-- Revenues rose 36.6% year over year, mainly driven by higher average
selling prices
-- AI infrastructure and liquid cooling continue to gain strategic
importance, with large-volume customer orders secured subsequent to the
first half of 2026
SHENZHEN, China, Sept. 21, 2026 (GLOBE NEWSWIRE) -- ZJK Industrial Co., Ltd. (NASDAQ: ZJK) ("ZJK" or the "Company"), a high-tech precision parts and hardware manufacturer serving artificial intelligence (AI) infrastructure, consumer electronics, electric vehicles, aerospace, and other smart technologies, today announced its unaudited financial results for the six months ended June 30, 2026.
First Half of Fiscal Year 2026 Financial Highlights
-- Revenues were US$33.74 million for the first half of 2026, an increase of
36.60% from US$24.70 million for the same period of 2025.
-- Gross profit was US$14.29 million for the first half of 2026, an increase
of 16.01% from US$12.32 million for the same period of 2025.
-- Net income was US$5.24 million for the first half of 2026, compared with
US$5.84 million for the same period of 2025.
-- Basic and diluted earnings per share were US$0.08 for the first half of
2026, compared with US$0.10 for the same period of 2025.
-- Net cash provided by operating activities increased 28.75% year over year
to US$3.19 million for the first half of 2026, while net cash provided by
investing activities and financing activities increased 254.38% and
78.85%, respectively.
-- Cash and cash equivalents, restricted cash, and short-term investments
amounted to US$23.16 million as of June 30, 2026, an increase of 24.37%
from US$18.62 million as of December 31, 2025.
Mr. Ning Ding, chairman of the board of directors, chief executive officer and chief financial officer, commented, "We are pleased to report another period of strong revenue growth in the first half of 2026, reflecting our deeper participation in customer programs and the ongoing shift of our product portfolio toward more sophisticated, higher-value products with increased average selling prices. Notably, our revenues grew 36.60% year over year to US$33.74 million.
"As newer and increasingly complex products move into larger-scale production, we have made the necessary investments in materials, labor, manufacturing processes and production capacity to support their ramp-up and meet increasingly stringent customer requirements. We will continue to advance automation and process optimization to enhance manufacturing efficiency, while investing in research and development to strengthen our technical capabilities and support the continued growth of our high-value precision component business.
"On the demand side, AI infrastructure and liquid cooling are becoming increasingly important growth drivers for ZJK, as our strengths in precision manufacturing, product reliability and production consistency enable us to address the increasingly stringent requirements arising from the greater computing density and power consumption of AI systems. Subsequent to the first half of 2026, we secured large-volume purchase orders for AI infrastructure components from several major customers and have commenced deliveries, further demonstrating growing customer recognition of our capabilities across the product development and manufacturing lifecycle, from early-stage design collaboration and validation to engineering, mass production and quality control. Supported by ongoing deliveries under these orders and continued demand from AI and other advanced technology applications, we anticipate that strong growth momentum will continue through the second half of 2026.
"We also continue to execute our global expansion strategy, including the development of our international customer base. We are investing in sales and marketing across North America, Singapore and Taiwan to broaden our market reach beyond mainland China.
"We believe the rapid growth of AI computing infrastructure and adoption of liquid cooling, together with increasing precision requirements across other advanced smart technologies, will create substantial long-term opportunities for ZJK. We will continue to focus on innovation-driven development, operational efficiency, customer diversification and the expansion of our global footprint to enhance our capabilities to capture these opportunities, drive sustainable revenue and profit growth, and deepen ZJK's strategic role in the global high-precision components supply chain."
First Half of Fiscal Year 2026 Financial Results
Revenues
Revenues were US$33.74 million for the first half of 2026, an increase of 36.60% from US$24.70 million for the same period of 2025. This increase was mainly due to an increase of 35.29% in the average sales unit price for the six months ended June 30, 2026 compared to the same period of 2025.
Cost of Revenues
Cost of revenues was US$19.45 million for the first half of 2026, an increase of 57.08% from US$12.38 million for the same period of 2025. The increase was driven by higher material procurement prices coupled with increased material consumption from the expanded production scale of new products, and increased labor costs as more personnel were required and more complex manufacturing procedures were involved in the production of new products.
Gross Profit and Gross Profit Margin
Gross profit was US$14.29 million for the first half of 2026, an increase of 16.01% from US$12.32 million for the same period of 2025. This increase was mainly due to the increased average sales unit price of ZJK's hardware products, partially offset by the decreased sales volume.
