WUXI, China, Sept. 23, 2026 (GLOBE NEWSWIRE) -- HUHUTECH International Group Inc. (Nasdaq: HUHU) ("HUHUTECH" or the "Company"), a system integration provider that designs and implements integrated facility management systems and industrial automation monitoring systems for the optoelectronic, semiconductor, telecom, and logistics industries, today reported financial results for the six months ended June 30, 2026. Total revenues increased 8.6% to $10.67 million from $9.82 million in the prior-year period. Operations in the United States, Germany, and Singapore, none of which generated revenue in the first half of 2025, contributed $3.69 million, or 34.6% of total revenue.
The period was the first full reporting half in which HUHUTECH recognized revenue from five countries. Revenue from the PRC grew 29.4% to $4.97 million. That growth, combined with the $3.69 million contributed by the three newest markets, offset a planned contraction in Japan, where revenue declined to $2.01 million from $5.98 million. The Company completed 104 system integration projects during the half, compared with 220 a year earlier, while the average contract price rose to $86,719 from $42,727, reflecting a shift toward fewer, substantially larger engagements.
Net loss for the half was $16.65 million, or $0.68 per basic and diluted share, compared with a net loss of $8.73 million, or $0.38 per share, a year earlier. Non-cash share-based compensation of $13.87 million and a $2.03 million provision for credit losses together accounted for $15.90 million of the reported loss. Excluding those two items, adjusted net loss was $0.75 million for the first half of 2026. See "Non-GAAP Financial Measure" below.
Yujun Xiao, Chief Executive Officer of HUHUTECH, commented:
"Eighteen months ago, every dollar of our revenue came from two countries. This half, five countries contributed, and our three newest markets delivered $3.69 million while still in their initial roll-out phase. We accepted a lower Japan revenue to fund that build-out, and we are now running larger contracts - the average system integration project we completed in the first half was roughly twice the size of a year ago. The expansion carries real cost, and it shows in our operating expenses. It also puts our engineering teams alongside customers in the regions where new semiconductor and optoelectronic capacity is actually being added."
First Half 2026 Financial Highlights
(Six months ended June 30, 2026, compared with six months ended June 30, 2025)
- Total revenues of $10.67 million, up 8.6% from $9.82 million.
- Revenue from the United States, Germany, and Singapore was $3.69 million, compared with nil in the prior-year period.
- PRC revenue of $4.97 million, up 29.4% from $3.84 million.
- Product sales revenue of $1.65 million, up 294.4% from $0.42 million, and 15.4% of total revenue compared with 4.3%.
- Gross profit of $3.37 million, up 7.3% from $3.14 million. Gross margin of 31.6% compared with 32.0%.
- Average system integration contract price of $86,719, compared with $42,727.
- Net loss of $16.65 million, or $0.68 per basic and diluted share, compared with a net loss of $8.73 million, or $0.38 per share. The increase was driven principally by a $5.07 million increase in non-cash share-based compensation and a $2.00 million increase in provisions for credit losses.
- Adjusted net loss (non-GAAP) of $0.75 million, compared with adjusted net income of $0.10 million.
- Cash of $3.58 million and working capital of $4.20 million as of June 30, 2026.
- Gross proceeds of $3.0 million from a registered direct offering completed May 5, 2026.
Revenue
Total revenues were $10.67 million for the six months ended June 30, 2026, an increase of $0.85 million, or 8.6%, from $9.82 million in the prior-year period. Revenue from system integration projects was $9.02 million, a decrease of $0.38 million, or 4.1%, from $9.40 million, and represented 84.6% of total revenue compared with 95.7% a year earlier. The decline reflects the Company's deliberate contraction of its Japanese operations, partially offset by initial project activity in the United States and Germany, where engagements remained in the early roll-out stage during the period.
Revenue from product sales was $1.65 million, an increase of $1.23 million, or 294.4%, from $0.42 million. The increase was driven by higher hardware content required within system integration engagements during the half.
Revenue by geography was as follows:
| (US$) | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| PRC | 4,967,410 | 3,838,722 |
| Japan | 2,005,202 | 5,978,750 |
| United States | 2,785,759 | - |
| Germany | 782,821 | - |
| Singapore | 124,074 | - |
| Total revenues | 10,665,266 | 9,817,472 |
Gross Profit and Gross Margin
Gross profit was $3.37 million, an increase of $0.23 million, or 7.3%, from $3.14 million. Gross margin was 31.6% compared with 32.0%. Gross profit from system integration projects was essentially unchanged at $3.09 million, with margin improving to 34.2% from 33.0% as the Company reduced its reliance on outsourced engineering. Gross profit from product sales increased to $0.28 million from $0.04 million, with a margin of 17.1% compared with 9.5%, reflecting the mix of hardware required by customers during the period.
