Cover Page
Cover Page - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2021 | |
Document Information [Line Items] | ||
Document Type | 20-F | |
Amendment Flag | false | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity Registrant Name | TUNGRAY TECHNOLOGIES INC | |
Entity Central Index Key | 0001943444 | |
Entity File Number | 001-41998 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
ICFR Auditor Attestation Flag | false | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | #02-01 | |
Entity Address, Address Line Two | 31 Mandai Estate | |
Entity Address, Address Line Three | Innovation Place Tower 4 | |
Entity Address, City or Town | Singapore | |
Entity Address, Country | SG | |
Entity Address, Postal Zip Code | 729933 | |
Title of 12(b) Security | Class A Ordinary Shares, par value $0.0001 per share | |
Trading Symbol | TRSG | |
Security Exchange Name | NASDAQ | |
Auditor Name | Marcum Asia CPAs LLP | Friedman LLP |
Auditor Location | New York, New York | New York, New York |
Auditor Firm ID | 5395 | 711 |
Document Accounting Standard | U.S. GAAP | |
Document Financial Statement Error Correction [Flag] | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10,440,000 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,560,000 | |
Business Contact [Member] | ||
Document Information [Line Items] | ||
Contact Personnel Name | Wanjun Yao | |
Contact Personnel Email Address | yao_lei@tungray.com.sg | |
Entity Address, Address Line One | #02-01 | |
Entity Address, Address Line Two | 31 Mandai Estate | |
Entity Address, Address Line Three | Innovation Place Tower 4 | |
Entity Address, City or Town | Singapore | |
Entity Address, Country | SG | |
Entity Address, Postal Zip Code | 729933 | |
City Area Code | +65 | |
Local Phone Number | 6636 9820 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash | $ 10,802,405 | $ 13,130,296 |
Accounts and notes receivable, net | 3,574,739 | 2,420,150 |
Accounts receivable - related parties | 319,589 | 104,743 |
Inventories, net | 2,283,809 | 1,404,669 |
Prepayments, net | 259,950 | 539,383 |
Prepayments - related parties | 1,048,745 | 48,115 |
Other receivables and other current assets, net | 215,651 | 188,402 |
Other receivables - related parties | 23,816 | 23,827 |
Total current assets | 18,528,704 | 17,859,585 |
PROPERTY AND EQUIPMENT, NET | 6,145,199 | 6,237,759 |
OTHER ASSETS | ||
Prepaid expenses and deposits | 23,163 | 22,707 |
Long-term investment | 211,271 | 217,480 |
Operating right-of-use assets | 712,261 | 674,325 |
Intangible assets | 55,842 | 33,944 |
Deferred tax assets | 75,126 | |
Deferred initial public offering ("IPO") costs | 1,192,734 | 699,559 |
Total non-current assets | 2,195,271 | 1,723,141 |
Total assets | 26,869,174 | 25,820,485 |
CURRENT LIABILITIES | ||
Accounts payable | 1,048,271 | 1,100,647 |
Accounts payable - related parties | 498,923 | 110,347 |
Contract liabilities | 4,010,832 | 1,848,128 |
Accrued expenses and other payables | 1,289,941 | 993,036 |
Other payables - related parties | 670,866 | 1,865,532 |
Current portion of banking facilities | 140,162 | 170,093 |
Short-term loans - banks | 453,807 | |
Current portion of long-term loan - third party | 209,609 | |
Current portion of operating lease liabilities | 46,232 | |
Current portion of operating lease liabilities - related party | 123,094 | 73,166 |
Taxes payable | 519,543 | 859,613 |
Total current liabilities | 8,347,864 | 7,683,978 |
OTHER LIABILITIES | ||
Banking facilities | 1,951,389 | 2,373,136 |
Operating lease liabilities | 10,603 | |
Operating lease liabilities - related party | 339,450 | 490,013 |
Total other liabilities | 2,301,442 | 2,863,149 |
Total liabilities | 10,649,306 | 10,547,127 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Additional paid-in capital | 332,574 | 332,574 |
Retained earnings | 15,964,848 | 15,057,763 |
Statutory reserves | 248,761 | 240,424 |
Accumulated other comprehensive loss | (213,302) | (344,468) |
Total Tungray Technologies Inc shareholders' equity | 16,334,381 | 15,287,793 |
NONCONTROLLING INTERESTS | (114,513) | (14,435) |
TOTAL EQUITY | 16,219,868 | 15,273,358 |
Total liabilities and shareholders' equity | 26,869,174 | 25,820,485 |
Common Class A [Member] | ||
SHAREHOLDERS' EQUITY | ||
Common stock | 1,044 | 1,044 |
Common Class B [Member] | ||
SHAREHOLDERS' EQUITY | ||
Common stock | $ 456 | $ 456 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common Class A [Member] | ||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 400,000,000 | 400,000,000 |
Common stock shares issued | 10,440,000 | 10,440,000 |
Common stock shares outstanding | 10,440,000 | 10,440,000 |
Common Class B [Member] | ||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 4,560,000 | 4,560,000 |
Common stock shares outstanding | 4,560,000 | 4,560,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | $ 14,362,502 | $ 16,334,400 | $ 17,468,116 |
Cost of revenue | 7,626,413 | 7,137,660 | 8,399,947 |
Gross profit | 6,736,089 | 9,196,740 | 9,068,169 |
Operating expenses: | |||
Selling expenses | 421,869 | 614,049 | 390,653 |
General and administrative expenses | 4,397,603 | 4,540,771 | 3,318,365 |
Research and development expenses | 791,762 | 829,211 | 669,358 |
Total operating expenses | 5,611,234 | 5,984,031 | 4,378,376 |
Income from operations | 1,124,855 | 3,212,709 | 4,689,793 |
Other income (expenses) | |||
Other income, net | 336,576 | 197,290 | 289,126 |
Lease income - related party | 19,126 | 25,129 | 26,212 |
Financial expenses, net | (160,735) | (35,699) | (189,966) |
Total other income, net | 194,967 | 186,720 | 125,372 |
Income before income taxes | 1,319,822 | 3,399,429 | 4,815,165 |
Income tax expense | (504,175) | (517,282) | (706,720) |
Net income | 815,647 | 2,882,147 | 4,108,445 |
Less: net loss attributable to noncontrolling interests | (99,775) | (10,333) | (1,279) |
Net income attributable to Tungray Technologies Inc | 915,422 | 2,892,480 | 4,109,724 |
Net income | 815,647 | 2,882,147 | 4,108,445 |
Foreign currency translation adjustment | 130,863 | (412,491) | 195,067 |
Comprehensive income | 946,510 | 2,469,656 | 4,303,512 |
Less: comprehensive loss attributable to noncontrolling interests | (100,078) | (13,265) | (1,170) |
Total comprehensive income attributable to Tungray Technologies Inc | $ 1,046,588 | $ 2,482,921 | $ 4,304,682 |
Weighted average number of common shares outstanding - basic | 15,000,000 | 15,000,000 | 15,000,000 |
Weighted average number of common shares outstanding - diluted | 15,000,000 | 15,000,000 | 15,000,000 |
Earnings per common share - basic | $ 0.06 | $ 0.19 | $ 0.27 |
Earnings per common share - diluted | $ 0.06 | $ 0.19 | $ 0.27 |
Product [Member] | |||
Revenue | $ 14,042,956 | $ 16,267,211 | $ 17,320,585 |
Cost of revenue | 7,353,291 | 7,096,094 | 8,332,081 |
Related Party [Member] | |||
Revenue | 319,546 | 67,189 | 147,531 |
Cost of revenue | $ 273,122 | $ 41,566 | $ 67,866 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Total | Additional paid-in capital [Member] | Loans receivables-related parties [Member] | Retained earnings [Member] Statutory reserves [Member] | Retained earnings [Member] Unrestricted [Member] | Accumulated other comprehensive income (loss) [Member] | Noncontrolling interests [Member] | Common Class A [Member] | Common Class A [Member] Common Stock [Member] | Common Class B [Member] | Common Class B [Member] Common Stock [Member] |
Beginning balance, shares at Dec. 31, 2020 | 10,440,000 | 4,560,000 | |||||||||
Beginning balance at Dec. 31, 2020 | $ 8,264,157 | $ 332,574 | $ (4,706,144) | $ 116,533 | $ 12,649,561 | $ (129,867) | $ 0 | $ 1,044 | $ 456 | ||
Loans receivable - related parties | 22,614 | 22,614 | |||||||||
Net income | 4,108,445 | 4,109,724 | (1,279) | ||||||||
Statutory reserves | 72,300 | 72,300 | (72,300) | ||||||||
Foreign currency translation adjustment | 195,067 | 194,958 | 109 | ||||||||
Ending balance, shares at Dec. 31, 2021 | 10,440,000 | 4,560,000 | |||||||||
Ending balance at Dec. 31, 2021 | 12,590,283 | 332,574 | (4,683,530) | 188,833 | 16,686,985 | 65,091 | (1,170) | $ 1,044 | $ 456 | ||
Net income | 2,882,147 | 2,892,480 | (10,333) | ||||||||
Statutory reserves | 51,591 | 51,591 | (51,591) | ||||||||
Foreign currency translation adjustment | (492,411) | (79,920) | (409,559) | (2,932) | |||||||
Repayments from loans receivable - related parties | 3,812,241 | 3,812,241 | |||||||||
Dividends declared to offset with loans receivable-related parties | 951,209 | 951,209 | |||||||||
Dividends declared | (4,470,111) | (4,470,111) | |||||||||
Ending balance, shares at Dec. 31, 2022 | 10,440,000 | 10,440,000 | 4,560,000 | 4,560,000 | |||||||
Ending balance at Dec. 31, 2022 | 15,273,358 | 332,574 | 0 | 240,424 | 15,057,763 | (344,468) | (14,435) | $ 1,044 | $ 456 | ||
Net income | 815,647 | 915,422 | (99,775) | ||||||||
Statutory reserves | 8,337 | 8,337 | (8,337) | ||||||||
Foreign currency translation adjustment | 130,863 | 131,166 | (303) | ||||||||
Ending balance, shares at Dec. 31, 2023 | 10,440,000 | 10,440,000 | 4,560,000 | 4,560,000 | |||||||
Ending balance at Dec. 31, 2023 | $ 16,219,868 | $ 332,574 | $ 0 | $ 248,761 | $ 15,964,848 | $ (213,302) | $ (114,513) | $ 1,044 | $ 456 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net Income | $ 815,647 | $ 2,882,147 | $ 4,108,445 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 218,148 | 128,517 | 207,760 |
Amortization expense | 15,118 | 12,086 | 15,706 |
Provision for credit losses | 190,983 | 22,837 | 128,554 |
Impairment of inventories | 6,713 | 42,544 | 95,136 |
Deferred Income Tax Expense (Benefit) | 74,616 | (14,816) | (31,896) |
Amortization of operating lease right-of-use assets | 154,455 | 120,053 | 119,242 |
Amortization of finance lease right-of-use assets | 97,801 | 210,303 | |
Loss from disposal of property and equipment | 3,310 | ||
Changes in operating assets and liabilities | |||
Accounts and notes receivable | (1,371,684) | 651,386 | (867,626) |
Accounts receivable - related parties | (218,421) | 60,552 | (134,833) |
Prepayments | 275,082 | 221,842 | 4,628 |
Prepayments - related parties | (1,004,692) | (3,117) | (44,822) |
Inventories | (909,054) | 300,042 | (513,851) |
Other receivables and other current assets | (52,168) | 275,108 | (250,722) |
Prepaid expenses and deposits | (1,107) | (23,274) | |
Operating lease receivable - related party | 104,540 | (27,262) | |
Accounts payable | (25,698) | (386,154) | 554,798 |
Accounts payable - related party | 392,777 | 57,673 | (149,969) |
Contract liabilities | 2,146,876 | (702,924) | 1,608,032 |
Accrued expenses and other payables | 307,405 | (226,528) | 518,108 |
Operating lease liabilities | (34,652) | ||
Operating lease liabilities - related parties | (204,940) | (155,005) | (95,283) |
Taxes payable | (324,383) | 169,447 | 531,878 |
Net cash provided by operating activities | 451,021 | 3,638,067 | 5,986,326 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (43,254) | (145,699) | (206,345) |
Deposit for long-term investment | (222,916) | ||
Purchase of intangible assets | (37,993) | ||
Loans to related parties | (677,765) | (1,655,820) | (1,146,420) |
Repayments from related parties | 677,267 | 1,920,315 | 339,170 |
Net cash used in investing activities | (81,745) | (104,120) | (1,013,595) |
Cash flows from financing activities: | |||
Borrowings from related parties | 1,587,015 | 250,166 | 129,697 |
Repayments to related parties | (1,511,509) | (1,956,190) | (397,350) |
Repayments from loans receivable - related parties | 3,812,241 | ||
Proceeds from bank loan | 282,450 | 762,372 | 601,476 |
Repayments to bank loan | (1,218,164) | (1,264,754) | (500,430) |
Proceeds from third party loan | 427,854 | ||
Repayments to third party loan | (194,226) | (195,317) | |
Repayments to related party loans | (435,193) | ||
Repayments of finance lease liabilities | (36,097) | (274,668) | |
Distribute dividends to shareholders | (1,275,902) | (1,654,389) | |
Deferred IPO costs | (474,972) | (680,125) | |
Net cash used in financing activities | (2,805,308) | (1,397,286) | (13,421) |
Effect of exchange rate change on cash | 108,141 | (342,913) | 280,880 |
Net change in cash | (2,327,891) | 1,793,748 | 5,240,190 |
Cash - beginning of the year | 13,130,296 | 11,336,548 | 6,096,358 |
Cash - end of the year | 10,802,405 | 13,130,296 | 11,336,548 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 91,276 | 155,054 | 193,387 |
Income tax paid | 664,259 | 390,936 | 268,077 |
Supplemental non-cash information: | |||
Finance lease right-of-use assets obtained in exchange for finance lease liabilities | 312,322 | ||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 391,309 | 119,662 | |
Other receivables - related party offset with other payables - related party upon execution of offset agreement | $ 381,710 | $ 2,362,044 | |
Dividends declared to offset with loans receivable - related parties upon execution of offset agreement | $ 951,209 |
Nature of Business and Organiza
Nature of Business and Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of business and organization | Note 1– Nature of business and organization Tungray Technologies Inc (“Tungray”) was incorporated and registered as an exempted company with limited liability under the laws of Cayman Islands on June 1, 2022. Tungray is a holding company and has no substantive operations other than holding all of the outstanding shares of its subsidiaries through various recapitalizations. Tungray and its subsidiaries are hereafter referred as the “Company”. The Company, through its wholly-owned subsidiaries in Singapore and China, is engaged in the field of industrial automation. The Company is an engineer-to-order company that has provided its customers with tooling solutions and customized industrial manufacturing solutions to Original Equipment Manufacturers (“OEMs”) in the industry sectors of semiconductors, printers, electronics, and home appliances sectors. Reorganization On June 21, 2022, Tungray established three wholly-owned subsidiaries under the laws of the British Virgin Island (“BVI”), Tungray Motion Ltd (“Tungray Motion”), Tungray Electronics Ltd (“Tungray Electronics”) and Tungray Intelligent Technology Ltd (“Tungray Intelligent”), investment holding companies with limited liability. Tungray completed various recapitalizations under common control of its then existing shareholders, who collectively owned all of the equity interests of those three BVIs, holding companies incorporated under the laws of the British Virgin Islands (“BVI”) prior to the Reorganization, through the following transaction. ● On November 22, 2022, Tungray acquired 100% of the equity interests in Tungray Singapore Pte. Ltd. (“Tungray Singapore”) a Singapore limited company, through Tungray Motion for nominal consideration. ● On November 22, 2022, Tungray acquired 100% of the equity interests in Tung Resource Pte Ltd (“Tung Resource”) a Singapore limited company, through Tungray Electronics for nominal consideration. ● On July 14, 2022, Tungray Intelligent established a wholly-owned subsidiary Tungray Technology Pte Ltd (“Tungray Technology”) a Singapore limited company, which established Tongsheng Intelligence Technology Development (Shenzhen) Co., Ltd (“Tongsheng Development”) on August 22, 2022 under the laws of the PRC. On September 28, 2022, Tungray acquired 100% of the equity interests in Qingdao Tungray Intelligent Technology Co., Ltd (“Qingdao Tungray Intelligent”) through Tungray Intelligent and Tongsheng Development for no consideration. Before and after the Reorganization, the Company, together with its subsidiaries (as indicated above), is effectively controlled by the majority shareholders, and therefore the Reorganization is considered as a recapitalization of entities under common control in accordance with Accounting Standards Codification (“ASC”) 805-50-25. The consolidation of the Company and its subsidiaries have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements in accordance with ASC 805-50-45-5. The accompanying consolidated financial statements reflect the activities of the Company and each of the following entities: Name Background Ownership Tungray Motion Ltd (“Tungray Motion”) ● A BVI holding company ● Incorporated on June 21, 2022 100% owned by Tungray Tungray Electronics Ltd (“Tungray Electronics”) ● A BVI holding company ● Incorporated on June 21, 2022 100% owned by Tungray Tungray Intelligent Technology Ltd (“Tungray Intelligent”) ● A BVI holding company ● Incorporated on June 21, 2022 100% owned by Tungray Tungray Singapore Pte. Ltd. (“Tungray Singapore”) ● A Singapore Company Limited by Shares ● Incorporated on June 21, 2007 ● Installation of industrial machinery and equipment, mechanical engineering works 100% owned by Tungray Motion Tung Resource Pte Ltd (“Tung Resource”) ● A Singapore Company Limited by Shares ● Incorporated on July 9, 1996 ● Installation of industrial machinery 100% owned by Tungray Electronics Tungray Industrial Automation (Shenzhen) Co., Ltd (“Tungray Industrial”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on May 27, 2010 ● Design, development and manufacture of non- standard equipment such as automated assembly equipment, precision testing equipment, tooling fixtures, etc. 100% owned by Tungray Singapore Tongsheng Intelligent Equipment (Shenzhen) Co., Ltd (“Tongsheng Intelligent”) ● A PRC limited liability company ● Incorporated on October 25, 2021 ● Research and development of intelligent robots; sales of intelligent robots; sales of intelligent storage equipment 70% owned by Tungray Industrial Qingdao Tongri Electric Machines Co., Ltd (“Tongri Electric”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on December 26, 2001 ● Design, R&D and manufacturing of induction brazing equipment, induction hardening equipment, automatic welding equipment, linear motors, DD motors 100% owned by Tung Resource Qingdao Tungray Intelligent Technology Co., Ltd (“Qingdao Tungray Intelligent”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on September 30, 2017 ● Design, R&D and manufacturing of induction brazing equipment, induction hardening equipment, automatic welding equipment, linear motors, DD motors 100% owned by Tongsheng Development Tungray Technology Pte Ltd (“Tungray Technology”) ● A Singapore Company Limited by Shares ● Incorporated on July 14, 2022 ● Installation of industrial machinery and equipment, mechanical engineering works 100% owned by Tungray Intelligent Tongsheng Intelligence Technology Development (Shenzhen) Co., Ltd. (“Tongsheng Development”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on August 22, 2022 ● Research and development of intelligent robots; sales of intelligent robots; sales of intelligent storage equipment 100% owned by Tungray Technology |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 2– Summary of significant accounting policies Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for a fair presentation of the financial statements, have been included. Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances am o mp Subsidiary is entity in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. Segment Information ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments. The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the CEO and COO, who review consolidated results when making decisions about allocating resources and assessing performance of the Company. Based on management’s assessment, the Company determined that it has only one operating segment as defined by ASC 280. This is supported by the operational structure of the Company which is designed and managed to share resources across the entire suite of products offered by the business. Such resources include research and development, product design, marketing, operations, and administrative functions. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period covered by the financial statements and accompanying notes. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but not limited to, allowance for credit losses, estimated useful lives and impairment of property and equipment, valuation of deferred tax assets, and other provisions and contingencies. As future events and their effects cannot be determined with precision, actual results could differ from those estimates. Foreign currency translation and transaction Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statements of income and comprehensive income. The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. The Company’s subsidiaries in Singapore and the People’s Republic of China (“PRC”) conduct their businesses and maintain its books and record in the local currency, Singapore Dollars (’SGD”) and Chinese Renminbi (“RMB”), as their functional currency, respectively. