MKDWELL Tech Inc. Reports First Half of Fiscal Year 2025 Unaudited Financial Results

New York, Dec. 29, 2025 (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 present introduced its unaudited monetary outcomes for the six months ended June 30, 2025.

First Half 2025 Monetary Highlights

Administration Commentary

Within the first half of 2025, as a key strategic buyer entered mass manufacturing, we efficiently secured a considerable improve in orders from it, which helped maintain our losses steady year-on-year. We are going to proceed to actively search new clients to additional drive efficiency enchancment.

First Half 2025 Monetary Outcomes

Revenues

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

Our breakdown of revenues for the six months ended June 30, 2024 and 2025 are summarized as under:

Our complete revenues elevated by US$0.55 million, or 68.3% from US$0.81 million for the six months ended June 30, 2024 to US$1.37 million for the six months ended June 30, 2025, primarily attributable to the rise of gross sales of manufactured digital merchandise and commissioned processing service.

Revenues from our gross sales of manufactured digital merchandise elevated by US$0.61 million, or 102.8%, from US$0.59 million for the six months ended June 30, 2024 to US$1.20 million for the six months ended June 30, 2025, which was primarily contributed to the rise of orders from new clients.

Revenues from our commissioned processing service elevated by US$0.09 million, or 128.9%, from US$0.07 million for the six months ended June 30, 2024 to US$0.16 million for the six months ended June 30, 2025, which was consistent with elevated product gross sales within the first half of 2025.

Rental earnings decreased by US$0.11 million, or 98.2%, from US$0.11 million for the six months ended June 30, 2024 to US$2 thousand for the six months ended June 30, 2025, which was primarily because of the expiration of lease contract on the finish of 2024, ensuing a lower of rental earnings within the first half of 2025.

Revenues from others decreased by US$0.03 million, or 90.5%, from US$0.04 million for the six months ended June 30, 2024 to US$3,000 for the six months ended June 30, 2025, which was primarily as a result of diminished electrical energy demand from lessees, which is in associated to the termination of lease contract within the first half of 2025.

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 value of revenues elevated by US$0.53 million, or 71.5% from US$0.74 million for the six months ended June 30, 2024 to US$1.28 million for the six months ended June 30, 2025, which was primarily attributable to the elevated gross sales orders to new and deepened cooperated clients.

Gross revenue and gross revenue margin

Gross revenue represents our revenues much less value of revenues. Gross revenue margin represents our gross revenue as a share of our revenues.

Gross revenue elevated by US$0.02 million, or 32.8% from US$0.07 million for the six months ended June 30, 2024 to US$0.09 million for the six months ended June 30, 2025, and gross revenue margin lower from 8.2% within the first half of 2024 to six.5% within the first half of 2025, primarily as a result of diminished profitability on gross sales to our main clients, regardless of a big improve of their order quantity in the course of the first half of 2025.

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 elevated by US$0.02 million, or 15.7% from US$0.11 million for the six months ended June 30, 2024 to US$0.13 million for the six months ended June 30, 2025, which was primarily attributable to the elevated salaries and travelling bills.

Normal and administrative bills

Normal and administrative bills primarily encompass: (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 decreased by US$0.09 million, or 7.8% from US$1.15 million for the six months ended June 30, 2024 to US$1.06 million for the six months ended June 30, 2025, which was primarily attributable to the depreciation value decreased with much less idle capability and elevated stock impairment within the first half of 2025.

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 elevated by US$0.03 million, or 9.0% from US$0.35 million for the six months ended June 30, 2024 to US$0.38 million for the six months ended June 30, 2025, which was primarily attributable to the elevated depreciation value since we performed extra R&D actions about new clients in the course of the first half of 2025.

Curiosity bills, internet

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

Our curiosity bills, internet elevated by US$0.07 million, or 41.0% from US$0.16 million for the six months ended June 30, 2024 to US$0.23 million for the six months ended June 30, 2025, which was primarily attributable to the rise of US$0.07 million in curiosity expense as a result of curiosity expense incurred on the convertible observe issued by the Firm dated November 26, 2024 with the principal quantity of $1,851,000 to Streeterville Capital LLC, as amended, since December 2024.

Different earnings/(bills), internet

Different earnings/(bills), internet consists of presidency subsidies, overseas forex change achieve or loss, and others.

Our different earnings, internet elevated by US$0.03 million, or 166.2% from different expense of US$0.02 million for the six months ended June 30, 2024 to different earnings of US$0.01 million for the six months ended June 30, 2025, which was primarily attributable to internet impact of income from sale of apparatus and no penalties occurred in the course of the first half of 2025.