Operating Expenses
Total operating expenses were $20.20 million, an increase of $8.45 million, or 71.9%, from $11.75 million.
General and administrative expenses were $19.44 million, an increase of $9.10 million, or 88.1%, from $10.33 million. The increase was attributable principally to a $5.07 million increase in non-cash share-based compensation, a $2.00 million increase in provisions for credit losses, and a $1.80 million increase in consulting and audit fees. On January 13, 2026, the Company issued 1,390,000 ordinary shares under its 2025 Equity Incentive Plan with a fair value of $13.87 million, based on a share price of $9.98 on the approval date. The comparable issuance in the prior-year period was 2,000,000 ordinary shares under the 2024 Equity Incentive Plan with a fair value of $8.80 million.
Selling expenses were $0.55 million, a decrease of $0.35 million, or 38.5%, from $0.90 million, driven primarily by a $0.4 million reduction in advertising expense.
Research and development expenses were $0.21 million, a decrease of $0.31 million, or 60.2%, from $0.52 million, and represented 1.9% of total revenue compared with 5.3%. The decrease was primarily due to reduced R&D headcount. The Company expects to allocate approximately 50% of its IPO proceeds to the construction of a 5,000-square-meter research and development plant in the Xinwu District of Wuxi City, Jiangsu Province, together with equipment for the production of gas supply systems.
Loss from Operations and Net Loss
Loss from operations was $16.83 million compared with $8.61 million. Total other expense, net, decreased to $4,411 from $55,459, principally reflecting a $50,000 reduction in foreign exchange losses and $30,000 of warehouse rental income, partially offset by a $23,000 increase in interest expense.
The Company recorded an income tax benefit of $180,361 compared with an income tax provision of $64,686 in the prior-year period. HUHU China renewed its "high-tech enterprise" tax status in December 2025; the certificate is valid for three years and expires in December 2028.
Net loss was $16.65 million, or $0.68 per basic and diluted share, compared with a net loss of $8.73 million, or $0.38 per share. Weighted average shares outstanding were 24,621,158 compared with 23,018,717.
Balance Sheet and Liquidity
As of June 30, 2026, the Company held cash of $3.58 million compared with $4.43 million as of December 31, 2025, and had working capital of $4.20 million. Total assets were $22.41 million and total shareholders' equity was $7.48 million, compared with $22.36 million and $7.42 million, respectively, as of December 31, 2025. Accounts receivable, net, were $10.94 million compared with $9.25 million. Total bank loan balances were approximately $4.5 million, and the Company expects to renew the majority of these facilities.
Net cash used in operating activities was $3.36 million compared with $0.52 million in the prior-year period. Net cash used in investing activities was $0.06 million compared with $0.10 million. Net cash provided by financing activities was $2.26 million compared with net cash used of $0.04 million. It included $3.0 million of gross proceeds from the registered direct offering completed on May 5, 2026, consisting of 400,000 ordinary shares priced at $1.50 per share and pre-funded warrants to purchase up to 1,600,000 ordinary shares.
Subsequent to the end of the period, on August 18, 2026, the Company entered into a loan agreement with the Bank of Communications for $221,073 (RMB 1,500,000), maturing August 18, 2027, at a fixed annual interest rate of 2.20%.
Non-GAAP Financial Measure
In addition to results presented in accordance with U.S. GAAP, this release includes adjusted net loss, a non-GAAP financial measure defined as net loss excluding share-based compensation expense and provisions for credit losses. Management uses this measure to assess operating performance across periods without the effect of items that are non-cash or that do not reflect the current-period operating cost of delivering projects. Adjusted net loss should not be considered in isolation or as a substitute for net loss prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures reported by other companies. A reconciliation to the most directly comparable GAAP measure is presented below.
| (US$) | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | ||
| Net loss (GAAP) | (16,651,680 | - | (8,731,241 | - |
| Add: Share-based compensation | 13,872,200 | 8,800,000 | ||
| Add: Provision for credit losses | 2,027,423 | 30,265 | ||
| Adjusted net (loss) income (non-GAAP) | (752,057 | - | 99,024 | |
About HUHUTECH International Group Inc.