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective yea r : As of and for the Years Ended December 31, 2023 2022 2021 Year 1.3193 1.3404 1.3520 Year 7.0999 6.8972 6.3726 Year 1.3428 1.3787 1.3438 Year 7.0809 6.7290 6.4508 Fair value measurements Fair value is defined as the price that would be received for an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. When determining the fair value measurements for assets and liabilities, we consider the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The following summarizes the three levels of inputs required to measure fair value, of which the first two are considered observable and the third is considered unobservable: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value for certain assets and liabilities such as cash, accounts and notes receivable, other receivables, prepayments and other current assets, short-term loans, accounts payable, contract liabilities, accrued expenses and other payables, and tax payables have been determined to approximate carrying amounts due to the short maturities of these instruments. The Company believes that its long-term loan from a third party approximates the fair value based on current yields for debt instruments with similar terms. The Company and its subsidiaries did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2023 and 2022. Cash Cash represents cash on hand and demand deposits placed with banks or other financial institutions which are unrestricted as to withdrawal or use and have original maturities less than three months. Accounts and notes receivable, net Accounts receivable include trade accounts due from customers. Accounts receivable are recorded at the invoiced amount less an allowance for expected credit losses and do not bear interest, which are due after 30 to 90 days, depending on the credit term with its customers. Notes receivable represents trade accounts receivable due from various customers where the customers’ banks have guaranteed the payment. The notes are non-interest bearing and normally paid within three to six months. The Company has the ability to submit request for payment to the customer’s bank earlier than the scheduled payment date, but will incur an interest charge and a processing fee. As of December 31, 2023 and 2022, the allowance for credit losses of accounts and notes receivable was $472,293 and $303,311, respectively. For the years ended December 31, 2023, 2022 and 2021, the provision for credit losses of accounts and notes receivable was $178,118, $16,394 and $114,227, respectively. Other receivables and other current assets Other receivables and other current assets primarily include receivable from employee advance, and refundable deposits from third party service providers. Management r eg As of December 31, 2023 and 2022, the Company provided allowance for credit losses of other receivable and other current asset $252,947 and $239,594, respectively. For the years ended December 31, 2023, 2022 and 2021, the Company recorded/(recovered) $20,247, ($5,268) and $11,488 provision for cred it lo Allowance for credit losses Allowance for credit losses represents management’s best estimate of probable losses inherent in the portfolio. On Under ASU 2016-13, the Company has exposure to credit losses for financial assets, which are accounts and notes receivable, and other receivables and other current assets or other third parties Financial assets are presented net of the allowance for credit losses in the Consolidated Balance Sheets. The measurement of the allowance for credit losses is recognized through current expected credit loss expense. Current expected credit loss expense is included as a component of general and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. Write-offs are recorded in the period in which the asset is deemed to be uncollectible. Prepayments The Company makes prepayments to suppliers in advance of receiving goods or services in accordance with underlying contractual terms with suppliers. Generally, prepayments are intended to expedite the delivery of required inventory as needed and to help ensure priority and preferential pricing on such goods or services. These prepayments are unsecured and are reviewed periodically to determine whether the prepayment will be timely realized through the receipt of inventories, services, or refunds. If any amounts are deemed not realizable, the Company will recognize an allowance account to reserve for such balances. Management reviews its prepayments on a regular basis to determine if the valuation allowance is adequate and adjusts the allowance when necessary. As of December 31, 2023 and 2022, the Company provided a valuation allowance for prepayments of $22,308 and $30,543, respectively. During the years ended December 31, 2023, 2022 and 2021, the Company (recovered)/recorded ($7,382), $ 11,710 and $2,839 provision for doubtful accounts of prepayments, respectively. Loans receivable – related parties Loans receivable – related parties represent loans to various companies which are under common control of the same major shareholder. Those loans are interest free and were no specific time requirement for returning the loans based on the terms of the arrangement, and in fact they seldom are actually repaid. Thus those loans receivables are seen as created to meet “substantial assets” test or contribute capitals. Therefore, these loans are equivalent to unpaid subscriptions receivable for capital shares which Rule 5-02.30 of Regulation S-X requires to be ducted from the dollar amount of capital shares subscribed. As of December 31, 2023 and 2022, no allowance was deemed necessary. Loan receivables – related party are presented as reduction of shareholders’ equity pursuant to SAB Topic 4:G. Long-term investment The Group’s long-term investment consists of an equity investment without readily determinable fair value. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Group elected to use the measurement alternative to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the entity has to recognize an impairment loss in net income / (loss) equal to the difference between the carrying value and fair value. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimat e Expected useful lives Buildings 50 years Office equipme n 3-5 years Operation equipment 3-10 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the Consolidated Statements of Income and Comprehensive Income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the years ended December 31, 2023, 2022 and 2021, there was no Intangible assets, net Intangible assets are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets. All land in the PRC is owned by the government; however, the government grants “land use rights.” The Company has obtained rights to use various parcels of land for 50 years. The Company also has obtained several software and technology knowhow with the useful life of 3 years to 5 years. The Company amortizes the cost of the intangible assets over their useful life using the straight-line method. Impairment for long-lived assets Long-lived assets, including property and equipment with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2023 and 2022, no impairment of long-lived assets was recognized. Revenue recognition The Company follows the revenue accounting requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“Accounting Standards Codification (“ASC”) 606”). The core principle underlying the revenue recognition of this ASU allows the Company to recognize - revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. To achieve that core principle, the Company applies five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). Performance Obligations Assurance-type Warranty The payment terms usually include, but are not limited to, the following billing stages: 1) signing of the sales contract, approximately between 20% - 40% of the contract price, 2) before delivery 30% - 40%, 3) completion of the delivery or instalment, approximately between 10% - 30% of the contract price, and 4) completion of a warranty period, approximately within 10% of the contract price. The completion of a warranty period is only passage of time and would not make the Company probable to not able to bill the remaining approximately 10% of the contract price. The timing of receiving payments does not differ significantly from the payment terms specified in the contracts. The Company’s subsidiaries’ revenue recognition policies effective upon the adoption of ASC 606 are as follows: Product revenue - Performance obligations satisfied at point in time The Company designs, manufactures, sells and installs automatic welding equipment to corporate customers. The Company has elected to treat shipping, handling and installation as fulfilment activities, and not a separate performance obligation. Accordingly, the Company recognized the products revenue when control of the product is passed to the customer, which is the point in time that the customers are able to direct the use of and obtain substantially all of the economic benefit of the goods after the installation by the Company’s technician or once on board at the customs based on the contract terms. The transfer of control typically occurs at a point in time based on consideration of when the customer has an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred, and the customer has accepted the goods. Revenue is recognized net of estimates of variable consideration, including product returns, customer discounts and allowance. Historically, the Company has not experienced any significant returns nor provided significant customer discounts. In conclusion, the Company recognizes the revenues from both standard products and customized products at the point of time when the products delivered, installed and accepted by the customers. Upon delivery, installation and customer acceptance are the proof of the completion of performance obligation, which is a confirmation of customer to its ability to direct the use of and obtain substantially all the benefits from the products. In instances where substantive completion inspection, installation and customer acceptance provisions are specified in the contracts, revenues are deferred until all installation and acceptance criteria have been met. Since the contract price and term is fixed and enforceable and assurance-type warranty guarantees the functionality of a product and the warranty is not accounted for as a separate performance obligation, thus no transaction price is allocated to it. The Company recognizes the fully number of sales at the point in time as the products are delivered or accepted by the customers according to the acceptance term included in the contract. Other services revenue Other services mainly include equipment repair which is outside of the contract of products sales. Generally, the Company does not enter any repair service contracts. The repair service usually are performed at customer’s need basis. The duration of the repair services is usually less than one month, The Company recognizes the revenue form repair services at the point of time when the service is completed and accepted by the customers. Historically, the revenue from thus services has been immaterial. The Company’s revenues by geographic locations are summarized below: For the Years Ended December 31, 2023 2022 2021 China revenues $ 5,333,982 $ 5,812,884 $ 6,802,386 Singapore revenues 9,028,520 10,521,516 10,665,730 Total revenues $ 14,362,502 $ 16,334,400 $ 17,468,116 Contract liabilities Contract liabilities represents cash payment received from customers in advance of the Company satisfying performance obligations under contractual arrangements, including those with performance obligations to be at a point in time. Contract liabilities are derecognized when or as revenue is recognized. Due to the generally short-term duration of the relevant contracts, all the performance obligations are expected to be satisfied within one year and are classified as current liabilities. The amount of revenue recognized that was included in the contract liabilities at the beginning of the year $1,753,808, $1,629,501 and $931,131 for the years ended December 31, 2023, 2022 and 2021, respectively. Chinese value-added tax (“VAT”) The products sold in the PRC are subject to a Chinese value-added tax (“VAT”). The products sold to the customers outside of China are not subject to a Chinese VAT. VAT taxes are presented as a reduction of revenue. Goods and services taxes (“GST”) The products sold in the Singapore are subject toa goods and services tax (“GST”). The products sold to the customers outside of Singapore are not subject to a GST. GST taxes are presented as a reduction of revenue. The GST are based on gross sales price. GST rate was generally 8% in Singapore, which was further increased to 9% with effect from January 1,2024. Entities that are GST-registered taxpayers are allowed to offset qualified input GST paid to suppliers against their output GST liabilities. Net GST balance between input GST and output GST is recorded in tax payable. Inventory and cost of goods sold Inventory is stated at the lower of cost or net realizable value with cost determined under the moving average method. Adjustments to the carrying value are recorded for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. The Company’s costs include the amounts it pays manufacturers for product, labor costs, lease and utility expenses for factories, tariffs and duties associated the transporting product and freight costs associated with transporting the product from its manufacturers to its warehouses, as applicable. Research and development Research and development expenses include salaries and other compensation-related expenses to the Company’s research and product development personnel, and related expenses for the Company’s research and product development team. Employee benefits The full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were $257,024, $233,008 and $249,284 for the years ended December 31, 2023, 2022 and 2021, respectively. Deferred IPO costs The Company complies with the requirements of FASB ASC Topic 340-10-S99-1, “Other Assets and Deferred Costs – SEC Materials” (“ASC 340-10-S99”) and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering”. Deferred IPO costs consist of underwriting, legal, accounting and other professional expenses incurred through the balance sheet date that are directly related to the Proposed Public Offering and that will be charged to shareholders’ equity upon the completion of the Proposed Public Offering. Should the Proposed Public Offering prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will be charged to operations. Income taxes The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is calculated using the balance sheet assets and liabilities method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable income will be utilized with prior net operating loss carried forwards using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be utilized. Current income taxes are provided for in accordance with the laws of the relevant tax authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax for the years ended December 31, 2023, 2022 and 2021. Noncontrolling interests Noncontrolling interests represent 30% of the equity interest of Tongsheng Intelligent. The noncontrolling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Noncontrolling interests in the results of the Company are presented on the face of the consolidated statement of operations as an allocation of the total income or loss for the year between non-controlling interest holders and the shareholders of the Company. Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. Statutory reserves Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company loss Leases The Company accounts for leases in accordance with ASC 842. The Company entered into certain agreement as a lessor under which it leased its office building for a long- term · The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; · The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise; · The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; · The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or · The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Leases that do not meet any of the above criteria are accounted for as operating leases. The Company combines lease and non-lease components in its contracts under Topic 842, when permissible Lessor The Company entered into lease agreements as a lessor under which it leased its office building for a long-term period than Lessee The Company entered into lease agreements as lessee to lease equipment from the third party and buildings from the related parties and third parties for its subsidiaries’ operations. The Company accounts for those equipment leases in accordance with ASC 842. The two primary accounting provisions the Company uses to classify transactions as financing leases or operating leases are (i) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term and (ii) the lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise. The equipment leases included those two terms, and the Company believes that the equipment leases should be classified as finance leases. The Company accounts for those building leases in accordance with ASC 842. The Company believes that the building leases agreements do not contain nor meet any of the five primary accounting provisions the Company uses to classify transactions as finance leases. The building leases are classified as operating leases. Finance and operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally include options to extend, renew, or terminate the lease, as the Company has reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its finance or operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The finance or operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term for operating lease. Meanwhile, the |
Accounts and Notes Receivable,
Accounts and Notes Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Accounts and notes receivable, net | Note 3 – Accounts and notes receivable, net As of December 31, 2023 As of December 31, 2022 Accounts receivable $ 3,960,409 $ 2,423,055 Notes receivable 86,623 300,406 Allowance for credit losses (472,293 ) (303,311 ) Total accounts and notes receivable, net $ 3,574,739 $ 2,420,150 Movements of allowance for credit losses are as follows: As of December 31, 2023 As of December 31, 2022 As of December 31, 2021 Beginning balance $ 303,311 $ 310,968 $ 190,777 Addition 178,118 16,394 114,227 Exchange rate effect (9,136 ) (24,051 ) 5,964 Ending balance $ 472,293 $ 303,311 $ 310,968 |
Other Receivables and Other Cur
Other Receivables and Other Current Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Other Receivables And Other Current Assets Net [Abstract] | |
Other receivables and other current assets, net | Note 4 – Other receivables and other current assets, n e As of December 31, 2023 As of December 31, 2022 Due from third parties $ 452,544 $ 383,050 Refundable deposits 16,054 10,517 Others - 34,429 Allowance for credit losses (252,947) (239,594 ) Total other receivables and other current assets, net $ 215,651 $ 188,402 Movements of allowance for credit losses are as follows: As of December 31, 2023 As of December 31, 2022 As of December 31, 2021 Beginning balance $ 239,594 $ 264,880 $ 247,336 Addition (recovery) 20,247 (5,268 ) 11,488 Exchange rate effect (6,894 ) (20,018 ) 6,056 Ending balance $ 252,947 $ 239,594 $ 264,880 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 5 – Inventories, net As of December 31, 2023 As of December 31, 2022 Raw materials $ 564,779 $ 509,056 Finished goods 454,654 469,526 Work in process 1,465,100 637,436 Reserve for inventories (200,724 ) (211,349 ) Total inventories, net $ 2,283,809 $ 1,404,669 Movements of inventory reserves are as follows: As of December 31, 2023 As of December 31, 2022 As of December 31, 2021 Beginning balance $ 211,349 $ 401,570 $ 298,137 Addition 6,713 42,544 95,136 Write-off (38,916 ) (206,213 ) - Exchange rate effect 21,578 (26,552 8,297 Ending balance $ 200,724 $ 211,349 $ 401,570 The Company recorded $6,713 , $42,544 and $95,136 impairment of inventories for the years ended December 31, 2023, 2022 and 2021, respectively. |
Long-Term Investment
Long-Term Investment | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Investments [Abstract] | |
