Company overview

Manufacturers of printers, electronics and home appliances turn to Tungray Technologies for equipment built around their production requirements rather than bought off the shelf. The company designs, builds and assembles these customized systems, principally in Singapore. This is its largest business; it also sells industrial motors and induction-welding equipment used to join copper tubes on appliance assembly lines. Singapore and mainland China are its revenue markets, with mainland China contributing most revenue.

Customers pay through purchase orders and individual projects. HP Group supplies a large share of revenue, and major customers have no written agreements beyond purchase orders committing them to continued business. Demand depends substantially on customers’ capital spending and planned maintenance. A significant part of revenue comes from fixed-price projects, so keeping engineering and manufacturing costs within the agreed price matters to earnings.

Tungray is a holding company whose access to operating cash depends on its subsidiaries. Mainland Chinese rules limit the profits those subsidiaries can distribute and restrict some currency conversions and transfers abroad.