MKDWELL Tech Inc. Reports First Half of Fiscal Year 2024 Unaudited Financial Results

New York, Dec. 31, 2024 (GLOBE NEWSWIRE) — MKDWELL Tech Inc. (the “Firm”, “we”, “our”, or “us”) (Nasdaq: MKDW), a enterprise firm included within the British Virgin Islands (“BVI”) with operations in Mainland China and Taiwan, in the present day introduced its unaudited monetary outcomes for the six months ended June 30, 2024.

First Half 2024 Monetary Highlights

Administration Commentary

We terminated a key buyer relationship in 2024, as a consequence of a mismatch in worth expectation. After complete enterprise analysis, administration made the willpower to terminate such buyer relationship, and in consequence our new clients in 2024 have been primarily within the trial manufacturing stage within the first half of the 12 months, leading to a year-on-year lower in gross sales income. Within the first half of 2024, we incurred bills for our Nasdaq itemizing, leading to a rise in loss.

Previous to the itemizing of the Firm on Nasdaq, the main target of the administration group was preoccupied with such itemizing and the enterprise mixture with Cetus Capital. With the Firm now having accomplished its enterprise mixture and itemizing on Nasdaq, we anticipate that the administration group will lead the enterprise group to shift the main target of labor to enterprise and buyer growth. Along with including new buyer teams, we’ll try to enhance product high quality to extend buyer dependence and belief within the Firm.

We accomplished our enterprise mixture with Cetus Capital in July 2024, on account of which we grew to become listed on Nasdaq, and MKDWELL Tech Inc. acquired MKDWELL Restricted, a BVI enterprise firm as its wholly-owned subsidiary and an approximate 62.36% oblique fairness curiosity in MKD Know-how Inc., a Taiwan company and our working subsidiary.

The unaudited condensed consolidated monetary statements offered herein are these previous to the enterprise mixture which was consummated on July 31, 2024, and represents the monetary statements of MKDWELL Restricted and its subsidiaries, and the monetary statements of Cetus Capital Acquisition Corp.

First Half 2024 Monetary Outcomes

Revenues

Our revenues include (i) gross sales of manufactured digital merchandise, (ii) commissioned processing service, (iii) rental revenue and (iv) others. Others primarily include electrical energy and technical companies revenues.

Our breakdown of revenues for the six months ended June 30, 2023 and 2024 are summarized as under:

Our whole revenues decreased by US$1.29 million, or 61.3% from US$2.10 million for the six months ended June 30, 2023 to US$0.81 million for the six months ended June 30, 2024, primarily attributable to the lower of gross sales of manufactured digital merchandise and commissioned processing service.

Revenues from our gross sales of manufactured digital merchandise decreased by US$0.55 million, or 48.1%, from US$1.14 million for the six months ended June 30, 2023 to US$0.59 million for the six months ended June 30, 2024, which was primarily contributed to the lower of orders and clients.

Revenues from our commissioned processing service decreased by US$0.67 million, or 90.3%, from US$0.74 million for the six months ended June 30, 2023 to US$0.07 million for the six months ended June 30, 2024, which was primarily contributed to the termination of cooperation with a number of main clients. The corporate is actively searching for new clients and has established cooperation with new clients within the second half of 2024.

Rental revenue decreased by US$0.05 million, or 27.9%, from US$0.16 million for the six months ended June 30, 2023 to US$0.11 million for the six months ended June 30, 2024, which was primarily as a result of lower in leasehold space ensuing from the expiration of a number of lease contracts within the first half of 2024.

Revenues from others decreased by US$0.03 million, or 44.0%, from US$0.06 million for the six months ended June 30, 2023 to US$0.03 million for the six months ended June 30, 2024, which was primarily as a consequence of lowered electrical energy demand from lessees, which is in associated to the discount in leasehold space within the first half of 2024.

Price of revenues

Price of revenues consists primarily of (i) buy of digital supplies, (ii) payroll, (iii) depreciation and different prices associated to the enterprise operation, (iv) inventories write-down.

Our price of revenues decreased by US$1.04 million, or 58.2% from US$1.78 million for the six months ended June 30, 2023 to US$0.74 million for the six months ended June 30, 2024, which was primarily attributable to a lower in labor prices with respect to fee processing service and gross sales of manufactured digital merchandise.

Gross revenue and gross revenue margin

Gross revenue represents our revenues much less price of revenues. Gross revenue margin represents our gross revenue as a proportion of our revenues.

Gross revenue decreased by US$0.25 million, or 79.0% from US$0.32 million for the six months ended June 30, 2023 to US$0.07 million for the six months ended June 30, 2024, and gross revenue margin lower from 15.2% within the first half of 2023 to eight.2% within the first half of 2024, primarily attributed to the elevated mounted prices related to labor prices. The corporate is actively optimizing its workforce to mitigate labor prices.

Promoting bills

Promoting bills primarily include: (i) salaries and advantages for gross sales personnel, (ii) freight bills, (iii) rental and depreciation allotted to promoting division, (iv) sure different bills.

Our promoting bills remained comparatively steady at US$0.11 million for the six months ended June 30, 2023 and 2024. Promoting bills didn’t lower according to income as a result of our promoting bills composed of mounted bills, resembling salaries.

Basic and administrative bills

Basic and administrative bills primarily include: (i) skilled service charges; (ii) salaries and advantages for basic and administrative personnel, (iii) rental and depreciation allotted to basic and administrative division, and (iv) different company bills.

Our basic and administrative bills elevated by US$0.48 million, or 71.7% from US$0.67 million for the six months ended June 30, 2023 to US$1.15 million for the six months ended June 30, 2024, which was primarily attributable to the rise of US$0.40 million in skilled service charges for the aim of effecting our enterprise mixture with Cetus Capital.

