Northann Corp. has reported its financial results for the fiscal year ending December 31, 2024, revealing a revenue of $15.35 million, a 10% increase from $13.97 million in 2023. The company attributed this growth primarily to an increase in sales volume. Gross profit also saw a significant rise, reaching $3.98 million, compared to $1.21 million in the previous year, resulting in a gross margin improvement from 8.7% to 25.9%. However, the company reported a net loss of $4.38 million, a reduction from a net loss of $7.13 million in 2023, indicating progress in managing operational costs.
In terms of operational changes, Northann Corp. has made strategic moves, including the acquisition of Cedar Modern Limited and Raleigh Industries Limited in late 2024, aimed at expanding its market presence. The company has also initiated a significant shift in its manufacturing strategy, planning to establish production capabilities in the United States to reduce reliance on overseas operations. This transition is expected to be supported by a $24 million EB-5 loan agreement with 3DFLOR OPPORTUNITY, LP, a related party controlled by the company's CEO, Lin Li.
The company reported a total employee count of 49 as of December 31, 2024, with a notable increase in research and development expenses, which decreased to $783,356 from $1.90 million in 2023. This reduction reflects fewer R&D projects undertaken during the year. Northann's customer base remains concentrated, with two major customers accounting for approximately 77% of total revenues in 2024, down from 91% in 2023, indicating a slight diversification in its revenue sources.
Looking ahead, Northann Corp. has expressed a cautious outlook, emphasizing the need for additional capital to support its growth initiatives and operational stability. The company is focused on improving its liquidity position, which remains a concern, as indicated by a working capital deficit of $3.75 million as of December 31, 2024. Management is actively monitoring financial conditions and exploring opportunities for investment and strategic partnerships to enhance its market position and financial health.
About Northann Corp.
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