HUHUTECH International Group Inc. (Nasdaq: HUHU) is a professional system integration provider that designs and implements integrated facility management systems and industrial automation monitoring systems for the optoelectronic, semiconductor, telecom, and logistics industries. Through its operating subsidiaries in the People's Republic of China, Japan, the United States, Germany, and Singapore, the Company delivers customized fixed-price engagements spanning project planning, system coding, hardware installation and configuration, and also supplies related equipment. HUHU China holds a first-class construction enterprise qualification and maintains "high-tech enterprise" tax status in the PRC through December 2028. The Company is headquartered in Wuxi, Jiangsu Province, China. For more information, visit https://ir.huhutech.com.cn.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the Company's expectations for its operations in the United States, Germany and Singapore; the anticipated contraction and future contribution of its Japanese operations; expected construction of a research and development plant in Wuxi and the use of IPO proceeds; anticipated renewal of bank facilities; the expected sufficiency of cash on hand and operating cash flows; and anticipated research and development spending. These statements are identified by words such as "expect," "anticipate," "believe," "intend," "plan," "will," and similar expressions.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied. These factors include, among others, the Company's ability to secure and complete system integration contracts; customer concentration and the collectability of accounts receivable; competitive conditions in the optoelectronic, semiconductor, telecom and logistics end markets; the pace of customer adoption in newly entered geographies; the Company's ability to obtain and renew bank financing; currency exchange fluctuations and PRC restrictions on the conversion and remittance of RMB; changes in PRC, Japanese, U.S., German and Singaporean law, taxation and trade policy; and the additional risks described under "Item 3.D. Risk Factors" in the Company's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission. Copies are available at www.sec.gov. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Company Contact
Email: ir@huhutech.com
Website: www.huhutech.com
Investor Relations Contact
Matthew Abenante, IRC
President
Strategic Investor Relations LLC
Phone: +1 (347) 947-2093
Email: matthew@strategic-ir.com
Web: www.strategic-ir.com
| (Financial Tables Follow) |
| HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Expressed in U.S. dollars) | ||||||
| As of June 30, 2026 | As of December 31, 2025 | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash | - | 3,577,685 | - | 4,428,602 | ||
| Restricted cash | - | 300,296 | ||||
| Short-term investment | 55,961 | - | ||||
| Note receivable | - | 86,149 | ||||
| Accounts receivable, net | 10,935,867 | 9,249,042 | ||||
| Accounts receivable - a related party | 75,862 | 516,290 | ||||
| Inventories | 651,413 | 1,103,685 | ||||
| Advance to vendors | 1,022,219 | 1,215,220 | ||||
| Prepayments and other assets, net | 410,785 | 295,738 | ||||
| Due from related parties | - | 2,292 | ||||
| TOTAL CURRENT ASSETS | 16,729,792 | 17,197,314 | ||||
| Property, plant and equipment, net | 3,996,244 | 4,277,525 | ||||
| Intangible assets, net | 23,918 | 45,115 | ||||
| Deferred tax assets | 1,094,343 | 684,847 | ||||
| Right-of-use assets, net | 563,209 | 159,685 | ||||
| TOTAL ASSETS | - | 22,407,506 | - | 22,364,486 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Short-term bank loans | - | 2,577,707 | - | 3,359,025 | ||
| Long-term bank loan - current | 109,786 | 230,397 | ||||
| Loan payable from third party | 500,000 | 500,000 | ||||
| Accounts payable | 4,442,717 | 5,390,732 | ||||
| Due to a related party | 403,317 | - | ||||
| Advance from customers | 2,555,789 | 1,698,526 | ||||
| Accrued expenses and other liabilities | 793,315 | 801,422 | ||||
| Taxes payable | 1,167,758 | 884,694 | ||||
| Operating lease liabilities - current | 205,792 | 142,076 | ||||
| TOTAL CURRENT LIABILITIES | 12,756,181 | 13,006,872 | ||||
| Long-term bank loans | 1,811,476 | 1,919,974 | ||||
| Operating lease liabilities - non-current | 361,763 | 22,582 | ||||
| TOTAL LIABILITIES | 14,929,420 | 14,949,428 | ||||
| SHAREHOLDERS' EQUITY: | ||||||
| Ordinary shares, $0.0000025 par value; 26,785,848 and 24,103,749 shares issued and outstanding | 66 | 60 | ||||
| Share to be issued | 1 | - | ||||
| Additional paid-in capital | 39,922,538 | 23,050,345 | ||||
| Statutory reserves | 343,077 | 343,077 | ||||
