Mingteng International Corporation Inc. (MTEN) announced a deepening of its partnership with a leading Chinese new‑energy vehicle (NEV) supplier that has ranked among the top three in market share for motor systems used in heavy‑duty NEV trucks for three consecutive years (2022‑2024). The collaboration focuses on the joint development and manufacturing of aluminum alloy molds for electric powertrain components, including drive assemblies, electric motors, and transmission systems.
The expanded partnership is a strategic move to strengthen MTEN’s position in the rapidly growing NEV market, where lightweight, high‑performance molds are essential for electric trucks and buses. By working closely with the supplier, MTEN aims to accelerate the delivery of advanced mold designs and improve production efficiency for NEV powertrain components, thereby capturing a larger share of the high‑growth NEV component market.
MTEN’s CEO, Yingkai Xu, emphasized that “new energy technologies are reshaping the automotive industry and redefining value creation across the supply chain.” He added that the collaboration will “strengthen our role in critical powertrain applications and support customers as they expand their new energy product offerings.” The partnership signals MTEN’s continued shift toward NEV applications, building on its existing efforts to diversify beyond traditional internal‑combustion engine molds.
Financially, MTEN reported a net loss of $5.68 million for fiscal year 2024, a decline from a $1.51 million net income in fiscal year 2023. Revenue rose 23.0% to $10.12 million, but gross margin contracted from 40.4% to 30.3%. The partnership is therefore a key initiative to offset margin pressure and drive future revenue growth in a market that is expected to expand rapidly.
Market reaction to the announcement was mixed. While the partnership generated optimism about MTEN’s NEV strategy, investors expressed concern over dilution following the company’s full exercise of the underwriters’ over‑allotment option, which led to a sharp decline in investor confidence. The partnership remains a significant operational milestone that could reshape MTEN’s competitive positioning in the NEV supply chain.
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