Long-term investment | Note 6 – Long-term investment The Company’s subsidiary, Qingdao Intelligent, signed a long-term investment agreement with Qingdao Hangtianhuineng Dynamical System Co., Ltd. (“Hangtianhuineng”) on March 29, 2021, under which it will invest RMB 1.5 million (approximately $0.2 million) for 4.56% share in Haitianhuineng. Qingdao Intelligent paid RMB 1.5 million (approximately $0.2 million) to Hangtianhuineng in March 2022 and became a shareholder of Haitianhuineng. The Group does not have significant influence over Hangtianhuineng. In accordance with ASU 2016-01, as readily determinable fair value is not available for Hangtianhuineng, the Group elected to use the measurement alternative to measure such investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. As of December 31, 2023 and 2022, the carrying amount of the Group’s equity investments in Hangtianhuineng was approximately $0.2 million, net of $nil in accumulated impairment and downward adjustments. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Note 7 – Property and equipment, net Property and equipment, net consist of the following: As of December 31, 2023 As of December 31, 2022 Buildings $ 6,552,833 $ 6,452,898 Office equipment 646,830 606,891 Operation equipment 1,301,006 1,303,869 Subtotal 8,500,669 8,363,658 Less: accumulated depreciation (2,355,470 ) (2,125,899 ) Total $ 6,145,199 $ 6,237,759 Depreciation expense for the years ended December 31, 2023 , 2022 and 2021 amounted to $218,148, $128,517 and $207,760, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure | Note 8 – Intangible assets, net Intangible assets consisted of the following: As of December 31, 2023 As of December 31, 2022 Land use rights* $ 27,888 $ 28,707 Software 104,224 68,283 Technology knowhow 13,644 13,429 Less: Accumulated amortization (89,914 ) (76,475 ) Total intangible assets, net $ 55,842 $ 33,944 * Land in China is owned by the government and land ownership rights cannot be sold to an individual or to a private company. However, the Chinese government grants the user a “land use right” to use the land. The land use rights granted to the Company are amortized using the straight-line method over a term of fifty years. The Company’s subsidiary, Tongri Electric, has obtained the right to use two parcels of land for its factories from the Qingdao local government for 50 years. The land use rights are to expire in the years of 2055 and 2062. The acquisition costs of the land use rights were amortized with the building over 50 years. The use of land will be based on the specific requirement by the local government who has the right to direct how and for what purpose the land is used. Amortization expense for the years ended December 31, 2023, 2022 and 2021 amounted to $15,118, $12,086 and $15,706 , respectively. The following table sets forth the Company’s amortization expense for the next five years ending as of December 31, 2023: Amortization expenses Twelve months ending December 31, 2024 $ 12,884 Twelve months ending December 31, 2025 12,490 Twelve months ending December 31, 2026 8,158 Twelve months ending December 31, 2027 8,158 Twelve months ending December 31, 2028 559 Thereafter 13,593 Total $ 55,842 |
Credit Facilitates
Credit Facilitates | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Credit facilitates | Note 9 – Credit facilitates Short-term loans – banks Outstanding balances on short-term bank loans consist of the following: Bank Name Maturities Interest Rate Collateral/ Guarantee As of December 31, 2023 As of December 31, 2022 Industrial and Commercial Bank of China – Pingdu Branch 10/18/2023 3.85% for contract from 12/31/2021 to 11/29/2022, and 3.65% for contract from 10/20/2022 to 10/18/2023 None $ - $ 453,807 Banking facilities Outstanding balance of banking facilities consisted of the following: Lender Term Interest rate Collateral/Guarantee As of December 31, 2023 As of December 31, 2022 United Overseas Bank Limited (“UOB”) Varies from 36 monthly instalment, 72 monthly instalments, and 168 monthly instalments from the first date of first disbursement Effective on September 20, 2022, the repriced interest rate changes to1 st nd Guaranteed by Mr. Wanjun Yao, the major shareholder, Mr. Jinan Tang, senior manager, Mrs. Liling Du, director, Mr. Demin Han, director, and the properties of Tung Resources $ 762,025 $ 848,362 DBS Bank, Ltd. (“DBS”) 300 monthly instalments from the date of first disbursement Effective on June 6, 2022, the repriced interest rate changes to 1 st nd Guaranteed by Mr. Wanjun Yao, the major shareholder, and the properties of Tung Resources 1,329,526 1,353,561 Standard Chartered Bank 180 months from the date of first disbursement 1st year and 2nd year fixed at 0.38% above fixed deposit rate, thereafter fixed at 1.78% above fixed deposit rate (the current 36-month fixed deposit rate for a 36-month Singapore dollar time deposit is 1.02% per annum) Guaranteed by Mr. Wanjun Yao, major shareholder, Mr. Jinan Tang, senior manager, and the properties of Tungray Singapore - 341,306 Total 2,091,551 2,543,229 Total current portion of banking facilities (140,162 ) (170,093 ) Total noncurrent portion of banking facilities $ 1,951,389 $ 2,373,136 Long-term loan – third party Outstanding balances on long-term bank loan consist of the following: Bank/Private lender Name Maturities Interest Rate Collateral/ Guarantee A s of December 31, 2023 As of December 31, 2022 We Bank Loan period 24 months, repay before 11/27/2023 Loan Prime Rate 4.25% Hui Tang $ - $ 209,609 Interest expense pertaining to the above loans for the years ended December 31, 2023, 2022 and 2021 amounted to $ 110,136 , respectively. |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other payables | Note 10 – Accrued expenses and other payables As of December 31, 2023 As of December 31, 2022 Accrued expenses (i) $ 80,018 $ 85,358 Accrued payroll 948,371 769,054 Estimated warranty liabilities (ii) 65,073 78,434 Intercourse funds payable (iii) 196,479 60,190 Total accrued expenses and other payables $ 1,289,941 $ 993,036 (i) Accrued expenses The balance of accrued expenses represented amount due to third parties service providers which include marketing consulting service, IT related professional service, legal, audit and accounting and (ii) Estimated warranty liabilities The assurance-type warranties are accounted for as warranty obligations and are accrued in accordance with ASC 460-10, which details the accounting for guarantees. The warranty liability estimate is based on the average historical defect and replacement rate of each major product category, and multiplied by the total sale amount of the category for each year. (iii) Intercourse funds payable The intercourse funds payable are those nontrade payables arising from transactions between the Company and certain third parties, such as advances made by the third party on behalf of the Company. Intercourse funds payable are due on demand. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related party balances and transactions | Note 11 – Related party balances and transactions Related party balances Account Receivable – related parties Name of Related Party Relationship As of December 31, 2023 As of December 31, 2022 FDT (Qingdao) Intellectual Technology Co., Ltd Common control under major shareholder $ 19,372 $ 67,031 Tungray (Kunshan) Industrial Automation Co., Ltd Common control under major shareholder 202,679 7,626 Tungray (Kunshan) Robot Intelligent Technology Co., Ltd Common control under major shareholder 52,889 30,086 Kunshan Tungray Intelligent Technology Co., Ltd. Common control under major shareholder 44,649 - Total $ 319,589 $ 104,743 Account payable, related parties Name of Related Party Relationship As of December 31, 2023 As of December 31, 2022 FDT (Qingdao) Intellectual Technology Co., Ltd. Common control under CEO $ 365,665 $ - Qingdao Tungray Technology Development Co., Ltd. Common control under major shareholder 26,061 - Shanghai Tongrui Industrial Automation Equipment Co., Ltd Common control under major shareholder 32,395 33,347 Shanghai Tongrui Investment Management Co., Ltd. Common control under major shareholder 54,661 56,267 Hefei CAS Dihuge Automation Co., Ltd. 10.27% ownership interest investee 20,141 20,733 Total $ 498,923 $ 110,347 Other receivables – related parties Name of Related Party Relationship Nature As of December 31, 2023 As of December 31, 2022 Hui Tang Senior management of Qingdao Tungray Intelligent Employee advances $ - $ 13,348 Qingdao Tungray Biology Technology Co., Ltd. Common control under major shareholder Advances 23,816 - FDT (Qingdao) Intellectual Technology Co., Ltd Common control under major shareholder Advances - 3,345 Tungmoon Investment Common control under major shareholder Advances - 7,134 Total $ 23,816 $ 23,827 Other payable– related parties Other payables – related parties are those nontrade payables arising from transactions between the Company and certain related parties, such as advances made by the related party on behalf of the Company, dividend payables and related accrued interest payable on the advances. These balances are unsecured and non-interest bearing. Current payables are due on demand. Name of Related Party Relationship As of December 31, 2023 As of December 31, 2022 Tungray (Kunshan) Industrial Automation Co., Ltd. Common control under major shareholder $ 41,853 $ - Shanghai Tongrui Investment Management Co., Ltd Common control under major shareholder - 1,160 Jingan Tang Senior Manager of Tungray Industrial 277,607 691,792 Liling Du CFO of Tungray Singapore 38,216 96,475 Gang Wang Shareholder of Tungray Singapore and Tung Resource 54,005 188,525 Demin Han General Manager 156,455 538,014 Lei Yao Chief Technology Officer 2,893 - Mingxing Gao General Manager 99,837 349,566 Total $ 670,866 $ 1,865,532 Prepayment-related parties Name of Related Party Relationship Nature As of December 31, 2023 As of December 31, 2022 Qingdao Tungray Technology Development Co., Ltd. Common control under major shareholder Purchase prepayment $ 55,000 $ 48,115 Tungray (Kunshan) Industrial Automation Co., Ltd. Common control under major shareholder Purchase prepayment 993,745 - Total $ 1,048,745 $ 48,115 Operating lease liabilities- related parties The Company entered into three lease agreements as a lessee under which it leased three operation buildings for 5-7 years from two related parties. The Company accounts for the leases 5 Name of Related Party Relationship As of December 31, 2023 As of December 31, 2022 Tungray (Qingdao) Technology Development Co., Ltd Common control under major shareholder $ 244,112 $ 206,789 Jingan Tang Senior Manager of Tungray Industrial 218,432 356,390 Total 462,544 563,179 Current portion of operating lease liabilities - related parties (123,094 ) (73,166 ) Noncurrent portion of operating lease liabilities - related parties $ 339,450 $ 490,013 Related party transactions Revenue from related parties For the Years Ended December 31, Name of Related Party Relationship Nature 2023 2022 2021 Tungray (Kunshan) Industrial Automation Co., Ltd. Common control under major shareholder Sales of products $ 231,209 $ - $ - Tungray (Kunshan) Robot Intelligent Technology Co., Ltd. Common control under major shareholder Sales of products 26,245 - - FDT (Qingdao) Intellectual Technology Co., Ltd. Common control under major shareholder Sales of products 4,602 66,096 147,531 Kunshan Tungray Intelligent Technology Co., Ltd. Common control under major shareholder Sales of products 57,490 - - Kunshan Tongri Intelligent Manufacturing Technology Research Institute Co., Ltd Common control under major shareholder Sales of products - 1,093 - Total $ 319,546 $ 67,189 $ 147,531 Purchase from related parties For the Years Ended December 31, Name of Related Party Relationship Nature 2023 2022 2021 FDT (Qingdao) Intellectual Technology Co., Ltd. Common control under major shareholder Products and services purchase $ 961,525 $ 41,566 $ - Non-operating income- related parties For the Years Ended December 31, Name of Related Party Relationship Nature 2023 2022 2021 Qingdao Tungray Biology Technology Co., Ltd Common control under major shareholder Lease $ 19,126 $ 25,129 $ 26,212 Rental expenses- related parties For the Years Ended December 31, Name of Related Party Relationship Nature 2023 2022 2021 Qingdao Tungray Technology Development Co., Ltd Common control under major shareholder Lease $ 66,476 $ 51,219 $ 47,438 Jingan Tang Senior Manager of Tungray Industrial Lease 72 ,411 63,841 66,595 Total $ 138,887 $ 115,060 $ 114,033 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' equity | Note 12 – Stockholders’ equity Ordinary shares Tungray was incorporated under the laws of Cayman Islands on June 1, 2022. As of June 1, 2022, the authorized shares capital of Tungray was USD50,000 divided into 500,000,000 ordinary shares of par value USD0.0001 each, and the number of issued and outstanding ordinary shares was 1 share with a par value of USD$0.0001. On September 29, 2022, Tungray amended its Memorandum, and the authorized shares capital of Tungray became USD50,000 divided into 500,000,000 shares of a par value of USD0.0001 each, of which (i) 400,000,000 are designated as Class A Ordinary Shares of a par value of USD0.0001 each; and (ii) 100,000,000 are designated as Class B Ordinary Shares of a par value of USD$0.0001 each. Each Class A Ordinary Share shall entitle the holder thereof to one (1) vote on all matters subject to vote at general meetings of the Company, and each Class B Ordinary Share shall entitle the holder thereof to twenty (20) votes on all matters subject to vote at general meetings of the Company. Except to the voting right and the conversion right, the rights, privileges and obligations of the Class A Ordinary Shares and Class B Ordinary Shares shall be pari passu in all aspects, including with respect to the dividends and right upon liquidation of the Company. As of December 31, 2023 and 2022, 10,440,000 Class A Ordinary Shares and 4,560,000 Class B Ordinary Shares are issued and outstanding. Statutory reserves The PRC entities are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, the PRC entities may allocate a portion of its after-tax profits based on PRC accounting standards to enterprise expansion fund and staff bonus and welfare fund at its discretion. The PRC entities may allocate a portion of its after-tax profits based on PRC accounting standards to a discretionary surplus fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by State Administration of Foreign Exchange. During the years ended December 31, 2023, 2022 and 2021, the PRC entities collectively attributed $8,337, $51,591 and $72,300 of retained earnings for their statutory reserves, respectively. Restricted assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiary. Relevant PRC statutory laws and regulations permit payments of dividends by the PRC Entities only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the PRC entities. As a result of the foregoing restrictions, the PRC entities are restricted in their ability to transfer their assets to the Company. Foreign exchange and other regulation in the PRC may further restrict the PRC entities from transferring funds to the Company in the form of dividends, loans and advances. As of December 31, 2023 and 2022, amounts restricted are paid-in-capital and statutory reserve of the PRC entities, which amounted to $2,984,735 and $3,371,196, respectively. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 13 – Income taxes Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. British Virgin Islands Tungray Motion BVI, Tungray Electronics BVI and Tungray Intelligent BVI are incorporated in the British Virgin Islands and are not subject to tax on income or capital gains under current British Virgin Islands law. In addition, upon payments of dividends by these entities to their shareholders, no British Virgin Islands withholding tax will be imposed. Singapore The Company’s subsidiaries incorporated in Singapore and are subject to Singapore Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Singapore tax laws. The applicable tax rate is 17% in Singapore, with 75% of the first approximately $7,400 (SGD 10,000) taxable income and 50% of the next approximately $141,000 (SGD 190,000) taxable income are exempted from income tax. PRC The Company’s subsidiaries incorporated in the PRC are governed by the income tax laws of the PRC and the income tax provisions in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemptions may be granted on case-by-case basis. EIT grants preferential tax treatment on certain High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Qingdao Intelligent and Shenzhen Tongri are HNTEs. Qingdao Intelligent’s HNTE status expires in November 2026, and Shenzhen Tongri’s HNTE status expires in December 2024. In addition, 100% of R&D expenses of all PRC entities are subject to additional deduction from pre-tax income. Tax savings for the years ended December 31, 2023, 2022 and 2021 amounted to nil, nil and $31,633, respectively. The Company’s basic and diluted earnings per share would have been lowered by nil per share both for the year ended December 31, 2023 without the preferential tax rate deduction, respectively. The Company’s basic and diluted earnings per share would have been lowered by nil per share both for the year ended December 31, 2022 without the preferential tax rate deduction. The Company’s basic and diluted earnings per share would have been lowered by $0.002 per share both for the year ended December 31, 2021 without the preferential tax rate deduction. The components of the Company’s income tax provision were as follows for the years indicated: For the Years Ended December 31, 2023 2022 2021 Current: $ 429,559 $ 532,098 $ 738,616 Deferred 74,616 (14,816 ) (31,896 ) Total income tax provision $ 504,175 $ 517,282 $ 706,720 Income/(loss) before provision for income taxes is attributable to the following geographic locations for the years indicated: For the Years Ended December 31, 2023 2022 2021 Singapore $ 2,679,481 $ 3,278,678 $ 4,038,905 PRC (1,359,659 ) 120,751 776,260 Total income before income taxes $ 1,319,822 $ 3,399,429 $ 4,815,165 The following table reconciles Singapore statutory rates to the Company’s effective tax rate: For the Years Ended December 31, 2023 2022 2021 Singapore income tax rate 17.0 % 17.0 % 17.0 % Difference from the effect of tax rates in a foreign jurisdiction (PRC) (14.6 )% 1.0 % - % Impact of preferential tax rate difference in PRC 7.9 % 1.2 % 0.5 % Tax rebate in Singapore (2.0 )% (0.7 )% - % Additional R&D deduction (10.1 )% (4.6 )% (3.1 )% Change in valuation allowance 36.4 % 0.4 % - % Permanent differences (1) 3.6 % 0.9 % 0.3 % Effective tax rate 38.2 % 15.2 % 14.7 % (1) Permanent differences mainly consisted of expenses which are non-deductible and income exemption under local tax laws. The following table sets forth the significant components of the aggregate deferred tax assets and liabilities of the Company as of: As of December 31, 2023 As of December 31, 2022 Deferred Tax Assets/Liabilities Net operating loss carryforwards $ 397,421 $ 100,299 Allowance for credit losses 151,335 32,781 Inventory reserves 32,566 42,345 Less: valuation allowance (581,322 ) (100,299 ) Deferred tax assets, net $ - $ 75,126 As of December 31, 2023 and 2022, the Company had net operating losses carry forward of approximately $2.3 million and $1.4 million, respectively, from the Company’s China subsidiaries. The net operating losses from the China subsidiaries can be carried forward 5 years 4 As of December 31, 2023, the net operating loss carry forward in China will expire, if unused, in the following amounts: Amount Twelve months ending December 31, 2024 $ 114,502 Twelve months ending December 31, 2025 69,247 Twelve months ending December 31, 2026 107,267 Twelve months ending December 31, 2027 155,662 Twelve months ending December 31, 2028 1,813,440 Total $ 2,260,118 Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of December 31, 2023 and 2022, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur interest and penalties tax for the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023, PRC and Singapore remain subject to examination by relevant tax authorities for five years and four years from the date of filing. Taxes payable consist of the following: As of December 31, 2023 As of December 31, 2022 Income tax payable $ 304,563 $ 546,299 VAT payable 182,647 263,397 Other tax payable 32,333 49,917 Totals $ 519,543 $ 859,613 |
Concentrations of risks
