TDH Holdings, Inc. Reports First Half 2024 Financial Results
TDH Holdings (NASDAQ: PETZ) reported its first half 2024 financial results, marking a significant business transition. The company discontinued its restaurant operations in Q2 2024 to focus on commercial real estate. Revenues from continuing operations reached $0.10 million, with a gross profit of $0.04 million. Despite an operating loss of $1.08 million, the company reported net income of $1.32 million ($0.13 per share), primarily driven by $2.76 million in investment returns from marketable securities. The company maintained a strong liquidity position with $12.91 million in cash and $12.49 million in short-term investments as of June 30, 2024.
TDH Holdings (NASDAQ: PETZ) ha pubblicato i risultati finanziari del primo semestre 2024, segnando una significativa transizione aziendale. L'azienda ha interrotto le operazioni ristorative nel secondo trimestre del 2024 per concentrarsi sul settore immobiliare commerciale. I ricavi dalle operazioni continuative hanno raggiunto 0,10 milioni di dollari, con un profitto lordo di 0,04 milioni di dollari. Nonostante una perdita operativa di 1,08 milioni di dollari, l'azienda ha riportato un reddito netto di 1,32 milioni di dollari (0,13 dollari per azione), principalmente grazie a 2,76 milioni di dollari di rendimenti sugli investimenti in titoli negoziabili. L'azienda ha mantenuto una solida posizione di liquidità con 12,91 milioni di dollari in contante e 12,49 milioni di dollari in investimenti a breve termine al 30 giugno 2024.
TDH Holdings (NASDAQ: PETZ) reportó sus resultados financieros del primer semestre de 2024, marcando una transición significativa en el negocio. La compañía descontinuó sus operaciones de restaurantes en el segundo trimestre de 2024 para centrarse en bienes raíces comerciales. Los ingresos de las operaciones continuadas alcanzaron 0,10 millones de dólares, con una ganancia bruta de 0,04 millones de dólares. A pesar de una pérdida operativa de 1,08 millones de dólares, la compañía reportó un ingreso neto de 1,32 millones de dólares (0,13 dólares por acción), impulsado principalmente por 2,76 millones de dólares en retornos de inversiones en valores negociables. La compañía mantuvo una sólida posición de liquidez con 12,91 millones de dólares en efectivo y 12,49 millones de dólares en inversiones a corto plazo al 30 de junio de 2024.
TDH Holdings (NASDAQ: PETZ)는 2024년 상반기 재무 결과를 발표하며 중요한 사업 전환을 알렸습니다. 이 회사는 2024년 2분기에 레스토랑 운영을 중단하고 상업용 부동산에 집중하기로 결정했습니다. 지속 사업에서의 수익은 100만 달러에 달하며, 총 이익은 40만 달러입니다. 108만 달러의 운영 손실에도 불구하고, 이 회사는 132만 달러(주당 0.13달러)의 순이익을 기록했습니다. 이는 주식 시장에서 매각 가능 증권으로부터 276만 달러의 투자 수익이 주효했기 때문입니다. 2024년 6월 30일 기준으로 1,291만 달러의 현금과 1,249만 달러의 단기 투자로 강한 유동성을 유지하고 있습니다.
TDH Holdings (NASDAQ: PETZ) a rapporté ses résultats financiers pour le premier semestre 2024, marquant une transition commerciale significative. La société a cessé ses activités de restauration au deuxième trimestre 2024 pour se concentrer sur l'immobilier commercial. Les revenus des opérations poursuivies ont atteint 0,10 million de dollars, avec un bénéfice brut de 0,04 million de dollars. Malgré une perte d'exploitation de 1,08 million de dollars, la société a déclaré un revenu net de 1,32 million de dollars (0,13 dollar par action), principalement soutenu par 2,76 millions de dollars de rendements d'investissement issus de titres négociables. La société a maintenu une position de liquidité solide avec 12,91 millions de dollars en espèces et 12,49 millions de dollars en investissements à court terme au 30 juin 2024.
TDH Holdings (NASDAQ: PETZ) hat seine Finanzergebnisse für das erste Halbjahr 2024 veröffentlicht, was einen bedeutenden Geschäftsübergang markiert. Das Unternehmen hat im zweiten Quartal 2024 seine Restaurantgeschäfte eingestellt, um sich auf gewerbliche Immobilien zu konzentrieren. Die Einnahmen aus fortgeführten Betrieben beliefen sich auf 0,10 Millionen Dollar, mit einem Bruttoergebnis von 0,04 Millionen Dollar. Trotz eines operativen Verlusts von 1,08 Millionen Dollar meldete das Unternehmen einen Nettogewinn von 1,32 Millionen Dollar (0,13 Dollar pro Aktie), hauptsächlich getrieben durch 2,76 Millionen Dollar an Erträgen aus marktgängigen Wertpapieren. Das Unternehmen hat eine starke Liquiditätsposition beibehalten, mit 12,91 Millionen Dollar in bar und 12,49 Millionen Dollar in kurzfristigen Investitionen zum 30. Juni 2024.