The gross profit margin was 42.35% for the first half of 2026, compared with 49.87% for the same period of 2025, mainly attributable to the increase in average unit cost of products. Despite an increase in average sales unit price of products, to remain competitive, such price growth was insufficient to fully offset the incremental manufacturing costs.
Total Operating Expenses
Total operating expenses were US$8.64 million for the first half of 2026, compared with US$6.46 million for the same period of 2025.
-- General and administrative expenses were US$4.11 million for the first
half of 2026, an increase of 52.86% from US$2.69 million for the same
period of 2025. This increase was primarily attributable to (i) an
increase of US$0.63 million in share-based compensation expenses, (ii) an
increase of US$0.16 million in salaries and benefits for administrative
personnel due to an increase of employee headcounts resulting from ZJK's
business growth, (iii) an increase of US$0.12 million in depreciation and
amortization expenses, and (iv) an increase of US$0.40 million in other
miscellaneous expenses due to business expansion.
-- Selling and marketing expenses were US$4.24 million for the first half of
2026, an increase of 19.33% from US$3.56 million for the same period of
2025. This increase was primarily due to (i) an increase of US$0.31
million in sales commissions resulting from business expansion into
markets such as North America, Singapore, and Taiwan, China, (ii) an
increase of US$0.10 million in salaries and benefits for sales and
marketing personnel due to higher headcounts to support ZJK's business
expansion, and (iii) an increase of US$0.18 million in freight costs for
sale of products, reflecting expanded overseas shipping demands.
-- Research and development expenses were US$0.28 million for the first half
of 2026, an increase of 32.28% from US$0.21 million for the same period
of 2025. This increase was primarily attributable to salaries and
benefits for an increased number of research and development personnel
resulting from business growth.
Income from Operations
Income from operations was US$5.66 million for the first half of 2026, compared with US$5.86 million for the same period of 2025.
Other Income, Net
Other income, net was US$1.37 million for the first half of 2026, compared with US$1.91 million for the same period of 2025, primarily due to a decrease in foreign exchange gains.
Net Income
Net income was US$5.24 million for the first half of 2026, compared with US$5.84 million for the same period of 2025.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were both US$0.08 for the first half of 2026, compared with US$0.10 for the same period of 2025.
Financial Condition
As of June 30, 2026, the Company had cash and cash equivalents, restricted cash and short-term investments of US$23.16 million, an increase of 24.37% from US$18.62 million as of December 31, 2025.
About ZJK Industrial Co., Ltd.
ZJK Industrial Co., Ltd. is a high-tech precision parts and hardware manufacturer serving artificial intelligence (AI) infrastructure, consumer electronics, electric vehicles, aerospace, and other smart technologies. With over 15 years in the precision metal parts manufacturing industry, the Company maintains a skilled professional team, a series of highly automated and precision manufacturing equipment, a stable and diversified customer base, and comprehensive quality management systems. ZJK mainly offers standard screws, precision screws and nuts, high-strength bolts and nuts, turning parts, stamping parts and Computer Numerical Control (CNC) machining parts, CNC milling parts, high precision structural components, Surface Mounting Technology (SMT) for miniature parts packaging, and technology service for research and development from a professional engineering team. For more information, please visit the Company's website at https://ir.zjk-industrial.com/.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties (including, but not limited to, uncertainties of whether contract value of our purchase orders will be fully realized) and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to," "propose" or other similar expressions in this announcement. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
ZJK Industrial Co., Ltd.