Concentrations of risks | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations of risks | Note 14 – Concentrations of risks (a) Major customers For the year ended December 31, 2023, one customer accounted for 64.2% of the Company’s total revenues. For the year ended December 31, 2022, one customer accounted for 60.7% of the Company’s total revenues. For the year ended December 31, 2021, one customer accounted for 60.0% of the Company’s total revenues. As of December 31, 2023, two customers accounted for 32.9% and 20.4% of the total balance of accounts receivable. As of December 31, 2022, two customers accounted for 27.3% and 23.0% the total balance of accounts receivable. (b) Major vendors For the years ended December 31, 2023, 2022 and 2021, no vendors accounted for more than 10% of the Company’s total purchases. As of December 31, 2023, one vendor accounted for 23.6% of the total balance of accounts payable. As of December 31, 2022, one vendor accounted for 13.2% of the total balance of accounts payable. (c) Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. In China, the insurance coverage for cash deposits of each bank is RMB 500,000. As of December Tongri Electric, Qingdao Tungray Intelligent and Tungray Industrial have operations, and their functional currency is RMB. As a result, the Company is exposed to foreign exchange risk as the Company’s results of operations may be affected by fluctuations in the exchange rate between USD and RMB. If the RMB appreciates against the USD, the value of the Company’s RMB revenues, earnings, and assets as expressed in the Company’s USD financial statements will decline. The Company has not entered any hedging transactions in an effort to reduce the Company’s exposure to foreign exchange risk. The Company is also exposed to risk from its accounts and notes receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 15 – Leases Lessor The Company’s subsidiary in Qingdao entered into a lease agreement as a lessor under which it leased its building for 10 years expiring in 2028 to its related party, and the subsidiary in Singapore entered into four lease agreements as a lessor with different third parties. The Company’s leases are accounted as operating leases, and the Company recognizes the rental income on a straight-line basis over the terms of the leases. The total rental income was $138,727, $157,786 and $152,350 for the years ended December 31, 2023, 2022 and 2021, respectively. Lessee Equipment leases- third parties One of the Company’s subsidiaries in PRC had two operation equipment leases which were classified as finance lease in accordance with ASC 842. One lease expired in February 2022, and the other one expired in September 2022. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognized the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the equipment on the remaining balance of the liability. The ROU assets and lease liabilities are determined based on the present value of the future minimum rental payments of the lease as of the adoption date, using an effective interest rate of 5.68%, which is determined using an incremental borrowing rate with similar term in the PRC. Finance lease expenses consist of the following: For the Years Ended December 31, Classification 2023 2022 2021 Finance lease cost Amortization of leased asset $ - $ 97,801 $ 210,303 Interest on lease liabilities Other expense - interest expenses - 625 5,685 Total lease expenses $ - $ 98,426 $ 215,988 Weighted-average remaining term and discount rate related to finance leases were as follows: December 31, 2023 December 31, 2022 Weighted-average remaining term in number of months Finance leases - - Weighted-average discount rate Finance leases - 5.68 % Building leases – related parties The Company entered the following three related-party operating leases: two operation buildings in Qingdao signed on January 1, 2023 fo r five years The Company accounts for those building leases in accordance with ASC 842. The Company believes that the building leases agreements do not contain nor meet any of the five primary accounting provisions the Company uses to classify transactions as finance leases. The building leases are classified as operating leases. Those three related party leases were classified as operating at inception of the leases. Operating leases result in recognition of ROU assets and lease liabilities on the balance sheet. ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease terms of the adoption date of January 1, 2020 or commencement date, whichever is earlier. The leases did not provide an explicit or implicit rate of return, the Company determined incremental borrowing rate based on the local banks in PRC at the commencement date in determining the present value of lease payments on the individual lease basis. The incremental borrowing rate for a lease was the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar term. The lease does not contain any residual value guarantees or material restrictive covenants. Lease expense for the lease is recognized on the straight-line basis over the lease term which this Company estimated to be 5 and 7 years. Building lease – third party The Company entered the following three third party operating leases: (1) operation building in Shenzhen signed on January 1, 2023 for two years; (2) operation building in Shenzhen signed on June 1, 2023 for two years; and (3) operation building in Shenzhen with a purchase agreement signed on March 1, 2019. The Company accounts for the two rented building leases in accordance with ASC 842. The Company believes that the building leases agreements do not contain nor meet any of the five primary accounting provisions the Company uses to classify transactions as finance leases. The building leases are classified as operating leases. Operating leases result in recognition of ROU assets and lease liabilities on the balance sheet. ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease terms of the adoption date of January 1, 2020 or commencement date, whichever is earlier. The leases did not provide an explicit or implicit rate of return, the Company determined incremental borrowing rate based on the local banks in PRC at the commencement date in determining the present value of lease payments on the individual lease basis. The incremental borrowing rate for a lease was the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar term. The lease does not contain any residual value guarantees or material restrictive covenants. Lease expense for the lease is recognized on the straight-line basis over the lease term which is 2 years. For the operation building purchased, the Company does not have the property right, and it can only use the property for 50 years with no option to extend. The building is not accounted as a property of the Company, the Company accounts for the building as lease in accordance with ASC 842. The Company believes that the building lease agreements do not contain nor meet any of the five primary accounting provisions the Company uses to classify transactions as finance leases. The building is classified as operating lease at inception of the purchase date. Operating leases result in recognition of ROU assets and lease liabilities on the balance sheet. Since the Company already paid the whole purchase price, only ROU assets are recognized based on the present value of lease payments over the lease terms of the adoption date of January 1, 2020 or commencement date, whichever is earlier. The leases did not provide an explicit or implicit rate of return, the Company determined incremental borrowing rate based on the local banks in PRC at the commencement date in determining the present value of lease payments on the individual lease basis. The incremental borrowing rate for a lease was the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar term. The lease does not contain any residual value guarantees or material restrictive covenants. Lease expense for the lease is recognized on the straight-line basis over the lease term which this Company estimated to be 50 years. Operating lease expenses consist of the following: For the Years Ended December 31, Classification 2023 2022 2021 Operating lease cost Amortization of leased asset $ 154,455 $ 120,053 $ 119,242 Interest on lease liabilities Other expense - interest expenses 26,198 26,664 26,932 Total lease expenses $ 180,653 $ 146,717 $ 146,174 Weighted-average remaining term and discount rate related to operating leases were as follows: As of As of December 31, 2023 December 31, 2022 Weighted-average remaining term in number of months Operating leases 27.62 17.33 Weighted-average discount rate Operating leases 4.36 % 4.40 % The following table sets forth the Company’s minimum lease payments in future periods as of December 31, 2023: Lease payments Twelve months ending December 31 , 2024 $ 189,368 Twelve months ending December 31 , 2025 156,219 Twelve months ending December 31 , 2026 149,502 Twelve months ending December 31 , 2027 66,297 Twelve months ending December 31 , 2028 - Total lease payments 561,386 Less: discount (42,007 ) Present value of lease liabilities 519,379 Current lease liabilities (169,326 ) Noncurrent lease liabilities $ 350,053 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 16 – Commitments and contingencies Contingencies Legal From time to time, the Company is party to certain legal proceedings, as well as certain asserted and un-asserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. COVID-19 In January 2020, the World Health Organization declared the COVID-19 virus an international pandemic. The virus spread throughout the world with unfavourable stock market condition during the beginning of March 2020. During March 2020, multiple countries went into a national enforced shutdown. These lockdowns put significant strain on the world economy and on companies worldwide. The Company has taken measures to control costs and is emphasizing its medical and property management business given these conditions. A majority of the Company’s business is derived from Singapore. The spread of COVID-19 did not have any material impact on the Company’s business during the years ended December 31, 2022 and 2021. The Singapore and Chinese governments have removed all the COVID-19 restrictions starting from February 2023. All the businesses in Singapore, China and international transportations are opened up freely. During the year ended December 31, 2023, with the end of the COVID-19 Inflation Inflationary factors, such as increases in personnel and overhead costs, could impair the Company’s operating results. Although the Company does not believe that inflation has had a material impact on the Company’s financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on the Company’s ability to maintain current levels of gross margin and operating expenses as a percentage of sales revenue if the revenues do not increase with such increased costs. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 17 – Subsequent events The Company evaluated all events and transactions that occurred after December 31, 2023 up through the date of issuance of the consolidated financial statements , except for the following events, the Company did not identify any other subsequent events occurred that would require recognition or disclosure in the Company’s consolidated financial statements. On January 9, 2024 and March 6, 2024, Tungray Singapore, the Company’s wholly-owned subsidiary, acquired 20% and 13% of the equity interests, respectively, in Xi’an Tongri Intelligent Industrial Technology Co., Ltd. (“Xi’an Tongri”), a wholly foreign owned enterprise established under the laws of the PRC on June 25, 2023, from Weilai (Singapore) Pte. Ltd. (“Weilai”), an entity owned by the wife of Wanjun Yao, the Company’s Chairman and Chief Executive Officer. While the consideration for the 33% of the equity interests in Xi'an Tongri was $nil according to the transfer agreement between Tungray Singapore and Weilai, Tungray Singapore agreed to pay Xi’an Tongri a capital contribution of $3.3 million, which is 33% of the total registered capital of Xi’an Tongri. As of the date of the issuance of the consolidated financial statements , Tungray Singapore has made $1.0 million capital contribution payment to Xi’an Tongri, and Xi’an Tongri has not started substantive business operations. On April 18, 2024, the Company completed its initial public offering of 1,250,000 Class A Ordinary Shares (the “IPO”). The Class A Ordinary Shares were sold at an offering price of $ 4.00 per share, generating gross proceeds of approximately $ 5.0 million, before deducting underwriting discounts and other related expenses payable by the Company. The registration statement relating to the IPO also included Class A Ordinary Shares issuable upon the exercise of warrants issued to the lead underwriter in the IPO. The warrants have an exercise price of $ 4.8 and may be exercised on a cashless basis. The warrants will be exercisable upon the closing of the IPO for nominal consideration and have a five-year term starting from the date of the commencement of sales of the offering. 18 , 2024 under the ticker symbol “TRSG”. As of the date of this Annual Report, the Company has a total of 11,690,000 Class A Ordinary Shares and 4,560,000 Class B Ordinary Shares issued and outstanding. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed financial information of the parent company | Note 18 – Condensed financial information of the parent company The Company performed a test on the restricted net assets of the consolidated subsidiary in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company. The subsidiary did not pay any dividend to the Company for the year s subsidiary presented The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2023 and 2022. PARENT COMPANY BALANCE SHEETS As of December 31, 2023 As of December 31, 2022 ASSETS OTHER ASSETS Investment in subsidiary $ $ 15,287,793 Total assets 16,334,381 15,287,793 LIABILITIES AND SHAREHOLDERS’ EQUITY COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY Class A ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 10,440,000 shares issued and outstanding as of December 31, 2023 and 2022, respectively 1,044 1,044 Class B ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 4,560,000 shares issued and outstanding as of December 31, 2023 and 2022, respectively 456 456 Additional paid-in capital 332,574 332,574 Retained earnings 15,964,848 15,057,763 Statutory reserves 248,761 240,424 Accumulated other comprehensive loss (213,302 ) (344,468 ) Total shareholders’ equity 16,334,381 15,287,793 Total liabilities $ 16,334,381 $ 15,287,793 PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Years Ended December 31, 2023 2022 2021 OTHER INCOME (EXPENSE) Equity income of subsidiaries $ 915,422 $ 2,892,480 $ 4,109,724 Total other income, net 915,422 2,892,480 4,109,724 NET INCOME 915,422 2,892,480 4,109,724 FOREIGN CURRENCY TRANSLATION ADJUSTMENT 131,166 (409,559 ) 194,958 COMPREHENSIVE INCOME $ 1,046,588 $ 2,482,921 $ 4,304,682 PARENT COMPANY STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 915,422 $ 2,892,480 $ 4,109,724 Adjustments to reconcile net income to net cash Equity income of subsidiaries (915,422 ) (2,892,480 ) (4,109,724 ) Net cash used in operating activities - - - CHANGES IN CASH - - - CASH, beginning of year - - - CASH, end of year $ - $ - $ - |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for a fair presentation of the financial statements, have been included. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances am o mp Subsidiary is entity in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. |
Segment Information | Segment Information ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments. The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the CEO and COO, who review consolidated results when making decisions about allocating resources and assessing performance of the Company. Based on management’s assessment, the Company determined that it has only one operating segment as defined by ASC 280. This is supported by the operational structure of the Company which is designed and managed to share resources across the entire suite of products offered by the business. Such resources include research and development, product design, marketing, operations, and administrative functions. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period covered by the financial statements and accompanying notes. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but not limited to, allowance for credit losses, estimated useful lives and impairment of property and equipment, valuation of deferred tax assets, and other provisions and contingencies. As future events and their effects cannot be determined with precision, actual results could differ from those estimates. |
Foreign currency translation and transaction | Foreign currency translation and transaction Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statements of income and comprehensive income. The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. The Company’s subsidiaries in Singapore and the People’s Republic of China (“PRC”) conduct their businesses and maintain its books and record in the local currency, Singapore Dollars (’SGD”) and Chinese Renminbi (“RMB”), as their functional currency, respectively. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective yea r : As of and for the Years Ended December 31, 2023 2022 2021 Year 1.3193 1.3404 1.3520 Year 7.0999 6.8972 6.3726 Year 1.3428 1.3787 1.3438 Year 7.0809 6.7290 6.4508 |
Fair value measurements | Fair value measurements Fair value is defined as the price that would be received for an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. When determining the fair value measurements for assets and liabilities, we consider the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The following summarizes the three levels of inputs required to measure fair value, of which the first two are considered observable and the third is considered unobservable: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value for certain assets and liabilities such as cash, accounts and notes receivable, other receivables, prepayments and other current assets, short-term loans, accounts payable, contract liabilities, accrued expenses and other payables, and tax payables have been determined to approximate carrying amounts due to the short maturities of these instruments. The Company believes that its long-term loan from a third party approximates the fair value based on current yields for debt instruments with similar terms. The Company and its subsidiaries did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2023 and 2022. |
Cash | Cash Cash represents cash on hand and demand deposits placed with banks or other financial institutions which are unrestricted as to withdrawal or use and have original maturities less than three months. |
Accounts and notes receivable, net | Accounts and notes receivable, net Accounts receivable include trade accounts due from customers. Accounts receivable are recorded at the invoiced amount less an allowance for expected credit losses and do not bear interest, which are due after 30 to 90 days, depending on the credit term with its customers. Notes receivable represents trade accounts receivable due from various customers where the customers’ banks have guaranteed the payment. The notes are non-interest bearing and normally paid within three to six months. The Company has the ability to submit request for payment to the customer’s bank earlier than the scheduled payment date, but will incur an interest charge and a processing fee. As of December 31, 2023 and 2022, the allowance for credit losses of accounts and notes receivable was $472,293 and $303,311, respectively. For the years ended December 31, 2023, 2022 and 2021, the provision for credit losses of accounts and notes receivable was $178,118, $16,394 and $114,227, respectively. |
Other receivables and other current assets | Other receivables and other current assets Other receivables and other current assets primarily include receivable from employee advance, and refundable deposits from third party service providers. Management r eg As of December 31, 2023 and 2022, the Company provided allowance for credit losses of other receivable and other current asset $252,947 and $239,594, respectively. For the years ended December 31, 2023, 2022 and 2021, the Company recorded/(recovered) $20,247, ($5,268) and $11,488 provision for cred it lo |
Allowance for credit losses | Allowance for credit losses Allowance for credit losses represents management’s best estimate of probable losses inherent in the portfolio. On Under ASU 2016-13, the Company has exposure to credit losses for financial assets, which are accounts and notes receivable, and other receivables and other current assets or other third parties Financial assets are presented net of the allowance for credit losses in the Consolidated Balance Sheets. The measurement of the allowance for credit losses is recognized through current expected credit loss expense. Current expected credit loss expense is included as a component of general and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. Write-offs are recorded in the period in which the asset is deemed to be uncollectible. |
Prepayments | Prepayments The Company makes prepayments to suppliers in advance of receiving goods or services in accordance with underlying contractual terms with suppliers. Generally, prepayments are intended to expedite the delivery of required inventory as needed and to help ensure priority and preferential pricing on such goods or services. These prepayments are unsecured and are reviewed periodically to determine whether the prepayment will be timely realized through the receipt of inventories, services, or refunds. If any amounts are deemed not realizable, the Company will recognize an allowance account to reserve for such balances. Management reviews its prepayments on a regular basis to determine if the valuation allowance is adequate and adjusts the allowance when necessary. As of December 31, 2023 and 2022, the Company provided a valuation allowance for prepayments of $22,308 and $30,543, respectively. During the years ended December 31, 2023, 2022 and 2021, the Company (recovered)/recorded ($7,382), $ 11,710 and $2,839 provision for doubtful accounts of prepayments, respectively. |
