-owner of the patent, such revenue shall be distributed among all the co-owners. 61 Existing patents can become narrowed, invalid or unenforceable due to a variety of grounds, including lack of novelty, creativity, and deficiencies in patent applications.
The foreign investors or foreign-invested enterprises shall report the investment information by submitting reports including initial reports, change reports, deregistration reports and annual reports. 61 On December 27, 2021, the National Development and Reform Commission, or the NDRC, and the Ministry of Commerce promulgated the Special Administrative Measures for Access of Foreign Investment (Negative List) (2021 Edition), or the 2021 Negative List, which came into effect on January 01, 2022.
The foreign investors or foreign-invested enterprises shall report the investment information by submitting reports including initial reports, change reports, deregistration reports and annual reports. 60 On December 27, 2021, the National Development and Reform Commission, or the NDRC, and the Ministry of Commerce promulgated the Special Administrative Measures for Access of Foreign Investment (Negative List) (2021 Edition), or the 2021 Negative List, which came into effect on January 01, 2022.
Since the start of the pandemic in 2020, we have added a telemarketing model for finding new customers and maintaining current customer ties. Wuxi Mingteng Mould’s sales manager, Mr. Zhiyang Nie, has accumulated 15 years of professional experience in the foundry industry and has worked in Taiwan-invested enterprises and major foundry factories. Therefore, Mr.
Since the start of the pandemic in 2020, we have added a telemarketing model for finding new customers and maintaining current customer ties. Wuxi Mingteng Mould’s sales manager, Mr. Zhiyang Nie, has accumulated 16 years of professional experience in the foundry industry and has worked in Taiwan-invested enterprises and major foundry factories. Therefore, Mr.
The State implements a system of investigating the responsibility for production safety accidents. 59 Regulation on Product Liability Manufacturers and vendors of defective products in the PRC may incur liability for losses and injuries caused by such products. The Civil Code of the People’s Republic of China was passed in May 2020 and has been implemented on January 1, 2021.
The State implements a system of investigating the responsibility for production safety accidents. 58 Regulation on Product Liability Manufacturers and vendors of defective products in the PRC may incur liability for losses and injuries caused by such products. The Civil Code of the People’s Republic of China was passed in May 2020 and has been implemented on January 1, 2021.
The team then looks into the forming process of the part by conducting a model analysis, helping Wuxi Mingteng Mould finds the possible risks of the mold and parts before manufacturing the final part; 51 ● Technical team checks whether the product process parameters are feasible according to the model analysis results and their experience in actual production and debugging.
The team then looks into the forming process of the part by conducting a model analysis, helping Wuxi Mingteng Mould finds the possible risks of the mold and parts before manufacturing the final part; 50 ● Technical team checks whether the product process parameters are feasible according to the model analysis results and their experience in actual production and debugging.
While providing molds of supporting auto parts for the above customers in China, Wuxi Mingteng Mould is also developing our export business and increasing our presence in the overseas market. 57 Suppliers Wuxi Mingteng Mould’s products are used in the automotive parts manufacturing industry, and the raw materials are mainly cast iron, mold steel, and steel plates.
While providing molds of supporting auto parts for the above customers in China, Wuxi Mingteng Mould is also developing our export business and increasing our presence in the overseas market. 56 Suppliers Wuxi Mingteng Mould’s products are used in the automotive parts manufacturing industry, and the raw materials are mainly cast iron, mold steel, and steel plates.
In connection with our previous issuance of securities to foreign investors, we received approval from the CSRC regarding our completion of the required filing procedures for the offering. 69 On February 24, 2023, the CSRC, together with the MOF, National Administration of State Secrets Protection and National Archives Administration of China, revised the Provisions issued by the CSRC and National Administration of State Secrets Protection and National Archives Administration of China in 2009.
In connection with our previous issuance of securities to foreign investors, we received approval from the CSRC regarding our completion of the required filing procedures for the offering. 68 On February 24, 2023, the CSRC, together with the MOF, National Administration of State Secrets Protection and National Archives Administration of China, revised the Provisions issued by the CSRC and National Administration of State Secrets Protection and National Archives Administration of China in 2009.
Meanwhile, Wuxi Mingteng Mould also successfully avoided the operating risks of running the machine caused by failing to effectively remove the flash inside the casting due to the scroll splicing, while simultaneously ensuring the accuracy of the flow channel. 50 Nowadays, many suppliers in the market still utilize the mud core splicing method.
Meanwhile, Wuxi Mingteng Mould also successfully avoided the operating risks of running the machine caused by failing to effectively remove the flash inside the casting due to the scroll splicing, while simultaneously ensuring the accuracy of the flow channel. 49 Nowadays, many suppliers in the market still utilize the mud core splicing method.
Wuxi Mingteng Mould produces and processes compressor housing, turbine housing, and center housing molds via sand and gravity casting. 48 Braking and Steering System Molds The braking system is a series of devices that force the car to slow down, which is mainly composed of the wheel brake, hydrostatic transmission, and pneumatic transmission gear.
Wuxi Mingteng Mould produces and processes compressor housing, turbine housing, and center housing molds via sand and gravity casting. 47 Braking and Steering System Molds The braking system is a series of devices that force the car to slow down, which is mainly composed of the wheel brake, hydrostatic transmission, and pneumatic transmission gear.
As of December 31, 2022, the revenue generated from Wuxi Mingteng Mould’s product machining service reached RMB 2,053,935 (approximately $305,369), accounting for about 3.8% of our total sales revenue for that year. After-sales service Wuxi Mingteng Mould provides a one-year after-sales service period for our products.
For the year ended December 31, 2022, the revenue generated from Wuxi Mingteng Mould’s product machining service reached RMB 2,053,935 (approximately $305,369), accounting for about 3.8% of our total sales revenue for that year. After-sales service Wuxi Mingteng Mould provides a one-year after-sales service period for our products.
Our existing technical team consists of 22 people, all with professional knowledge in casting, machining, and automation. They analyze customers’ casting and processing technology, and propose solutions and improvement suggestions to customers to enhance the efficiency and safety of their products.
Our existing technical team consists of 31 people, all with professional knowledge in casting, machining, and automation. They analyze customers’ casting and processing technology, and propose solutions and improvement suggestions to customers to enhance the efficiency and safety of their products.
As of December 31, 2023, the revenue generated from Wuxi Mingteng Mould’s product machining service reached RMB 3,533,224 (approximately $501,398), accounting for about 6.1% of our total sales revenue for that year.
For the year ended December 31, 2023, the revenue generated from Wuxi Mingteng Mould’s product machining service reached RMB 3,533,224 (approximately $501,398), accounting for about 6.1% of our total sales revenue for that year.
Wuxi Mingteng Mould has a technical team of 22 professionals for mold design that is responsible for new product development, production and technical innovation, and mold quality inspections. Wuxi Mingteng Mould has made mold designs on the mud core.
Wuxi Mingteng Mould has a technical team of 31 professionals for mold design that is responsible for new product development, production and technical innovation, and mold quality inspections. Wuxi Mingteng Mould has made mold designs on the mud core.
In the international market, Wuxi Mingteng Mould’s indirect end users include many prominent international automotive companies such as GM, Ford, Mercedes-Benz, BMW, Audi, Volvo, Land Rover, Porsche, and Tesla. 55 Wuxi Mingteng Mould’s close ties with the following priority customers show our technology, service reputation, and product quality strengths.
In the international market, Wuxi Mingteng Mould’s indirect end users include many prominent international automotive companies such as GM, Ford, Mercedes-Benz, BMW, Audi, Volvo, Land Rover, and Porsche. 54 Wuxi Mingteng Mould’s close ties with the following priority customers show our technology, service reputation, and product quality strengths.
In addition, Wuxi Mingteng Mould also provides high-pressure molds for aluminum alloy casting products for Suzhou Lvkon Transmission Technology Co., Ltd. Suzhou Lvkon Transmission Technology is a manufacturer of gearbox assemblies and motor supporting assemblies for NEVs.
In addition, Wuxi Mingteng Mould also provides high-pressure molds for aluminum alloy casting products for Suzhou Green Control Transmission Technology Co., Ltd.. Suzhou Green Control Transmission Technology Co., Ltd. is a manufacturer of gearbox assemblies and motor supporting assemblies for NEVs.
In addition, we believe our research and patents in the field of automotive casting molds have earned us recognition from our customers, and we have registered 19 authorized utility model and invention patents in China. 46 We are a supplier to leading major customers in the automobile parts manufacturing industry and have established long-term business relationships with them, most of whom have more than 5 years of business relationship with us.
In addition, we believe our research and patents in the field of automotive casting molds have earned us recognition from our customers, and we have registered 21authorized utility model and invention patents in China. 45 We are a supplier to leading major customers in the automobile parts manufacturing industry and have established long-term business relationships with them, most of whom have more than 5 years of business relationship with us.
For the years ended December 31, 2023 and 2022, Wuxi Mingteng Mould’s research and development expenses were RMB 4,444,752 (approximately $630,752) and RMB 3,312,769 (approximately $492,526), respectively, representing 7.7% and 6.1% of revenues for the same period. 52 Wuxi Mingteng Mould’s mold development and production processes are supported by the R&D team (including casting craftsmen, mold designers, and various experts in mold casting and pouring, etc.) who have expertise in multiple aspects of casting, machining, molds, and automation, etc.
For the years ended December 31, 2024, 2023 and 2022, Wuxi Mingteng Mould’s research and development expenses were RMB 4,515,470 (approximately $634,046), RMB 4,444,752 (approximately $630,752), and RMB 3,312,769 (approximately $492,526), respectively, representing 6.3%, 7.7% and 6.1% of revenues for the same period. 51 Wuxi Mingteng Mould’s mold development and production processes are supported by the R&D team (including casting craftsmen, mold designers, and various experts in mold casting and pouring, etc.) who have expertise in multiple aspects of casting, machining, molds, and automation, etc.
The revenue generated from Wuxi Mingteng Mould’s product repair service was RMB 7,644,884 (approximately $1,084,881) and RMB 7,651,908 (approximately $1,137,648) in the fiscal years 2023 and 2022, respectively. Machining service Wuxi Mingteng Mould’s product machining services mainly include processing turbine housings and center housing parts for automobile turbocharger systems.
The revenue generated from Wuxi Mingteng Mould’s product repair service was RMB 7,860,489 (approximately $1,103,741), RMB 7,644,884 (approximately $1,084,881) and RMB 7,651,908 (approximately $1,137,648) in the fiscal years 2024, 2023 and 2022, respectively. Machining service Wuxi Mingteng Mould’s product machining services mainly include processing turbine housings and center housing parts for automobile turbocharger systems.
Corporate Information Our principal executive office is located at Lvhua Village, Luoshe Town, Huishan District, Wuxi, Jiangsu Province, PRC. The telephone number of our principal executive offices is +86 0510-83318500. Our registered office provider in the Cayman Islands is ICS Corporate Services (Cayman) Limited.
Corporate Information Our principal executive office is located at Lvhua Village, Luoshe Town, Huishan District, Wuxi, Jiangsu Province, PRC. The telephone number of our principal executive offices is +86 0510-83318500. Our registered office provider in the Cayman Islands is Osiris International Cayman Limited.
The revenue generated from product design and manufacturing service was RMB 46,787,816 (approximately $6,639,632) and RMB 44,282,779.68 (approximately $6,583,747) in the fiscal years 2023 and 2022, respectively. Product repair service Wuxi Mingteng Mould signs contracts with customers, provides repair services according to the contract, and charges a certain fee from customers.
The revenue generated from product design and manufacturing service was RMB 48,943,618 (approximately $6,872,483), RMB 46,787,816 (approximately $6,639,632) and RMB 44,282,779.68 (approximately $6,583,747) in the fiscal years 2024, 2023 and 2022, respectively. Product repair service Wuxi Mingteng Mould signs contracts with customers, provides repair services according to the contract, and charges a certain fee from customers.
The gross proceeds received from the initial public offering totaled $4.2 million. After deducting underwriting discounts and the offering expenses the Company received net proceeds of $1.35 million.
The gross proceeds received from the initial public offering totaled $4.2 million. After deducting underwriting discounts and the offering expenses the Company received net proceeds of $2.72 million.
Currently, we are conducting close exchanges and cooperating with several customers in the new energy field, such as Runxingtai (Changzhou) Technology Co., Ltd. and Suzhou Lvkon Transmission S&T Co., Ltd., and regard them as key customers for the future growth of our business.
Currently, we are conducting close exchanges and cooperating with several customers in the new energy field, such as Runxingtai (Changzhou) Technology Co., Ltd. and Suzhou Green Control Transmission Technology Co., Ltd.., and regard them as key customers for the future growth of our business.
The revenue derived from customized mold production accounted for 80.7% and 82% of our total revenue for the years ended December 31, 2023 and 2022, respectively. The revenue derived from mold repair accounted for 13.2% and 14.2% of our total revenue for the years ended December 31, 2023 and 2022, respectively.
The revenue derived from customized mold production accounted for 67.9%, 80.7% and 82% of our total revenue for the years ended December 31, 2024, 2023 and 2022, respectively. The revenue derived from mold repair accounted for 10.9%, 13.2% and 14.2% of our total revenue for the years ended December 31, 2024, 2023 and 2022, respectively.
This technology has improved the mud core production efficiency for its customers. 53 As of the date of this annual report, Wuxi Mingteng Mould has registered 17 authorized utility model patents and 2 authorized invention patents in China.
This technology has improved the mud core production efficiency for its customers. 52 As of the date of this annual report, Wuxi Mingteng Mould has registered 18 authorized utility model patents and 3 authorized invention patents in China .
Manufacturing Manufacturing facilities and equipment Wuxi Mingteng Mould’s manufacturing plant is located in Wuxi, China, with a total area of about 2,112 square meters. Wuxi Mingteng Mould has purchased 30 mold machining centers for manufacturing different molds.
Manufacturing Manufacturing facilities and equipment Wuxi Mingteng Mould’s manufacturing plant is located in Wuxi, China, with a total area of about 5,631 square meters. Wuxi Mingteng Mould has purchased 47 mold machining centers for manufacturing different molds.
Wuxi Mingteng Mould also provides after-sales services after the molds are delivered. To date, we have had no significant product returns or accidents, and have not been involved in any product-related complaints, investigations, or significant litigations. The quality of Wuxi Mingteng Mould’s products has earned Wuxi Mingteng Mould the ISO 9001:2015 quality management system certification.
To date, we have had no significant product returns or accidents, and have not been involved in any product-related complaints, investigations, or significant litigations. The quality of Wuxi Mingteng Mould’s products has earned Wuxi Mingteng Mould the ISO 9001:2015 quality management system certification.
When the design plan is completed, Wuxi Mingteng Mould submits the design to the customers for feedback, and then improve the design and get it approved before processing and production. ● During the mold production and processing stage, Wuxi Mingteng Mould carries out a secondary inspection of raw materials. 54 ● During the delivery stage, Wuxi Mingteng Mould tests the finished products.
When the design plan is completed, Wuxi Mingteng Mould submits the design to the customers for feedback, and then improve the design and get it approved before processing and production. ● During the mold production and processing stage, Wuxi Mingteng Mould carries out a secondary inspection of raw materials. ● During the delivery stage, Wuxi Mingteng Mould tests the finished products. 53 Wuxi Mingteng Mould also provides after-sales services after the molds are delivered.
Wuxi Mingteng Mould has a wide range of products, mainly casting molds of automobile parts for turbocharge systems (turbine housings and center housings), braking systems (steering knuckles, brake calipers/anchors and brake discs), steering and differential systems (steering gear housings and differential housings), and aluminum alloy product mold. All of these are widely used in the automobile manufacturing industry.
Wuxi Mingteng Mould has a wide range of products, mainly casting molds of automobile parts for turbocharge systems (turbine housings and center housings), braking systems (steering knuckles, brake calipers/anchors and brake discs), steering and differential systems (steering gear housings and differential housings), and aluminum alloy product mold.
Number Supplier Name % of total purchases for the year ended December 31, 2023 1 Wuxi Qianshi Casting Industry Co., Ltd 6.8 % 2 Wuxi Changshang Metal Materials Co., LTD 6.7 % Number Supplier Name % of total purchases for the year ended December 31, 2022 1 Wuxi Xuelang Automobile Diesel Engine Parts Factory 8 % 2 Wuxi Changshang Metal Materials Co., LTD 7 % 58 Environmental Matters Wuxi Mingteng Mould is subject to PRC environmental laws and regulations including the Environmental Protection Law of the PRC.
