In This Story
FGI Industries Ltd. (FGI-7.40%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing reveals a revenue increase to $131.8 million from $117.2 million in the previous year, driven primarily by higher sales in sanitaryware, shower systems, and custom kitchen cabinetry categories.
Cost of revenue rose to $96.4 million from $85.2 million, resulting in a gross profit of $35.4 million, up from $32.1 million in the prior year. The gross profit margin decreased slightly to 26.9% from 27.4%.
Operating expenses increased to $37.5 million from $29.8 million, with selling and distribution expenses rising to $25.6 million and general and administrative expenses increasing to $10.2 million.
The company reported a net loss of $1.7 million, compared to a net income of $0.6 million in the previous year, attributed to increased operating expenses and interest expenses.
FGI's liquidity position includes cash and working capital of $4.6 million and $10.4 million, respectively, with outstanding loans totaling $14.5 million.
The company identified material weaknesses in its internal controls over financial reporting, specifically in segregation of duties and management review controls, and is implementing remediation efforts.
FGI's growth strategy focuses on product innovation, expanding branded product offerings, and exploring new sales channels and geographic markets.
The filing also notes that FGI is dependent on a few key suppliers, with Tangshan Huida Ceramic Group Co., Ltd. accounting for a significant portion of its purchases.
FGI does not anticipate paying cash dividends in the foreseeable future, opting to retain earnings for growth and operational needs.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the FGI Industries Ltd. annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.