Loans receivable – related parties | Loans receivable – related parties Loans receivable – related parties represent loans to various companies which are under common control of the same major shareholder. Those loans are interest free and were no specific time requirement for returning the loans based on the terms of the arrangement, and in fact they seldom are actually repaid. Thus those loans receivables are seen as created to meet “substantial assets” test or contribute capitals. Therefore, these loans are equivalent to unpaid subscriptions receivable for capital shares which Rule 5-02.30 of Regulation S-X requires to be ducted from the dollar amount of capital shares subscribed. As of December 31, 2023 and 2022, no allowance was deemed necessary. Loan receivables – related party are presented as reduction of shareholders’ equity pursuant to SAB Topic 4:G. |
Long-term investment | Long-term investment The Group’s long-term investment consists of an equity investment without readily determinable fair value. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Group elected to use the measurement alternative to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the entity has to recognize an impairment loss in net income / (loss) equal to the difference between the carrying value and fair value. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimat e Expected useful lives Buildings 50 years Office equipme n 3-5 years Operation equipment 3-10 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the Consolidated Statements of Income and Comprehensive Income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the years ended December 31, 2023, 2022 and 2021, there was no |
Intangible assets, net | Intangible assets, net Intangible assets are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets. All land in the PRC is owned by the government; however, the government grants “land use rights.” The Company has obtained rights to use various parcels of land for 50 years. The Company also has obtained several software and technology knowhow with the useful life of 3 years to 5 years. The Company amortizes the cost of the intangible assets over their useful life using the straight-line method. |
Impairment for long-lived assets | Impairment for long-lived assets Long-lived assets, including property and equipment with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2023 and 2022, no impairment of long-lived assets was recognized. |
Revenue recognition | Revenue recognition The Company follows the revenue accounting requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“Accounting Standards Codification (“ASC”) 606”). The core principle underlying the revenue recognition of this ASU allows the Company to recognize - revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. To achieve that core principle, the Company applies five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). Performance Obligations Assurance-type Warranty The payment terms usually include, but are not limited to, the following billing stages: 1) signing of the sales contract, approximately between 20% - 40% of the contract price, 2) before delivery 30% - 40%, 3) completion of the delivery or instalment, approximately between 10% - 30% of the contract price, and 4) completion of a warranty period, approximately within 10% of the contract price. The completion of a warranty period is only passage of time and would not make the Company probable to not able to bill the remaining approximately 10% of the contract price. The timing of receiving payments does not differ significantly from the payment terms specified in the contracts. The Company’s subsidiaries’ revenue recognition policies effective upon the adoption of ASC 606 are as follows: Product revenue - Performance obligations satisfied at point in time The Company designs, manufactures, sells and installs automatic welding equipment to corporate customers. The Company has elected to treat shipping, handling and installation as fulfilment activities, and not a separate performance obligation. Accordingly, the Company recognized the products revenue when control of the product is passed to the customer, which is the point in time that the customers are able to direct the use of and obtain substantially all of the economic benefit of the goods after the installation by the Company’s technician or once on board at the customs based on the contract terms. The transfer of control typically occurs at a point in time based on consideration of when the customer has an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred, and the customer has accepted the goods. Revenue is recognized net of estimates of variable consideration, including product returns, customer discounts and allowance. Historically, the Company has not experienced any significant returns nor provided significant customer discounts. In conclusion, the Company recognizes the revenues from both standard products and customized products at the point of time when the products delivered, installed and accepted by the customers. Upon delivery, installation and customer acceptance are the proof of the completion of performance obligation, which is a confirmation of customer to its ability to direct the use of and obtain substantially all the benefits from the products. In instances where substantive completion inspection, installation and customer acceptance provisions are specified in the contracts, revenues are deferred until all installation and acceptance criteria have been met. Since the contract price and term is fixed and enforceable and assurance-type warranty guarantees the functionality of a product and the warranty is not accounted for as a separate performance obligation, thus no transaction price is allocated to it. The Company recognizes the fully number of sales at the point in time as the products are delivered or accepted by the customers according to the acceptance term included in the contract. Other services revenue Other services mainly include equipment repair which is outside of the contract of products sales. Generally, the Company does not enter any repair service contracts. The repair service usually are performed at customer’s need basis. The duration of the repair services is usually less than one month, The Company recognizes the revenue form repair services at the point of time when the service is completed and accepted by the customers. Historically, the revenue from thus services has been immaterial. The Company’s revenues by geographic locations are summarized below: For the Years Ended December 31, 2023 2022 2021 China revenues $ 5,333,982 $ 5,812,884 $ 6,802,386 Singapore revenues 9,028,520 10,521,516 10,665,730 Total revenues $ 14,362,502 $ 16,334,400 $ 17,468,116 Contract liabilities Contract liabilities represents cash payment received from customers in advance of the Company satisfying performance obligations under contractual arrangements, including those with performance obligations to be at a point in time. Contract liabilities are derecognized when or as revenue is recognized. Due to the generally short-term duration of the relevant contracts, all the performance obligations are expected to be satisfied within one year and are classified as current liabilities. The amount of revenue recognized that was included in the contract liabilities at the beginning of the year $1,753,808, $1,629,501 and $931,131 for the years ended December 31, 2023, 2022 and 2021, respectively. Chinese value-added tax (“VAT”) The products sold in the PRC are subject to a Chinese value-added tax (“VAT”). The products sold to the customers outside of China are not subject to a Chinese VAT. VAT taxes are presented as a reduction of revenue. Goods and services taxes (“GST”) The products sold in the Singapore are subject toa goods and services tax (“GST”). The products sold to the customers outside of Singapore are not subject to a GST. GST taxes are presented as a reduction of revenue. The GST are based on gross sales price. GST rate was generally 8% in Singapore, which was further increased to 9% with effect from January 1,2024. Entities that are GST-registered taxpayers are allowed to offset qualified input GST paid to suppliers against their output GST liabilities. Net GST balance between input GST and output GST is recorded in tax payable. |
Inventory and cost of goods sold | Inventory and cost of goods sold Inventory is stated at the lower of cost or net realizable value with cost determined under the moving average method. Adjustments to the carrying value are recorded for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. The Company’s costs include the amounts it pays manufacturers for product, labor costs, lease and utility expenses for factories, tariffs and duties associated the transporting product and freight costs associated with transporting the product from its manufacturers to its warehouses, as applicable. |
Research and development | Research and development Research and development expenses include salaries and other compensation-related expenses to the Company’s research and product development personnel, and related expenses for the Company’s research and product development team. |
Employee benefits | Employee benefits The full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were $257,024, $233,008 and $249,284 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Deferred IPO costs | Deferred IPO costs The Company complies with the requirements of FASB ASC Topic 340-10-S99-1, “Other Assets and Deferred Costs – SEC Materials” (“ASC 340-10-S99”) and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering”. Deferred IPO costs consist of underwriting, legal, accounting and other professional expenses incurred through the balance sheet date that are directly related to the Proposed Public Offering and that will be charged to shareholders’ equity upon the completion of the Proposed Public Offering. Should the Proposed Public Offering prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will be charged to operations. |
Income taxes | Income taxes The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is calculated using the balance sheet assets and liabilities method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable income will be utilized with prior net operating loss carried forwards using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be utilized. Current income taxes are provided for in accordance with the laws of the relevant tax authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax for the years ended December 31, 2023, 2022 and 2021. |
Noncontrolling interests | Noncontrolling interests Noncontrolling interests represent 30% of the equity interest of Tongsheng Intelligent. The noncontrolling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Noncontrolling interests in the results of the Company are presented on the face of the consolidated statement of operations as an allocation of the total income or loss for the year between non-controlling interest holders and the shareholders of the Company. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. |
Statutory reserves | Statutory reserves Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company loss |
Leases | Leases The Company accounts for leases in accordance with ASC 842. The Company entered into certain agreement as a lessor under which it leased its office building for a long- term · The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; · The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise; · The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; · The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or · The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Leases that do not meet any of the above criteria are accounted for as operating leases. The Company combines lease and non-lease components in its contracts under Topic 842, when permissible Lessor The Company entered into lease agreements as a lessor under which it leased its office building for a long-term period than Lessee The Company entered into lease agreements as lessee to lease equipment from the third party and buildings from the related parties and third parties for its subsidiaries’ operations. The Company accounts for those equipment leases in accordance with ASC 842. The two primary accounting provisions the Company uses to classify transactions as financing leases or operating leases are (i) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term and (ii) the lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise. The equipment leases included those two terms, and the Company believes that the equipment leases should be classified as finance leases. The Company accounts for those building leases in accordance with ASC 842. The Company believes that the building leases agreements do not contain nor meet any of the five primary accounting provisions the Company uses to classify transactions as finance leases. The building leases are classified as operating leases. Finance and operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally include options to extend, renew, or terminate the lease, as the Company has reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its finance or operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The finance or operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognizes the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the office equipment on the remaining balance of the liability. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and includes the associated operating lease payments in the undiscounted future pre-tax cash flows. For the years ended December 31, 2023, 2022 and 2021, the Company did not recognize impairment loss on its finance and operating lease ROU assets. |
Related party transactions | Related party transactions A related party is generally defined as (i) any person and or their immediate family hold 10% or more of the company’s securities (ii) the Company’s management and or their immediate family, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm’s –length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. |
Recent accounting pronouncements | Recent accounting pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. In November 2023, the FASB issued Accounting Standards Update No. 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), intended to improve segment disclosures requirements, primarily through enhanced disclosures about significant segment expenses. The amendments require the public entity disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported, measure of segment profit or loss, an amount for other segment items by reportable segment and a description of its composition. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The amendments are required to be applied retrospectively to all prior periods presented in an entity’s financial statements. The Company does not expect that the adoption of ASU 2023-07 will have a material impact on its consolidated financial statements disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024 for public business entities, and December 15, 2025 for entities other than public business entities. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
Nature of Business and Organi_2
Nature of Business and Organization (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of subsidiary of limited liability company or limited partnership | The accompanying consolidated financial statements reflect the activities of the Company and each of the following entities: Name Background Ownership Tungray Motion Ltd (“Tungray Motion”) ● A BVI holding company ● Incorporated on June 21, 2022 100% owned by Tungray Tungray Electronics Ltd (“Tungray Electronics”) ● A BVI holding company ● Incorporated on June 21, 2022 100% owned by Tungray Tungray Intelligent Technology Ltd (“Tungray Intelligent”) ● A BVI holding company ● Incorporated on June 21, 2022 100% owned by Tungray Tungray Singapore Pte. Ltd. (“Tungray Singapore”) ● A Singapore Company Limited by Shares ● Incorporated on June 21, 2007 ● Installation of industrial machinery and equipment, mechanical engineering works 100% owned by Tungray Motion Tung Resource Pte Ltd (“Tung Resource”) ● A Singapore Company Limited by Shares ● Incorporated on July 9, 1996 ● Installation of industrial machinery 100% owned by Tungray Electronics Tungray Industrial Automation (Shenzhen) Co., Ltd (“Tungray Industrial”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on May 27, 2010 ● Design, development and manufacture of non- standard equipment such as automated assembly equipment, precision testing equipment, tooling fixtures, etc. 100% owned by Tungray Singapore Tongsheng Intelligent Equipment (Shenzhen) Co., Ltd (“Tongsheng Intelligent”) ● A PRC limited liability company ● Incorporated on October 25, 2021 ● Research and development of intelligent robots; sales of intelligent robots; sales of intelligent storage equipment 70% owned by Tungray Industrial Qingdao Tongri Electric Machines Co., Ltd (“Tongri Electric”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on December 26, 2001 ● Design, R&D and manufacturing of induction brazing equipment, induction hardening equipment, automatic welding equipment, linear motors, DD motors 100% owned by Tung Resource Qingdao Tungray Intelligent Technology Co., Ltd (“Qingdao Tungray Intelligent”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on September 30, 2017 ● Design, R&D and manufacturing of induction brazing equipment, induction hardening equipment, automatic welding equipment, linear motors, DD motors 100% owned by Tongsheng Development Tungray Technology Pte Ltd (“Tungray Technology”) ● A Singapore Company Limited by Shares ● Incorporated on July 14, 2022 ● Installation of industrial machinery and equipment, mechanical engineering works 100% owned by Tungray Intelligent Tongsheng Intelligence Technology Development (Shenzhen) Co., Ltd. (“Tongsheng Development”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on August 22, 2022 ● Research and development of intelligent robots; sales of intelligent robots; sales of intelligent storage equipment 100% owned by Tungray Technology |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of translation of foreign currencies | Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective yea r : As of and for the Years Ended December 31, 2023 2022 2021 Year 1.3193 1.3404 1.3520 Year 7.0999 6.8972 6.3726 Year 1.3428 1.3787 1.3438 Year 7.0809 6.7290 6.4508 |
Summary of property and equipment are stated at cost less accumulated depreciation | Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimat e Expected useful lives Buildings 50 years Office equipme n 3-5 years Operation equipment 3-10 years |
Summary of the company's revenues by geographic locations are summarized | The Company’s revenues by geographic locations are summarized below: For the Years Ended December 31, 2023 2022 2021 China revenues $ 5,333,982 $ 5,812,884 $ 6,802,386 Singapore revenues 9,028,520 10,521,516 10,665,730 Total revenues $ 14,362,502 $ 16,334,400 $ 17,468,116 |
Accounts and Notes Receivable_2
Accounts and Notes Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Summary of accounts and notes receivable | As of December 31, 2023 As of December 31, 2022 Accounts receivable $ 3,960,409 $ 2,423,055 Notes receivable 86,623 300,406 Allowance for credit losses (472,293 ) (303,311 ) Total accounts and notes receivable, net $ 3,574,739 $ 2,420,150 |
Summary of movements of allowance for credit losses | Movements of allowance for credit losses are as follows: As of December 31, 2023 As of December 31, 2022 As of December 31, 2021 Beginning balance $ 303,311 $ 310,968 $ 190,777 Addition 178,118 16,394 114,227 Exchange rate effect (9,136 ) (24,051 ) 5,964 Ending balance $ 472,293 $ 303,311 $ 310,968 |
Other Receivables and Other C_2
Other Receivables and Other Current Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Receivables And Other Current Assets Net [Abstract] | |
Summary of other receivables and other current assets | As of December 31, 2023 As of December 31, 2022 Due from third parties $ 452,544 $ 383,050 Refundable deposits 16,054 10,517 Others - 34,429 Allowance for credit losses (252,947) (239,594 ) Total other receivables and other current assets, net $ 215,651 $ 188,402 |
Summary of allowance for credit losses | Movements of allowance for credit losses are as follows: As of December 31, 2023 As of December 31, 2022 As of December 31, 2021 Beginning balance $ 239,594 $ 264,880 $ 247,336 Addition (recovery) 20,247 (5,268 ) 11,488 Exchange rate effect (6,894 ) (20,018 ) 6,056 Ending balance $ 252,947 $ 239,594 $ 264,880 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of inventories, net | As of December 31, 2023 As of December 31, 2022 Raw materials $ 564,779 $ 509,056 Finished goods 454,654 469,526 Work in process 1,465,100 637,436 Reserve for inventories (200,724 ) (211,349 ) Total inventories, net $ 2,283,809 $ 1,404,669 |
