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TDH Holdings, Inc. Reports First Half 2025 Financial Results

1. Revenues surged 466% to $0.59 million in H1 2025. 2. Operating loss decreased significantly to $0.57 million. 3. Gross profit margin fell to 26.73% from 35.26%. 4. Net income rose slightly to $1.38 million. 5. Strong growth attributed to effective tenant recruitment strategies.

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Why Bullish?

Revenue growth of 466% is substantial, suggesting strong business performance. Historically, similar revenue increases have led to positive stock performance for companies.

How important is it?

The strong financial results and effective strategies indicate a positive direction for PETZ. Market performance is likely to reflect current optimism.

Why Short Term?

The significant revenue growth and cost control measures likely provide immediate market confidence. Short-term impacts are expected as investors react to quarterly results.

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, /PRNewswire/ -- TDH Holdings, Inc. (NASDAQ: PETZ) ("TDH" or the "Company"), a PRC-based company that is an owner, operator and manager of commercial real estate properties, announced today its financial results for the six months ended June 30, 2025. First Half 202 5 Unaudited Financial Highlights: For the Six Months Ended June 30 ($ millions, except per share data) 2025 2024 % Change Revenues from continuing operations $ 0.59 $ 0.10 466.38 % Gross profit $ 0.16 $ 0.04 329.26 % Gross profit margin 26.73 % 35.26 % -8.54 pp * Loss from operations $ (0.57) $ (1.08) 47.21 % Operating loss margin -97.60 % -1,047.13 % 949.53 pp * Net income attributable to common stockholders $ 1.38 $ 1.32 4.60 % Earnings per share - basic and diluted $ 0.13 $ 0.13 4.60 % Revenues increased by 466.38% to $0.59 million for the first half of 2025. This significant growth is mainly attributed to the following two factors: (1) With the gradual economic recovery, business activities have become more active, and the market demand for commercial real estate has increased significantly. Relying on accurate market positioning and effective marketing strategies, the Company has successfully attracted many high - quality tenants, increasing the growth of its commercial real estate property leasing business; (2) the Company fully considers the characteristics of enterprises in different industries and of different scales in providing personalized leasing solutions. This customized service meets the diverse needs of customers and effectively improves the satisfaction and loyalty of tenants. Gross profit was $0.16 million for the first half of 2025, compared to gross profit of $0.04 million for the same period of the prior year. Operating loss was $0.57 million for the first half of 2025, compared to operating loss of $1.08 million for the same period of the prior year. The reduction in operating losses was mainly due to the increase in the Company's revenue in the first half of 2025 and the control of operating costs. Net income was $1.38 million, or earnings per share of $0.13, for the first half of 2025, compared to net income of $1.32 million, or earnings per share of $0.13, for the same period of the prior year. First Half 2025 Financial Results Revenues from continuing operations In 2025, we believe we strengthened our brand  and customer relationships . We believe we have increased our brand image and enhanced our market competitiveness by among other means, improving service quality, and optimizing the leasing process. At the same time, we are seeking to establish long-term and stable cooperative relationships with our clients, laying a solid foundation for the continuous growth of our business. We expect the revenue of the commercial real estate leasing business to continue to grow in the near future. Cost of revenues from continuing operations  Cost of revenues consists primarily of lease and occupancy costs, depreciation and amortization costs, as well as agency service costs. Cost of revenues increased by $0.36 million, or 541.07%, to $0.43 million for the first half of 2025 from $0.07 million for the same period of the prior year.  