Number Supplier Name % of total purchases for the year ended December 31, 2024 1 Wuxi Yingteng Mold Technology Co., Ltd 12.3 % 2 Wuxi Qianshi Casting Industry Co., Ltd 11.1 % 3 Wuxi Kaiteng Mold Manufacturing Factory 10.4 % Number Supplier Name % of total purchases for the year ended December 31, 2023 1 Wuxi Qianshi Casting Industry Co., Ltd 6.8 % 2 Wuxi Changshang Metal Materials Co., LTD 6.7 % Number Supplier Name % of total purchases for the year ended December 31, 2022 1 Wuxi Xuelang Automobile Diesel Engine Parts Factory 8 % 2 Wuxi Changshang Metal Materials Co., LTD 7 % 57 Environmental Matters Wuxi Mingteng Mould is subject to PRC environmental laws and regulations including the Environmental Protection Law of the PRC.
Our registered office in the Cayman Islands is at 3-212 Governors Square, 23 Lime Tree Bay Avenue, P.O. Box 30746, Seven Mile Beach, Grand Cayman KY1-1203, Cayman Islands. Our registered agent in the United States is Cogency Global Inc., 122 E 42 nd Street, 18 th Floor, New York, NY 10168. B.
Our registered office in the Cayman Islands is at Suite 4-210, Governors Square, 23 Lime Tree Bay Avenue, P.O. Box 32311, Grand Cayman KY1-1209, Cayman Islands. Our registered agent in the United States is Cogency Global Inc., 122 E 42 nd Street, 18 th Floor, New York, NY 10168. B.
As of December 31, 2023, our revenue ratio for mold products is as follows: Mold Products Revenue Ratio (%) Turbocharger system Turbine housing 39 Center housing 9 Compressor housing 3 Braking and steering system 12 Aluminum alloy pressure casting molds 23 Others 14 47 As of December 31, 2022, our revenue ratio for mold products is as follows: Mold Products Revenue Ratio (%) Turbocharger system Turbine housing 47 Center housing 16 Compressor housing 2 Braking and steering system 12 Aluminum alloy pressure casting molds 10 Others 13 Turbocharger System Molds A turbocharger is an air compressor that uses exhaust gas from engines as the power source.
All of these are widely used in the automobile manufacturing industry. 46 As of December 31, 2024, our revenue ratio for mold products is as follows: Mold Products Revenue Ratio (%) Turbocharger system Turbine housing 36 Center housing 7 Compressor housing - Braking and steering system 22 Aluminum alloy pressure casting molds 17 Others 18 As of December 31, 2023, our revenue ratio for mold products is as follows: Mold Products Revenue Ratio (%) Turbocharger system Turbine housing 39 Center housing 9 Compressor housing 3 Braking and steering system 12 Aluminum alloy pressure casting molds 23 Others 14 As of December 31, 2022, our revenue ratio for mold products is as follows: Mold Products Revenue Ratio (%) Turbocharger system Turbine housing 47 Center housing 16 Compressor housing 2 Braking and steering system 12 Aluminum alloy pressure casting molds 10 Others 13 Turbocharger System Molds A turbocharger is an air compressor that uses exhaust gas from engines as the power source.
In addition, it also received the title of Wuxi high-tech industry and development zone gazelle company awarded by the Wuxi Productivity Promotion Center and the certificate of Specialized and New, Small and Medium-Sized Technological Enterprises in Jiangsu Province in 2023.
In addition, it also received the title of Wuxi high-tech industry and development zone gazelle company awarded by the Wuxi Productivity Promotion Center and the certificate of Specialized and New, Small and Medium-Sized Technological Enterprises in Jiangsu Province in 2023.In 2024, Wuxi Mingteng Mould received an intellectual property compliance management system certificate from Zhongshen (Shenzhen) Certification Co., Ltd.
Products Wuxi Mingteng Mould researches, develops, produces, and sells molds used in the automobile and engineering machinery fields, including automobile turbocharger housing molds, brake caliper molds, steering knuckle molds, and hydraulic part molds.
On November 20, 2024, the Company issued a total of 620,000 Ordinary Shares to three employees of the Company. Products Wuxi Mingteng Mould researches, develops, produces, and sells molds used in the automobile and engineering machinery fields, including automobile turbocharger housing molds, brake caliper molds, steering knuckle molds, and hydraulic part molds.
Wuxi Mingteng Mould is widely recognized by our core customers, and its market share continues to grow. As of December 31, 2023 and 2022, the combined annual sales to the above core customers exceeded RMB 25 million (approximately $3,553,249) and RMB 30 million (approximately $4,460,253), respectively, representing a 43.2% and 56.3% share of total annual sales.
For the years ended December 31, 2024, 2023 and 2022, the combined annual sales to the above core customers exceeded RMB 41 million (approximately $ 5,765,201), RMB 25 million (approximately $3,553,249) and RMB 30 million (approximately $4,460,253), respectively, representing a 57.0%, 43.2% and 56.3% share of total annual sales.
Property, Plant and Equipment Intellectual Property Wuxi Mingteng Mould regards intellectual properties as critical to our success. As of the date of this annual report, Wuxi Mingteng Mould has registered 19 patents in the PRC. No.
As of the date of this annual report, Wuxi Mingteng Mould has registered 21 patents in the PRC. No.
Subsidiaries Place of Incorporation Incorporation Time Mingteng International Hong Kong Group Limited Hong Kong SAR November 4, 2021 Wuxi Ningteng Intelligent Manufacturing Co., Limited People’s Republic of China September 6, 2022 Wuxi Mingteng Mold Technology Co., Limited People’s Republic of China December 15, 2015 The following diagram illustrates the corporate structure of Mingteng International and its significant subsidiaries as of the date of this annual report: 70 D.
Subsidiaries Place of Incorporation Incorporation Time Mingteng International Hong Kong Group Limited Hong Kong SAR November 4, 2021 Wuxi Ningteng Intelligent Manufacturing Co., Ltd. People’s Republic of China September 6, 2022 Wuxi Mingteng Mould Technology Co., Ltd.
In accordance with Chinese regulations, Wuxi Mingteng Mould provides social insurance for its employees in China, including pension insurance, unemployment insurance, work-related injury insurance and medical insurance. Wuxi Mingteng Mould provides Directors and Officers Liability and Company Reimbursement Insurance for Mingteng International. The insurance is valid from April 18, 2024 to April 17, 2025.
In accordance with Chinese regulations, Wuxi Mingteng Mould provides social insurance for its employees in China, including pension insurance, unemployment insurance, work-related injury insurance and medical insurance. We believe that Wuxi Mingteng Mould’s insurance coverage is consistent with the industry and is sufficient to cover our key assets, facilities and liabilities.
Wuxi Mingteng Mould was ranked as one of the top 10 suppliers by Kehua Holdings in 2016 according to the data in its 2017 prospectus. 56 Wuxi Mingteng Mould continuously supplies molds for the core components of turbochargers, turbine housings, center housings, and compressor housings, to the customers mentioned above.
Wuxi Mingteng Mould continuously supplies molds for the core components of turbochargers, turbine housings, center housings, and compressor housings, to the customers mentioned above. Wuxi Mingteng Mould is widely recognized by our core customers, and its market share continues to grow.
Number Customer Name % of total revenue for the year ended December 31, 2023 1 Xixia Zhongde Auto Parts Co., Ltd. 19.3 % 2 Kehua Holdings Co., Ltd. 17.9 % 3 Runxingtai (Changzhou) Technology Co., Ltd. 17.4 % 4 CRRC Changzhou AUTO PARTS Co., Ltd. 9.6 % 5 Georg Fischer Casting Solutions Kunshan Co., Ltd. 5.8 % Total 70.0 % Number Customer Nam % of total revenue for the year ended December 31, 2022 1 Xixia Zhongde Auto Parts Co., Ltd. 24.3 % 2 Kehua Holdings Co., Ltd. 17.0 % 3 CRRC Changzhou AUTO PARTS Co., Ltd. 9.2 % 4 Wuxi Best Precision Machinery Co., Ltd. 8.9 % Total 59.4 % Turbocharger Component Manufacturers Currently, the leading manufacturers of turbocharger components in China include: Xixia Zhongde Auto Parts Co., Ltd., a national high-tech enterprise with an annual production capacity of 3 million turbocharger housings, has established long-term strategic cooperative relationships with famous Chinese and foreign enterprises, such as Changchun Fawer-IHI Turbocharger Co., Ltd., Shanghai MHI Turbocharger Co., Ltd., BorgWarner, BYD Co., Ltd., and more; Wuxi Best Precision Machinery Co., Ltd, listed on the Shenzhen Stock Exchange (ticker: 300580), mainly produces turbocharger precision bearing parts, center housings, engine blocks; Garrett Motion Inc, the leading manufacturer of turbocharger industry, has been the number one customer for Wuxi Best in recent years; Wuxi Lihu Corporation Limited, listed on the Shenzhen Stock Exchange (ticker: 300694), is a qualified supplier for the world’s leading turbocharger manufacturers, including Garrett Motion Inc, BorgWarner, and Mitsubishi Heavy Industries.
Number Customer Name % of total revenue for the year ended December 31, 2024 1 Kehua Holdings Co., Ltd. 24.7 % 2 Xixia Zhongde Auto Parts Co., Ltd. 14.5 % 3 Suzhou Green Control Transmission Technology Co., Ltd. 7.7 % 4 Runxingtai (Changzhou) Technology Co., Ltd. 6.0 % 5 Shandong Huiyu Automobile Parts Co., Ltd. 5.4 % Total 58.3 % Number Customer Name % of total revenue for the year ended December 31, 2023 1 Xixia Zhongde Auto Parts Co., Ltd. 19.3 % 2 Kehua Holdings Co., Ltd. 17.9 % 3 Runxingtai (Changzhou) Technology Co., Ltd. 17.4 % 4 CRRC Changzhou AUTO PARTS Co., Ltd. 9.6 % 5 Georg Fischer Casting Solutions Kunshan Co., Ltd. 5.8 % Total 70.0 % Number Customer Nam % of total revenue for the year ended December 31, 2022 1 Xixia Zhongde Auto Parts Co., Ltd. 24.3 % 2 Kehua Holdings Co., Ltd. 17.0 % 3 CRRC Changzhou AUTO PARTS Co., Ltd. 9.2 % 4 Wuxi Best Precision Machinery Co., Ltd. 8.9 % Total 59.4 % Turbocharger Component Manufacturers Currently, the leading manufacturers of turbocharger components in China include: Kehua Holdings Co., Ltd., listed on the Shanghai Stock Exchange (ticker: 603161), is a leading supplier of automotive turbocharger parts in the international market, covering about 70-80% of global automotive brands and about 90% of China’s automotive brands.
Other Component Manufacturers According to the national customs import and export data for automotive goods compiled by the China Association of Automobile Manufacturers, from January to February 2024, the total value of imports and exports of automotive goods nationwide was US$44.42 billion, up 7.2% year-on-year. The value of exports of automotive goods nationwide was US$33.97 billion, up 13.9% year-on-year.
Other Component Manufacturers According to the national customs import and export data for automotive goods compiled by the China Association of Automobile Manufacturers, in March 2025, 507,000 vehicles were exported, increasing by 14.9% month-on-month and 1% year-on-year, and from January to March 2025, 1.42 million vehicles were exported, representing a year-on-year growth of 7.3%.
Patent Name Claimant Patent Number Patent Type Filing Date Expiration Date 1 Multi-cavity sand molding mold for transmission housing Wuxi Mingteng Mould ZL201922378518.X Utility model patent Dec 25, 2019 Dec 25, 2029 2 Maintenance-friendly molds Wuxi Mingteng Mould ZL202120193853.7 Utility model patent Jan 22, 2021 Jan 22, 2031 3 Sand molds with sand cleaning components Wuxi Mingteng Mould ZL201922378586.6 Utility model patent Dec 25, 2019 Dec 25, 2029 4 Low-pressure mold for automobile press shell with sand core positioning device Wuxi Mingteng Mould ZL202021493171.X Utility model patent July 24,2020 July 24,2030 5 Sand core molding mold Wuxi Mingteng Mould ZL201922374503.6 Utility model patent Dec 25, 2019 Dec 25, 2029 6 Sand core molding mold Wuxi Mingteng Mould ZL202021493224.8 Utility model patent July 24,2020 July 24,2030 7 Sand core molding mold Wuxi Mingteng Mould ZL202021493125.X Utility model patent July 24,2020 July 24,2030 8 Gravity casting molds for pressed shells Wuxi Mingteng Mould ZL201922378567.3 Utility model patent Dec 25, 2019 Dec 25, 2029 9 A molding mold for vortex shell sand core Wuxi Mingteng Mould ZL202120193196.6 Utility model patent Jan 22, 2021 Jan 22, 2031 10 Sand core molding molds for automotive engine connectors Wuxi Mingteng Mould ZL202021497424.0 Utility model patent July 24,2020 July 24,2030 11 Molds for making sand cores Wuxi Mingteng Mould ZL202021493272.7 Utility model patents July 24,2020 July 24,2030 12 Forming plate assembly for intermediate shell sand forming Wuxi Mingteng Mould ZL201922378545.7 Utility model patent Dec 25, 2019 Dec 25, 2029 13 Sealing structure inside the sand making mold Wuxi Mingteng Mould ZL202021498215.8 Utility model patent July 24,2020 July 24,2030 14 Easy-to-release sand core molding mold Wuxi Mingteng Mould ZL201911407026.7 Invention patent Dec 31, 2019 Dec 31, 2039 15 Multi-cavity small clay core molding mold Wuxi Mingteng Mould ZL201911360372.4 Invention patent Dec 25, 2019 Dec 25, 2039 16 Sand core mold for forming volute sand mold Wuxi Mingteng Mould ZL202123450933.5 Utility model patent Dec 31, 2021 Dec 31, 2031 17 A kind of automobile support mold Wuxi Mingteng Mould ZL202123439111.7 Utility model patent Dec 31, 2021 Dec 31, 2031 18 A casting mould convenient for mold opening Wuxi Mingteng Mould ZL202123442634.7 Utility model patent Dec 31, 2021 Dec 31, 2031 19 A molding sand mold with sand cleaning components Wuxi Mingteng Mould ZL202123449490.8 Utility model patent Dec 31, 2021 Dec 31, 2031 As of the date of this annual report, we have not (i) received any intellectual property infringement-related complaints or claims against us; (ii) been notified of any infringement of any intellectual property of any third party by us or of any of our intellectual property being infringed by any third party; and (iii) been involved in any litigation in relation to claims of infringement of intellectual property.