- Net income increased by 1,941.12% to $1.32 million
- Investment income grew to $2.76 million from $0.92 million YoY
- Strong liquidity position with $25.4 million in combined cash and short-term investments
- Improved gross profit margin to 35.26% from -29.50% YoY
- Operating loss increased 63.39% to $1.08 million
- Revenue from new real estate business to $0.10 million due to recent transition
- Complete goodwill impairment of $0.36 million in H1 2024
- Discontinued restaurant operations reported losses of $444,750
- Operating expenses increased 68.95% to $1.12 million
Insights
The financial results reveal a complex transition period for TDH Holdings. While reporting a net income of
Concerning signs include the
The company's abrupt transition to commercial real estate ownership and management raises significant concerns. With only two months of operations in this new sector, the
The Chinese commercial real estate market faces significant headwinds, making this pivot particularly risky. Without details on property types, locations, or occupancy rates, investors cannot properly assess the potential for sustainable growth. The lack of established track record in real estate management adds another layer of risk to this strategic shift.
First Half 2024 Unaudited Financial Highlights: | ||||||||||||
For the Six Months Ended June 30 | ||||||||||||
($ millions, except per share data) | 2024 | 2023 | % Change | |||||||||
Revenues from continuing operations | $ | 0.10 | $ | - | 13,399.98 | % | ||||||
Gross profit | $ | 0.04 | $ | - | 16,235.34 | % | ||||||
Gross profit (loss) margin | 35.26 | % | -29.50 | % | 64.76 pp | * | ||||||
Loss from operations | $ | (1.08) | $ | (0.66) | -63.39 | % | ||||||
Operating loss margin | -1,047.13 | % | -86,518.44 | % | 85,471.31 | * | ||||||
Net income attributable to common stockholders | $ | 1.32 | $ | 0.06 | 1,941.12 | % | ||||||
Earnings per share - basic and diluted | $ | 0.13 | $ | 0.01 | 1,941.12 | % |
* | pp: percentage points |
- Revenues from continuing operations increased by 13,
399.98% to for the first half of 2024. We discontinued our restaurant business in the second quarter of 2024 and began to focus on growing our commercial real estate business line. The main reason for discontinuing our restaurant business was due to the recurring loss from our restaurant business since 2023. We believe that discontinuing our restaurant business will provide us with the opportunity to shift our focus and resources toward expanding and improving our newly added commercial real estate business.$0.10 million - Gross profit was
for the first half of 2024, compared to gross loss of$ 0.04 million for the same period of the prior year.$226 - Operating loss was
for the first half of 2024, compared to operating loss of$1.08 million for the same period of the prior year. The increase in operating loss was primarily due to the disposal of the Company's restaurant business line in the second quarter of 2024, as the Company has begun to focus on its commercial real estate business and efforts to control operating costs going forward.$0.66 million - Net income was
, or earnings per share of$1.32 million , for the first half of 2024, compared to net income of$0.13 , or income per share of$0.06 million , for the same period of the prior year.$0.01
First Half 2024 Financial Results
Revenues from continuing operations
In June 2024, we discontinued our restaurant business and started to focus on owing, operating and managing commercial real estate properties going forward. Since the commercial real estate business is a newly added business line, revenue from our continuing business only amounted to
Cost of revenues from continuing operations
In line with our newly added commercial real estate rental business, we reported cost of revenues from continuing operations of
Gross profit (loss) and gross profit (loss) margin from continuing operations
Gross profit from continuing operations was
Operating expense from continuing operations
Operating expense consists of selling expense and general and administrative expense.
General and administrative expense increase by
In connection with our commencement of the commercial real estate business, we recognized
As a result, total operating expenses increased by
Operating loss from continuing operations
Loss from operations was
Other income, net
Total net other income increased by approximately
Loss from discontinued operations
We disposed of our restaurant business in June 2024 and started our new commercial real estate business line. For the six months ended June 30, 2024, total revenues from our restaurant business decreased by approximately
Net income attributable to the Company and earnings per share
As a result of the above, net income attributable to the Company was
Financial Conditions
As of June 30, 2024, based on the results of the continuing operations, the Company had cash and cash equivalents of
Net cash used in operating activities was
Net cash provided by investing activities was
There was no cash provided by or used in our financing activities during the six months ended June 30, 2024, and 2023, respectively.
Notice
Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.
About TDH Holdings, Inc.
Founded in April 2002, TDH Holdings, Inc. (the "Company") (NASDAQ: PETZ), a PRC-based company that is an owner, operator and manager of commercial real estate properties. More information about the Company can be found at www.tiandihui.com.