Summary of movements of inventory reserves | Movements of inventory reserves are as follows: As of December 31, 2023 As of December 31, 2022 As of December 31, 2021 Beginning balance $ 211,349 $ 401,570 $ 298,137 Addition 6,713 42,544 95,136 Write-off (38,916 ) (206,213 ) - Exchange rate effect 21,578 (26,552 8,297 Ending balance $ 200,724 $ 211,349 $ 401,570 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Table) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, net consist of the following: As of December 31, 2023 As of December 31, 2022 Buildings $ 6,552,833 $ 6,452,898 Office equipment 646,830 606,891 Operation equipment 1,301,006 1,303,869 Subtotal 8,500,669 8,363,658 Less: accumulated depreciation (2,355,470 ) (2,125,899 ) Total $ 6,145,199 $ 6,237,759 Depreciation expense for the years ended December 31, 2023 , 2022 and 2021 amounted to $218,148, $128,517 and $207,760, respectively. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible assets consisted | Intangible assets consisted of the following: As of December 31, 2023 As of December 31, 2022 Land use rights* $ 27,888 $ 28,707 Software 104,224 68,283 Technology knowhow 13,644 13,429 Less: Accumulated amortization (89,914 ) (76,475 ) Total intangible assets, net $ 55,842 $ 33,944 * Land in China is owned by the government and land ownership rights cannot be sold to an individual or to a private company. However, the Chinese government grants the user a “land use right” to use the land. The land use rights granted to the Company are amortized using the straight-line method over a term of fifty years. |
Schedule of Company's amortization expense for the next five years | The following table sets forth the Company’s amortization expense for the next five years ending as of December 31, 2023: Amortization expenses Twelve months ending December 31, 2024 $ 12,884 Twelve months ending December 31, 2025 12,490 Twelve months ending December 31, 2026 8,158 Twelve months ending December 31, 2027 8,158 Twelve months ending December 31, 2028 559 Thereafter 13,593 Total $ 55,842 |
Credit Facilitates (Tables)
Credit Facilitates (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of short term debt bank loans | Short-term loans – banks Outstanding balances on short-term bank loans consist of the following: Bank Name Maturities Interest Rate Collateral/ Guarantee As of December 31, 2023 As of December 31, 2022 Industrial and Commercial Bank of China – Pingdu Branch 10/18/2023 3.85% for contract from 12/31/2021 to 11/29/2022, and 3.65% for contract from 10/20/2022 to 10/18/2023 None $ - $ 453,807 |
Schedule of banking facilities | Banking facilities Outstanding balance of banking facilities consisted of the following: Lender Term Interest rate Collateral/Guarantee As of December 31, 2023 As of December 31, 2022 United Overseas Bank Limited (“UOB”) Varies from 36 monthly instalment, 72 monthly instalments, and 168 monthly instalments from the first date of first disbursement Effective on September 20, 2022, the repriced interest rate changes to1 st nd Guaranteed by Mr. Wanjun Yao, the major shareholder, Mr. Jinan Tang, senior manager, Mrs. Liling Du, director, Mr. Demin Han, director, and the properties of Tung Resources $ 762,025 $ 848,362 DBS Bank, Ltd. (“DBS”) 300 monthly instalments from the date of first disbursement Effective on June 6, 2022, the repriced interest rate changes to 1 st nd Guaranteed by Mr. Wanjun Yao, the major shareholder, and the properties of Tung Resources 1,329,526 1,353,561 Standard Chartered Bank 180 months from the date of first disbursement 1st year and 2nd year fixed at 0.38% above fixed deposit rate, thereafter fixed at 1.78% above fixed deposit rate (the current 36-month fixed deposit rate for a 36-month Singapore dollar time deposit is 1.02% per annum) Guaranteed by Mr. Wanjun Yao, major shareholder, Mr. Jinan Tang, senior manager, and the properties of Tungray Singapore - 341,306 Total 2,091,551 2,543,229 Total current portion of banking facilities (140,162 ) (170,093 ) Total noncurrent portion of banking facilities $ 1,951,389 $ 2,373,136 |
Schedule of debt instruments | Long-term loan – third party Outstanding balances on long-term bank loan consist of the following: Bank/Private lender Name Maturities Interest Rate Collateral/ Guarantee A s of December 31, 2023 As of December 31, 2022 We Bank Loan period 24 months, repay before 11/27/2023 Loan Prime Rate 4.25% Hui Tang $ - $ 209,609 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other payables | As of December 31, 2023 As of December 31, 2022 Accrued expenses (i) $ 80,018 $ 85,358 Accrued payroll 948,371 769,054 Estimated warranty liabilities (ii) 65,073 78,434 Intercourse funds payable (iii) 196,479 60,190 Total accrued expenses and other payables $ 1,289,941 $ 993,036 (i) Accrued expenses The balance of accrued expenses represented amount due to third parties service providers which include marketing consulting service, IT related professional service, legal, audit and accounting and (ii) Estimated warranty liabilities |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Summary of related party balance | Related party balances Account Receivable – related parties Name of Related Party Relationship As of December 31, 2023 As of December 31, 2022 FDT (Qingdao) Intellectual Technology Co., Ltd Common control under major shareholder $ 19,372 $ 67,031 Tungray (Kunshan) Industrial Automation Co., Ltd Common control under major shareholder 202,679 7,626 Tungray (Kunshan) Robot Intelligent Technology Co., Ltd Common control under major shareholder 52,889 30,086 Kunshan Tungray Intelligent Technology Co., Ltd. Common control under major shareholder 44,649 - Total $ 319,589 $ 104,743 Account payable, related parties Name of Related Party Relationship As of December 31, 2023 As of December 31, 2022 FDT (Qingdao) Intellectual Technology Co., Ltd. Common control under CEO $ 365,665 $ - Qingdao Tungray Technology Development Co., Ltd. Common control under major shareholder 26,061 - Shanghai Tongrui Industrial Automation Equipment Co., Ltd Common control under major shareholder 32,395 33,347 Shanghai Tongrui Investment Management Co., Ltd. Common control under major shareholder 54,661 56,267 Hefei CAS Dihuge Automation Co., Ltd. 10.27% ownership interest investee 20,141 20,733 Total $ 498,923 $ 110,347 Other receivables – related parties Name of Related Party Relationship Nature As of December 31, 2023 As of December 31, 2022 Hui Tang Senior management of Qingdao Tungray Intelligent Employee advances $ - $ 13,348 Qingdao Tungray Biology Technology Co., Ltd. Common control under major shareholder Advances 23,816 - FDT (Qingdao) Intellectual Technology Co., Ltd Common control under major shareholder Advances - 3,345 Tungmoon Investment Common control under major shareholder Advances - 7,134 Total $ 23,816 $ 23,827 Other payable– related parties Other payables – related parties are those nontrade payables arising from transactions between the Company and certain related parties, such as advances made by the related party on behalf of the Company, dividend payables and related accrued interest payable on the advances. These balances are unsecured and non-interest bearing. Current payables are due on demand. Name of Related Party Relationship As of December 31, 2023 As of December 31, 2022 Tungray (Kunshan) Industrial Automation Co., Ltd. Common control under major shareholder $ 41,853 $ - Shanghai Tongrui Investment Management Co., Ltd Common control under major shareholder - 1,160 Jingan Tang Senior Manager of Tungray Industrial 277,607 691,792 Liling Du CFO of Tungray Singapore 38,216 96,475 Gang Wang Shareholder of Tungray Singapore and Tung Resource 54,005 188,525 Demin Han General Manager 156,455 538,014 Lei Yao Chief Technology Officer 2,893 - Mingxing Gao General Manager 99,837 349,566 Total $ 670,866 $ 1,865,532 Prepayment-related parties Name of Related Party Relationship Nature As of December 31, 2023 As of December 31, 2022 Qingdao Tungray Technology Development Co., Ltd. Common control under major shareholder Purchase prepayment $ 55,000 $ 48,115 Tungray (Kunshan) Industrial Automation Co., Ltd. Common control under major shareholder Purchase prepayment 993,745 - Total $ 1,048,745 $ 48,115 Operating lease liabilities- related parties The Company entered into three lease agreements as a lessee under which it leased three operation buildings for 5-7 years from two related parties. The Company accounts for the leases 5 Name of Related Party Relationship As of December 31, 2023 As of December 31, 2022 Tungray (Qingdao) Technology Development Co., Ltd Common control under major shareholder $ 244,112 $ 206,789 Jingan Tang Senior Manager of Tungray Industrial 218,432 356,390 Total 462,544 563,179 Current portion of operating lease liabilities - related parties (123,094 ) (73,166 ) Noncurrent portion of operating lease liabilities - related parties $ 339,450 $ 490,013 |
Schedule of related party transactions | Related party transactions Revenue from related parties For the Years Ended December 31, Name of Related Party Relationship Nature 2023 2022 2021 Tungray (Kunshan) Industrial Automation Co., Ltd. Common control under major shareholder Sales of products $ 231,209 $ - $ - Tungray (Kunshan) Robot Intelligent Technology Co., Ltd. Common control under major shareholder Sales of products 26,245 - - FDT (Qingdao) Intellectual Technology Co., Ltd. Common control under major shareholder Sales of products 4,602 66,096 147,531 Kunshan Tungray Intelligent Technology Co., Ltd. Common control under major shareholder Sales of products 57,490 - - Kunshan Tongri Intelligent Manufacturing Technology Research Institute Co., Ltd Common control under major shareholder Sales of products - 1,093 - Total $ 319,546 $ 67,189 $ 147,531 Purchase from related parties For the Years Ended December 31, Name of Related Party Relationship Nature 2023 2022 2021 FDT (Qingdao) Intellectual Technology Co., Ltd. Common control under major shareholder Products and services purchase $ 961,525 $ 41,566 $ - Non-operating income- related parties For the Years Ended December 31, Name of Related Party Relationship Nature 2023 2022 2021 Qingdao Tungray Biology Technology Co., Ltd Common control under major shareholder Lease $ 19,126 $ 25,129 $ 26,212 Rental expenses- related parties For the Years Ended December 31, Name of Related Party Relationship Nature 2023 2022 2021 Qingdao Tungray Technology Development Co., Ltd Common control under major shareholder Lease $ 66,476 $ 51,219 $ 47,438 Jingan Tang Senior Manager of Tungray Industrial Lease 72 ,411 63,841 66,595 Total $ 138,887 $ 115,060 $ 114,033 |
Income taxes (Table)
Income taxes (Table) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of income tax provision | The components of the Company’s income tax provision were as follows for the years indicated: For the Years Ended December 31, 2023 2022 2021 Current: $ 429,559 $ 532,098 $ 738,616 Deferred 74,616 (14,816 ) (31,896 ) Total income tax provision $ 504,175 $ 517,282 $ 706,720 |
Summary of Income/(loss) before provision for income taxes | Income/(loss) before provision for income taxes is attributable to the following geographic locations for the years indicated: For the Years Ended December 31, 2023 2022 2021 Singapore $ 2,679,481 $ 3,278,678 $ 4,038,905 PRC (1,359,659 ) 120,751 776,260 Total income before income taxes $ 1,319,822 $ 3,399,429 $ 4,815,165 |
Summary of Singapore statutory rates to the Company's effective tax rate | The following table reconciles Singapore statutory rates to the Company’s effective tax rate: For the Years Ended December 31, 2023 2022 2021 Singapore income tax rate 17.0 % 17.0 % 17.0 % Difference from the effect of tax rates in a foreign jurisdiction (PRC) (14.6 )% 1.0 % - % Impact of preferential tax rate difference in PRC 7.9 % 1.2 % 0.5 % Tax rebate in Singapore (2.0 )% (0.7 )% - % Additional R&D deduction (10.1 )% (4.6 )% (3.1 )% Change in valuation allowance 36.4 % 0.4 % - % Permanent differences (1) 3.6 % 0.9 % 0.3 % Effective tax rate 38.2 % 15.2 % 14.7 % (1) Permanent differences mainly consisted of expenses which are non-deductible and income exemption under local tax laws. |
Summary of the aggregate deferred tax assets and liabilities | The following table sets forth the significant components of the aggregate deferred tax assets and liabilities of the Company as of: As of December 31, 2023 As of December 31, 2022 Deferred Tax Assets/Liabilities Net operating loss carryforwards $ 397,421 $ 100,299 Allowance for credit losses 151,335 32,781 Inventory reserves 32,566 42,345 Less: valuation allowance (581,322 ) (100,299 ) Deferred tax assets, net $ - $ 75,126 |
Summary of the net operating loss carry forward in China | As of December 31, 2023, the net operating loss carry forward in China will expire, if unused, in the following amounts: Amount Twelve months ending December 31, 2024 $ 114,502 Twelve months ending December 31, 2025 69,247 Twelve months ending December 31, 2026 107,267 Twelve months ending December 31, 2027 155,662 Twelve months ending December 31, 2028 1,813,440 Total $ 2,260,118 |
Summary of taxes payable | Taxes payable consist of the following: As of December 31, 2023 As of December 31, 2022 Income tax payable $ 304,563 $ 546,299 VAT payable 182,647 263,397 Other tax payable 32,333 49,917 Totals $ 519,543 $ 859,613 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of finance lease costs | Finance lease expenses consist of the following: For the Years Ended December 31, Classification 2023 2022 2021 Finance lease cost Amortization of leased asset $ - $ 97,801 $ 210,303 Interest on lease liabilities Other expense - interest expenses - 625 5,685 Total lease expenses $ - $ 98,426 $ 215,988 |
Summary of weighted-average remaining term and discount rate related to finance leases | Weighted-average remaining term and discount rate related to finance leases were as follows: December 31, 2023 December 31, 2022 Weighted-average remaining term in number of months Finance leases - - Weighted-average discount rate Finance leases - 5.68 % |
Summary of operating lease expenses | Operating lease expenses consist of the following: For the Years Ended December 31, Classification 2023 2022 2021 Operating lease cost Amortization of leased asset $ 154,455 $ 120,053 $ 119,242 Interest on lease liabilities Other expense - interest expenses 26,198 26,664 26,932 Total lease expenses $ 180,653 $ 146,717 $ 146,174 |
Summary of weighted-average remaining term and discount rate related to operating leases | Weighted-average remaining term and discount rate related to operating leases were as follows: As of As of December 31, 2023 December 31, 2022 Weighted-average remaining term in number of months Operating leases 27.62 17.33 Weighted-average discount rate Operating leases 4.36 % 4.40 % |
Summary of minimum lease payments in future periods | The following table sets forth the Company’s minimum lease payments in future periods as of December 31, 2023: Lease payments Twelve months ending December 31 , 2024 $ 189,368 Twelve months ending December 31 , 2025 156,219 Twelve months ending December 31 , 2026 149,502 Twelve months ending December 31 , 2027 66,297 Twelve months ending December 31 , 2028 - Total lease payments 561,386 Less: discount (42,007 ) Present value of lease liabilities 519,379 Current lease liabilities (169,326 ) Noncurrent lease liabilities $ 350,053 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheet | The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2023 and 2022. PARENT COMPANY BALANCE SHEETS As of December 31, 2023 As of December 31, 2022 ASSETS OTHER ASSETS Investment in subsidiary $ $ 15,287,793 Total assets 16,334,381 15,287,793 LIABILITIES AND SHAREHOLDERS’ EQUITY COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY Class A ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 10,440,000 shares issued and outstanding as of December 31, 2023 and 2022, respectively 1,044 1,044 Class B ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 4,560,000 shares issued and outstanding as of December 31, 2023 and 2022, respectively 456 456 Additional paid-in capital 332,574 332,574 Retained earnings 15,964,848 15,057,763 Statutory reserves 248,761 240,424 Accumulated other comprehensive loss (213,302 ) (344,468 ) Total shareholders’ equity 16,334,381 15,287,793 Total liabilities $ 16,334,381 $ 15,287,793 |
Schedule of condensed statement of comprehensive income | PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Years Ended December 31, 2023 2022 2021 OTHER INCOME (EXPENSE) Equity income of subsidiaries $ 915,422 $ 2,892,480 $ 4,109,724 Total other income, net 915,422 2,892,480 4,109,724 NET INCOME 915,422 2,892,480 4,109,724 FOREIGN CURRENCY TRANSLATION ADJUSTMENT 131,166 (409,559 ) 194,958 COMPREHENSIVE INCOME $ 1,046,588 $ 2,482,921 $ 4,304,682 |
Schedule of condensed cash flow statement | PARENT COMPANY STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 915,422 $ 2,892,480 $ 4,109,724 Adjustments to reconcile net income to net cash Equity income of subsidiaries (915,422 ) (2,892,480 ) (4,109,724 ) Net cash used in operating activities - - - CHANGES IN CASH - - - CASH, beginning of year - - - CASH, end of year $ - $ - $ - |
Nature of Business and Organi_3
Nature of Business and Organization - Additional Information (Detail) | Nov. 22, 2022 | Sep. 28, 2022 |
Tungray Singapore Pte. Ltd [Member] | ||
Equity method investment, ownership percentage | 100% | |
Tung Resource Pte Ltd [Member] | ||
Equity method investment, ownership percentage | 100% | |
Qingdao Tungray Intelligent Technology Co., Ltd [Member] | ||
Equity method investment, ownership percentage | 100% |
Nature of Business and Organi_4
Nature of Business and Organization - Summary of Subsidiary of Limited Liability Company or Limited Partnership (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Tungray Motion Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | ● A BVI holding company● Incorporated on June 21, 2022 |
Ownership | 100% |
Tungray Electronics Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | ● A BVI holding company● Incorporated on June 21, 2022 |
Ownership | 100% |
Tungray Intelligent Technology Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | ● A BVI holding company● Incorporated on June 21, 2022 |
Ownership | 100% |
Tungray Singapore Pte. Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | ● A Singapore Company Limited by Shares● Incorporated on June 21, 2007● Installation of industrial machinery and equipment, mechanical engineering works |
Ownership | 100% |
Tung Resource Pte Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | ● A Singapore Company Limited by Shares● Incorporated on July 9, 1996● Installation of industrial machinery and equipment, mechanical engineering works |
Ownership | 100% |
Tungray Industrial Automation (Shenzhen) Co., Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”)● Incorporated on May 27, 2010● Design, development and manufacture of non- standard equipment such as automated assembly equipment, precision testing equipment, tooling fixtures, etc. |
Ownership | 100% |
Tongsheng Intelligent Equipment (Shenzhen) Co., Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | ● A PRC limited liability company● Incorporated on October 25, 2021● Research and development of intelligent robots; sales of intelligent robots; sales of intelligent storage equipment |
Ownership | 70% |
Qingdao Tongri Electric Machines Co., Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”)● Incorporated on December 26, 2001● Design, R&D and manufacturing of induction brazing equipment, induction hardening equipment, automatic welding equipment, linear motors, DD motors |
Ownership | 100% |
Qingdao Tungray Intelligent Technology Co., Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”)● Incorporated on September 30, 2017● Design, R&D and manufacturing of induction brazing equipment, induction hardening equipment, automatic welding equipment, linear motors, DD motors |
Ownership | 100% |
Tungray Technology Pte Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | ● A Singapore Company Limited by Shares● Incorporated on July 14, 2022● Installation of industrial machinery and equipment, mechanical engineering works |
Ownership | 100% |
Tongsheng Intelligence Technology Development (Shenzhen) Co., Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”)● Incorporated on August 22, 2022● Research and development of intelligent robots; sales of intelligent robots; sales of intelligent storage equipment |
Ownership | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Jan. 01, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts and financing receivable, allowance for credit loss | $ 472,293 | $ 303,311 | $ 310,968 | $ 190,777 | |
Provision for credit losses of accounts and notes receivable | 178,118 | 16,394 | 114,227 | ||
Allowance for credit loss, receivable, other, current | 252,947 | 239,594 | 264,880 | $ 247,336 | |