Patent Name Claimant Patent Number Patent Type Filing Date Expiration Date 1 Multi-cavity small clay core molding mold Wuxi Mingteng Mould ZL201911360372.4 Invention patent Dec 25, 2019 Dec 25, 2039 2 Sand core mold for forming volute sand mold Wuxi Mingteng Mould ZL202123450933.5 Utility model patent Dec 31, 2021 Dec 31, 2031 3 A kind of automobile support mold Wuxi Mingteng Mould ZL202123439111.7 Utility model patent Dec 31, 2021 Dec 31, 2031 4 A casting mould convenient for mold opening Wuxi Mingteng Mould ZL202123442634.7 Utility model patent Dec 31, 2021 Dec 31, 2031 5 A molding sand mold with sand cleaning components Wuxi Mingteng Mould ZL202123449490.8 Utility model patent Dec 31, 2021 Dec 31, 2031 6 A high-temperature resistant casting mold Wuxi Mingteng Mould ZL202323665348.6 Utility model patent Dec 29, 2023 Dec 29, 2033 7 A vortex shell sand core mold Wuxi Mingteng Mould ZL202323666181.5 Utility model patent Dec 29, 2023 Dec 29, 2033 8 Easy-to-release sand core molding mold Wuxi Mingteng Mould ZL201911407026.7 Invention patent Dec 31, 2019 Dec 31, 2039 9 A sand core mold for vortex shell flow channels Wuxi Mingteng Mould ZL202323668341.X Utility model patent Dec 29, 2023 Dec 29, 2033 10 A casting mold for rapid cooling molding Wuxi Mingteng Mould ZL202420273983.5 Utility model patent Feb 4, 2024 Feb 4, 2034 11 A casting mold for automobile turbocharger housing Wuxi Mingteng Mould ZL202420568521.6 Utility model patent Mar 22, 2024 Mar 22, 2034 12 A type of snail shell casting mold Wuxi Mingteng Mould ZL202420634957.0 Utility model patent Mar 29, 2024 Mar 22, 2034 13 An anti offset casting mold Wuxi Mingteng Mould ZL202420634976.3 Utility model patent Mar 29, 2024 Mar 29, 2034 14 A casting mold for preventing casting defects Wuxi Mingteng Mould ZL202420635003.1 Utility model patent Mar 29, 2024 Mar 29, 2034 15 A mold conveying device and conveying method Wuxi Mingteng Mould ZL202411653752.8 Invention Patent Nov 19, 2024 Nov 19, 2044 16 A specialized base mold for automobiles Wuxi Mingteng Mould ZL202420027286.1 Utility model patent Jan 5, 2024 Jan 5, 2034 17 A mold for automobile production Wuxi Mingteng Mould ZL202323414473.X Utility model patent Dec 14, 2023 Dec 14, 2033 18 A mold for automotive components Wuxi Mingteng Mould ZL202323414782.7 Utility model patent Dec 14, 2023 Dec 14, 2033 19 An adjustable casting mold for the production and processing of automotive parts Wuxi Mingteng Mould ZL202420234737.9 Utility model patent Jan 31, 2024 Jan 31, 2034 20 A mold fixing device for automobile parts casting Wuxi Mingteng Mould ZL202420397081.2 Utility model patent Mar 1, 2024 Mar 1, 2034 21 A mold used for processing automotive rear shells Wuxi Mingteng Mould ZL202420234883.1 Utility model patent Jan 31, 2024 Jan 31, 2034 As of the date of this annual report, we have not (i) received any intellectual property infringement-related complaints or claims against us; (ii) been notified of any infringement of any intellectual property of any third party by us or of any of our intellectual property being infringed by any third party; and (iii) been involved in any litigation in relation to claims of infringement of intellectual property. 70 Leased Property Wuxi Mingteng Mould leased the following property in the PRC: Location Size (Square Meters) Primary Use Lvhua Village, Luoshe Town, Huishan District, Wuxi, Jiangsu Province, China 2,992 Manufacturing No.37 Luoyang North Road, Huishan District, Wuxi, Jiangsu Province, China 950 Manufacturing and Storage Luoyang North Road, Luoshe supporting Area, Huishan Economic Development Zone, Wuxi, Jiangsu Province, China 1077 Manufacturing No. 49 Pengiy Road, Guangde City, Xuancheng City, Anhui Province 612 Manufacturing As Wuxi Mingteng Mould expands the scale of its business operations, we intend to add new facilities or expand our existing facilities.
Though we did not have revenue from selling aluminum alloy pressure casting molds as of December 31, 2021 and 2020, as of December 31, 2023 and 2022, the revenue from this product accounted for 23% and 10% of our total business sales, respectively.
We believe that the global development of NEVs will continuously boost demand for pressure castings. 48 For the years ended 31, 2024, 2023 and 2022, the revenue from this product accounted for 17%, 23% and 10% of our total business sales, respectively.
Removed
We believe that the global development of NEVs will continuously boost demand for pressure castings. 49 Among pressure casting products, the most widely used products are aluminum alloy high-pressure castings. According to data released by the China Foundry Association in June 2021, the proportion of aluminum alloy pressure castings in all pressure castings was about 85% in 2020.
Added
On November 11, 2024, the board of directors of the Company approved and adopted an equity incentive plan, which authorized 620,750 Ordinary Shares (plus an indeterminate number of additional shares which may be offered and issued to prevent dilution from share splits, share dividends or similar transactions) to be issued to the directors, officers, managers, employees, consultants or advisors (and prospective directors, officers, managers, employees, consultants and advisors) of the Company and its affiliates.
Removed
The manufacturing processes of aluminum alloy automobile parts mainly include stamping, pressure casting, and extrusion forming, while pressure casting is the main method for manufacturing aluminum alloy parts. In the automobile parts field, aluminum alloy pressure castings account for up to 80%, and extrusion parts and calendaring parts account for about 10%.
Added
For the year ended December 31, 2024, the revenue generated from Wuxi Mingteng Mould’s product machining service reached RMB 15,269,116 (approximately $2,144,033), accounting for about 21.2% of our total sales revenue for that year.
Removed
Wuxi Mingteng Mould, therefore, believes that NEV manufacturers’ demand for aluminum alloy product molds is a great opportunity for us.
Added
The company mainly produces turbo housings and center housings.
Removed
By hiring more talented individuals and accumulating more customers, we believe that revenue from selling pressure casting molds will account for more than 30% of our total business revenue by 2025.
Added
Wuxi Mingteng Mould was ranked as one of the top 10 suppliers by Kehua Holdings in 2016 according to the data in its 2017 prospectus; Xixia Zhongde Auto Parts Co., Ltd., a national high-tech enterprise with an annual production capacity of 3 million turbocharger housings, has established long-term strategic cooperative relationships with famous Chinese and foreign enterprises, such as Changchun Fawer-IHI Turbocharger Co., Ltd., Shanghai MHI Turbocharger Co., Ltd., BorgWarner, BYD Co., Ltd., and more; Wuxi Best Precision Machinery Co., Ltd, listed on the Shenzhen Stock Exchange (ticker:300580), mainly produces turbocharger precision bearing parts, center housings, engine blocks; Garrett Motion Inc, the leading manufacturer of turbocharger industry, has been the number one customer for Wuxi Best in recent years; 55 Suzhou Green ControlTransmission Technology Co., Ltd. is an innovative leading enterprise focusing on power transmission systems for new energy commercial vehicles. the company possesses five core technologies, namely, architecture design of electric drive assembly systems for new energy vehicles, control strategy technology, special gearbox development technology, high torque density and high-efficiency drive motor technology, and controller technology.
Removed
The company mainly produces compressor housings and turbine housings; Kehua Holdings Co., Ltd., listed on the Shanghai Stock Exchange (ticker: 603161), is a leading supplier of automotive turbocharger parts in the international market, covering about 70-80% of global automotive brands and about 90% of China’s automotive brands. The company mainly produces turbo housings and center housings.
Added
It has the capability of fully independent design and production of key components such as gearboxes and motors. Currently, the company offers eight series of drive assembly products, covering three technical routes, namely, pure electric, fuel cell, and hybrid. They are widely used in areas such as buses, trucks, special-purpose vehicles, and off-road mobile machinery.
Removed
The coverage is (i) Directors and Officers Liability, (ii) Company Reimbursement (including Self-Report & Inquiry Representation Costs), and (iii) Company Securities. The limit of indemnity is USD 2,000,000 for any one claim and in aggregate. We believe that Wuxi Mingteng Mould’s insurance coverage is consistent with the industry and is sufficient to cover our key assets, facilities and liabilities.
Added
Our customer base encompasses over 20 truck manufacturers, including XCMG, SANY Group, Dongfeng Motor Cooperation, and China FAW, over 20 bus manufacturers such as Xiamen King Long, Xiamen Golden Dragon, Suzhou King Long, and Zhongtong Bus, and also some engineering machinery enterprises such as Tonly Heavy Industries, Taier Heavy Industry, Weichai Power, Liugong Machinery, Jingu Machinery, and Ensign Heavy Industry.
Removed
Leased Property Wuxi Mingteng Mould leased the following property in the PRC: Location Size (Square Meters) Primary Use Lvhua Village, Luoshe Town, Huishan District, Wuxi, Jiangsu Province, China 2,392 Manufacturing No.37 Luoyang North Road, Huishan District, Wuxi, Jiangsu Province, China 840 Manufacturing and Storage Luoyang North Road, Luoshe supporting Area, Huishan Economic Development Zone, Wuxi, Jiangsu Province, China 1077 Manufacturing As Wuxi Mingteng Mould expands the scale of its business operations, we intend to add new facilities or expand our existing facilities.
Added
The products have been deployed in over 160,000 new energy vehicles across more than 300 cities in China and 24 countries overseas; Shandong Huiyu Auto Parts Co., Ltd. is located in the Economic Development Zone of Huimin County, Binzhou City, Shandong Province.
Added
The factory covers a total area of about 5000 acres and enjoys a leading position in the field of automotive brake system casting blanks and machining. The company implements military-style management and is one of the main suppliers of BYD’s brake system blanks.
Added
People’s Republic of China December 15, 2015 The following diagram illustrates the corporate structure of Mingteng International and its significant subsidiaries as of the date of this annual report: 69 D. Property, Plant and Equipment Intellectual Property Wuxi Mingteng Mould regards intellectual properties as critical to our success.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

31 edited+9 added−0 removed60 unchanged
The Opinions emphasized the need to strengthen the administration over illegal securities activities and the need to strengthen the supervision of overseas listings by Chinese companies. Effective measures, such as promoting the construction of relevant regulatory systems, will be taken to deal with the risks and incidents of China-concept overseas listed companies, cybersecurity, data privacy protection requirements, and similar matters.
The Opinions emphasized the need to strengthen the administration over illegal securities activities and the need to strengthen the supervision of overseas listings by Chinese companies. Effective measures, such as promoting the construction of relevant regulatory systems, will be taken to deal with the risks and incidents of China-concept overseas listed companies, cybersecurity, data privacy protection requirements, and similar matters.
The Opinions and any related implementing rules to be enacted may subject us to compliance requirements in the future. On February 17, 2023, the CSRC promulgated the Trial Measures and five supporting guidelines, which became effective on March 31, 2023.
The Opinions and any related implementing rules to be enacted may subject us to compliance requirements in the future. On February 17, 2023, the CSRC promulgated the Trial Measures and five supporting guidelines, which became effective on March 31, 2023.
Pursuant to the Trial Measures, domestic companies that seek to offer or list securities overseas, both directly and indirectly, shall complete filing procedures with the CSRC pursuant to the requirements of the Trial Measures within three working days following its submission of initial public offerings or listing application.
Pursuant to the Trial Measures, domestic companies that seek to offer or list securities overseas, both directly and indirectly, shall complete filing procedures with the CSRC pursuant to the requirements of the Trial Measures within three working days following its submission of initial public offerings or listing application.
If a domestic company fails to complete required filing procedures or conceals any material fact or falsifies any major content in its filing documents, such domestic company may be subject to administrative penalties, such as an order to rectify, warnings, fines, and its controlling shareholders, actual controllers, the person directly in charge and other directly liable persons may also be subject to administrative penalties, such as warnings and fines.
If a domestic company fails to complete required filing procedures or conceals any material fact or falsifies any major content in its filing documents, such domestic company may be subject to administrative penalties, such as an order to rectify, warnings, fines, and its controlling shareholders, actual controllers, the person directly in charge and other directly liable persons may also be subject to administrative penalties, such as warnings and fines.
See “ Regulations – M&A Rules and Overseas Listing. ” According to the CSRC Notice, the domestic companies that have already been listed overseas before the effective date of the Trial Measures (namely, March 31, 2023) shall be deemed as existing issuers (the “Existing Issuers”).
See “ Regulations - M&A Rules and Overseas Listing. ” According to the CSRC Notice, the domestic companies that have already been listed overseas before the effective date of the Trial Measures (namely, March 31, 2023) shall be deemed as existing issuers (the “Existing Issuers”).
Existing Issuers are not required to complete the filing procedures immediately, and they shall be required to file with the CSRC for any subsequent offerings.
Existing Issuers are not required to complete the filing procedures immediately, and they shall be required to file with the CSRC for any subsequent offerings.
Domestic companies that have obtained approval from overseas regulatory authorities or securities exchanges (for example, the effectiveness of a registration statement for offering and listing in the U.S. has been obtained) for their indirect overseas offering and listing prior to March 31, 2023 but have not yet completed their indirect overseas issuance and listing, are granted a six-month transition period from March 31, 2023 to September 30, 2023.
Domestic companies that have obtained approval from overseas regulatory authorities or securities exchanges (for example, the effectiveness of a registration statement for offering and listing in the U.S. has been obtained) for their indirect overseas offering and listing prior to March 31, 2023 but have not yet completed their indirect overseas issuance and listing, are granted a six-month transition period from March 31, 2023 to September 30, 2023.
Those that complete their indirect overseas offering and listing within such six-month period are deemed as Existing Issuers and are not required to file with the CSRC for their indirect overseas offerings and listings.
Those that complete their indirect overseas offering and listing within such six-month period are deemed as Existing Issuers and are not required to file with the CSRC for their indirect overseas offerings and listings.
Within such six-month transition period, however, if such domestic companies fail to complete their indirect overseas issuance and listing, they shall complete the filing procedures with the CSRC.
Within such six-month transition period, however, if such domestic companies fail to complete their indirect overseas issuance and listing, they shall complete the filing procedures with the CSRC.
Further, according to the CSRC Notice, on March 31, 2023, domestic companies that have already submitted valid overseas listing applications but have yet to obtain approval from overseas regulatory agencies or stock exchanges may arrange a reasonable timeframe to submit the filing. They should complete the filing procedures with the CSRC before completing their indirect overseas listing.
Further, according to the CSRC Notice, on March 31, 2023, domestic companies that have already submitted valid overseas listing applications but have yet to obtain approval from overseas regulatory agencies or stock exchanges may arrange a reasonable timeframe to submit the filing. They should complete the filing procedures with the CSRC before completing their indirect overseas listing.
In connection with our previous issuance of securities to foreign investors, we received approval from the CSRC regarding our completion of the required filing procedures for the offering.
In connection with our previous issuance of securities to foreign investors, we received approval from the CSRC regarding our completion of the required filing procedures for the offering.
On February 24, 2023, the CSRC, together with the MOF, National Administration of State Secrets Protection and National Archives Administration of China, revised the Provisions on Strengthening Confidentiality and Archives Administration for Overseas Securities Offering and Listing, which were issued by the CSRC and National Administration of State Secrets Protection and National Archives Administration of China in 2009, or the “Provisions.” The revised Provisions were issued under the title the “Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic Companies,” and became effective on March 31, 2023 together with the Trial Measures.
On February 24, 2023, the CSRC, together with the MOF, National Administration of State Secrets Protection and National Archives Administration of China, revised the Provisions on Strengthening Confidentiality and Archives Administration for Overseas Securities Offering and Listing, which were issued by the CSRC and National Administration of State Secrets Protection and National Archives Administration of China in 2009, or the “Provisions.” The revised Provisions were issued under the title the “Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic Companies,” and became effective on March 31, 2023 together with the Trial Measures.
One of the major revisions to the revised Provisions is expanding their application to cover indirect overseas offering and listing, as is consistent with the Trial Measures.
One of the major revisions to the revised Provisions is expanding their application to cover indirect overseas offering and listing, as is consistent with the Trial Measures.
The revised Provisions require that, among other things, (a) a domestic company that plans to, either directly or indirectly through its overseas listed entity, publicly disclose or provide to relevant individuals or entities, including securities companies, securities service providers, and overseas regulators, any documents and materials that contain state secrets or working secrets of government agencies, shall first obtain approval from competent authorities according to law, and file with the secrecy administrative department at the same level; and (b) a domestic company that plans to, either directly or indirectly through its overseas listed entity, publicly disclose or provide to relevant individuals and entities, including securities companies, securities service providers, and overseas regulators, any other documents and materials that, if leaked, will be detrimental to national security or public interest, shall strictly fulfill relevant procedures stipulated by applicable national regulations.
The revised Provisions require that, among other things, (a) a domestic company that plans to, either directly or indirectly through its overseas listed entity, publicly disclose or provide to relevant individuals or entities, including securities companies, securities service providers, and overseas regulators, any documents and materials that contain state secrets or working secrets of government agencies, shall first obtain approval from competent authorities according to law, and file with the secrecy administrative department at the same level; and (b) a domestic company that plans to, either directly or indirectly through its overseas listed entity, publicly disclose or provide to relevant individuals and entities, including securities companies, securities service providers, and overseas regulators, any other documents and materials that, if leaked, will be detrimental to national security or public interest, shall strictly fulfill relevant procedures stipulated by applicable national regulations.