| Accumulated deficit | (31,969,471 | - | (15,317,791 | - | ||
| Accumulated other comprehensive loss | (818,125 | - | (660,633 | - | ||
| TOTAL SHAREHOLDERS' EQUITY | 7,478,086 | 7,415,058 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | - | 22,407,506 | - | 22,364,486 | ||
| HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Expressed in U.S. dollars) | ||||||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |||||
| Revenues - third parties | - | 10,603,305 | - | 9,337,289 | ||
| Revenues - related party | 61,961 | 480,183 | ||||
| Total revenues | 10,665,266 | 9,817,472 | ||||
| Cost of revenues - third parties | 7,255,457 | 6,533,648 | ||||
| Cost of revenues - related party | 41,722 | 144,628 | ||||
| Total cost of revenues | 7,297,179 | 6,678,276 | ||||
| Gross profit | 3,368,087 | 3,139,196 | ||||
| Operating expenses: | ||||||
| Selling expenses | 553,441 | 899,367 | ||||
| General and administrative expenses | 19,435,356 | 10,330,446 | ||||
| Research and development expenses | 206,920 | 520,479 | ||||
| Total operating expenses | 20,195,717 | 11,750,292 | ||||
| Loss from operations | (16,827,630 | - | (8,611,096 | - | ||
| Other income (expense): | ||||||
| Interest income | 14,127 | 6,736 | ||||
| Interest expense | (87,511 | - | (64,246 | - | ||
| Other income, net | 68,973 | 2,051 | ||||
| Total other expense, net | (4,411 | - | (55,459 | - | ||
| Loss before income taxes | (16,832,041 | - | (8,666,555 | - | ||
| (Benefit) provision for income taxes | (180,361 | - | 64,686 | |||
| Net loss | (16,651,680 | - | (8,731,241 | - | ||
| Comprehensive loss: | ||||||
| Foreign currency translation adjustments | (157,492 | - | 347,485 | |||
| Comprehensive loss | - | (16,809,172 | - | - | (8,383,756 | - |
| Loss per share - basic and diluted | - | (0.68 | - | - | (0.38 | - |
| Weighted average shares outstanding - basic and diluted | 24,621,158 | 23,018,717 | ||||
| HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. dollars) | ||||||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |||||
| Cash flows from operating activities: | ||||||
| Net loss | - | (16,651,680 | - | - | (8,731,241 | - |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Depreciation and amortization | 143,137 | 169,951 | ||||
| Provision for credit losses | 2,027,423 | 30,265 | ||||
| Deferred tax benefit | (394,377 | - | (191,703 | - | ||
| Amortization of operating lease right-of-use assets | 106,613 | 73,034 | ||||
| Loss from disposal of property, plant and equipment | 661 | - | ||||
| Share-based compensation | 13,872,200 | 8,800,000 | ||||
| Fair value change in marketable securities | 825 | - | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (3,474,539 | - | (1,375,962 | - | ||
| Accounts receivable - related party | 451,116 | (938,394 | - | |||
| Notes receivable | 87,789 | 249,223 | ||||
| Inventories | 476,977 | 211,917 | ||||
| Prepayments and other assets | (105,905 | - | (98,286 | - | ||
| Advance to vendors | 227,615 | (195,164 | - | |||
| Accounts payable | (1,041,866 | - | 467,452 | |||
| Accrued expenses and other liabilities | (27,048 | - | 645,080 | |||
| Advance from customers | 796,926 | 591,122 | ||||
| Taxes payable | 254,819 | (157,026 | - | |||
| Operating lease liabilities | (107,383 | - | (73,671 | - | ||
| Net cash used in operating activities | (3,356,697 | - | (523,403 | - | ||
| Cash flows from investing activities: | ||||||
| Additions to property, plant, and equipment | - | (93,665 | - | |||
| Additions to intangible assets | - | (5,236 | - | |||
| Short-term investment | (56,155 | - | - | |||
| Net cash used in investing activities | (56,155 | - | (98,901 | - | ||
| Cash flows from financing activities: | ||||||
| Advances from related parties | 762,924 | 261,158 | ||||
| Loan (repayment to) proceeds from third-party | (500,000 | - | 500,000 | |||
| Private placement | 3,000,000 | - | ||||
| Repayments of bank acceptance notes payable | - | (550,559 | - | |||
| Proceeds from short-term bank loans | 1,748,659 | 5,403,440 | ||||
| Repayment of short-term bank loans | (2,622,989 | - | (7,995,277 | - | ||
| Proceeds from long-term bank loans | - | 2,412,000 | ||||
| Repayment of long-term bank loans | (132,320 | - | (74,088 | - | ||
| Net cash provided by (used in) financing activities | 2,256,274 | (43,326 | - | |||
| Effect of exchange rate changes on cash and restricted cash | 5,365 | 378,523 | ||||
| Net decrease in cash and restricted cash | (1,151,213 | - | (287,107 | - | ||
| Cash and restricted cash at beginning of period | 4,728,898 | 3,323,126 | ||||
| Cash and restricted cash at end of period | - | 3,577,685 | - | 3,036,019 | ||