Safe Harbor Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may", "will", "intend", "should", "believe", "expect", "anticipate", "project", "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Specifically, the Company's statements regarding, among others, its growth and business outlook, the excepted revenue growth from the Company's commercial real estate business and the Company's ability to execute on its business plan, are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; general risks affecting the commercial real estate industry (including, without limitation, the inability to enter into or renew leases on favorable terms, changes in client preferences and space utilization, dependence on clients' financial condition, and competition from other developers, owners and operators of real estate); changes in technology; economic conditions;, reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in
For more information, please contact:
Feng Zhang, CFO
Email: zhangfeng@tdhpet.com
Phone: +86 183-1102-1983
Index to Unaudited Condensed Consolidated Interim Financial Statements | ||
Page | ||
Condensed Consolidated Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023 | 5 | |
6 | ||
7 |
TDH HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 12,909,065 | 13,126,605 | |||||
Short-term investments | 12,487,322 | 13,317,882 | ||||||
Accounts receivable, net | 22,350 | - | ||||||
Advances to suppliers, net | 33,931 | - | ||||||
Prepayments and other current assets, net | 187,091 | 63,074 | ||||||
Current assets held for sale associated with discontinued operation of Farlings and | - | 713,715 | ||||||
Total current assets | 25,639,759 | 27,221,277 | ||||||
NON-CURRENT ASSETS: | ||||||||
Property, plant and equipment, net | 2,307,260 | 657,124 | ||||||
Operating lease right-of-use assets | 2,683,008 | - | ||||||
Non-current assets held for sale associated with discontinued operation of Farlings | - | 1,022,996 | ||||||
Total non-current assets | 4,990,268 | 1,680,120 | ||||||
Total assets | $ | 30,630,027 | 28,901,397 | |||||
LIABILITIES AND SHAREHOLDERS'S EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 195,463 | 65,982 | |||||
Advances from customers | 152,590 | 295 | ||||||
Bank overdrafts | 75,070 | 77,486 | ||||||
Short-term loans - related parties | 268,759 | 277,408 | ||||||
Taxes payable | 12,817 | 9,290 | ||||||
Due to related parties | 133,397 | 1,963,794 | ||||||
Operating lease liabilities, current | 529,346 | - | ||||||
Other current liabilities | 1,013,975 | 166,025 | ||||||
Current Liabilities held for sale associated with discontinued operation of Farlings | - | 828,764 | ||||||
Total current liabilities | 2,381,417 | 3,389,044 | ||||||
NON-CURRENT LIABILITIES: | ||||||||
Operating lease liabilities, non-current | 2,152,142 | - | ||||||
Non-current liabilities held for sale associated with discontinued operation of | - | 463,196 | ||||||
Total liabilities | 4,533,559 | 3,852,240 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Common stock ( | 206,465 | 206,465 | ||||||
Additional paid-in capital | 51,129,439 | 51,129,439 | ||||||
Accumulated deficit | (25,303,438) | (26,622,000) | ||||||
Accumulated other comprehensive loss | (83,572) | (95,066) | ||||||
Total TDH Holdings, Inc. shareholders' equity | 25,948,894 | 24,618,838 | ||||||
Non-controlling interest | 147,574 | 430,319 | ||||||
Total shareholders' equity | 26,096,468 | 25,049,157 | ||||||
Total liabilities and shareholders' equity | $ | 30,630,027 | 28,901,397 |
TDH HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||
(Unaudited) | ||||||||
For The | For The | |||||||
Net revenue | $ | 103,410 | $ | 766 | ||||
Cost of revenue | 66,944 | 992 | ||||||
Gross profit (loss) | 36,466 | (226) | ||||||
Operating expenses: | ||||||||
General and administrative expense | 758,763 | 662,505 | ||||||
Impairment of goodwill | 360,541 | - | ||||||
Total operating expenses | 1,119,304 | 662,505 | ||||||
Loss from operations | (1,082,839) | (662,731) | ||||||
Interest expense | (22,421) | (19,443) | ||||||
Other income (loss) | 2,957 | (3,080) | ||||||
Change in fair value of short-term investments | 2,756,268 | 917,411 | ||||||
Other expenses | - | (148) | ||||||
Total other income | 2,736,804 | 894,740 | ||||||
Loss before income tax provision | 1,653,965 | 232,009 | ||||||
Net income from continuing operations | 1,653,965 | 232,009 | ||||||
Net loss from discontinued operations of Tiandihui | - | (15,552) | ||||||
Net loss from discontinued operations of Bo Lings and Far Lings | (444,750) | (220,958) | ||||||
Net income (loss) | 1,209,215 | (4,501) | ||||||
Less: Net loss attributable to non-controlling interest | (109,347) | (69,101) | ||||||