As of the date of this annual report, the revised Provisions have come into effect.
As of the date of this annual report, the revised Provisions have come into effect.
If we or our subsidiaries fail to obtain and maintain such approvals, licenses, or permits required for our business, inadvertently conclude that such approval is not required, or respond to changes in the regulatory environment, we or our subsidiaries could be subject to liabilities, penalties, and operational disruption, which may materially and adversely affect our business, operating results, financial condition and the value of our Ordinary Shares, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless. 42 The General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the “Opinions on Severely Cracking Down on Illegal Securities Activities According to Law,” or the “Opinions,” which were made available to the public on July 6, 2021.
If we or our subsidiaries fail to obtain and maintain such approvals, licenses, or permits required for our business, inadvertently conclude that such approval is not required, or respond to changes in the regulatory environment, we or our subsidiaries could be subject to liabilities, penalties, and operational disruption, which may materially and adversely affect our business, operating results, financial condition and the value of our Ordinary Shares, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless. 41 The General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the “Opinions on Severely Cracking Down on Illegal Securities Activities According to Law,” or the “Opinions,” which were made available to the public on July 6, 2021.
Any failure or perceived failure by our Company or our subsidiaries to comply with the above confidentiality and archives administration requirements under the revised Provisions and other PRC laws and regulations may result in the relevant entities being held legally liable by competent authorities, and referred to the judicial organ to be investigated for criminal liability if suspected of committing a crime. 43 As there are still uncertainties regarding the interpretation and implementation of such regulatory guidance, we cannot assure you that we will be able to comply with new regulatory requirements relating to our future overseas capital-raising activities and we may become subject to more stringent requirements with respect to matters such as cross-border investigation, data privacy, and enforcement of legal claims.
Any failure or perceived failure by our Company or our subsidiaries to comply with the above confidentiality and archives administration requirements under the revised Provisions and other PRC laws and regulations may result in the relevant entities being held legally liable by competent authorities, and referred to the judicial organ to be investigated for criminal liability if suspected of committing a crime. 42 As there are still uncertainties regarding the interpretation and implementation of such regulatory guidance, we cannot assure you that we will be able to comply with new regulatory requirements relating to our future overseas capital-raising activities and we may become subject to more stringent requirements with respect to matters such as cross-border investigation, data privacy, and enforcement of legal claims.
Any failure or perceived failure by our Company or our subsidiaries to comply with the above confidentiality and archives administration requirements under the revised Provisions and other PRC laws and regulations may result in the relevant entities being held legally liable by competent authorities, and referred to the judicial organ to be investigated for criminal liability if suspected of committing a crime. 45 As there are still uncertainties regarding the interpretation and implementation of such regulatory guidance, we cannot assure you that we will be able to comply with new regulatory requirements relating to our future overseas capital-raising activities and we may become subject to more stringent requirements with respect to matters such as cross-border investigation, data privacy, and enforcement of legal claims.
Any failure or perceived failure by our Company or our subsidiaries to comply with the above confidentiality and archives administration requirements under the revised Provisions and other PRC laws and regulations may result in the relevant entities being held legally liable by competent authorities, and referred to the judicial organ to be investigated for criminal liability if suspected of committing a crime. 44 As there are still uncertainties regarding the interpretation and implementation of such regulatory guidance, we cannot assure you that we will be able to comply with new regulatory requirements relating to our future overseas capital-raising activities and we may become subject to more stringent requirements with respect to matters such as cross-border investigation, data privacy, and enforcement of legal claims.
Any limitation on the ability of our subsidiaries to make dividend payments to us, or any tax implications of making dividend payments to us, could limit our ability to pay our parent company expenses or pay dividends to holders of our Ordinary Shares. ” 40 As a holding company, we may rely on dividends and other distributions on equity paid by our subsidiaries, including those based in the PRC, for our cash and financing requirements.
Any limitation on the ability of our subsidiaries to make dividend payments to us, or any tax implications of making dividend payments to us, could limit our ability to pay our parent company expenses or pay dividends to holders of our Ordinary Shares. ” 39 As a holding company, we may rely on dividends and other distributions on equity paid by our subsidiaries, including those based in the PRC, for our cash and financing requirements.
Our PRC Subsidiaries are required to set aside, at a minimum, 10% of their net income after taxes, based on PRC accounting standards, each year as statutory surplus reserves until the cumulative amount of such reserves reaches 50% of their registered capital; 3. Such reserves may not be distributed as cash dividends; 41 4.
Our PRC Subsidiaries are required to set aside, at a minimum, 10% of their net income after taxes, based on PRC accounting standards, each year as statutory surplus reserves until the cumulative amount of such reserves reaches 50% of their registered capital; 3. Such reserves may not be distributed as cash dividends; 40 4.
The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment ” on page 34. 44 Recent Regulatory Development in the PRC The General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the “Opinions on Severely Cracking Down on Illegal Securities Activities According to Law,” or the “Opinions,” which were made available to the public on July 6, 2021.
The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment ” on page 32. 43 Recent Regulatory Development in the PRC The General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the “Opinions on Severely Cracking Down on Illegal Securities Activities According to Law,” or the “Opinions,” which were made available to the public on July 6, 2021.
In the event it is later determined that the PCAOB is unable to inspect or investigate completely the Company’s auditor because of a position taken by an authority in a foreign jurisdiction, then such lack of inspection could cause trading of the Company’s securities in the United States to be prohibited under the HFCAA, and ultimately result in a determination by a securities exchange to delist the Company’s securities.
In the event it is later determined that the PCAOB is unable to inspect or investigate Wei, Wei & Co. or HTL completely because of a position taken by an authority in a foreign jurisdiction, then such lack of inspection could cause trading of the Company’s securities in the United States to be prohibited under the HFCAA, and ultimately result in a determination by a securities exchange to delist the Company’s securities.
Mingteng International is permitted under the laws of the Cayman Islands to provide funding to our subsidiaries incorporated in the British Virgin Islands and Hong Kong through loans or capital contributions without restrictions on the amount of the funds.
Mingteng International is permitted under the laws of the Cayman Islands to provide funding to our subsidiaries incorporated in Hong Kong through loans or capital contributions without restrictions on the amount of the funds.
Our subsidiaries are permitted under the respective laws of the British Virgin Islands and Hong Kong to provide funding to Mingteng International through dividend distribution without restrictions on the amount of the funds. There are no restrictions on dividend transfers from HK to BVI and BVI to the Cayman Islands.
Our subsidiaries are permitted under the respective laws of Hong Kong to provide funding to Mingteng International through dividend distribution without restrictions on the amount of the funds. There are no restrictions on dividend transfers from Hong Kong to the Cayman Islands.
Mingteng HK was incorporated on November 4, 2021 under the laws and regulations in Hong Kong. Mingteng HK is a wholly owned subsidiary of Mingteng International. Mingteng HK is a holding company and is currently not actively engaging in any business. Ningteng WFOE was established on September 6, 2022 under the laws of the PRC.
Mingteng HK is a holding company and is currently not actively engaging in any business. Ningteng WFOE was established on September 6, 2022 under the laws of the PRC. Ningteng WFOE is a wholly owned subsidiary of Mingteng HK. It is a holding company and is not actively engaging in any business.
Ningteng WFOE is a wholly owned subsidiary of Mingteng HK. It is a holding company and is not actively engaging in any business. Wuxi Mingteng Mould was established on December 15, 2015 under the laws of the PRC. Wuxi Mingteng Mould is a wholly owned subsidiary of Ningteng WFOE and is our only operating entity.
Wuxi Mingteng Mould was established on December 15, 2015 under the laws of the PRC. Wuxi Mingteng Mould is a wholly owned subsidiary of Ningteng WFOE and is our only operating entity.
While our auditor, Wei, Wei & Co., LLP, is not subject to the determinations as to inability to inspect or investigate completely as announced by the PCAOB on December 16, 2021, as they are not on the list published by the PCAOB.
As of the date of this annual report, neither our former auditor, Wei, Wei & Co., nor our current auditor, HTL, is subject to the determinations as to inability to inspect or investigate completely as announced by the PCAOB on December 16, 2021, as they are not on the list published by the PCAOB.
Cayman Islands law prescribes that a company may only pay dividends out of its profits. Other than that, there are no restrictions on Mingteng International’s ability to transfer cash to investors. See “ Item 3. Key Information — 3.D.
Other than that, there are no restrictions on Mingteng International’s ability to transfer cash to investors. See “ Item 3. Key Information - 3.D.
Transfers of Cash to and from Our Subsidiaries We currently have not maintained any cash management policies that dictate the purpose, amount and procedure of cash transfers between Mingteng International, our subsidiaries, or investors. Rather, the funds can be transferred in accordance with the applicable PRC laws and regulations.
As of April 15, 2025, there are 6,839,600 Ordinary Shares issued and outstanding. 38 Transfers of Cash to and from Our Subsidiaries We currently have not maintained any cash management policies that dictate the purpose, amount and procedure of cash transfers between Mingteng International, our subsidiaries, or investors.
Item 4. Information on the Company 4.A. History and Development of the Company Corporate History Mingteng International was incorporated on September 20, 2021 under the laws of the Cayman Islands.
Item 4. Information on the Company 4.A. History and Development of the Company Corporate History Mingteng International was incorporated on September 20, 2021 under the laws of the Cayman Islands. As of April 15, 2025, the authorized share capital of Mingteng International is US$50,000 divided into 5,000,000,000 Ordinary Shares, of which 6,839,600 Ordinary Shares are issued and outstanding.
As of the date of this annual report, the authorized share capital of Mingteng International is US$50,000 divided into 5,000,000,000 Ordinary Shares, of which 6,207,500 Ordinary Shares are issued and outstanding. Mingteng International is a holding company currently not engaging in any business. We conducted all of our business through our PRC subsidiary, Wuxi Mingteng Mould, incorporated in the PRC.
Mingteng International is a holding company currently not engaging in any business. We conducted all of our business through our PRC subsidiary, Wuxi Mingteng Mould, incorporated in the PRC. Mingteng HK was incorporated on November 4, 2021 under the laws and regulations in Hong Kong. Mingteng HK is a wholly owned subsidiary of Mingteng International.
Added
Upon the incorporation of Mingteng International on September 20, 2021, we issued 1 Ordinary Share to ICS Corporate Services (Cayman) Limited (subsequently transferred to BETTY CHEN LIMITED), 2,091,000 Ordinary Shares to YK XU HOLDING LIMITED, 2,009,000 Ordinary Shares to DJZ HOLDING LIMITED, 450,000 Ordinary Shares to HONGZE L.P., 225,000 Ordinary Shares to JACKY WANG LIMITED, and 224,999 Ordinary Shares to BETTY CHEN LIMITED, respectively, for a total consideration of US$50.
Added
The IPO On April 22, 2024, the Company completed its IPO of 1,050,000 Ordinary Shares at a price of $4.00 per share. The total gross proceeds received from the IPO was US$4.2 million.
Added
In connection with the closing of the IPO, the Company issued the representative of the underwriters for the IPO (the “Representative”) warrants to purchase up to 52,500 Ordinary Shares. On May 10, 2024, the Representative exercised its over-allotment option in full to purchase 157,500 Ordinary Shares at a price of $4.00.
Added
The total gross proceeds received from the fully exercise of the over-allotment option was US$630,000. In connection with the over-allotment exercise, the Company issued the Representative warrants to purchase up to 7,875 Ordinary Shares. On November 5, 2024, the Representative elected to cashless exercise 26,250 of their warrants held in exchange for 12,100 Ordinary Shares.
Added
The 2024 Equity Incentive Plan On November 11, 2024, the board of directors of the Company approved and adopted an equity incentive plan, which authorized 620,750 Ordinary Shares (plus an indeterminate number of additional shares which may be offered and issued to prevent dilution from share splits, share dividends or similar transactions) to be issued to the directors, officers, managers, employees, consultants or advisors (and prospective directors, officers, managers, employees, consultants and advisors) of the Company and its affiliates.
Added
On November 20, 2024, the Company issued a total of 620,000 Ordinary Shares to three employees of the Company.
Added
Rather, the funds can be transferred in accordance with the applicable PRC laws and regulations.
Added
Cayman Islands law prescribes that a company may only pay dividends out of its profits or share premium, and that a company may only pay dividends if, immediately following the date on which the dividend is paid, the company remains able to pay its debts as they fall due in the ordinary course of business.
Added
However, the management of PRC subsidiaries has no plan to distribute dividends to foreign subsidiaries in the foreseeable future.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

80 edited+63 added−28 removed67 unchanged
On March 16, 2022, Wuxi Mingteng Mould entered into an unsecured short-term loan agreement with Bank of Jiangsu with amount of RMB 2 million (approximately $0.30 million), with an annual interest rate of 5.13%. The maturity date of the loan was April 1, 2022. The loan was repaid upon maturity.
The loan was repaid upon maturity. On March 16, 2022, Wuxi Mingteng Mould entered into an unsecured short-term loan agreement with Bank of Jiangsu with amount of RMB 2 million (approximately $0.30 million), with an annual interest rate of 5.13%. The maturity date of the loan was April 1, 2022. The loan was repaid upon maturity.
After consideration of the impact of rising exchange rates, total revenue increased by 7.4% or 2.5 million in RMB base currency. 75 The following table sets forth the breakdown of our revenue for the years ended December 31, 2023 and 2022: For the Years Ended December 31, 2023 2022 Variance Amount % Amount % Amount % Mold production $ 6,639,632 80.7 % $ 6,583,747 82.0 % $ 55,885 0.8 % Mold repair 1,084,881 13.2 % 1,137,648 14.2 % (52,767 ) (4.6 )% Machining services 501,398 6.1 % 305,369 3.8 % 196,029 64.2 % Total $ 8,225,911 100.0 % $ 8,026,764 100.0 % $ 199,147 2.5 % Revenues from mold production .
After consideration of the impact of rising exchange rates, total revenue increased by 7.4% or 2.5 million in RMB base currency. 80 The following table sets forth the breakdown of our revenue for the years ended December 31, 2023 and 2022: For the Years Ended December 31, 2023 2022 Variance Amount % Amount % Amount % Mold production $ 6,639,632 80.7 % $ 6,583,747 82.0 % $ 55,885 0.8 % Mold repair 1,084,881 13.2 % 1,137,648 14.2 % (52,767 ) (4.6 )% Machining services 501,398 6.1 % 305,369 3.8 % 196,029 64.2 % Total $ 8,225,911 100.0 % $ 8,026,764 100.0 % $ 199,147 2.5 % Revenues from mold production .
Amounts accrued, as well as the total amount of possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. Off-Balance Sheet Arrangements We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties.
Amounts accrued, as well as the total amount of possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. 89 Off-Balance Sheet Arrangements We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties.
Risk Factors.” All amounts included herein with respect to the fiscal years ended December 31, 2023 and 2022 are derived from our audited consolidated financial statements included elsewhere in this annual report. Our financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP.
Risk Factors.” All amounts included herein with respect to the fiscal years ended December 31, 2024, 2023 and 2022 are derived from our audited consolidated financial statements included elsewhere in this annual report. Our financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP.
In coping with the ongoing COVID-19 pandemic, the Company will reasonably dispatch employees and arrange working hours in the future to ensure the steady progress of production activities. 73 Changes in the availability, quality and cost of key raw materials, transportation and other necessary supplies or services Our raw materials consist primarily of steel plates and casting.
In coping with the ongoing COVID-19 pandemic, the Company will reasonably dispatch employees and arrange working hours in the future to ensure the steady progress of production activities. Changes in the availability, quality and cost of key raw materials, transportation and other necessary supplies or services Our raw materials consist primarily of steel plates and casting.
On March 4, 2022, Wuxi Mingteng Mould entered into a secured short-term loan agreement with Bank of Jiangsu with amount of RMB 5 million (approximately $0.75 million), with an annual interest rate of 4%. The maturity date of the loan is March 3, 2023. The loan was repaid upon maturity.
The maturity date of the loan is March 22, 2023. The loan was repaid upon maturity. On March 4, 2022, Wuxi Mingteng Mould entered into a secured short-term loan agreement with Bank of Jiangsu with amount of RMB 5 million (approximately $0.75 million), with an annual interest rate of 4%. The maturity date of the loan is March 3, 2023.