Phone: +86-755-28341175
Email: ir@zjk-industrial.com
The Blueshirt Group Asia
Feifei Shen
Phone: +86-134-66566136
Email: feifei@blueshirtgroup.co
ZJK Industrial Co., Ltd.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars, except for numbers of shares data)
As of
---------------------------
December June
31, 2025 30, 2026
------------ -------------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents 14,350,959 16,543,610
Restricted cash 2,037,041 4,484,487
Short-term investments 2,234,078 2,132,706
Accounts receivable, net 15,974,676 15,644,701
Accounts receivable-due from a related
party 11,227,799 8,498,381
Inventories, net 12,143,316 14,245,898
Prepaid expenses and other current
assets, net 964,194 4,379,431
Other receivables-due from related
parties 598,467 3,713
---------- -----------
Total current assets 59,530,530 65,932,927
---------- -----------
Non-current assets
Property, plant and equipment, net 12,271,875 13,098,045
Intangible assets, net 97,433 144,361
Operating lease right-of-use assets 3,574,775 3,309,694
Long-term investment 3,706,080 1,786,703
Deferred tax assets, net -- 95,926
Other non-current assets 347,569 630,674
---------- -----------
Total non-current assets 19,997,732 19,065,403
---------- -----------
TOTAL ASSETS 79,528,262 84,998,330
========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 18,233,194 15,369,397
Notes payable 3,803,926 3,781,226
Income tax payable 3,431,262 3,906,101
Accrued expenses and other current
liabilities 3,583,457 3,650,004
Other payables-due to related parties 2,322,224 2,659,954
Operating lease liabilities, current 726,152 726,186
---------- -----------
Total current liabilities 32,100,215 30,092,868
---------- -----------
Non-current liabilities
Operating lease liabilities, non-current 2,876,209 2,592,046
Deferred tax liabilities 957,610 658,971
---------- -----------
Total non-current liabilities 3,833,819 3,251,017
---------- -----------
TOTAL LIABILITIES 35,934,034 33,343,885
========== ===========
Commitments and contingencies (Note
15)
Shareholders' equity
Ordinary share ($0.000016666667 par
value, 3,000,000,000 and nil shares
authorized, 63,822,249 and nil shares
issued and outstanding as of December
31, 2025 and June 30, 2026,
respectively*) 1,063 --
Class A Ordinary shares ($0.000016666667
par value, nil and 2,991,000,000 shares
authorized, nil and 55,322,249 shares
issued and outstanding as of December
31 and June 30, 2026, respectively**) -- 921
Class B Ordinary shares ($0.000016666667
par value, nil and 9,000,000 shares
authorized, nil and 9,000,000 shares
issued and outstanding as of December
31 and June 30, 2026, respectively**) -- 150
Additional paid-in capital 8,977,814 10,372,982
Statutory surplus reserves 2,662,115 2,662,115
Retained earnings 32,132,905 37,378,247
Accumulated other comprehensive
(loss)/income (304,868) 1,004,477
---------- -----------
Total ZJK Industrial Co., Ltd.
shareholders' equity 43,469,029 51,418,892
---------- -----------
Non-controlling interests 125,199 235,553
---------- -----------
Total shareholders' equity 43,594,228 51,654,445
---------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 79,528,262 84,998,330
========== ===========
* The shares and per share information are presented on a retroactive basis to reflect the reorganization completed on March 28, 2023, the two share splits that occurred on June 19, 2023 and June 6, 2024, respectively.
ZJK Industrial Co., Ltd.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(In U.S. dollars, except for the number of shares
data)
For the six months ended June 30,
--------------------------------------
2025 2026
------------------ ------------------
(Unaudited)
Revenues
Third-party sales 15,153,800 24,389,206
Related-party sales 9,549,460 9,355,383
---------------- ---------------
Total revenues 24,703,260 33,744,589
Cost of revenues
Third-party sales (5,653,621) (11,837,351)
Related-party sales (6,730,162) (7,615,072)
---------------- ---------------
Total cost of revenues (12,383,783) (19,452,423)
---------------- ---------------
Gross profit 12,319,477 14,292,166
Operating expenses
Selling and marketing
expenses (3,555,816) (4,243,018)
General and administrative
expenses (2,690,131) (4,112,062)
Research and development
costs (212,193) (280,698)
---------------- ---------------
Total operating expenses (6,458,140) (8,635,778)
Income from operations 5,861,337 5,656,388
---------------- ---------------
Other income, net
Interest expenses (6,291) --
Interest income 149,496 166,458
Share of profits from equity
method investment 1,431,032 1,475,335
Currency exchange gain/(loss) 149,352 (399,575)
Other income, net 186,949 131,697
---------------- ---------------
Total other income, net 1,910,538 1,373,915
---------------- ---------------
Income before income tax
provision 7,771,875 7,030,303
Income tax provision (1,931,362) (1,789,902)
---------------- ---------------
Net income 5,840,513 5,240,401
================ ===============
Less: net loss attributable
to non-controlling
interests (10,569) (4,941)
---------------- ---------------
Net income attributable to
ZJK Industrial Co., Ltd.'s
shareholders 5,851,082 5,245,342
================ ===============
Other comprehensive
(loss)/income
Foreign currency translation
adjustment attributable to
parent company 559,787 1,309,345
Foreign currency translation
adjustment attributable to
non-controlling interests 717 (876)
---------------- ---------------
Total comprehensive income 6,401,017 6,548,870
================ ===============
Comprehensive income/(loss)
attributable to
non-controlling interests (9,852) (5,817)
Comprehensive income
attributable to ZJK
Industrial Co., Ltd.'s
shareholders 6,410,869 6,554,687
Earnings per share*
Basic 0.10 0.08
Diluted 0.10 0.08
Weighted average shares
used in calculating
earnings per share*
Basic 61,490,641 64,283,575
Diluted 61,510,641 64,283,575
* The shares and per share information are presented on a retroactive basis to reflect the reorganization completed on March 28, 2023 and the two share splits that occurred on June 19, 2023 and June 6, 2024, respectively.
