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 integrated within the British Virgin Islands (“BVI”) with operations in Mainland China and Taiwan, at this time 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, resulting from a mismatch in value expectation. After complete enterprise analysis, administration made the dedication to terminate such buyer relationship, and because of this our new clients in 2024 had been primarily within the trial manufacturing stage within the first half of the yr, 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 focus of the administration workforce 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 workforce will lead the enterprise workforce to shift the main focus of labor to enterprise and buyer improvement. Along with including new buyer teams, we are going to 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, because of which we turned 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 Expertise 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 encompass (i) gross sales of manufactured digital merchandise, (ii) commissioned processing service, (iii) rental revenue and (iv) others. Others primarily encompass electrical energy and technical companies revenues.

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

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 resulting from 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 share 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 encompass: (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 consistent with income as a result of our promoting bills composed of mounted bills, akin to salaries.

Normal and administrative bills

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

Our normal 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 improvement bills

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

Our analysis and improvement 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 give attention to software program improvement to assist our beforehand developed {hardware} initiatives.

Curiosity bills, internet

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

Our curiosity bills, internet 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, internet

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

Different expense, internet 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 integrated within the BVI. Below the present legal guidelines of the BVI, the Firm will not be topic to revenue or capital features taxes. Moreover, dividend funds aren’t topic to withholdings tax within the BVI.

Samoa

Certainly one of our subsidiaries was integrated in Samoa and, below the present legal guidelines of Samoa, will not be topic to tax on its revenue or capital features. Moreover, dividend funds aren’t topic to withholdings tax in Samoa.

Mainland China

Typically, our subsidiaries, that are thought of PRC resident enterprises below PRC tax regulation, 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. Revenue Tax Legislation.

Web loss

Because of the foregoing, our internet 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 Assets

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

We have now traditionally relied on financing from financial institution, associated events and third-party traders to assist our operations. Our future operations are dependent upon fairness or debt financing and our skill to generate earnings by 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 referring to the carrying values and classification of property and liabilities that might be mandatory ought to we be unable to proceed as a going concern.

Trade Price

This press launch accommodates 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 change charges that had 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 way of our working subsidiaries, we’re a producer and provider of automotive electronics for passenger vehicles, modified industrial autos, camper vans and logistics autos. Our enterprise protection extends from analysis and improvement, design, and manufacturing to gross sales of automotive digital merchandise. Our foremost merchandise are clever camper vans management techniques, LiDAR sensors, clever container management techniques 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 our design heart situated in Hsinchu Science Park, Taiwan and our manufacturing plant in Jiaxing Science and Expertise Metropolis, Jiaxing Metropolis, Zhejiang Province, China. Our clients are primarily based mostly in Mainland China and Taiwan.

For additional data, please contact:

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

MKDWELL TECH INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. {dollars}, apart 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}, apart 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 impartial registered accounting agency.

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