Ningteng WOFE is a wholly owned subsidiary of Mingteng HK and is not actively engaged in any business. Wuxi Mingteng Mould is a limited liability company incorporated on December 15, 2015, under the laws of the PRC. Wuxi Mingteng Mould is a wholly owned subsidiary of Ningteng WFOE and is our operating entity.
Ningteng WOFE is a wholly owned subsidiary of Mingteng HK and is not actively engaged in any business. 72 Wuxi Mingteng Mould is a limited liability company incorporated on December 15, 2015, under the laws of the PRC. Wuxi Mingteng Mould is a wholly owned subsidiary of Ningteng WFOE and is our operating entity.
Since Wuxi Mingteng Mould was approved as an HNTE in December 2019, Wuxi Mingteng Mould is entitled to a reduced income tax rate of 15% beginning December 2019 and is able to enjoy the reduced income tax rate through December 2022.
Since Wuxi Mingteng Mould was approved as an HNTE in December 2019, Wuxi Mingteng Mould is entitled to a reduced income tax rate of 15.0% beginning December 2019 and is able to enjoy the reduced income tax rate through December 2022.
In addition, due to the intense competitive in the market, we may lose our competitive advantage if we significantly increase the prices of our products, in order to maintain the Company’s competitive advantage, while product costs had increased, we had not increased the selling price of our products, which resulted in reduced gross profit. 77 Gross profit for mold repair decreased by $169,639 to $668,594 for the year ended December 31, 2023, as compared to $838,233 for the same period in 2022.
In addition, due to the intense competitive in the market, we may lose our competitive advantage if we significantly increase the prices of our products, in order to maintain the Company’s competitive advantage, while product costs had increased, we had not increased the selling price of our products, which resulted in reduced gross profit. 83 Gross profit for mold repair decreased by $169,639 to $668,594 for the year ended December 31, 2023, as compared to $838,233 for the same period in 2022.
Seasonality The nature of our business does not appear to be affected by seasonal variations. 82 Recent Developments On April 22, 2024, the Company completed its initial public offering on the Nasdaq Capital Market. In this offering, 1,050,000 Ordinary Shares were issued at a price of $4.00 per share.
Seasonality The nature of our business does not appear to be affected by seasonal variations. 90 Recent Developments On April 22, 2024, the Company completed its initial public offering on the Nasdaq Capital Market. In this offering, 1,050,000 Ordinary Shares were issued at a price of $4.00 per share.
Our existing technical team consists of 19 people, all with professional knowledge in casting, machining, and automation. They analyze customers’ casting and processing technology, propose solutions and improvement suggestions to customers to enhance the efficiency and safety of their products.
Our existing technical team consists of 31 people, all with professional knowledge in casting, machining, and automation. They analyze customers’ casting and processing technology, propose solutions and improvement suggestions to customers to enhance the efficiency and safety of their products.
This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of the product or the benefit of the services transfers to the customer.
This will require us to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of the product or the benefit of the services transfers to the customer.
It was primarily due to a) a net income of $1,506,702, adjusted by depreciation and amortization of $405,529, non-cash lease expense of $97,095, deferred tax benefits of $254,224, reversal of allowance for doubtful accounts of $5,079; b) increase in account receivable of $1,129,372 due to the increased sales revenue in the final quarter of fiscal year 2023 compared to the same period of fiscal year 2022, which had not been received as of December 31,2023 c) increase in advance to suppliers of $151,983 due to the prepayment for property and equipment; d) increase in other receivables of $35,657 due to the individual social security and public housing funding, e) increase in inventories of $174,399 due to the expansion of order volume; f) decrease in tax payable due to our decreased profits for the year ended December 31, 2023,g) decrease in payroll payable of $32,932 due to the reversal of social security and public housing funding, h) decrease in amounts due to related parties of $70,819, and partially offset by a) decrease in notes receivable of $302,846; b) increase in amount payable of $348,641 due to the increase purchase volume; c) increase in advance from customers of $343,470; d) decrease in payments under operating lease obligations of $88,586.
It was primarily due to a) a net income of $1,506,702, adjusted by depreciation and amortization of $40 5,529, non-cash lease expense of $97,095, deferred tax benefits of $254,224, reversal of allowance for doubtful accounts of $5,079; b) increase in account receivable of $1,129,372 due to the increased sales revenue in the final quarter of fiscal year 2023 compared to the same period of fiscal year 2022, which had not been received as of December 31,2023 c) increase in advance to suppliers of $151,983 due to the prepayment for property and equipment; d) increase in other receivables of $35,657 due to the individual social security and public housing funding, e) increase in inventories of $174,399 due to the expansion of order volume; f) decrease in tax payable due to our decreased profits for the year ended December 31, 2023,g) decrease in payroll payable of $32,932 due to the reversal of social security and public housing funding, h) decrease in amounts due to related parties of $70,819, and partially offset by a) decrease in notes receivable of $302,846; b) increase in amount payable of $348,641 due to the increase purchase volume; c) increase in advance from customers of $343,470; d) decrease in payments under operating lease obligations of $88,586. 87 Net cash provided by operating activities amounted to $2,852,697 for the year ended December 31, 2022.
The gross proceeds received from the initial public offering totaled $4.2 million. The offering closed on April 22, 2024 and the Ordinary Shares began trading on April 18, 2024 on the Nasdaq Capital Market under the ticker symbol “MTEN.” After deducting underwriting discounts and the offering expenses the Company received net proceeds of $1.35 million.
The gross proceeds received from the initial public offering totaled $4.2 million. The offering closed on April 22, 2024 and the Ordinary Shares began trading on April 18, 2024 on the Nasdaq Capital Market under the ticker symbol “MTEN.” After deducting underwriting discounts and the offering expenses the Company received net proceeds of $2.72 million.
We believe the following accounting policies involve the most significant judgments and estimates used in the preparation of our consolidated financial statements. 83 Use of estimates In preparing the consolidated financial statements in conformity with U.S.
We believe the following accounting policies involve the most significant judgments and estimates used in the preparation of our consolidated financial statements. 91 Use of estimates In preparing the consolidated financial statements in conformity with U.S.
It was primarily due to a) a net income of $2,133,188, adjusted by depreciation and amortization of $272,237, non-cash lease expense of $158,180, deferred tax benefits of $(4,304), provision for doubtful accounts of $17,606; b) increase in taxes payable of $354,593 due to our increased profits for the year ended December 31, 2022; c) increase in payroll payable of $273,796 due to the increase in average wages; d) decrease in other receivables of $760,209 due to the receipt of loans repaid by employees, third party individuals and other companies; and partially offset by a) increase in accounts receivable of $489,078; b) increase in notes receivable of $294,440 due to the increase of revenue; c) increase in advance to supplier of $223,562; d) decrease in amounts due to related parties of $348,333; e) payments under operating lease obligations of $85,075. 80 Investing Activities Net cash used in investing activities amounted to $761,144 for the year ended December 31, 2023.
It was primarily due to a) a net income of $2,133,188, adjusted by depreciation and amortization of $272,237, non-cash lease expense of $158,180, deferred tax benefits of $(4,304), provision for doubtful accounts of $17,606; b) increase in taxes payable of $354,593 due to our increased profits for the year ended December 31, 2022; c) increase in payroll payable of $273,796 due to the increase in average wages; d) decrease in other receivables of $760,209 due to the receipt of loans repaid by employees, third party individuals and other companies; and partially offset by a) increase in accounts receivable of $489,078; b) increase in notes receivable of $294,440 due to the increase of revenue; c) increase in advance to supplier of $223,562; d) decrease in amounts due to related parties of $348,333; e) payments under operating lease obligations of $85,075.
The ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures. 87
The ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on the consolidated financial statement disclosures.
It was primarily due to purchases of property and equipment for production and operations. Net cash used in investing activities amounted to $1,432,807 for the year ended December 31, 2022. It was primarily due to purchases of property and equipment for production and operations.
Net cash used in investing activities amounted to $761,792 for the year ended December 31, 2023. It was primarily due to purchases of property and equipment for production and operations. Net cash used in investing activities amounted to $1,432,807 for the year ended December 31, 2022. It was primarily due to purchases of property and equipment for production and operations.
The fair value of longer-term leases approximates their recorded values as their stated interest rates approximate the rates currently available. The Company’s non-financial assets, such as property and equipment would be measured at fair value only if they were determined to be impaired.
The fair value of longer-term leases approximates their recorded values as their stated interest rates approximate the rates currently available. 92 Our non-financial assets, such as property and equipment and intangible assets would be measured at fair value only if they were determined to be impaired.
As of December 31, 2022, ten major customers accounted for approximately 88% of the Company’s accounts receivable balance. If we cannot maintain long-term relationships with our major customers or replace major customers from period to period with equivalent customers, the loss may negatively impact our business, financial condition, and results of operations.
As of December 31, 2023, ten major customers accounted for approximately 85.7% of the Company’s accounts receivable balance. If we cannot maintain long-term relationships with our major customers or replace major customers from period to period with equivalent customers, the loss may negatively impact our business, financial condition, and results of operations.
The revenue derived from machining services accounted for 6.1% and 3.8% of our total revenue for the years ended December 31, 2023 and 2022, respectively.
The revenue derived from machining services accounted for 21.2%, 6.1% and 3.8% of our total revenue for the years ended December 31, 2024, 2023 and 2022, respectively.
The revenue derived from customized mold production accounted for 80.7% and 82.0% of our total revenue for the years ended December 31, 2023 and 2022, respectively. The revenue derived from mold repair accounted for 13.2% and 14.2% of our total revenue for the years ended December 31, 2023 and 2022, respectively.
The revenue derived from customized mold production accounted for 67.9%, 80.7% and 82.0% of our total revenue for the years ended December 31, 2024, 2023 and 2022, respectively. The revenue derived from mold repair accounted for 10.9%, 13.2% and 14.2% of our total revenue for the years ended December 31, 2024 ,2023 and 2022, respectively.
Other income Government subsidies We receive various government subsidies from time to time, such as the “The High-Tech Enterprise Cultivation Award” and “Technology Development Support Grant.” We cannot predict the likelihood or amount of any future subsidies. For the year ended December 31, 2023, government subsidies were $129,138.
Other income Government subsidies We receive various government subsidies from time to time, such as the “The High-Tech Enterprise Cultivation Award” and “Technology Development Support Grant.” We cannot predict the likelihood or amount of any future subsidies. For the year ended December 31, 2024, government subsidies were $651,267. For the same period in 2023, government subsidies were $129,138.
Any decrease in sales to these major customers may negatively impact the Company’s operations and cash flows if the Company fails to increase its sales to other customers. As of December 31, 2023, ten major customers accounted for approximately 86% of the Company’s accounts receivable balance.
Any decrease in sales to these major customers may negatively impact the Company’s operations and cash flows if the Company fails to increase its sales to other customers. As of December 31, 2024, ten major customers accounted for approximately 83.5% of the Company’s accounts receivable balance.
Wuxi Mingteng Mould is primarily engaged in providing clients with comprehensive and personalized mold services and solutions in the PRC, including mold design and development; mold production, repair, testing and adjustment. 5.A. Operating Results.
Wuxi Mingteng Mould is primarily engaged in providing clients with comprehensive and personalized mold services and solutions in the PRC, including mold design and development; mold production, repair, testing and adjustment.
All of the Company’s revenue transactions are transacted in its functional currency. The Company does not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company.
All of our revenue transactions are transacted in its functional currency. We do not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of our operations.
The decrease was mainly due to a) the validity period for the accrual of social security and housing provident funds under the laws of the PRC for the fiscal year 2020 and 2021 has expired on December 31,2023, which should be written off in the fiscal year 2023, led to the decrease of $273,885 in 2023 compared to 2022; b) payment for audit fees of $290,000 in the fiscal year 2023, increased by 62,259 from $227,741 in the fiscal year 2022; and c) the increase of consulting fee in fiscal year 2023 by $26,305 compared with the same period in 2022; and d) the increase of entertainment expenses in fiscal year 2023 by $57,799 compared with the same period in 2022.
The decrease was mainly due to a) the validity period for the accrual of social security and housing provident funds under the laws of the PRC for the fiscal year 2020 and 2021 has expired on December 31,2023, which should be written off in the fiscal year 2023, led to the decrease of $273,885 in 2023 compared to 2022; b) payment for audit fees of $290,000 in the fiscal year 2023, increased by 62,259 from $227,741 in the fiscal year 2022; and c) the increase of consulting fee in fiscal year 2023 by $26,305 compared with the same period in 2022; and d) the increase of entertainment expenses in fiscal year 2023 by $57,799 compared with the same period in 2022. 84 Research and Development Expenses Research and development expenses increased by $138,226, or 28.1%, to $630,752 for the year ended December 31, 2023, from $492,526 for the same period in 2022.
(ticker: 300694), and Wuxi Best Precision Machinery Co., Ltd. (ticker: 300580). Our close relationships with these major customers demonstrate our strengths in technical capabilities, service reputation and product quality. 72 Our revenue mainly comes from customized mold production, mold repair and machining services.
Our customers include Kehua Holdings Co., Ltd. (ticker: 603161), Wuxi Lihu Booster Technology Co., Ltd. (ticker: 300694), and Wuxi Best Precision Machinery Co., Ltd. (ticker: 300580). Our close relationships with these major customers demonstrate our strengths in technical capabilities, service reputation and product quality. Our revenue mainly comes from customized mold production, mold repair and machining services.
This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss.
In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss.
For the fiscal year ended December 31, 2023, ten major customers accounted for approximately 85% of the Company’s total sales. For the fiscal year ended December 31, 2022, ten major customers accounted for approximately 84% of the Company’s total sales.
For the fiscal year ended December 31, 2024, ten major customers accounted for approximately 79.8% of the Company’s total sales. For the fiscal year ended December 31, 2023, ten major customers accounted for approximately 84.7% of the Company’s total sales. For the fiscal year ended December 31, 2022, ten major customers accounted for approximately 84.0% of the Company’s total sales.
The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This ASU will likely result in us including the additional required disclosures when adopted.
The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted.
The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the recoverability of individual balances. Our management is confident in the collection of account receivables and other receivables.
The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the recoverability of individual balances.
Cost of Revenues The following table sets forth the breakdown of our cost of revenues for the years ended December 31, 2023 and 2022: For the Years Ended December 31, 2023 2022 Variance Amount % Amount % Amount % Mold production $ 4,147,592 85.8 % $ 3,651,456 90.2 % $ 496,136 13.6 % Mold repair 416,287 8.6 % 299,415 7.4 % 116,872 39.0 % Machining services 270,642 5.6 % 95,643 2.4 % 174,999 183.0 % Total $ 4,834,521 100.0 % $ 4,046,514 100.0 % $ 788,007 19.5 % The total cost of revenues increased by $788,007, or 19.5%, to $4,834,521 for the year ended December 31, 2023, from $4,046,514 for the same period in 2022, cost of revenues mainly comes from raw material costs, manufacturing costs and labor costs. 76 The revenues had not increased significantly, the reasons that costs growth has far exceed the growth of revenues as follows: First is the increase in the investment in machinery and equipment in fiscal year 2023 and 2022.
Revenues from machining services accounts for a small percentage of total revenue and does not serve as the main source of revenue for the Company. 81 Cost of Revenues The following table sets forth the breakdown of our cost of revenues for the years ended December 31, 2023 and 2022: For the Years Ended December 31, 2023 2022 Variance Amount % Amount % Amount % Mold production $ 4,147,592 85.8 % $ 3,651,456 90.2 % $ 496,136 13.6 % Mold repair 416,287 8.6 % 299,415 7.4 % 116,872 39.0 % Machining services 270,642 5.6 % 95,643 2.4 % 174,999 183.0 % Total $ 4,834,521 100.0 % $ 4,046,514 100.0 % $ 788,007 19.5 % The total cost of revenues increased by $788,007, or 19.5%, to $4,834,521 for the year ended December 31, 2023, from $4,046,514 for the same period in 2022, cost of revenues mainly comes from raw material costs, manufacturing costs and labor costs.
Last, in order to promote the future development of the aluminum alloy pressure casting mold business and machining service and expand production capacity, Wuxi Mingteng Mould hired more production labor in the fiscal year 2023, which lead to an increase in labor cost by approximately $285,835 compared with the same period in fiscal year 2022.