Addition (recovery) | 20,247 | (5,268) | 11,488 | ||
Allowance for prepayments | 22,308 | 30,543 | |||
Provision for doubtful accounts of prepayments | (7,382) | 11,710 | 2,839 | ||
Tangible asset impairment charges, total | 0 | 0 | 0 | ||
Impairment of long-lived assets to be disposed of | $ 0 | 0 | |||
Revenue, performance obligation, description of payment terms | The payment terms usually include, but are not limited to, the following billing stages: 1) signing of the sales contract, approximately between 20% - 40% of the contract price, 2) before delivery 30% - 40%, 3) completion of the delivery or instalment, approximately between 10% - 30% of the contract price, and 4) completion of a warranty period, approximately within 10% of the contract price. The completion of a warranty period is only passage of time and would not make the Company probable to not able to bill the remaining approximately 10% of the contract price. | ||||
Contract with customer, liability, revenue recognized | $ 1,753,808 | 1,629,501 | 931,131 | ||
Defined contribution plan, cost | $ 257,024 | 233,008 | 249,284 | ||
Income tax examination, description | with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded | ||||
Income tax examination, penalties and interest accrued | $ 0 | $ 0 | $ 0 | ||
Statutory reserve description | Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). | ||||
Tongsheng Intelligen [Member] | |||||
Subsidiary, ownership percentage, noncontrolling owner | 30% | ||||
Singapore [Member] | |||||
Goods and services tax rate | 8% | ||||
Singapore [Member] | Subsequent Event [Member] | |||||
Goods and services tax rate | 9% | ||||
Use Rights [Member] | |||||
Finite-lived intangible asset, useful life | 50 years | ||||
Computer Software, Intangible Asset [Member] | Maximum [Member] | |||||
Finite-lived intangible asset, useful life | 5 years | ||||
Computer Software, Intangible Asset [Member] | Minimum [Member] | |||||
Finite-lived intangible asset, useful life | 3 years | ||||
Technology-Based Intangible Assets [Member] | Maximum [Member] | |||||
Finite-lived intangible asset, useful life | 5 years | ||||
Technology-Based Intangible Assets [Member] | Minimum [Member] | |||||
Finite-lived intangible asset, useful life | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Translation of Foreign Currencies (Detail) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Singapore, Dollars | |||
Foreign Currency Exchange Rate, Translation | 1.3193 | 1.3404 | 1.352 |
Singapore, Dollars | Arithmetic Average [Member] | |||
Foreign Currency Exchange Rate, Translation | 1.3428 | 1.3787 | 1.3438 |
China, Yuan Renminbi | |||
Foreign Currency Exchange Rate, Translation | 7.0999 | 6.8972 | 6.3726 |
China, Yuan Renminbi | Arithmetic Average [Member] | |||
Foreign Currency Exchange Rate, Translation | 7.0809 | 6.729 | 6.4508 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Property and Equipment are Stated at Cost Less Accumulated Depreciation (Detail) | Dec. 31, 2023 |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 50 years |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Operation Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Operation Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of the Company's Revenues by Geographic Locations are Summarized (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 14,362,502 | $ 16,334,400 | $ 17,468,116 |
China revenues | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 5,333,982 | 5,812,884 | 6,802,386 |
Singapore revenues | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 9,028,520 | $ 10,521,516 | $ 10,665,730 |
Accounts and Notes Receivable_3
Accounts and Notes Receivable, Net - Summary of Accounts and Notes Receivable (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||||
Accounts receivable | $ 3,960,409 | $ 2,423,055 | ||
Notes receivable | 86,623 | 300,406 | ||
Allowance for credit losses | (472,293) | (303,311) | $ (310,968) | $ (190,777) |
Total accounts and notes receivable, net | $ 3,574,739 | $ 2,420,150 |
Accounts and Notes Receivable_4
Accounts and Notes Receivable, Net - Summary of Movements of allowance for credit losses (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | |||
Beginning balance | $ 303,311 | $ 310,968 | $ 190,777 |
Addition | 178,118 | 16,394 | 114,227 |
Exchange rate effect | (9,136) | (24,051) | 5,964 |
Ending balance | $ 472,293 | $ 303,311 | $ 310,968 |
Other Receivables and Other C_3
Other Receivables and Other Current Assets, Net - Summary of Other Receivables and Other Current Assets Net (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Other Receivables And Other Current Assets Net [Abstract] | ||||
Due from third parties | $ 452,544 | $ 383,050 | ||
Refundable deposits | 16,054 | 10,517 | ||
Others | 0 | 34,429 | ||
Allowance for credit losses | (252,947) | (239,594) | $ (264,880) | $ (247,336) |
Total other receivables and other current assets, net | $ 215,651 | $ 188,402 |
Other Receivables and Other C_4
Other Receivables and Other Current Assets, Net - Summary of Allowance for Credit Losses (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance For Credit Losses On Financing Receivables [Abstract] | |||
Beginning balance | $ 239,594 | $ 264,880 | $ 247,336 |
Addition (recovery) | 20,247 | (5,268) | 11,488 |
Exchange rate effect | (6,894) | (20,018) | 6,056 |
Ending balance | $ 252,947 | $ 239,594 | $ 264,880 |
Inventories, Net - Summary of I
Inventories, Net - Summary of Inventories, Net (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||||
Raw materials | $ 564,779 | $ 509,056 | ||
Finished goods | 454,654 | 469,526 | ||
Work in process | 1,465,100 | 637,436 | ||
Reserve for inventories | (200,724) | (211,349) | $ (401,570) | $ (298,137) |
Total inventories, net | $ 2,283,809 | $ 1,404,669 |
Inventories, Net - Summary of M
Inventories, Net - Summary of Movements of Inventory Reserves (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movements Of Inventory Reserves [Line Items] | |||
Beginning balance | $ 211,349 | $ 401,570 | $ 298,137 |
Addition | 6,713 | 42,544 | 95,136 |
Write-off | (38,916) | (206,213) | 0 |
Exchange rate effect | 21,578 | (26,552) | 8,297 |
Ending balance | $ 200,724 | $ 211,349 | $ 401,570 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movements Of Inventory Reserves [Abstract] | |||
Inventory Write-down | $ 6,713 | $ 42,544 | $ 95,136 |
Long-Term Investment - Addition
Long-Term Investment - Additional Information (Detail) - Haitianhuineng [Member] ¥ in Millions, $ in Millions | 1 Months Ended | |||||
Mar. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 29, 2021 USD ($) | Mar. 29, 2021 CNY (¥) | |
Long Term Investments [Line Items] | ||||||
Equity method investments | $ 0.2 | ¥ 1.5 | ||||
Equity method investment, ownership percentage | 4.56% | 4.56% | ||||
Payments to acquire equity method Investments | $ 0.2 | ¥ 1.5 | ||||
Qingdao Intelligent [Member] | ||||||
Long Term Investments [Line Items] | ||||||
Equity method investments | $ 0.2 | $ 0 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and equipment, Net Property and Equipment, Net Consist (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 8,500,669 | $ 8,363,658 |
Accumulated depreciation | (2,355,470) | (2,125,899) |
Total | 6,145,199 | 6,237,759 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,552,833 | 6,452,898 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 646,830 | 606,891 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,301,006 | $ 1,303,869 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 218,148 | $ 128,517 | $ 207,760 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Intangible Assets Consisted (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: Accumulated amortization | $ (89,914) | $ (76,475) |
Total intangible assets, net | 55,842 | 33,944 |
Land use rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 27,888 | 28,707 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 104,224 | 68,283 |
Technology knowhow [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 13,644 | $ 13,429 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Company's Amortization Expense (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Twelve months ending December 31, 2024 | $ 12,884 | |
Twelve months ending December 31, 2025 | 12,490 | |
Twelve months ending December 31, 2026 | 8,158 | |
Twelve months ending December 31, 2027 | 8,158 | |
Twelve months ending December 31, 2028 | 559 | |
Thereafter | 13,593 | |
Total intangible assets, net | $ 55,842 | $ 33,944 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 15,118 | $ 12,086 | $ 15,706 |
Credit Facilitates - Schedule o
Credit Facilitates - Schedule of Short Term Debt Bank Loans (Detail) - Loans Payable [Member] - Industrial and Commercial Bank of China – Pingdu Branch [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | ||
Debt Instrument, Maturity Date | Oct. 18, 2023 | |
Interest Rate | 3.85% for contract from 12/31/2021 to 11/29/2022, and 3.65% for contract from 10/20/2022 to 10/18/2023 | |
Collateral Guarantee | No | |
Short-term loans - banks | $ 0 | $ 453,807 |
Credit Facilitates - Schedule_2
Credit Facilitates - Schedule of Short Term Debt Bank Loans (Parenthetical) (Detail) - Industrial and Commercial Bank of China – Pingdu Branch [Member] - Loans Payable [Member] | 12 Months Ended |
Dec. 31, 2023 | |
From 12/31/2021 to 11/29/2022 [Member] | |
Short-Term Debt [Line Items] | |
Short-term debt, weighted average interest rate, over time | 3.85% |
From 10/20/2022 to 10/18/2023 [Member] | |
Short-Term Debt [Line Items] | |
Short-term debt, weighted average interest rate, over time | 3.65% |
Credit Facilitates - Schedule_3
Credit Facilitates - Schedule Of Short Term Debt Banking Facilities (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Total current portion of banking facilities | $ (140,162) | $ (170,093) |
Total noncurrent portion of banking facilities | 1,951,389 | 2,373,136 |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Short-term loans - banks | 2,091,551 | 2,543,229 |
Total current portion of banking facilities | (140,162) | (170,093) |
Total noncurrent portion of banking facilities | $ 1,951,389 | 2,373,136 |
United Overseas Bank Limited ("UOB") [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Term | Varies from 36 monthly instalment, 72 monthly instalments, and 168 monthly instalments from the first date of first disbursement | |
Interest rate | Effective on September 20, 2022, the repriced interest rate changes to1st year and 2nd year fixed at 1.20% over the applicable 3-month compounded Singapore Overnight Rate Average (“SORA”); 3rd year and thereafter 2.00% over the applicable 3-month compounded SORA | |
Collateral Guarantee | Guaranteed by Mr. Wanjun Yao, the major shareholder, Mr. Jinan Tang, senior manager, Mrs. Liling Du, director, Mr. Demin Han, director, and the properties of Tung Resources | |
Short-term loans - banks | $ 762,025 | 848,362 |
DBS Bank, Ltd. ("DBS") [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Term | 300 monthly instalments from the date of first disbursement | |
Interest rate | Effective on June 6, 2022, the repriced interest rate changes to 1st year and 2nd year fixed rate at 2.58%; SORA in-advance plus 3.00% (Margin) | |
Collateral Guarantee | Guaranteed by Mr. Wanjun Yao, the major shareholder, and the properties of Tung Resources | |
Short-term loans - banks | $ 1,329,526 | 1,353,561 |
Standard Chartered Bank [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Term | 180 months from the date of first disbursement | |
Interest rate | 1st year and 2nd year fixed at 0.38% above fixed deposit rate, thereafter fixed at 1.78% above fixed deposit rate (the current 36-month fixed deposit rate for a 36-month Singapore dollar time deposit is 1.02% per annum) | |
Collateral Guarantee | Guaranteed by Mr. Wanjun Yao, major shareholder, Mr. Jinan Tang, senior manager, and the properties of Tungray Singapore | |
Short-term loans - banks | $ 0 | $ 341,306 |
Credit Facilitates - Schedule_4
Credit Facilitates - Schedule Of Short Term Debt Banking Facilities (Parenthetical) (Detail) | 12 Months Ended | 36 Months Ended | ||||||
Sep. 20, 2025 | Sep. 20, 2024 | Sep. 20, 2023 | Jun. 06, 2023 | Sep. 20, 2022 | Jun. 06, 2022 | Dec. 31, 2023 | Sep. 20, 2023 | |
Line of Credit [Member] | United Overseas Bank Limited ("UOB") [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Frequency of payments | 36 monthly instalment, 72 monthly instalments | |||||||
Line of Credit [Member] | DBS Bank, Ltd. ("DBS") [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Frequency of payments | 300 monthly instalments | |||||||
Line of Credit [Member] | Standard Chartered Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Frequency of payments | 180 months | |||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 1.02% | |||||||
Short Term Debt Interest Rate In Year One [Member] | Line of Credit [Member] | DBS Bank, Ltd. ("DBS") [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 2.58% | |||||||
Short Term Debt Interest Rate In Year One [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Line of Credit [Member] | United Overseas Bank Limited ("UOB") [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 1.20% | |||||||
Short Term Debt Interest Rate In Year One [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Line of Credit [Member] | Standard Chartered Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 0.38% | |||||||
Short Term Debt Interest Rate In Year Two [Member] | Line of Credit [Member] | DBS Bank, Ltd. ("DBS") [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 2.58% | |||||||
Short Term Debt Interest Rate In Year Two [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Line of Credit [Member] | United Overseas Bank Limited ("UOB") [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 1.20% | |||||||
Short Term Debt Interest Rate In Year Two [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Line of Credit [Member] | Standard Chartered Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 0.38% | |||||||
Short Term Debt Interest Rate In Year Three [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Line of Credit [Member] | United Overseas Bank Limited ("UOB") [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 2% | |||||||
Short Term Debt Interest Rate In Year Three [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Line of Credit [Member] | DBS Bank, Ltd. ("DBS") [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 3% | |||||||
Short Term Debt Interest Rate In Year Three [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Line of Credit [Member] | Standard Chartered Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 1.78% |
Credit Facilitates - Schedule_5
Credit Facilitates - Schedule Of Debt Instruments (Detail) - We Bank [Member] - Loans Payable [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Maturities | Loan period 24 months, repay before 11/27/2023 | |
Interest Rate | Loan Prime Rate 4.25% | |
Collateral Guarantee | Hui Tang | |
Long-Term Debt | $ 0 | $ 209,609 |
Credit Facilitates - Schedule_6
Credit Facilitates - Schedule Of Debt Instruments (Parenthetical) (Detail) - Loans Payable [Member] - We Bank [Member] | 12 Months Ended |
Dec. 31, 2023 | |
Debt Instrument [Line Items] | |
Debt Instrument, Term | 24 months |
Debt Instrument, Maturity Date | Nov. 27, 2023 |
Prime Rate [Member] | |
Debt Instrument [Line Items] | |
Variable Rate | 4.25% |
Credit Facilitates - Additional
Credit Facilitates - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Interest Expense, Debt | $ 110,136 | $ 209,734 | $ 138,489 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables - Schedule of Accrued Expenses and Other Payables (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 80,018 | $ 85,358 |
Accrued payroll | 948,371 | 769,054 |
Estimated warranty liabilities | 65,073 | 78,434 |
Intercourse funds payable | 196,479 | 60,190 |
Total accrued expenses and other payables | $ 1,289,941 | $ 993,036 |
Related Party Balances and Tr_3
Related Party Balances and Transactions - Summary of Related Party Balance (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Prepayments - related parties | $ 1,048,745 | $ 48,115 |
Account Receivable [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable - related parties | $ 319,589 | 104,743 |
Account Receivable [Member] | FDT (Qingdao) Intellectual Technology Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Accounts receivable - related parties | $ 19,372 | 67,031 |
Account Receivable [Member] | Tungray (Kunshan) Industrial Automation Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Accounts receivable - related parties | $ 202,679 | 7,626 |
Account Receivable [Member] | Tungray (Kunshan) Robot Intelligent Technology Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Accounts receivable - related parties | $ 52,889 | 30,086 |
Account Receivable [Member] | Kunshan Tungray Intelligent Technology Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Accounts receivable - related parties | $ 44,649 | 0 |
Accounts Payable [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable - related parties | $ 498,923 | 110,347 |
Accounts Payable [Member] | FDT (Qingdao) Intellectual Technology Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under CEO | |
Accounts payable - related parties | $ 365,665 | 0 |
Accounts Payable [Member] | Qingdao Tungray Technology Development Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Accounts payable - related parties | $ 26,061 | 0 |
Accounts Payable [Member] | Shanghai Tongrui Industrial Automation Equipment Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Accounts payable - related parties | $ 32,395 | 33,347 |
Accounts Payable [Member] | Shanghai Tongrui Investment Management Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Accounts payable - related parties | $ 54,661 | 56,267 |
Accounts Payable [Member] | Hefei CAS Dihuge Automation Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | 10.27% ownership interest investee | |
Accounts payable - related parties | $ 20,141 | 20,733 |
Other Receivables [Member] | ||
Related Party Transaction [Line Items] | ||
Other receivables – related parties | $ 23,816 | 23,827 |
Other Receivables [Member] | Hui Tang [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Senior management of Qingdao Tungray Intelligent | |
Other receivables – related parties | $ 0 | 13,348 |
Other Receivables [Member] | Qingdao Tungray Biology Technology Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Other receivables – related parties | $ 23,816 | 0 |
Other Receivables [Member] | FDT (Qingdao) Intellectual Technology Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Other receivables – related parties | $ 0 | 3,345 |
Other Receivables [Member] | Tungmoon Investment [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Other receivables – related parties | $ 0 | 7,134 |
Other Payables [Member] | ||
Related Party Transaction [Line Items] | ||
Other payable– related parties | $ 670,866 | 1,865,532 |
Other Payables [Member] | Tungray (Kunshan) Industrial Automation Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Other payable– related parties | $ 41,853 | 0 |
Other Payables [Member] | Shanghai Tongrui Investment Management Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Other payable– related parties | $ 0 | 1,160 |
Other Payables [Member] | Jingan Tang [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Senior Manager of Tungray Industrial | |
Other payable– related parties | $ 277,607 | 691,792 |
Other Payables [Member] | Liling Du [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | CFO of Tungray Singapore | |
Other payable– related parties | $ 38,216 | 96,475 |
Other Payables [Member] | Gang Wang [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Shareholder of Tungray Singapore and Tung Resource | |
Other payable– related parties | $ 54,005 | 188,525 |
Other Payables [Member] | Demin Han [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | General Manager | |
Other payable– related parties | $ 156,455 | 538,014 |
Other Payables [Member] | Lei Yao [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Chief Technology Officer | |
Other payable– related parties | $ 2,893 | 0 |
Other Payables [Member] | Mingxing Gao [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | General Manager | |
Other payable– related parties | $ 99,837 | 349,566 |
Prepayments [Member] | ||
Related Party Transaction [Line Items] | ||
Prepayments - related parties | $ 1,048,745 | 48,115 |
Prepayments [Member] | Qingdao Tungray Technology Development Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Prepayments - related parties | $ 55,000 | 48,115 |
Prepayments [Member] | Tungray (Kunshan) Industrial Automation Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Prepayments - related parties | $ 993,745 | 0 |
Operating Lease Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Operating lease liabilities- related parties | 462,544 | 563,179 |