ZJK Industrial Co., Ltd.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In U.S. dollars, except for the number of shares
data)
For the six months ended June 30,
--------------------------------------
2025 2026
------------------ ------------------
(Unaudited)
Cash flows from operating
activities:
Net income 5,840,513 5,240,401
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Reversal for credit loss (64) --
Depreciation of property,
plant and equipment 333,037 725,762
Amortization of intangible
assets 11,769 20,345
Amortization of operating
lease right-of-use assets 213,488 369,495
Amortization of finance
lease right-of-use assets 38,495 --
Provision for inventories 552,180 438,681
Share of profits from equity
method investment (1,431,032) (1,475,335)
Provisions/(Benefits) for
deferred income tax 131,411 (419,145)
Share-based compensation 676,625 1,395,176
Loss on operating lease early
termination -- 853
Changes in operating assets
and liabilities:
Accounts receivable (1,601,880) 329,975
Accounts receivable-due from
a related party 1,254,624 2,729,418
Inventories (2,620,454) (2,541,263)
Prepaid expenses and other
current assets (274,981) (1,672,525)
Other receivables-due from
related parties (355,145) 582,305
Accounts payable (3,037,042) (2,981,256)
Notes payable 754,083 (22,700)
Income tax payable 1,150,797 474,839
Accrued expenses and other
current liabilities 681,688 66,547
Other payables-due to related
parties 380,049 322,050
Operating lease liabilities (217,245) (389,396)
---------------- ---------------
Net cash provided by
operating activities 2,480,916 3,194,227
---------------- ---------------
Cash flows from investing
activities:
Purchase of property, plant
and equipment (873,418) (1,305,650)
Purchase of intangible assets (28,410) (63,792)
Net proceeds from short-term
investment 288,453 101,372
Purchase of construction in
progress (483,781) (41,464)
Dividends received from
long-term equity investment 1,354,377 1,742,712
Loans to related parties (310,510) --
Collection of loans to
related parties 179,036 12,449
---------------- ---------------
Net cash provided by
investing activities 125,747 445,627
---------------- ---------------
Cash flows from financing
activities:
Proceeds from short-term
bank borrowings 1,382,017 --
Repayments of short-term bank
borrowings (1,317,062) --
Contribution from
non-controlling
shareholders -- 116,171
---------------- ---------------
Net cash provided by
financing activities 64,955 116,171
---------------- ---------------
Effect of exchange rate
changes 211,903 884,072
Net change in cash, cash
equivalents and restricted
cash 2,883,521 4,640,097
---------------- ---------------
Cash, cash equivalents and
restricted cash at the
beginning of period 13,052,455 16,388,000
---------------- ---------------
Cash, cash equivalents and
restricted cash at the end
of period 15,935,976 21,028,097
================ ===============
The following table
provides a reconciliation
of cash and cash
equivalents and restricted
cash reported within the
unaudited Condensed
Consolidated Balance Sheets
that sum to the total of
the same amounts shown in
the unaudited Condensed
Consolidated Statements of
Cash Flows:
Cash and cash equivalents 14,450,968 16,543,610
Restricted cash 1,485,008 4,484,487
---------------- ---------------
Total cash and cash
equivalents and restricted
cash shown in the unaudited
Condensed Consolidated
Statements of Cash Flows 15,935,976 21,028,097
================ ===============
Supplemental disclosure of
cash flow information:
Income tax paid 781,335 1,839,031
Interest expenses paid 6,064 --
Supplemental disclosures of
non-cash activities:
Obtaining operating
right-of-use assets in
exchange for operating lease
liabilities -- 21,361
Acquiring property, plant and
equipment transferred from
construction in progress 284,456 155,923
Acquiring property, plant and
equipment in exchange for
accounts payable 719,921 117,459