Currently, Runxingtai (Changzhou) Technology Co., Ltd. has become a key customer for the future growth of this business. 82 Last, in order to promote the future development of the aluminum alloy pressure casting mold business and machining service and expand production capacity, Wuxi Mingteng Mould hired more production labor in the fiscal year 2023, which lead to an increase in labor cost by approximately $285,835 compared with the same period in fiscal year 2022.
With the gradual saturation of the Chinese automotive market, the production of molds related to auto parts may be affected. 74 Key Components of Results of Operations Comparison of Results of Operations for the Years Ended December 31, 2023 and 2022 The following table summarizes our results of operations for the years ended December 31, 2023 and 2022, and provides information regarding the dollar and percentage increase or (decrease) during such periods.
With the gradual saturation of the Chinese automotive market, the production of molds related to auto parts may be affected. 74 Key Components of Results of Operations Comparison of Results of Operations for the Years Ended December 31, 2024, 2023 and 2022 The following table summarizes our results of operations for the years ended December 31, 2024, 2023 and 2022.
On February 21, 2024, Wuxi Mingteng Mould entered into an additional unsecured short-term loan agreement with Bank of Jiangsu with principal amount of RMB 10 million (approximately $1.4 million), with an annual interest rate of 2.95%.
On February 21, 2024, Wuxi Mingteng Mould entered into an additional unsecured short-term loan agreement with Bank of Jiangsu with principal amount of RMB 10 million (approximately $1.4 million), with an annual interest rate of 2.95%. The maturity date of the loan is February 20, 2025 and has been fully repaid on February 18, 2025.
The maturity date of the loan is February 20, 2025 81 Contingencies From time to time, the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business.
Contingencies From time to time, the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business.
As a new entrant in the aluminum alloy pressure casting mold business, Wuxi Mingteng Mould does not have the ability to handle the whole manufacturing process and needed to purchase outside processing services, the cost of outside processing increased by $250,948. Currently, Runxingtai (Changzhou) Technology Co., Ltd. has become a key customer for the future growth of this business.
As a new entrant in the aluminum alloy pressure casting mold business, Wuxi Mingteng Mould does not have the ability to handle the whole manufacturing process and needed to purchase outside processing services, the cost of outside processing increased by $250,948.
For the fiscal year ended December 31, 2023, interest expense was $59,477. For the same period in 2021, interest expense was $53,991.
Interest income For the year ended December 31, 2023, interest income was $4,459. For the same period in 2022, interest income was $2,171. Interest expense For the fiscal year ended December 31, 2023, interest expense was $59,477. For the same period in 2022, interest expense was $53,991.
In November 2022, Wuxi Mingteng Mould reapplied to obtain the recognition of HNTE and the preferential rate of 15% was extended to November 2025. Net Income As a result of the foregoing, our net income for the years ended December 31, 2023 and 2022, was $1,506,702 and $2,133,188, respectively. 5.B.
In November 2022, Wuxi Mingteng Mould reapplied to obtain the recognition of HNTE and the preferential rate of 15.0% was extended to November 2025. Net Income (Loss) As a result of the foregoing, our net loss for the year ended December 31,2024 was $5,679,082, and for the same period in 2023, the net income was $1,506,702.
Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years.
The PRC tax authorities grant preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15.0%, subject to a requirement that they re-apply for HNTE status every three years.
Cash Flows Analysis Year Ended December 31, 2023, Compared to Year Ended December 31, 2022 The following table sets forth a summary of our cash flows for the years indicated: For the Fiscal Years Ended December 31, 2023 2022 Net cash provided by operating activities $ 1,299,341 $ 2,852,697 Net cash (used in) investing activities (761,144 ) (1,432,807 ) Net cash provided by (used in) financing activities (1,248,988 ) 165,556 Effect of foreign exchange rate on cash and cash equivalents (26,296 ) (99,156 ) Net increase (decrease) in cash and cash equivalents (737,087 ) 1,486,290 Cash and cash equivalents at the beginning of the year 1,793,323 307,033 Cash and cash equivalents at the end of the year $ 1,056,236 $ 1,793,323 Operating Activities Net cash provided by operating activities amounted to $1,299,341 for the year ended December 31, 2023.
Our management is confident in the collection of account receivables and other receivables. 86 Cash Flows Analysis For the Year Ended December 31, 2024, 2023 and 2022 The following table sets forth a summary of our cash flows for the years indicated: For the Years Ended December 31, 2024 2023 2022 Net cash provided by operating activities $ 294,973 $ 1,299,989 $ 2,852,697 Net cash used in investing activities (3,433,533 ) (761,792 ) (1,432,807 ) Net cash provided by (used in) financing activities 4,151,476 (1,248,988 ) 165,556 Effect of foreign exchange rate on cash and cash equivalents 11,563 (26,296 ) (99,156 ) Net increase (decrease) in cash and cash equivalents 1,024,479 (737,087 ) 1,486,290 Cash and cash equivalents at the beginning of the year 1,056,236 1,793,323 307,033 Cash and cash equivalents at the end of the year $ 2,080,715 $ 1,056,236 $ 1,793,323 Operating Activities Net cash provided by operating activities amounted to $294,973 for the year ended December 31, 2024.
Other income, net Other income, net mainly includes a) VAT tax refund of $28,617 in the fiscal year 2023 and $8,279 in the year 2022; b) donation expenditure of RMB 3,000 (approximately $426) to local secondary schools through the Education Bureau in 2023 and 2022; c) sale of waste material of $6,897 and $50,478 in the fiscal years 2023 and 2022, respectively; and d) loss on disposal of assets of $648 in the fiscal year 2023.
Other income, net Other income, net mainly includes a) VAT tax refund of $28,617 in the fiscal year 2023 and $8,279 in the year 2022; b) donation expenditure of RMB 3,000 (approximately $426) to local secondary schools through the Education Bureau in 2023 and 2022; c) sale of waste material of $6,897 and $50,478 in the fiscal years 2023 and 2022, respectively; and d) loss on disposal of assets of $648 in the fiscal year 2023. 85 Provision for Income Taxes Our provision for income taxes was $344,586 for the year ended December 31, 2023, an increase of $17,202, or 5.3% from $327,384 for the same period in 2022.
With the uncertainty of the current market and the impact of the COVID-19 pandemic our management believes it is necessary to enhance the collection of outstanding accounts receivable and other receivables and to be cautious on operational decisions and project selection.
Capital Needs Our capital needs include our daily operating needs and capital needs to finance the development of our business. With the uncertainty of the current market our management believes it is necessary to enhance the collection of outstanding accounts receivable and other receivables and to be cautious on operational decisions and project selection.
In accordance with FASB ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue to represent the transfer of products or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange.
Revenue recognition We account for revenue recognition under FASB ASC 606, Revenue from Contracts with Customers (“ASC 606”). In accordance with ASC 606, Revenue from Contracts with Customers, we recognize revenue to represent the transfer of products or services to customers in an amount that reflects the consideration to which we expect to be entitled in such exchange.
Total revenue for the year ended December 31, 2023, increased by $199,147, or 2.5%, to $8,225,911 from $8,026,764 for the same period in 2022.
Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Revenue Currently, we have three revenue streams: mold production, mold repair and machining services. Total revenue for the year ended December 31, 2023, increased by $199,147, or 2.5%, to $8,225,911 from $8,026,764 for the same period in 2022.
Significant items subject to such estimates and assumptions include, but are not limited to, the assessment of the allowance for doubtful accounts, the allowance for inventory obsolescence, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, provision necessary for contingent liabilities, and realization of deferred tax assets. Actual results could differ from those estimates.
Significant items subject to such estimates and assumptions include, but are not limited to, the assessment of the allowance for credit losses, the allowance for inventory and contract costs provision, useful lives of property and equipment, the recoverability of long-lived assets and long-term investments, provision necessary for contingent liabilities, and realization of deferred tax assets.
Under the EIT Law of the PRC, domestic enterprises are usually subject to a unified 25% EIT rate while preferential tax rates, tax holidays, and even tax exemptions may be granted on a case-by-case basis. The PRC tax authorities grant preferential tax treatment to High and New Technology Enterprises (“HNTEs”).
The decrease was mainly due to the decrease in pre-tax profits. Under the EIT Law of the PRC, domestic enterprises are usually subject to a unified 25.0% EIT rate while preferential tax rates, tax holidays, and even tax exemptions may be granted on a case-by-case basis.
Accordingly, these services are not considered separate performance obligations and no revenue is associated with these services under FASB ASC 606 until the point in time when the project is complete and client confirmation is received. The Company provides maintenance services and according to the contracts and the clients do not have the option to purchase these services separately.
Customers do not have the option to purchase these services separately principally due to the customization of each project. Accordingly, these services are not considered separate performance obligations, and no revenue is associated with these services under ASC 606 until the point in time when the product is completed and delivered, and client confirmation is received.
Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, notes receivable, advances to suppliers, prepaid expenses and other receivables, short-term bank loans, accounts payable, advance from customers, due to related parties, taxes payable, and other current liabilities approximate their recorded values due to their short-term maturities.
Unless otherwise disclosed, the fair value of our financial instruments including cash and cash equivalents, accounts receivable, bank acceptance notes, other receivables, short-term loans, accounts payable, other payables, and amounts due to related parties approximate their recorded values due to their short-term maturities.
Net cash provided by operating activities amounted to $2,852,697 for the year ended December 31, 2022.
Net cash provided by operating activities amounted to $1,299,341 for the year ended December 31, 2023.
Revenues represent the amount of consideration that the Company is entitled to in exchange for the transfer of promised goods or services in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”).
Last is providing customers with machining services, using our remaining capacity to provide customers with external processing services. Revenues represent the amount of consideration that we are entitled to in exchange for the transfer of promised goods or services in the ordinary course of our activities and is recorded net of value-added tax (“VAT”).
For the Years Ended December 31, 2023 2022 Variance Amount % of revenue Amount % of revenue Amount % Revenues $ 8,225,911 100.0 % $ 8,026,764 100.0 % $ 199,147 2.5 % Cost of revenues (4,834,521 ) (58.8 )% (4,046,514 ) (50.4 )% (788,007 ) 19.5 % Sales tax (67,557 ) (0.8 )% (67,147 ) (0.8 )% (410 ) 0.6 % Gross profit 3,323,833 40.4 % 3,913,103 48.8 % (589,270 ) (15.1 )% Operating expenses: Selling expenses 153,213 1.9 % 132,542 1.7 % 20,671 15.6 % General and administrative expenses 797,140 9.7 % 926,786 11.5 % (129,646 ) (14 )% Research and development expenses 630,752 7.7 % 492,526 6.1 % 138,226 28.1 % Total operating expenses 1,581,105 19.2 % 1,551,854 19.3 % 29,251 1.9 % Income from operations 1,742,728 21.2 % 2,361,249 29.4 % (618,521 ) (26.2 )% Other income (expense): Government subsidies 129,138 1.6 % 92,832 1.2 % 36,306 39.1 % Interest income 4,459 0.1 % 2,171 0.0 % 2,288 105.4 % Interest (expense) (59,477 ) (0.7 )% (53,991 ) (0.7 )% (5,486 ) 10.2 % Other income, net 34,440 0.4 % 58,311 0.7 % (23,871 ) (40.9 )% Total other income, net 108,560 1.3 % 99,323 1.2 % 9,237 9.3 % Income before income taxes 1,851,288 22.5 % 2,460,572 30.7 % (609,284 ) (24.8 )% Provision for income taxes (344,586 ) (4.2 )% (327,384 ) (4.1 )% 17,202 5.3 % Net income $ 1,506,702 $ 18.3 % $ 2,133,188 $ 26.6 % $ (626,486 ) (29.4 )% Revenue Currently, we have three revenue streams: mold production, mold repair and machining services.
For the Years Ended December 31, 2024 2023 2022 Amount % of revenue Amount % of revenue Amount % of revenue Revenues $ 10,120,257 100.0 % $ 8,225,911 100.0 % $ 8,026,764 100.0 % Cost of revenues (7,052,835 ) (69.7 )% (4,902,078 ) (59.6 )% (4,113,661 ) (51.2 )% Gross profit 3,067,422 30.3 % 3,323,833 40.4 % 3,913,103 48.8 % Operating expenses: Selling expenses 150,418 1.5 % 153,213 1.9 % 132,542 1.7 % General and administrative expenses 7,395,559 73.0 % 797,140 9.7 % 926,786 11.5 % Research and development expenses 634,046 6.3 % 630,752 7.7 % 492,526 6.1 % Total operating expenses 8,180,023 80.8 % 1,581,105 19.2 % 1,551,854 19.3 % Income from operations (5,112,601 ) (50.5 )% 1,742,728 21.2 % 2,361,249 29.4 % Other income (expense): Government subsidies 651,267 6.4 % 129,138 1.6 % 92,832 1.2 % Interest income 1,226 0.0 % 4,459 0.1 % 2,171 0.0 % Interest expense (36,769 ) (0.4 )% (59,477 ) (0.7 )% (53,991 ) (0.7 )% Other-Than-Temporary Impairment (1,121,382 ) (11.0 )% - - - - Other income, net 19,183 0.2 % 34,440 0.4 % 58,311 0.7 % Total other income, net (486,475 ) (4.8 )% 108,560 1.3 % 99,323 1.2 % Income before income taxes (5,599,076 ) (55.3 )% 1,851,288 22.5 % 2,460,572 30.7 % Provision for income taxes (80,006 ) (0.8 )% (344,586 ) (4.2 )% (327,384 ) 4.1 % Net income $ (5,679,082 ) (56.1 )% $ 1,506,702 18.3 % $ 2,133,188 26.6 % 75 Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Revenue Currently, we have three revenue streams: mold production, mold repair and machining services.
A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.
The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.
Financing Activities Net cash used in financing activities was $1,248,988 for the year ended December 31, 2023. During the fiscal year 2023, the Company received proceeds from short-term loans of $1,419,094 and repaid short-term loans of $2,483,415.
During the fiscal year 2023, the Company received proceeds from short-term loans of $1,419,094 and repaid short-term loans of $2,483,415. During the fiscal year 2023, the Company paid deferred offering costs of $172,179, and paid for finance lease of $12,488. Net cash provided by financing activities was $165,556 for the year ended December 31, 2022.
We are exposed to fluctuations in the prices of raw materials, transportation, and other necessary supplies or services due to factors beyond our control, such as policies, inflation, and changes in the supply and demand for such relevant raw materials.
Raw material costs represent 30.0% ,40.1% and 41.5% of our total cost of revenues for the years ended December 31, 2024, 2023 and 2022, respectively. 73 We are exposed to fluctuations in the prices of raw materials, transportation, and other necessary supplies or services due to factors beyond our control, such as policies, inflation, and changes in the supply and demand for such relevant raw materials.
The promised warranty does not provide the clients with a service in addition to the assurance that the product complies with agreed-upon contract specifications and is considered an assurance warranty. The maintenance services and the warranty are not considered separate performance obligations and no revenue is associated with these services under FASB ASC 606.
We provide maintenance services and according to the contracts the clients do not have the option to purchase these services separately. The promised warranty does not provide the clients with a service in addition to the assurance that the product complies with agreed-upon contract specifications and is considered an assurance warranty.
Wuxi Mingteng Mould made a repayment of RMB 3 million (approximately $0.42 million) in advance on October 7, 2023. On February 21, 2024, Wuxi Mingteng Mould made a repayment to Bank of Jiangsu in respect of the short-term loan agreement on maturity, with principal amount of RMB 2 million (approximately $0.28 million).
Wuxi Mingteng Mould made a repayment of RMB 3 million (approximately $0.42 million) in advance on October 7, 2023, Wuxi Mingteng Mould had fully repaid the rest of the balance of RMB 2 million (approximately $0.28 million) on February 21, 2024.
Consistent with the criteria of FASB ASC 606, the Group recognizes revenue when the performance obligation in a contract is satisfied by transferring the control of promised goods or services to the customer. Mold Production: The Company signs contracts with customers and provides products according to the sales contract or sales list.
Consistent with the criteria of ASC 606, we recognize revenue when the performance obligation in a contract is satisfied by transferring the control of promised goods or services to the customer.
The clients check the quantity and quality of products received, and then issue a confirmation as the proof of payment. Certain clients may also test the finished products as part of the confirmation process. Revenue is recognized when the Company receives the confirmation of product acceptance. The Company provides design and production services according to the sales contract or lists.