The increase in cost of revenues was in line with the increase in revenue. Gross profit and gross profit margin from continuing operations Gross profit from continuing operations was $0.16 million for the first half of 2025, compared to gross profit of $0.04 for the same period of the prior year. The increase in gross profit was due to increased revenues from our commercial real estate leasing business. Gross profit margin was 26.73% for the six months ended June 30, 2025, as compared to 35.26% for the six months ended June 30, 2024, which was due to the fact that we changed the agency service costs and maintenance costs directly related to the leasing business from administrative expenses to costs. Operating expense from continuing operations Operating expense consists of selling expense and general and administrative expense. General and administrative expense decreased by $0.03 million, or 4.39%, to $0.73 million for the first half of 2025 from $0.76 million for the same period of the prior year. Goodwill impairment loss decreased by $0.36 million or 100% when comparing the first half or 2025 to the same period of 2024. As a result, total operating expenses decreased by $0.39 million, or 34.95%, to $0.73 million for the first half of 2025 from $1.12 million for the same period of the prior year. Operating loss from continuing operations Loss from operations was $0.57 million for the first half of 2025, compared to $1.08 million for the same period of the prior year. The decrease in continuing operating loss was mainly due to the increase in the company's revenue in the first half of 2025 and the control of operating costs. Other income, net Total net other income decreased by approximately $0.76 million or 27.92%, from $2.74 million in the six months ended June 30, 2024, to $1.97 million in the six months ended June 30, 2025. The main reason for this decrease was primarily attributable to a decrease in investment income. We invested our available cash on hand in equity securities of certain publicly listed companies through various open market transactions. Our investments in marketable securities are accounted for pursuant to ASC 321 and reported at their readily determinable fair value as quoted by market exchanges in the consolidated balance sheets with change in fair value recognized in earnings. Net income attributable to the Company and earnings per share As a result of the above, net income attributable to the Company was $1.38 million, or earnings per share of $0.13, for the first half of 2025, compared to net income of $1.32 million, or earnings per share of $0.13, for the same period of the prior year. Financial Conditions As of June 30, 2025, based on the results of the operations, the Company had cash and cash equivalents of $16.07 million, compared to $15.70 million at December 31, 2024. Accounts receivable were $0.07 million as of June 30, 2025, compared to $0 million at December 31, 2024. We also had short-term investments of approximately $15.45 million and $12.95 million as of June 30, 2025, and December 31, 2024, respectively, which are highly liquid and can be converted into cash and used in our operations if needed. Net cash provided by operating activities was $0.29 million for the first half of 2025, compared to net cash used in operating activities of $2.34 million for the same period of the prior year. Net cash provided by investing activities was $0.07 million for the first half of 2025, compared to net cash provided by investing activities of $1.38 million for the same period of the prior year. There was no cash provided by or used in our financing activities during the six months ended June 30, 2025, and 2024, 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 leasing 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 China and the United States and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.  For more information, please contact: Feng Zhang, CFOEmail: [email protected]Phone: +86 183-1102-1983 TDH HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, 2025 2024 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 16,072,613 $ 15,699,562 Short-term investments 15,454,430 12,952,597 Accounts receivable, net 74,319 5,748 Advances to suppliers, net 147,721 37,790 Prepayments and other current assets, net 247,744 103,519      Total current assets 31,996,827 28,799,216 NON-CURRENT ASSETS: Property, plant and equipment, net 2,282,383 2,363,989 Operating lease right-of-use assets 3,516,156 2,175,456 Total non-current assets 5,798,539 4,539,445       Total assets $ 37,795,366 $ 33,338,661 LIABILITIES AND SHAREHOLDERS'S EQUITY CURRENT LIABILITIES: Accounts payable $ 60,452 $ 122,251 Advances from customers 204,007 183,173 Bank overdrafts - 73,105 Short-term loans - related parties - 261,725 Taxes payable 6,655 14,681 Due to related parties 200,000 200,318 Operating lease liabilities, current 787,811 486,121 Other current liabilities 3,868,713 2,859,061 Total current liabilities 5,127,638 4,200,435 NON-CURRENT LIABILITIES:       Operating lease liabilities, non-current 2,665,368 1,738,371 Total liabilities 