Net Income attributable to TDH Holdings, Inc. | 1,318,562 | 64,600 | ||||||
Comprehensive income (loss) | ||||||||
Net income | $ | 1,318,562 | $ | 64,600 | ||||
Other comprehensive income | ||||||||
Foreign currency translation adjustment | 11,494 | 1,137,181 | ||||||
Total comprehensive income | $ | 1,330,056 | $ | 1,201,781 | ||||
Less: Comprehensive loss attributable to non-controlling interest | (282,745) | - | ||||||
Comprehensive income attributable to TDH Holdings, Inc. | $ | 1,612,801 | $ | 1,201,781 | ||||
Earnings per common share attributable to TDH Holdings, Inc. | ||||||||
Basic | $ | 0.13 | $ | 0.01 | ||||
Diluted | $ | 0.13 | $ | 0.01 | ||||
Weighted average common shares outstanding* | ||||||||
Basic | 10,323,268 | 10,323,268 | ||||||
Diluted | 10,323,268 | 10,323,268 |
TDH HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
For The | For The | |||||||
June 30, | June 30, | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 1,318,562 | $ | 64,600 | ||||
Less: net loss from discontinued operations | (444,750) | (236,510) | ||||||
Net income from continuing operations | 1,763,312 | 301,110 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating | ||||||||
Depreciation and amortization expense | 50,370 | (102,657) | ||||||
Fair value change of short-term investments | (2,756,268) | (917,411) | ||||||
Loss on disposal of subsidiaries | (441,600) | - | ||||||
Impairment of goodwill | 360,541 | - | ||||||
Inventory write-down | - | (930) | ||||||
Allowance for doubtful accounts | 106,258 | - | ||||||
Loss (gain) on disposal of property, plant and equipment | 59,009 | 20,382 | ||||||
Amortization of operating lease right-of-use assets | (343,425) | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (113,883) | (13,048) | ||||||
Inventories, net | 8,370 | 988 | ||||||
Operating lease liabilities | 2,772,202 | (335) | ||||||
Advances to suppliers, net | (34,035) | 34,468 | ||||||
Prepayments and other current assets, net | (2,346,929) | (45,895) | ||||||
Accounts payable | 139,762 | 66,367 | ||||||
Accounts payable - related parties | - | (25,891) | ||||||
Interest payable | 14,284 | (48,606) | ||||||
Taxes payable | - | (2,354) | ||||||
Advances from customers | 153,312 | 2,214 | ||||||
Advances from customer - related party | - | (14,927) | ||||||
Other current liabilities | (1,539,428) | (1,715,737) | ||||||
Net cash used in operating activities from continuing operations | (2,148,149) | (2,462,261) | ||||||
Net cash provided by (used in) operating activities from discontinued operations | (192,351) | 114,732 | ||||||
NET CASH USED IN OPERATING ACTIVITIES | $ | (2,340,500) | $ | (2,347,529) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Payments to acquire property, plant and equipment | (1,760,454) | - | ||||||
Disposal of subsidiaries | 578,400 | - | ||||||
Purchase of short-term investments | (21,403,449) | (10,393,892) | ||||||
Proceeds from sale of short-term investments | 23,966,975 | 8,242,433 | ||||||
Net cash provided by (used in) investing activities from continuing operations | 1,381,473 | (2,151,459) | ||||||
Net cash provided by investing activities from discontinued operations | - | - | ||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | $ | 1,381,473 | $ | (2,151,459) | ||||
Effects on changes in foreign exchange rate | 206,710 | 538,762 | ||||||
Net change in cash, cash equivalents, and restricted cash | (752,317) | (3,960,226) | ||||||
Cash, cash equivalents, and restricted cash - beginning of the period | 13,661,382 | 23,146,176 | ||||||
Cash, cash equivalents, and restricted cash - end of the period | $ | 12,909,065 | $ | 19,185,950 | ||||
Less: cash and restricted cash of discontinued operations at the end of the period | - | 1,665,285 | ||||||
Cash and restricted cash of continued operations at the end of the period | 12,909,065 | 17,520,665 | ||||||
Supplemental cash flow information | ||||||||
Interest paid | $ | - | $ | - | ||||
Supplemental non-cash investing and financing activities | ||||||||
Cashless exercise of warrants | - | - | ||||||
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated | ||||||||
Cash and cash equivalents | $ | 12,909,065 | $ | 17,520,665 | ||||
Restricted cash | $ | - | $ | 1,665,285 | ||||
Total cash, cash equivalents, and restricted cash | $ | 12,909,065 | $ | 19,185,950 |
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SOURCE TDH Holdings, Inc.
FAQ
What caused TDH Holdings (PETZ) net income to increase in H1 2024?
Why did PETZ discontinue its restaurant business in 2024?
What is PETZ's current cash position as of June 30, 2024?
How much revenue did PETZ generate from its new real estate business in H1 2024?