Tungray Technologies Inc (NASDAQ: TRSG)

Tungray Technologies Inc is an exempted company incorporated with limited liability under the laws of the Cayman Islands on June 1 2022 with operations conducted primarily through its Singapore Subsidiaries and PRC Subsidiaries. The company is a holding company that does not engage in any business of its own and conducts substantially all of its operations through these subsidiaries. On June 21 2022 Tungray established three wholly owned subsidiaries under the laws of the British Virgin Islands namely Tungray Motion Tungray Electronics and Tungray Intelligent for the purpose of completing various reorganization transactions. Through these entities Tungray acquired 100 percent of Tungray Singapore and Tung Resource and later set up additional subsidiaries in Singapore and China. The company completed its initial public offering on April 18 2024 selling 1 250 000 Class A Ordinary Shares at four dollars per share for gross proceeds of approximately five million dollars. Tungray Technologies Inc provides engineer to order solutions to original equipment manufacturers in the semiconductors printers electronics and home appliances sectors. It designs and builds products that meet each customer’s unique specifications.

Revenue is generated from three main business lines: customized industrial manufacturing solutions direct drive and linear DC motors and induction welding equipment. In the fiscal year ended December 31 2025 customized industrial manufacturing solutions accounted for 65.9 percent of revenue direct drive and linear DC motors contributed 14.9 percent and induction welding equipment contributed 19.2 percent. In the prior year the contributions were 80 percent 5 percent and 15 percent respectively. The company also invests in research and development with expenses of about one million dollars in 2025 and 1.1 million dollars in 2024 supporting a team of fifty seven engineers and technicians. Tungray Technologies Inc operates a headquarters and factory in Singapore occupying approximately four hundred twenty three square meters of office space and one thousand two hundred square meters of factory space. In China the company owns office and factory space in Shenzhen Qingdao and Suzhou and leases additional premises to support its manufacturing and sales functions. Revenue is also derived from the sale of spare parts and after sales services to its original equipment manufacturer customers.

The company operates through the following segments: Customized Industrial Manufacturing Solutions Direct Drive and Linear DC Motors and Induction Welding Equipment.

• The Customized Industrial Manufacturing Solutions segment provides design build and assembly services for industrial manufacturing solutions used in quality control product manufacturing and product testing processes. The segment draws on expertise in motor control sensor technologies computer vision and overall product design to meet customer specifications. Singapore subsidiaries Tungray Singapore and Tung Resource handle research development and prototype assembly while the PRC subsidiary Tungray Industrial supports component production and high volume manufacturing. The segment serves as the primary customer service point of contact for non Chinese markets from its Singapore headquarters and for the Chinese market from its Shenzhen facility. It leverages approximately twenty years of experience in completing various engineer to order projects to reduce lead time and control costs for customers. The segment also offers engineering support for prototype testing and value added services such as system integration and factory acceptance testing to ensure that the final solution meets the exact performance requirements of the original equipment manufacturer.

• The Direct Drive and Linear DC Motors segment designs and manufactures industrial grade direct drive and linear DC motors at Qingdao Tungray Intelligent. The segment also offers customized motion platform solutions with two degrees of freedom for precise X and Y axis movement. Product lines include the TDB TC TU TLS series and high precision motion platforms. These motors are used in solar panel assembly lines glue application and laser cutting machines. The segment benefits from in house research and development and holds several patented technologies that enhance motor performance and provide compatible control modules. The segment emphasizes quality assurance by designing manufacturing and testing each motor in house and maintains strong customer relationships through responsive service and technical support. In addition the segment provides after sales assistance with a team of service engineers that responds to customer requests within twenty four hours to minimize downtime for the original equipment manufacturer.

• The Induction Welding Equipment segment is handled by Tongri Electric which designs and manufactures self contained high frequency induction welding equipment. The segment offers manual and automatic induction welding units that are mainly used in the production of refrigerators air conditioners and heat pump clothes dryers. Operator attended units such as the TB TP TD and TI series feature full enclosures programmable logic controllers and human machine interfaces for ease of use. Automatic units incorporate patented machine vision technologies to detect metal tube endings and guide welding tip movements. The segment serves many Chinese home appliance original equipment manufacturers in the air conditioning refrigerator and heat pump clothes dryer sectors. Tongri Electric also focuses on after sales service with a team of engineers that responds to customer requests within twenty four hours to ensure quick resolution of any issues. The segment holds multiple patents related to high frequency induction brazing and welding processes that improve efficiency and reliability of the equipment.

Tungray Technologies Inc competes in highly competitive markets for engineer to order solutions direct drive motors and induction welding equipment. In the engineer to order space the company views Sigma Design & Engineering Pte Ltd as its main competitor noting that its edge lies in lead time and cost control. For direct drive and linear DC motors competitors include Qingdao Zhihe Precision Technology Co Ltd and Yokokawa Robotics Shenzhen Co Ltd which the company differentiates through a broader product line and its engineer to order capabilities. In manual induction welding equipment Xiamen Inker Induction Co Ltd is a key competitor while the company’s advantage comes from responsive after sales service. In automatic induction welding equipment Xinchang Kechuang Automation Equipment Co Ltd is a major competitor and Tungray maintains competitiveness through higher levels of automation using robotic arms and machine vision. The company’s research and development expenses were approximately one million dollars in 2025 and 1.1 million dollars in 2024 supporting a team of fifty seven employees dedicated to innovation. As of the date of the annual report Tungray Technologies Inc held seventy five registered patents all granted in the People’s Republic of China covering areas such as induction welding motor control and engineer to order solutions. The company operates a modern manufacturing footprint with owned facilities in Singapore and China and leased premises in Shenzhen Qingdao and Suzhou to support production and sales. Overall the company’s competitive strengths stem from its established engineering expertise cost effectiveness short lead times quality assurance patented technologies comprehensive product lines and strong customer relationships.

The company’s customer base consists of original equipment manufacturers that require customized manufacturing motion control or welding solutions. These customers include industry leading OEMs in the printer electronics sectors in Singapore and industry leading OEMs in the home appliance manufacturing sectors in China. Tungray Technologies Inc serves these customers through its direct sales and marketing team of fifteen personnel and maintains long term relationships with many of them. The company also pursues growth opportunities in other ASEAN countries such as Vietnam and Thailand to broaden its reach among electronics and automobile manufacturers. In addition the company provides value added services such as spare parts supply technical training and after sales support to help its customers improve overall equipment effectiveness and reduce total cost of ownership.