MKDWELL Tech Inc., a business company incorporated in the British Virgin Islands with operations in Mainland China and Taiwan, has announced its unaudited financial results for the first half of 2024. The company reported total revenues of US$0.81 million, a decrease of 61.3% from the same period in 2023. Gross profit was US$0.07 million with a gross profit margin of 8.2%, down from 15.2% in 2023. Loss from operations increased by 83.4% to US$1.54 million, while net loss rose by 77.8% to US$1.73 million.
Management attributed the decrease in revenues to the termination of a key customer relationship due to a mismatch in price expectations. The company’s new customers in 2024 were primarily in the trial production stage, leading to a decline in sales revenue. The focus of the management team was on the Nasdaq listing and business combination with Cetus Capital, but now the focus will shift to business and customer development.
In July 2024, MKDWELL completed its business combination with Cetus Capital, becoming listed on Nasdaq. The company acquired MKDWELL Limited and an approximate 62.36% indirect equity interest in MKD Technology Inc. The unaudited financial statements presented are prior to the business combination.
Revenues for the first half of 2024 decreased across all categories, with sales of manufactured electronic products and commissioned processing service taking the biggest hits. Cost of revenues also decreased, leading to a lower gross profit and gross profit margin. Operating expenses, including selling, general and administrative, and research and development expenses, increased.
Interest expenses and other expenses also rose, contributing to a higher net loss for the period. The company’s financial statements are prepared on a going concern basis, but there are uncertainties about its ability to continue operations. MKDWELL has historically relied on financing to support its operations and generate profits.
The company is actively seeking new customers and optimizing its workforce to mitigate costs. MKDWELL’s subsidiaries are subject to different tax laws in the BVI, Samoa, Mainland China, and Taiwan. The company’s net loss, exchange rates, and financial position are detailed in the financial statements.
MKDWELL Tech Inc. is a manufacturer and supplier of automotive electronics for various vehicles. Its products include intelligent control systems, LiDAR sensors, and seat control systems. The company designs, manufactures, and supplies products to customers in Mainland China and Taiwan.
For more information, please contact MKDWELL Tech Inc. at ir@mkdwell.com. Visit Web3Wire for the latest news on Web3, Metaverse, Blockchain, Artificial Intelligence, Cryptocurrencies, Decentralized Finance, NFTs, and Gaming.