Mold production: We sign contracts with customers and provide products according to the sales contract or sales list. The clients check the quantity and quality of products received and then issue confirmation as proof of payment. Certain clients may also test the finished products as part of the confirmation process.
Therefore, we do not have nor anticipate having a major dependence on suppliers, and the loss of some suppliers will not have a significant impact on our production.
The raw materials used in production are mainly universal, such as steel and castings, which are highly replaceable and have a wide range of procurement sources. Therefore, we do not have nor anticipate having a major dependence on suppliers, and the loss of some suppliers will not have a significant impact on our production.
Revenues from machining services accounts for a small percentage of total revenue and does not serve as the main source of revenue for the Company.
Revenues from machining services gradually serve as a main source of revenue for the Company in the year 2024.
Liquidity and Capital Resources As of December 31, 2023 and 2022, we had cash of approximately $1,056,236 and $1,793,323, respectively. Our main sources of operating funds are from net income and external borrowings and we are confident they are sufficient to sustain our operations after the offering.
Our main sources of operating funds are from net income and external borrowings, and we are confident they are sufficient to sustain our operations after the offering. Working Capital Total working capital as of December 31, 2024, amounted to $3,375,929 compared to $3,642,786 as of December 31, 2023.
Fair value of financial instruments Accounting Standards Codification (“ASC”) 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Fair value is defined as the price that would be received to general an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value.
We are a supplier to a number of Chinese listed companies and have established long-term business relationships with leading major customers in the automobile parts manufacturing industry, most of whom have more than 5 years of business relationship with us. Our customers include Kehua Holdings Co., Ltd. (ticker: 603161), Wuxi Lihu Booster Technology Co., Ltd.
In addition, we believe our research and patents in the field of automotive casting molds have earned us recognition from our customers, and we have registered 21 authorized utility model and invention patents in China. 71 We are a supplier to a number of Chinese listed companies and have established long-term business relationships with leading major customers in the automobile parts manufacturing industry, most of whom have more than 5 years of business relationship with us.
We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures. In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topics 740): Improvements to Income Tax Disclosures” to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid.
The adoption of this guidance did not have a material impact on the consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09 “ Income Taxes (Topics 740): Improvements to Income Tax Disclosures ” to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid.
These components need to be combined under the guidance of design plans to produce qualified products to meet the needs of clients. Therefore, these services are highly interdependent and are never transferred to the customer on their own. Customers do not have the option to purchase these services separately principally due to the customization of each project.
A mold production contract may include two or more machine components, but all components are customized according to customer requirements. These components need to be combined under the guidance of design plans to produce qualified products to meet the needs of clients. Therefore, these services are highly interdependent and are never transferred to the customer on their own.
On March 23, 2022, Wuxi Mingteng Mould entered into an additional short-term loan agreement with Jiangsu Wuxi Rural Commercial Bank with amount of RMB 4.5 million (approximately $0.67 million), with an annual interest rate of 4.45%. The maturity date of the loan is March 22, 2023. The loan was repaid upon maturity.
We made payments for dividends of $352,123, deferred offering costs of $144,100, and principal payments for finance lease obligations of $230,372. 88 Loan Facilities On March 23, 2022, Wuxi Mingteng Mould entered into an additional short-term loan agreement with Jiangsu Wuxi Rural Commercial Bank with amount of RMB 4.5 million (approximately $0.67 million), with an annual interest rate of 4.45%.
Research and Development Expenses Research and development expenses increased by $138,226, or 28.1%, to $630,752 for the year ended December 31, 2023, from $492,526 for the same period in 2022.
Research and Development Expenses Research and development expenses increased by $3,294, or 0.5%, to $634,046 for the year ended December 31, 2024, from $630,752 for the same period in 2023. Research and development expenses remain stable with a slight increase.
Historically, the Company has not experienced material costs for quality assurance and, therefore, does not believe an accrual for these costs are necessary. Mold Repair： The Company signs contracts with customers and provides repair services according to the contract or list and charges a certain fee. Revenue is recognized only after the repair service has passed the customer’s inspection.
Mold repair: We sign contracts with customers and provide repair services according to the contract or list and charge a certain fee. Revenue is recognized only after the repair service has passed the customer’s inspection. Machining services: We sign contracts with customers and provide machining services and charge a certain fee.
No taxable income was generated outside the PRC for the fiscal years ended December 31, 2023 and 2022. The Company accounts for income taxes in accordance with ASC 740, Income Taxes.
Income taxes Mingteng International’s subsidiaries in the PRC and Hong Kong are subject to the income laws of the PRC and Hong Kong. No taxable income was generated outside the PRC for the years ended December 31, 2024, 2023 and 2022.
Supply Chain Analysis The concentration of our raw material suppliers is relatively low. For the year ended December 31, 2023 and 2022, none of the suppliers accounted for more than 10% of the total purchases. As of December 31, 2023, one supplier accounted for approximately 11.3% of the Company’s accounts payable balance.
Supply Chain Analysis For the year ended December 31, 2024, there were three suppliers accounted for approximately 12.3%, 11.1% and 10.4% of the total purchases, respectively, while none for the same period in 2023 and 2022 accounted for more than 10.0%.
Under the guidance of FASB ASC 606, the Company is required to (a) identify the contract with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract and (e) recognize revenue when (or as) the Company satisfies its performance obligations. 84 The Company’s main business income is divided into three categories, one is mold production, that is, contracts are signed to sell molds widely used in automobile, valve, water pump and other industries according to the customer’s needs.
Under the guidance of ASC 606, we are required to (a) identify the contract with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract and (e) recognize revenue when (or as) we satisfy our performance obligations.
Net cash provided by financing activities was $165,556 for the year ended December 31, 2022. During the fiscal year 2022, we received net proceeds from short-term loans of $743,376 and a capital contribution of $148,675 from shareholders. We made payments for dividends of $352,123, deferred offering costs of $144,100, and principal payments for finance lease obligations of $230,372.
During the fiscal year 2022, we received net proceeds from short-term loans of $743,376 and a capital contribution of $148,675 from shareholders.
Provision for Income Taxes Our provision for income taxes was $344,586 for the year ended December 31, 2023, an increase of $17,202, or 5.3% from $327,384 for the same period in 2022.
Other income, net For the fiscal year ended December 31, 2024, other income, net was $19,183. For the same period in 2023, other income, net was $34,440. Provision for Income Taxes Our provision for income taxes was $80,006 for the year ended December 31, 2024, a decrease of $264,580, or 76.8% from $344,586 for the same period in 2023.
The Company then transports and installs the finished products when clients give their order. The design services are inseparable from project sales. A mold production contract may include two or more machine components, but all components are customized according to customer requirements.
Revenue is recognized when we receive the confirmation of product acceptance. 93 We provide design and production services according to the sales contract or lists. Then we transport the finished products when clients give their order. The design services are inseparable from project sales.
The cost of raw materials represents a significant portion of our total cost of revenues. Raw material costs represent 40.1% and 41.5% of our total cost of revenues for the years ended December 31, 2023, and 2022, respectively.
The cost of raw materials represents a significant portion of our total cost of revenues.
A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits or future deductibility is uncertain.
A valuation allowance is provided to reduce the amount of deferred income tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred income tax assets will not be realized.
For the same period in 2022, government subsidies were $92,832. 78 Interest income For the year ended December 31, 2023, interest income was $4,459. For the same period in 2022, interest income was $2,171. Interest expense For the six months ended June 30, 2023, interest expense was $27,474. For the same period in 2022, interest expense was $28,016.
Interest income For the year ended December 31, 2024, interest income was $1,226. For the same period in 2023, interest income was $4,459. 79 Interest expense For the fiscal year ended December 31, 2024, interest expense was $36,769. For the same period in 2023, interest expense was $59,477.
Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Under this method, deferred income tax assets and liabilities are recognized for the tax effects of temporary differences and are determined by applying enacted statutory tax rates that will be in effect in the period in which the temporary differences are expected to reverse to the temporary differences between the financial statements’ carrying amounts and the tax bases of assets and liabilities.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Compensation of Directors and Executive Officers For the fiscal year ended December 31, 2023, we paid an aggregate of RMB 560,244 (approximately US$79,504), which is the total amount of base salary plus bonus, in cash to our executive officers and employee directors.
For the fiscal year ended December 31, 2023, we paid an aggregate of RMB 560,244 (approximately US$79,504), which is the total amount of base salary plus bonus, in cash to our executive officers and employee directors.
Xu obtained his bachelor’s degree from the School of Materials Science and Engineering at Jilin University of Technology in July 1999. Jingzhu Ding, Director Ms. Ding has served as our Director since November 9, 2023. Ms.
Xu obtained his bachelor’s degree from the School of Materials Science and Engineering at Jilin University of Technology in July 1999. 97 Jingzhu Ding, Director Ms. Ding has served as our Director since November 9, 2023. Ms.
Except as otherwise indicated in the footnotes to the following table, or as required by applicable community property laws, all persons listed have sole voting and investment power for all Ordinary Shares shown as beneficially owned by them. 93 Unless otherwise indicated in the footnotes, the address for each principal shareholder is Lvhua Village, Luoshe Town, Huishan District, Wuxi, Jiangsu Province People’s Republic of China.
Except as otherwise indicated in the footnotes to the following table, or as required by applicable community property laws, all persons listed have sole voting and investment power for all Ordinary Shares shown as beneficially owned by them. 102 Unless otherwise indicated in the footnotes, the address for each principal shareholder is Lvhua Village, Luoshe Town, Huishan District, Wuxi, Jiangsu Province People’s Republic of China.
Zhang completed the senior general manager class at China Europe International Business School in October 2020. We believe that Ms. Zhang is qualified to serve on our board by reasons of professional experiences and qualifications. 89 Family Relationship Mr. Yingkai Xu, our Chief Executive Officer, Chairman of the Board, and Director, is the spouse of Ms. Jingzhu Ding, our Director.
Zhang completed the senior general manager class at China Europe International Business School in October 2020. We believe that Ms. Zhang is qualified to serve on our board by reasons of professional experiences and qualifications. 98 Family Relationship Mr. Yingkai Xu, our Chief Executive Officer, Chairman of the Board, and Director, is the spouse of Ms. Jingzhu Ding, our Director.
The primary duties of the Nominating Committee are, among other things: ● Review the structure, size and composition of the Board on a regular basis ● Identify individuals suitably qualified to become Board members 91 ● Assess the independence of independent directors; and ● Make recommendations to the Board in relation to the appointment or re-appointment of Directors.
The primary duties of the Nominating Committee are, among other things: ● Review the structure, size and composition of the Board on a regular basis ● Identify individuals suitably qualified to become Board members 100 ● Assess the independence of independent directors; and ● Make recommendations to the Board in relation to the appointment or re-appointment of Directors.
Disclosure of Action to Recover Erroneously Awarded Compensation There was no erroneously awarded compensation that was required to be recovered pursuant to the Company’s Executive Compensation Recovery Policy during the fiscal year ended December 31, 2023.
Disclosure of Action to Recover Erroneously Awarded Compensation There was no erroneously awarded compensation that was required to be recovered pursuant to the Company’s Executive Compensation Recovery Policy during the fiscal year ended December 31, 2024.
Directors and Senior Management The following table provides information regarding our executive officers and directors as of the date hereof: Name Age Position(s) Yingkai Xu 50 Chief Executive Officer, Chairman of the Board and Director Jingzhu Ding 49 Director Fengting Yin 44 Chief Financial Officer Ronghua Xu (1)(2)(3) 45 Independent Director, Chair of the Audit Committee Wenkai Fang (1)(2)(3) 55 Independent Director, Chair of the Compensation Committee Xiaoqiu Zhang (1)(2)(3) 44 Independent Director, Chair of the Nominating and Corporate Governance Committee (1) Member of the Audit Committee.
Directors and Senior Management The following table provides information regarding our executive officers and directors as of the date hereof: Name Age Position(s) Yingkai Xu 51 Chief Executive Officer, Chairman of the Board and Director Jingzhu Ding 50 Director Fengting Yin 45 Chief Financial Officer Ronghua Xu (1)(2)(3) 46 Independent Director, Chair of the Audit Committee Wenkai Fang (1)(2)(3) 56 Independent Director, Chair of the Compensation Committee Xiaoqiu Zhang (1)(2)(3) 45 Independent Director, Chair of the Nominating and Corporate Governance Committee (1) Member of the Audit Committee.
A copy of the Clawback Policy has been filed herewith as Exhibit 97.1. 90 6.C. Board Practices Board of Directors Our Board of Directors consists of five (5) directors, a majority of whom are independent as such term is defined by the Nasdaq Capital Market.
A copy of the Clawback Policy has been incorporated by reference herewith as Exhibit 97.1. 99 6.C. Board Practices Board of Directors Our Board of Directors consists of five (5) directors, a majority of whom are independent as such term is defined by the Nasdaq Capital Market.
From June 2007 until now, she serves as the Finance Director in Wuxi Jinke Real Estate Development Co., Ltd., a subsidiary of Jinke Property Group Co., Ltd which is listed on the Shenzhen Stock Exchange (ticker: 000656), during which she is in charge of financial accounting and fund management.
Ms. Xu has experience in accounting for over 15 years. From June 2007 until now, she serves as the Finance Director in Wuxi Jinke Real Estate Development Co., Ltd., a subsidiary of Jinke Property Group Co., Ltd which is listed on the Shenzhen Stock Exchange (ticker: 000656), during which she is in charge of financial accounting and fund management.
The registered office of Hongze L.P. will be situated at ICS Corporate Services (BVI) Limited, Sea Meadow House, P.O. Box 116, Road Town, Tortola, British Virgin Islands. 94 6.F.
The registered office of DJZ Holding Limited will be situated at ICS Corporate Services (BVI) Limited, Sea Meadow House, P.O. Box 116, Road Town, Tortola, British Virgin Islands. 103 6.F.
(5) Jingzhu Ding, our Director, is the sole shareholder and director of Jocelyn Ding Limited, an intermediate holding company for DJZ Holding Limited, a British Virgin Islands company holding 2,009,000 shares, which represent 32.64% of our Ordinary Shares issued and outstanding as of the date of this annual report.
(5) Jingzhu Ding, our Director, is the sole shareholder and director of Jocelyn Ding Limited, an intermediate holding company for DJZ Holding Limited, a British Virgin Islands company holding 2,009,000 shares, which represent 29.38% of our Ordinary Shares issued and outstanding as of the date of this annual report. 2,091,000 shares held by Yingkai Xu, Ms.
(4) Yingkai Xu, our Chief Executive Officer, Chairman of the Board and Director, is the sole shareholder and director of Michell Xu Limited, an intermediate holding company for YK Xu Holding Limited, a British Virgin Islands company holding 2,091,000 shares, which represents 33.69% of our Ordinary Shares issued and outstanding as of the date of this annual report, and he has dispositive power over 2,091,000 shares. 2,459,000 shares held by Jingzhu Ding, Mr.
(4) Yingkai Xu, our Chief Executive Officer, Chairman of the Board and Director, is the sole shareholder and director of Michell Xu Limited, an intermediate holding company for YK Xu Holding Limited, a British Virgin Islands company holding 2,091,000 shares, which represents 30.57% of our Ordinary Shares issued and outstanding as of April 15, 2025, and he has dispositive power over 2,091,000 shares. 2,009,000 shares held by Jingzhu Ding, Mr.
Jingzhu Ding’s spouse, is the sole shareholder and director of Michell Xu Limited, an intermediate holding company for YK Xu Holding Limited, a British Virgin Islands company holding 2,091,000 shares, which represent 33.69% of our Ordinary Shares issued and outstanding as of the date of this annual report, and he has dispositive power over 2,091,000 shares.
Jingzhu Ding’s spouse, is the sole shareholder and director of Michell Xu Limited, an intermediate holding company for YK Xu Holding Limited, a British Virgin Islands company holding 2,091,000 shares, which represent 30.57% of our Ordinary Shares issued and outstanding as of April 15, 2025, and he has dispositive power over 2,091,000 shares.
Yingkai Xu’s spouse, is the sole shareholder and director of Jocelyn Ding Limited, an intermediate holding company for DJZ Holding Limited, a British Virgin Islands company holding 2,009,000 shares, which represent 32.64% of our Ordinary Shares issued and outstanding as of the date of this annual report.
