MKDWELL Tech Inc. Shows Mixed Results in First Half of 2025

MKDWELL Tech Inc. has shared its financial results for the first half of 2025, showing a mix of growth and challenges. The company saw a big jump in revenue, up 68. 3% from the same period last year. This growth came mainly from selling more electronic products and processing services. However, profits were thin, with a gross margin of just 6. 5%, down from 8. 2% in 2024. The company also reported a net loss of $1. 70 million, which is slightly better than the $1. 73 million loss from the previous year. The company's success in securing large orders from a key customer helped keep losses stable. However, this growth came with higher costs. The cost of revenues shot up by 71. 5%, mostly due to increased orders from new and existing customers. Selling expenses also rose by 15. 7%, driven by higher salaries and travel costs. On the bright side, general and administrative expenses dropped by 7. 8%, thanks to reduced depreciation costs and inventory impairment.Research and development expenses saw a small increase of 9. 0%, linked to more R&D activities for new customers. Interest expenses also went up by 41. 0%, mainly due to interest on a convertible note issued in late 2024. Despite these challenges, the company believes it has enough cash to meet its needs for at least the next 12 months. The company's operations span Mainland China and Taiwan, with a focus on manufacturing and supplying automotive electronics. Their products range from intelligent camper van control systems to LiDAR sensors and vehicle seat control systems. The company is optimistic about its future but acknowledges the need for additional financing if business conditions change.