Taxation

British Virgin Islands (“BVI”)

The Firm is integrated within the BVI. Beneath the present legal guidelines of the BVI, the Firm shouldn’t be topic to earnings or capital good points taxes. Moreover, dividend funds will not be topic to withholdings tax within the BVI.

Samoa

Considered one of our subsidiaries was integrated in Samoa and, underneath the present legal guidelines of Samoa, shouldn’t be topic to tax on its earnings or capital good points. Moreover, dividend funds will not be topic to withholdings tax in Samoa.

Mainland China

Usually, our subsidiaries, that are thought of PRC resident enterprises underneath PRC tax regulation, are topic to enterprise earnings tax on their worldwide taxable earnings as decided underneath PRC tax legal guidelines and accounting requirements at a charge of 25%.

Taiwan

We’re topic to a tax charge of 20% for entities underneath R.O.C. Revenue Tax Legislation.

Internet loss

Because of the foregoing, our internet loss decreased by US$0.03 million, or 1.5% from US$1.73 million for the six months ended June 30, 2024 to US$1.70 million for the six months ended June 30, 2025.

Liquidity and Capital Sources

Our unaudited condensed consolidated monetary statements have been ready on a going concern foundation, which contemplates the belief of belongings and liquidation of liabilities in the course of the regular course of operations. We incurred internet losses of US$1.73 million and US$1.70 million for the six months ended June 30, 2024 and 2025, respectively. Internet money utilized in working actions had been US$1.53 million and US$1.46 million for the six months ended June 30, 2024 and 2025, respectively. As of June 30, 2025, our amassed deficits had been US$15.14 million, with a working capital surplus of US$2.96 million. We imagine that our present money and money equivalents, time deposits and anticipated money move from operations might be adequate to satisfy our anticipated money wants from operations and different commitments for no less than the following 12 months from the date of the issuance of this consolidated monetary statements.

We intend to finance our future working capital necessities and capital expenditures from money generated from working actions and financing actions. We could, nonetheless, require extra money assets as a result of altering enterprise circumstances or different future developments, together with acquisitions or investments we could resolve to selectively pursue. If our current money assets are inadequate to satisfy our necessities, we could search to concern fairness or debt securities or get hold of credit score amenities. The difficulty of extra fairness securities, together with convertible debt securities, would lead to additional dilution to our shareholders. The incurrence of indebtedness would lead to elevated fastened obligations and will lead to working covenants that may limit our operations. We can’t guarantee you that financing might be accessible within the quantities we’d like or on phrases acceptable to us, if in any respect. If we’re unable to acquire extra fairness or debt financing as required, our enterprise operations and prospects could endure.

Subsequent occasions

We entered right into a securities buy settlement dated November 26, 2024 with Streeterville Capital, LLC, a Utah restricted legal responsibility firm (the “Investor”), pursuant to which the Firm issued to the Investor an unsecured convertible promissory observe, on November 26, 2024, within the principal quantity of $1,851,000 (the “Observe”), convertible into unusual shares, for a purchase order worth of $1,700,000. The transaction closed on December 9, 2024 and the Firm acquired an combination buy worth of $1,700,000. On Could 13, 2025, the Firm and the Investor entered into an modification to the Observe that revised the definition of the “Conversion Worth” underneath the Observe.

On December 2, 2025, the Firm and the Investor entered right into a Forbearance and Standstill Settlement pursuant to which the Investor will quickly forbear from exercising enforcement rights arising from a default of not delivering sure conversion shares underneath the Observe, and to increase the Observe’s maturity date to June 9, 2026, by which the Firm has agreed to repay any remaining stability of the Observe in money. In reference to the extension of the Observe’s maturity date, the excellent stability will improve by 0.5% on the third day of every month from December 3, 2025 via Could 3, 2026. Through the standstill interval from December 1, 2025 via February 28, 2026, the Firm could make a $100,000 cost to the Investor on or earlier than the third day of every month. For any month wherein such cost is made, the Investor has agreed to not convert any portion of the Observe throughout that month. For any month wherein the cost shouldn’t be made, the Investor could convert as much as $100,000 of the stability of the Observe into unusual shares throughout that month, supplied that the conversion worth shall not fall under $0.04 per share.

Change Charge

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 forex 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 our working subsidiaries, we’re a producer and provider of automotive electronics for passenger vehicles, 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 essential merchandise are clever camper vans management programs, LiDAR sensors, clever container management programs for logistics autos, car seat management system, and we offer clients with ODM and OEM personalized companies. We design, manufacture and provide our merchandise to our clients via 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 primarily based in Mainland China and Taiwan.

For additional data, please contact:

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