Yingkai Xu’s spouse, is the sole shareholder and director of Jocelyn Ding Limited, an intermediate holding company for DJZ Holding Limited, a British Virgin Islands company holding 2,009,000 shares, which represent 29.38% of our Ordinary Shares issued and outstanding as of April 15, 2025.
The number and percentage of our Ordinary Shares beneficially owned before the offering are based on 5,000,000,000 Ordinary Shares authorized with a par value of $0.00001 per share, and 6,207,500 Ordinary Shares issued and outstanding as of the date of this annual report.
The number and percentage of our Ordinary Shares beneficially owned before the offering are based on 5,000,000,000 Ordinary Shares authorized with a par value of $0.00001 per share, and 6,839,600 Ordinary Shares issued and outstanding as of April 15, 2025.
Her responsibilities also include auditing original documents, managing daily accounting tasks, reviewing payroll and bonus distribution, ensuring the accuracy of cash and bank deposits, conducting periodic warehouse inventory checks, controlling fund budgets, and auditing accounts payable and expense reimbursements. Ms.
Her responsibilities also include auditing original documents, managing daily accounting tasks, reviewing payroll and bonus distribution, ensuring the accuracy of cash and bank deposits, conducting periodic warehouse inventory checks, controlling fund budgets, and auditing accounts payable and expense reimbursements. Ms. Ding obtained her college degree in Software Development and Utilization from Wuxi Radio and Television University in June 2005.
The following table sets out the number of our employees, excluding external experts, categorized by functions as of the date of this annual report: Function Number of Employees Research and Development 22 Manufacturing 120 Sales and Marketing 2 General and Administration 6 Total 150 We believe in offering Wuxi Mingteng Mould’s employees a competitive compensation package and a dynamic work environment that encourages performance-based initiative.
The following table sets out the number of our employees, excluding external experts, categorized by functions as of the date of this annual report: Function As of the date of This Annual Report As of December 31, 2024 As of December 31, 2023 As of December 31, 2022 Research and Development 31 19 19 19 Manufacturing 124 126 99 64 General and Administration 5 5 5 5 Total 160 150 123 88 We believe in offering Wuxi Mingteng Mould’s employees a competitive compensation package and a dynamic work environment that encourages performance-based initiative.
Yin has served as the Financial Manager of Wuxi Mingteng Mould, responsible for overall accounting treatment, financial data and voucher filing, and daily logistics management. From February 2012 to August 2018, Ms. Yin acted as the Financial Manager of Wuxi Kaiteng Mould Factory, in charge of the accounting treatment and tax declaration. From August 2011 to February 2012, Ms.
From February 2012 to August 2018, Ms. Yin acted as the Financial Manager of Wuxi Kaiteng Mould Factory, in charge of the accounting treatment and tax declaration. From August 2011 to February 2012, Ms. Yin was the Financial Manager of Wuxi Hongqi Crane Co., Ltd., responsible for the accounting treatment. From October 2008 to July 2011, Ms.
Executive Officers and Directors Amount of Beneficial Ownership of Ordinary Shares (1) Percentage Ownership of Ordinary Shares (2)(3) Directors and Named Executive Officers: Yingkai Xu (4) 4,550,000 73.30 % Jingzhu Ding (5) 4,550,000 73.30 % Fengting Yin - - Ronghua Xu - - Xiaoqiu Zhang - - Wenkai Fang - - All executive officers and directors as a group (6 persons) 4,550,000 73.30 % 5% or Greater Shareholders YK Xu Holding Limited (6) 2,091,000 33.69 % DJZ Holding Limited (7) 2,459,000 39.61 % Hongze L.P.
Executive Officers and Directors Amount of Beneficial Ownership of Ordinary Shares (1) Percentage Ownership of Ordinary Shares (2)(3) Directors and Named Executive Officers: Yingkai Xu (4) 4,100,000 59.95 % Jingzhu Ding (5) 4,100,000 59.95 % Fengting Yin - - Ronghua Xu - - Xiaoqiu Zhang - - Wenkai Fang - - All executive officers and directors as a group (6 persons) 4,100,000 59.95 % 5% or Greater Shareholders YK Xu Holding Limited (6) 2,091,000 30.57 % DJZ Holding Limited (7) 2,009,000 29.38 % (1) Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the Ordinary Shares.
Shareholders will be given specific information on how they can direct communications to the officers and directors of the Company at our annual shareholders’ meetings. All communications from shareholders are relayed to the members of the Board.
Corporate Governance The business and affairs of the company are managed under the direction of our Board. Each of our directors has attended all meetings either in person, via telephone conference. Shareholders will be given specific information on how they can direct communications to the officers and directors of the Company at our annual shareholders’ meetings.
(6) Yingkai Xu, our Chief Executive Officer, Chairman of the Board and Director and Ms.
Jingzhu Ding’s spouse, are included in Ms. Ding’s beneficial ownership numbers and percentage. (6) Yingkai Xu, our Chief Executive Officer, Chairman of the Board and Director and Ms.
Yin was the Financial Manager of Wuxi Hongqi Crane Co., Ltd., responsible for the accounting treatment. From October 2008 to July 2011, Ms. Yin worked as the Financial Manager at Wuxi Aierte Linear Motion Co., Ltd., responsible for the company’s accounting. From August 2003 to October 2008, Ms.
Yin worked as the Financial Manager at Wuxi Aierte Linear Motion Co., Ltd., responsible for the company’s accounting. From August 2003 to October 2008, Ms. Yin acted as a financial assistant at Wuxi Huajin Engineering Co., Ltd., where she performed accounting and tax declarations. From July 2000 to July 2003, Ms.
Yin obtained her college degree from the School of Accounting at Wuxi Radio and Television University in September 2004. Ronghua Xu, Independent Director and Chair of Audit Committee Ms. Ronghua Xu is our independent director. Ms. Xu has experience in accounting for over 15 years.
Yin worked as a cashier at the Wuxi Sanyi Communication Technology Co., Ltd., where she was in charge of corporate taxation and reimbursement work. Ms. Yin obtained her college degree from the School of Accounting at Wuxi Radio and Television University in September 2004. Ronghua Xu, Independent Director and Chair of Audit Committee Ms. Ronghua Xu is our independent director.
(2) Calculation based on 6,207,500 Ordinary Shares issued and outstanding as of the date of this annual report. Holders of Ordinary Shares are entitled to one (1) vote per share.
All shares represent only the Ordinary Shares held by shareholders as no options are issued or outstanding. (2) Calculation based on 6,839,000 Ordinary Shares issued and outstanding as of April 15, 2025. Holders of Ordinary Shares are entitled to one (1) vote per share.
Ding obtained her college degree in Software Development and Utilization from Wuxi Radio and Television University in June 2005. 88 Fengting Yin, Chief Financial Officer Ms. Yin has served as our Chief Financial Officer since September 20, 2022. Ms. Yin has more than 20 years of finance, accounting, and taxation experience. Since August 2018, Ms.
Fengting Yin, Chief Financial Officer Ms. Yin has served as our Chief Financial Officer since September 20, 2022. Ms. Yin has more than 20 years of finance, accounting, and taxation experience. Since August 2018, Ms. Yin has served as the Financial Manager of Wuxi Mingteng Mould, responsible for overall accounting treatment, financial data and voucher filing, and daily logistics management.
Employees As of the date of this annual report, we have 150 employees. All of our employees are located in the PRC.
All communications from shareholders are relayed to the members of the Board. 101 6.D. Employees As of the date of this annual report and for the fiscal years ended December 31, 2024, 2023, and 2022 we have 160, 150, 123, and 88 employees, respectively. All of our employees are located in the PRC.
Removed
Yin acted as a financial assistant at Wuxi Huajin Engineering Co., Ltd., where she performed accounting and tax declarations. From July 2000 to July 2003, Ms. Yin worked as a cashier at the Wuxi Sanyi Communication Technology Co., Ltd., where she was in charge of corporate taxation and reimbursement work. Ms.
Added
On September 20, 2022, Mingteng International entered into an employment agreement with our Chief Executive Officer, Yingkai Xu, for a term of 3 years. Mr. Xu is entitled to an annual base salary of USD 30,000 for each calendar year on a pro-rated basis, payable on a quarterly basis.
Removed
For the fiscal year ended December 31, 2021, we paid an aggregate of RMB209,672 (approximately US$32,500), which is the total amount of base salary plus bonus, in cash to our executive officers and employee directors.
Added
On September 20, 2022, Mingteng International entered into an employment agreement with our Chief Financial Officer, Fengting Yin, for a term of 3 years. Ms. Yin is entitled to an annual base salary of USD 30,000 for each calendar year on a pro-rated basis, payable on a quarterly basis.
Removed
Corporate Governance The business and affairs of the company are managed under the direction of our Board. Each of our directors has attended all meetings either in person, via telephone conference, or through written consent for special meetings.
Added
Compensation of Directors and Executive Officers For the fiscal year ended December 31, 2024, we paid an aggregate o f $128,899 as compensation to our executive officers and directors. We have not set aside or accrued any amount to provide pension, retirement or other similar benefits to our executive officers and directors.
Removed
Board Diversity Board Diversity Matrix (As of the date of this annual report) Country of Principal Executive Offices: PRC Foreign Private Issuer Yes Disclosure Prohibited Under Home Country Law No Total Number of Directors 5 Female Male Non-Binary Did Not Disclose Gender Part I: Gender Identity Directors 3 2 0 0 Part II: Demographic Background Underrepresented Individual in Home Country Jurisdiction — LGBTQ+ — 92 6.D.
Removed
(8) 450,000 7.25 % (1) Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the Ordinary Shares. All shares represent only the Ordinary Shares held by shareholders as no options are issued or outstanding.
Removed
Jingzhu Ding, through Jocelyn Ding Limited, an intermediate holding company for DJZ Holding Limited a British Virgin Islands company, holds 90% shares of Hongze L.P, and thus she has dispositive power over 450,000 shares, which represent 7.25% of our Ordinary Shares issued and outstanding as of the date of this annual report.
Removed
Thus, Jingzhu Ding holds 2,459,000 shares in total, which represent 39.61% of our Ordinary Shares issued and outstanding as of the date of this annual report. 2,091,000 shares held by Yingkai Xu, Ms. Jingzhu Ding’s spouse, are included in Ms. Ding’s beneficial ownership numbers and percentage.
Removed
Jingzhu Ding, through Jocelyn Ding Limited, an intermediate holding company for DJZ Holding Limited a British Virgin Islands company, holds 90% shares of Hongze L.P, and thus she has dispositive power over 450,000 shares, which represent 7.25% of our Ordinary Shares.
Removed
Thus, Jingzhu Ding holds 2,459,000 shares in total, which represent 39.61% of our Ordinary Shares issued and outstanding as of the date of this annual report. The registered office of DJZ Holding Limited will be situated at ICS Corporate Services (BVI) Limited, Sea Meadow House, P.O. Box 116, Road Town, Tortola, British Virgin Islands.
Removed
(8) Yingkai Xu, our Chief Executive Officer, Chairman of the Board and Directo, is the sole shareholder and director of Michell Xu Limited, an intermediate holding company for YK Xu Holding Limited, a British Virgin Islands company owns 10% shares of Hongze L.P.
Removed
Jingzhu Ding is the sole shareholder and director of Jocelyn Ding Limited, an intermediate holding company for DJZ Holding Limited, a British Virgin Islands company owns 90% shares of Hongze L.P.
Removed
Jingzhu Ding, through Jocelyn Ding Limited, an intermediate holding company for DJZ Holding Limited a British Virgin Islands company, holds 90% shares of Hongze L.P., and thus she has dispositive power over 450,000 shares, which represent 7.25% of our Ordinary Shares issued and outstanding as of the date of this annual report.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Directors, Senior Management and Employees—6.B. Compensation—Employment Agreements.” Other Related Party Transactions The table below sets forth the major related parties and their relationships with the Company as of December 31, 2023, 2022 and 2021: Name of related parties Relationship with the Company Yingkai Xu Shareholder, CEO and Chairman of the Company.
Directors, Senior Management and Employees-6.B. Compensation-Employment Agreements.” Other Related Party Transactions The table below sets forth the major related parties and their relationships with the Company as of December 31, 2024, 2023 and 2022: Name of related parties Relationship with the Company Yingkai Xu Shareholder, CEO and Chairman of the Company.
The following represented related party balances as of December 31, 2023, 2022 and 2021: As of December 31, Amounts due to related parties 2023 2022 2021 Jingzhu Ding $ 32,529 $ 66,966 $ - Wuxi Kaiteng Mold Factory 207,780 249,073 712,706 $ 240,309 $ 316,039 $ 712,706 Amounts due to Jingzhu Ding represented the loan from Jingzhu Ding.
The following represented related party balances as of December 31, 2024, 2023 and 2022: As of December 31, Amounts due to related parties 2024 2023 Jingzhu Ding $ - $ 32,529 Wuxi Kaiteng Mold Factory 240,166 207,780 $ 240,166 $ 240,309 Amounts due to Jingzhu Ding represented the loan from Jingzhu Ding. In order to supplement the working capital, Ms.
In order to supplement the working capital, Ms. Ding lent money to the Company. The loan was signed with series of contracts and is non-interest bearing. The loan term is indefinite. According to the contracts, the loan will be repaid when working capital is sufficient.
Ding lent money to the Company. The loan was signed with series of contracts and is non-interest bearing. The loan term is indefinite. According to the contracts, the loan will be repaid when working capital is sufficient. Amounts due to Wuxi Kaiteng Mold Factory represents amounts accrued for processing services that the Company purchased from Wuxi Kaiteng Mold Factory.
Jingzhu Ding Shareholder of the Company, wife of the CEO and Chairman. Wuxi Kaiteng Mold Factory Ms. Jingzhu Ding owns a 100% share. Wuxi Magway Precision Machinery Co., Ltd. Mr. Yingkai Xu previously owned a 60% share. On August 31, 2021, Mr. Xu sold his 60% equity share to a non-related third party. Wuxi Yingteng Mold Technology Co., Ltd. Mr.
Jingzhu Ding Shareholder of the Company, wife of the CEO and Chairman. Wuxi Kaiteng Mold Factory Ms. Jingzhu Ding owns a 100% share. Wuxi Diang Trading Co., Ltd Mr. Yingkai Xu owns 40% equity interest.
Significant transactions with related parties were as follows: For the years ended December 31, 2023 2022 2021 Purchases from related parties: Wuxi Kaiteng Mold Factory $ 293,226 $ 281,201 $ 250,034 Wuxi Yingteng Mold Technology Co., Ltd. - - 153,148 Wuxi Magway Precision Machinery Co., Ltd. - - 11,915 Total cost of revenues – related parities $ 293,226 $ 281,201 $ 415,097 95 In fiscal year 2021, the Company purchased raw materials from Wuxi Yingteng Mold Technology Co., Ltd.
Significant transactions with related parties were as follows: For the years ended December 31, 2024 2023 2022 Transactions with related parties: Wuxi Kaiteng Mold Factory $ 268,408 $ 293,226 $ 281,201 Wuxi Diang Trading Co., Ltd 730,165 - - Total $ 998,573 $ 293,226 $ 281,201 104 In the fiscal years 2022, 2023 and 2024, the Company purchased processing services from Wuxi Kaiteng Mold Factory.
Removed
Yingkai Xu previously owned a 65% share. On August 16, 2021, Mr. Xu sold his 65% equity share to a non-related third party.
Added
In the fiscal year 2024, the transactions with Wuxi Diang Trading Co., Ltd represented loans from Wuxi Mingteng Mould in order to temporarily support the working capital of Wuxi Diang Trading Co., Ltd. The loan was signed with a series of contracts and is non-interest bearing.
Removed
The Company purchased raw materials and electricity services from Wuxi Magway Precision Machinery Co., Ltd., and purchased processing services from Wuxi Kaiteng Mold Factory. In the fiscal years 2022 and 2023, the Company purchased processing services from Wuxi Kaiteng Mold Factory.
Added
The term of the loan was six months, as of December 31, 2024, Wuxi Diang Trading Co., Ltd had fully repaid the loans according to the contracts.
Removed
Amounts due to Wuxi Kaiteng Mold Factory represents amounts accrued for processing services that the Company purchased from Wuxi Kaiteng Mold Factory.