Analysis and growth bills

Analysis and growth bills primarily embrace (i) salaries and advantages for analysis and growth personnel, (ii) materials and provides bills in relation to analysis and growth actions, (iii) rental and depreciation allotted to the analysis and growth division, (iv) sure different expense.

Our analysis and growth bills barely decreased by US$0.03 million, or 8.3% from US$0.38 million for the six months ended June 30, 2023 to US$0.35 million for the six months ended June 30, 2024, which remained comparatively regular. We continued to concentrate on software program growth to assist our beforehand developed {hardware} tasks.

Curiosity bills, web

Curiosity bills, web consists of curiosity bills for financial institution borrowings and financing by way of gross sales and lease again, and curiosity revenue earned on money deposits in banks.

Our curiosity bills, web elevated by US$0.04 million, or 32.6% from US$0.12 million for the six months ended June 30, 2023 to US$0.16 million for the six months ended June 30, 2024, which was primarily attributable to the rise of US$0.07 million in curiosity expense as a result of newly borrowed loans from associated events, and offset by the rise of US$0.03 in curiosity revenue as a result of newly lent loans to Cetus Sponsor LLC.

Different bills, web

Different bills, web consists of presidency subsidies, international foreign money trade acquire or loss, and others.

Different expense, web elevated by US$0.01 million, or 266.8% from US$0.01 million for the six months ended June 30, 2023 to US$0.02 million for the six months ended June 30, 2024, which was primarily attributable to the lower of the federal government subsidies.

Taxation

British Virgin Islands (“BVI”)

The Firm is included within the BVI. Below the present legal guidelines of the BVI, the Firm shouldn’t be topic to revenue or capital positive aspects taxes. Moreover, dividend funds usually are not topic to withholdings tax within the BVI.

Samoa

Considered one of our subsidiaries was included in Samoa and, below the present legal guidelines of Samoa, shouldn’t be topic to tax on its revenue or capital positive aspects. Moreover, dividend funds usually are not topic to withholdings tax in Samoa.

Mainland China

Usually, our subsidiaries, that are thought-about PRC resident enterprises below PRC tax legislation, are topic to enterprise revenue tax on their worldwide taxable revenue as decided below PRC tax legal guidelines and accounting requirements at a fee of 25%.

Taiwan

We’re topic to a tax fee of 20% for entities below R.O.C. Earnings Tax Legislation.

Internet loss

Because of the foregoing, our web loss elevated by US$0.76 million, or 77.8% from US$0.97 million for the six months ended June 30, 2023 to US$1.73 million for the six months ended June 30, 2024.

Going concern and Capital Sources

Our unaudited condensed consolidated monetary statements have been ready on a going concern foundation, which contemplates the conclusion of belongings and liquidation of liabilities through the regular course of operations. We incurred web losses of US$0.97 million and US$1.73 million for the six months ended June 30, 2023 and 2024, respectively. Internet money utilized in working actions have been US$0.34 million and US$1.53 million for the six months ended June 30, 2023 and 2024, respectively. As of June 30, 2024, our collected deficits have been US$12.62 million, with a working capital deficit of US$4.84 million. Our working outcomes for future durations are topic to quite a few uncertainties and it’s unsure if we can cut back or remove our web losses for the foreseeable future. These circumstances increase substantial doubt about our skill to proceed as a going concern.

We now have traditionally trusted financing from financial institution, associated events and third-party buyers to assist our operations. Our future operations are dependent upon fairness or debt financing and our skill to generate income by way of operations at an indeterminate time sooner or later. We can not guarantee that we’ll achieve success in finishing an fairness or debt financing or in attaining or sustaining profitability within the close to time period. Our monetary statements don’t give impact to any changes regarding the carrying values and classification of belongings and liabilities that will be needed ought to we be unable to proceed as a going concern.

Change Price

This press launch incorporates translations of sure Chinese language Renminbi (“RMB”) and New Taiwan greenback (“NT$”) quantities into U.S. {dollars} (“US$”) at specified charges solely for the comfort of the readers. The next desk outlines the foreign money trade charges that have been utilized in getting ready the unaudited condensed consolidated monetary statements, as set forth within the H.10 Statistical launch of the Board of Governors of the Federal Reserve System:

About MKDWELL Tech Inc.

By means of our working subsidiaries, we’re a producer and provider of automotive electronics for passenger automobiles, modified business autos, camper vans and logistics autos. Our enterprise protection extends from analysis and growth, design, and manufacturing to gross sales of automotive digital merchandise. Our most important merchandise are clever camper vans management programs, LiDAR sensors, clever container management programs for logistics autos, automobile seat management system, and we offer clients with ODM and OEM personalized companies. We design, manufacture and provide our merchandise to our clients by way of our design middle positioned in Hsinchu Science Park, Taiwan and our manufacturing plant in Jiaxing Science and Know-how Metropolis, Jiaxing Metropolis, Zhejiang Province, China. Our clients are primarily primarily based in Mainland China and Taiwan.

For additional data, please contact:

MKDWELL Tech Inc.
E mail: ir@mkdwell.com 

MKDWELL TECH INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. {dollars}, aside from share and per share knowledge, or in any other case famous)

MKDWELL TECH INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In U.S. {dollars}, aside from share and per share knowledge, or in any other case famous)

 CETUS CAPITAL ACQUISITION CORP.
BALANCE SHEETS

CETUS CAPITAL ACQUISITION CORP.
STATEMENTS OF OPERATIONS

*The condensed interim monetary statements of Cetus Capital Acquisition Corp. as of June 30, 2024 and for the six months ended June 30, 2024 herein haven’t been audited or reviewed by Cetus Capital Acquisition Corp.’s unbiased registered accounting agency.

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