Current portion of operating lease liabilities - related party | (123,094) | (73,166) |
Noncurrent portion of operating lease liabilities - related parties | $ 339,450 | 490,013 |
Operating Lease Liabilities [Member] | Tungray (Qingdao) Technology Development Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Common control under major shareholder | |
Operating lease liabilities- related parties | $ 244,112 | 206,789 |
Operating Lease Liabilities [Member] | Jingan Tang [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Senior Manager of Tungray Industrial | |
Operating lease liabilities- related parties | $ 218,432 | $ 356,390 |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Schedule of Related Party Transactions (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 319,546 | $ 67,189 | $ 147,531 |
Revenue [Member] | Tungray (Kunshan) Industrial Automation Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Nature of common ownership or management control relationships | Common control under major shareholder | ||
Revenue from related parties | $ 231,209 | 0 | 0 |
Revenue [Member] | Tungray (Kunshan) Robot Intelligent Technology Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Nature of common ownership or management control relationships | Common control under major shareholder | ||
Revenue from related parties | $ 26,245 | 0 | 0 |
Revenue [Member] | FDT (Qingdao) Intellectual Technology Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Nature of common ownership or management control relationships | Common control under major shareholder | ||
Revenue from related parties | $ 4,602 | 66,096 | 147,531 |
Revenue [Member] | Kunshan Tungray Intelligent Technology Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Nature of common ownership or management control relationships | Common control under major shareholder | ||
Revenue from related parties | $ 57,490 | 0 | 0 |
Revenue [Member] | Kunshan Tongri Intelligent Manufacturing Technology Research Institute Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Nature of common ownership or management control relationships | Common control under major shareholder | ||
Revenue from related parties | $ 0 | 1,093 | 0 |
Cost Of Revenue [Member] | FDT (Qingdao) Intellectual Technology Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Nature of common ownership or management control relationships | Common control under major shareholder | ||
Purchase from related parties | $ 961,525 | 41,566 | 0 |
Other Operating Income (Expense) [Member] | Qingdao Tungray Biology Technology Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Nature of common ownership or management control relationships | Common control under major shareholder | ||
Non-operating income- related parties | $ 19,126 | 25,129 | 26,212 |
Operating Expense [Member] | |||
Related Party Transaction [Line Items] | |||
Rental expenses- related parties | $ 138,887 | 115,060 | 114,033 |
Operating Expense [Member] | Qingdao Tungray Technology Development Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Nature of common ownership or management control relationships | Common control under major shareholder | ||
Rental expenses- related parties | $ 66,476 | 51,219 | 47,438 |
Operating Expense [Member] | Jingan Tang [Member] | |||
Related Party Transaction [Line Items] | |||
Nature of common ownership or management control relationships | Senior Manager of Tungray Industrial | ||
Rental expenses- related parties | $ 72 | $ 63,841 | $ 66,595 |
Related Party Balances and Tr_5
Related Party Balances and Transactions - Additional Information (Detail) | Dec. 31, 2023 | Jan. 01, 2023 |
Related Party Transaction [Line Items] | ||
Lessee operating lease term | 2 years | |
Building Leases [Member] | Related Party [Member] | Quingdao [Member] | ||
Related Party Transaction [Line Items] | ||
Lessee operating lease term | 5 years | 5 years |
Building Leases [Member] | Related Party [Member] | Jingan Tang [Member] | ||
Related Party Transaction [Line Items] | ||
Lessee operating lease term | 7 years |
Stockholders' Equity- Additiona
Stockholders' Equity- Additional Information (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 29, 2022 | Jun. 01, 2022 | Dec. 31, 2020 | |
Stockholders Equity Note [Line Items] | ||||||
Authorized share capital | $ 50,000 | $ 50,000 | ||||
Minimum reserve percentage of after tax profit | 10% | |||||
Stock holders equity statutory reserves | $ 8,337 | $ 51,591 | $ 72,300 | |||
Restricted paid in capital and statutory reserve | $ 2,984,735 | $ 3,371,196 | ||||
Common Class A [Member] | ||||||
Stockholders Equity Note [Line Items] | ||||||
Common stock shares authorized | 400,000,000 | 400,000,000 | ||||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 | ||||
Common stock shares issued | 10,440,000 | 10,440,000 | ||||
Common stock shares outstanding | 10,440,000 | 10,440,000 | ||||
Common Class B [Member] | ||||||
Stockholders Equity Note [Line Items] | ||||||
Common stock shares authorized | 100,000,000 | 100,000,000 | ||||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 | ||||
Common stock shares issued | 4,560,000 | 4,560,000 | ||||
Common stock shares outstanding | 4,560,000 | 4,560,000 | ||||
Common Stock [Member] | ||||||
Stockholders Equity Note [Line Items] | ||||||
Common stock shares authorized | 500,000,000 | 500,000,000 | ||||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 | ||||
Common stock shares issued | 1 | |||||
Common stock shares outstanding | 1 | |||||
Common Stock [Member] | Common Class A [Member] | ||||||
Stockholders Equity Note [Line Items] | ||||||
Common stock shares authorized | 400,000,000 | |||||
Common stock, par or stated value per share | $ 0.0001 | |||||
Common stock shares outstanding | 10,440,000 | 10,440,000 | 10,440,000 | 10,440,000 | ||
Common Stock [Member] | Common Class B [Member] | ||||||
Stockholders Equity Note [Line Items] | ||||||
Common stock shares authorized | 100,000,000 | |||||
Common stock, par or stated value per share | $ 0.0001 | |||||
Common stock shares outstanding | 4,560,000 | 4,560,000 | 4,560,000 | 4,560,000 |
Income taxes - Summary of incom
Income taxes - Summary of income tax provision (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current: | $ 429,559 | $ 532,098 | $ 738,616 |
Deferred Foreign Income Tax Expense (Benefit) | 74,616 | (14,816) | (31,896) |
Total income tax provision | $ 504,175 | $ 517,282 | $ 706,720 |
Income taxes - Summary of Inc_2
Income taxes - Summary of Income/(loss) before provision for income taxes (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Singapore | $ 2,679,481 | $ 3,278,678 | $ 4,038,905 |
PRC | (1,359,659) | 120,751 | 776,260 |
Income before income taxes | $ 1,319,822 | $ 3,399,429 | $ 4,815,165 |
Income taxes - Summary of Singa
Income taxes - Summary of Singapore statutory rates to the Company's effective tax rate (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Singapore income tax rate | 17% | 17% | 17% |
Difference from the effect of tax rates in a foreign jurisdiction (PRC) | (14.60%) | 1% | 0% |
Impact of preferential tax rate difference in PRC | 7.90% | 1.20% | 0.50% |
Tax rebate in Singapore | (2.00%) | (0.70%) | 0% |
Additional R&D deduction | (10.10%) | (4.60%) | (3.10%) |
Change in valuation allowance | 36.40% | 0.40% | 0% |
Permanent differences | 3.60% | 0.90% | 0.30% |
Effective tax rate | 38.20% | 15.20% | 14.70% |
Income taxes - Summary of the a
Income taxes - Summary of the aggregate deferred tax assets and liabilities (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets/Liabilities | ||
Net operating loss carryforwards | $ 397,421 | $ 100,299 |
Allowance for credit losses | 151,335 | 32,781 |
Inventory reserves | 32,566 | 42,345 |
Less: valuation allowance | (581,322) | (100,299) |
Deferred tax assets, net | $ 0 | $ 75,126 |
Income taxes - Summary of the n
Income taxes - Summary of the net operating loss carry forward in China (Detail) | Dec. 31, 2023 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 2,260,118 |
Twelve months ending December 31, 2024 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 114,502 |
Twelve months ending December 31, 2025 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 69,247 |
Twelve months ending December 31, 2026 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 107,267 |
Twelve months ending December 31, 2027 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 155,662 |
Twelve months ending December 31, 2028 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 1,813,440 |
Income taxes - Summary of taxes
Income taxes - Summary of taxes payable (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Income tax payable | $ 304,563 | $ 546,299 |
VAT payable | 182,647 | 263,397 |
Other tax payable | 32,333 | 49,917 |
Totals | $ 519,543 | $ 859,613 |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2023 SGD ($) | |
Income taxes [Line Items] | ||||
Applicable tax rate | 38.20% | 15.20% | 14.70% | |
Percentage of taxable income | 50% | 50% | ||
Taxable income exempt from tax | $ 141,000 | $ 190,000 | ||
Basic earning per share | $ / shares | $ 0.06 | $ 0.19 | $ 0.27 | |
Net operating losses carry forward | $ 2,260,118 | |||
Operating loss carryforwards expiry eligible | 5 years | |||
Percentage of valuation allowance on deferred tax assets | 100% | 100% | ||
China Subsidiaries [Member] | ||||
Income taxes [Line Items] | ||||
Net operating losses carry forward | $ 2,300,000 | $ 1,400,000 | ||
Valuation allowance on deferred tax assets | $ 600,000 | 100,000 | ||
Singapore [Member] | ||||
Income taxes [Line Items] | ||||
Applicable tax rate | 17% | |||
Percentage of taxable income | 75% | 75% | ||
Taxable income exempt from tax | $ 7,400 | $ 10,000 | ||
PRC [Member] | ||||
Income taxes [Line Items] | ||||
Percentage of research and development expenditure eligible for deduction | 100% | |||
Tax savings value | $ 0 | $ 0 | $ 31,633 | |
Basic earning per share | $ / shares | $ 0 | $ 0 | $ 0.002 | |
PRC [Member] | Foreign Investment Enterprises [Member] | ||||
Income taxes [Line Items] | ||||
Applicable tax rate | 25% | |||
PRC [Member] | High and New Technology Enterprises [Member] | ||||
Income taxes [Line Items] | ||||
Applicable tax rate | 15% | |||
PRC [Member] | Qingdao Intelligent [Member] | ||||
Income taxes [Line Items] | ||||
Expiry of status | 2026-11 | |||
PRC [Member] | Shenzhen Tongri [Member] | ||||
Income taxes [Line Items] | ||||
Expiry of status | 2024-12 |
Concentrations of risks - Addit
Concentrations of risks - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 SGD ($) | |
Concentration Risk [Line Items] | |||||
Cash | $ | $ 10,802,405 | $ 13,130,296 | |||
Customer One [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Customer | one | one | one | ||
Customer Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Customer | two | two | |||
Vendor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Supplier | one | one | |||
CHINA | |||||
Concentration Risk [Line Items] | |||||
Insurance Coverage for Cash deposits | ¥ | ¥ 500,000 | ||||
Cash | $ 1,042,134 | 7,399,045 | |||
SINGAPORE | |||||
Concentration Risk [Line Items] | |||||
Cash | $ 9,756,652 | $ 12,871,951 | |||
Customer Concentration Risk [Member] | Customer Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Threshold Percentage | 32.90% | 27.30% | |||
Revenue from Customer [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Percentage | 64.20% | 60.70% | 60% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Percentage | 20.40% | 23% | |||
Purchase Benchmark [Member] | Supplier Concentration Risk [Member] | Vendor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Percentage | 10% | ||||
Concentration Risk Additional Characteristic | no | no | no | ||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Vendor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Percentage | 23.60% | 13.20% | |||
Assets, Total [Member] | CHINA | |||||
Concentration Risk [Line Items] | |||||
Cash | $ 464,717 | ¥ 3,299,443 | |||
Assets, Total [Member] | SINGAPORE | |||||
Concentration Risk [Line Items] | |||||
Cash | 9,301,865 | 12,271,951 | |||
Deposit Insurance Scheme [Member] | SINGAPORE | |||||
Concentration Risk [Line Items] | |||||
Deposits | $ 57,000 | $ 75,000 |
Leases - Summary Of Finance Lea
Leases - Summary Of Finance Lease Costs (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Amortization of leased asset | $ 97,801 | $ 210,303 | |
Interest on lease liabilities | 625 | 5,685 | |
Total lease expenses | $ 98,426 | $ 215,988 |
Leases - Summary of weighted-av
Leases - Summary of weighted-average remaining term and discount rate related to finance leases (Detail) | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted-average remaining term in number of months | ||
Finance leases | ||
Weighted-average discount rate | ||
Finance leases | 5.68% |
Leases - Summary of operating l
Leases - Summary of operating lease expenses (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating lease cost | |||
Amortization of leased asset | $ 154,455 | $ 120,053 | $ 119,242 |
Interest on lease liabilities | 26,198 | 26,664 | 26,932 |
Total lease expenses | $ 180,653 | $ 146,717 | $ 146,174 |
Leases - Summary of weighted-_2
Leases - Summary of weighted-average remaining term and discount rate related to operating leases (Detail) | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted-average remaining term in number of months | ||
Operating leases | 27 months 18 days | 17 months 10 days |
Weighted-average discount rate | ||
Operating leases | 4.36% | 4.40% |
Leases - Summary of minimum lea
Leases - Summary of minimum lease payments in future periods (Detail) | Dec. 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Current lease liabilities | $ (46,232) |
Non current lease liabilities | 10,603 |
Related Party And Non Related Party [Member] | |
Lessee, Lease, Description [Line Items] | |
Twelve months ending December 31, 2024 | 189,368 |
Twelve months ending December 31, 2025 | 156,219 |
Twelve months ending December 31, 2026 | 149,502 |
Twelve months ending December 31, 2027 | 66,297 |
Twelve months ending December 31, 2028 | |
Total lease payments | 561,386 |
Less: discount | (42,007) |
Present value of lease liabilities | 519,379 |
Current lease liabilities | (169,326) |
Non current lease liabilities | $ 350,053 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 01, 2023 | Jan. 01, 2023 | Jan. 01, 2020 | Mar. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||||||
Finance lease weighted average discount rate percentage | 5.68% | ||||||
Lessee operating lease term | 2 years | ||||||
Related Party [Member] | Quingdao [Member] | Building Leases [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee operating lease term | 5 years | 5 years | |||||
Related Party [Member] | Shenzen [Member] | Building Leases [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee operating lease term | 7 years | 7 years | |||||
Nonrelated Party [Member] | Quingdao [Member] | Building Leases [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee operating lease term | 2 years | ||||||
Nonrelated Party [Member] | Shenzen [Member] | Building Leases [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee operating lease term | 2 years | ||||||
Nonrelated Party [Member] | Shenzen [Member] | Building Purchase Agreement [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee operating lease term | 50 years | ||||||
Qingdao [Member] | Related Party [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessor operating lease term | 10 years | ||||||
Operating lease lease income lease payments | $ 138,727 | $ 157,786 | $ 152,350 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Apr. 18, 2024 | Mar. 06, 2024 | Mar. 07, 2024 | Jan. 09, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Common Class A [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock shares outstanding | 10,440,000 | 10,440,000 | ||||
Common Class B [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock shares outstanding | 4,560,000 | 4,560,000 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Class of warrant or right, exercise price of warrants or rights | $ 4.8 | |||||
Subsequent Event [Member] | Common Class A [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from initial public offer | $ 5 | |||||
Common stock shares outstanding | 11,690,000 | |||||
Subsequent Event [Member] | Common Class A [Member] | IPO [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock issued during the period shares new issues | 1,250,000 | |||||
Sale of stock issue price per share | $ 4 | |||||
Class of warrants or rights number of securities covered by warrants or rights | 62,500 | |||||
Xiang Tongri Intelligent Industrial Technology [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Business combination step acquisition percentage | 13% | 33% | 20% | |||
Commitment to contribute capital | $ 3.3 | |||||
Payment to acquire additional interest in subsidiaries | $ 1 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company - Schedule of Condensed Balance Sheet (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
OTHER ASSETS | ||
Total assets | $ 26,869,174 | $ 25,820,485 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
COMMITMENTS AND CONTINGENCIES | ||
Equity, Attributable to Parent [Abstract] | ||
Additional paid-in capital | 332,574 | 332,574 |
Accumulated other comprehensive loss | (213,302) | (344,468) |
Total Tungray Technologies Inc shareholders' equity | 16,334,381 | 15,287,793 |
Total liabilities and shareholders' equity | 26,869,174 | 25,820,485 |
Common Class A [Member] | ||
Equity, Attributable to Parent [Abstract] | ||
Common stock | 1,044 | 1,044 |
Common Class B [Member] | ||
Equity, Attributable to Parent [Abstract] | ||
Common stock | 456 | 456 |
Parent Company [Member] | ||
OTHER ASSETS | ||
Investment in subsidiary | 16,334,381 | 15,287,793 |
Total assets | 16,334,381 | 15,287,793 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
COMMITMENTS AND CONTINGENCIES | ||
Equity, Attributable to Parent [Abstract] | ||
Additional paid-in capital | 332,574 | 332,574 |
Retained earnings | 15,964,848 | 15,057,763 |
Statutory reserves | 248,761 | 240,424 |
Accumulated other comprehensive loss | (213,302) | (344,468) |
Total Tungray Technologies Inc shareholders' equity | 16,334,381 | 15,287,793 |
Total liabilities and shareholders' equity | 16,334,381 | 15,287,793 |
Parent Company [Member] | Common Class A [Member] | ||
Equity, Attributable to Parent [Abstract] | ||
Common stock | 1,044 | 1,044 |
Parent Company [Member] | Common Class B [Member] | ||
Equity, Attributable to Parent [Abstract] | ||
Common stock | $ 456 | $ 456 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company - Schedule of Condensed Balance Sheet (Parenthetical) (Detail) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common Class A [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 400,000,000 | 400,000,000 |
Common stock shares issued | 10,440,000 | 10,440,000 |
Common stock shares outstanding | 10,440,000 | 10,440,000 |
Common Class B [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 4,560,000 | 4,560,000 |
Common stock shares outstanding | 4,560,000 | 4,560,000 |
Parent Company [Member] | Common Class A [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 10,440,000 | 10,440,000 |
Common stock shares outstanding | 10,440,000 | 10,440,000 |
Parent Company [Member] | Common Class B [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 4,560,000 | 4,560,000 |
Common stock shares outstanding | 4,560,000 | 4,560,000 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company - Schedule of Condensed Statement of Comprehensive Income (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OTHER INCOME (EXPENSE) | |||
Total other income, net | $ 336,576 | $ 197,290 | $ 289,126 |
NET INCOME | 915,422 | 2,892,480 | 4,109,724 |
COMPREHENSIVE INCOME | 946,510 | 2,469,656 | 4,303,512 |
Parent Company [Member] | |||
OTHER INCOME (EXPENSE) | |||
Equity income of subsidiaries | 915,422 | 2,892,480 | 4,109,724 |
Total other income, net | 915,422 | 2,892,480 | 4,109,724 |
NET INCOME | 915,422 | 2,892,480 | 4,109,724 |
FOREIGN CURRENCY TRANSLATION ADJUSTMENT | 131,166 | (409,559) | 194,958 |
COMPREHENSIVE INCOME | $ 1,046,588 | $ 2,482,921 | $ 4,304,682 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company - Schedule of Condensed Cash Flow Statement (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | $ 915,422 | $ 2,892,480 | $ 4,109,724 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Net cash used in operating activities | 451,021 | 3,638,067 | 5,986,326 |
Cash - beginning of the year | 13,130,296 | 11,336,548 | 6,096,358 |
Cash - end of the year | 10,802,405 | 13,130,296 | 11,336,548 |
Parent Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | 915,422 | 2,892,480 | 4,109,724 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Equity income of subsidiaries | (915,422) | (2,892,480) | (4,109,724) |
Net cash used in operating activities | |||
CHANGES IN CASH | |||
Cash - beginning of the year | |||
Cash - end of the year |