7,793,006 5,938,806 SHAREHOLDERS' EQUITY:       Common stock ($0.02 par value; 50,000,000 shares authorized; 10,323,268         shares issued and outstanding at June 30, 2025 and December 31, 2024) 206,465 206,465 Additional paid-in capital 51,129,439 51,129,439 Accumulated deficit (21,040,348) (23,937,478) Accumulated other comprehensive loss (113,203) (95,784) Total TDH Holdings, Inc. shareholders' equity 30,182,353 27,302,642 Non-controlling interest (179,993) 97,213       Total shareholders' equity $ 30,002,360 $ 27,399,855       Total liabilities and shareholders' equity 37,795,366 33,338,661 TDH HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) For The Six MonthsEnded June 30,202 5 For The Six MonthsEndedJune 30,202 4 Net revenue $ 585,690 $ 103,410 Cost of revenue 429,157 66,944 Gross profit (loss) 156,533 36,466       Operating expenses:            Selling expense 2,725 - General and administrative expense 725,428 758,763 Impairment of goodwill - 360,541 Total operating expenses 728,153 1,119,304 Loss from operations (571,620) (1,082,839) Interest income (expense) 125,757 (22,421) Other income (loss) (437,048) 2,957 Gain (loss) on disposal of subsidiaries (294,016) - Other expenses 2,578,029 2,756,268 Total other income 1,972,722 2,736,804 Income before income tax provision 1,401,102 1,653,965 Net income from continuing operations 1,401,102 1,653,965 Net loss from discontinued operations of Bo Lings and Far Lings - (444,750) Net income (loss) 1,401,102 1,209,215 Less: Net income (loss) attributable to non-controlling interest 21,886 (109,347) Net Income attributable to TDH Holdings, Inc. 1,379,216 1,318,562 Comprehensive income (loss) Net income $ 1,401,102 $ 1,209,215 Other comprehensive income Foreign currency translation adjustment (17,419) 11,494 Total comprehensive income $ 1,383,683 $ 1,220,709 Less: Comprehensive loss attributable to non-controlling interest (277,206) (282,745) Comprehensive income attributable to TDH Holdings, Inc. $ 1,660,889 $ 1,503,454 Earnings per common share attributable to TDH Holdings, Inc. Basic $ 0.13 $ 0.13 Diluted $ 0.13 $ 0.13 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 TheSix MonthsEnded For The Six MonthsEnded June 30, 2025 June 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,379,216 $ 1,318,562 Less: net loss from discontinued operations - (444,750) Net income from continuing operations 1,379,216 1,763,312 Adjustments to reconcile net income (loss) to net cash provided by (used in)    operating activities:       Depreciation and amortization expense 91,313 50,370       Fair value change of short-term investments -(2,578,029) (2,756,268)       Loss on disposal of subsidiaries 294,016 (441,600)       Impairment of goodwill - 360,541       Inventory write-down - -       Allowance for doubtful accounts - 106,258       Loss (gain) on disposal of property, plant and equipment - 59,009       Amortization of operating lease right-of-use assets 358,024 (343,425)       Changes in operating assets and liabilities: - Accounts receivable, net -(161,477) (113,883) Dividends receivable -(124,085) - Inventories, net - 8,370 Operating lease liabilities (451,639) 2,772,202 Advances to suppliers, net (109,387) (34,035) Prepayments and other current assets, net - (2,346,929) Accounts payable 62,551 139,762 Interest payable - 14,284 Taxes payable 1,350 - Advances from customers 20,292 153,312 Advances from customer - related party - - Other current liabilities 1,504,191 (1,539,428) Net cash provided by operating activities from continuing operations 286,336 (2,148,149) Net cash used in operating activities from discontinued operations - (192,351) NET CASH PROVIDED BY ( USED IN )  OPERATING ACTIVITIES $ 286,336 $ (2,340,500) CASH FLOWS FROM INVESTING ACTIVITIES:       Payments to acquire property, plant and equipment (8,115) (1,760,454)       Disposal of subsidiaries - 578,400       Purchase of short-term investments (28,212,885) (21,403,449)       Proceeds from sale of short-term investments 28,291,888 23,966,975       Net cash provided by investing activities from continuing operations 70,888 1,381,473       Net cash provided by investing activities from discontinued operations - - NET CASH PROVIDED BY INVESTING ACTIVITIES $ 70,888 $ 1,381,473 Effects on changes in foreign exchange rate 15,827 206,710 Net change in cash, cash equivalents, and restricted cash 373,051 (752,317) Cash, cash equivalents, and restricted cash - beginning of the period 15,699,562 13,661,382 Cash, cash equivalents, and restricted cash - end of the period $ 16,072,613 $ 12,909,065 Less: cash and restricted cash of discontinued operations at the end of the period - - Cash and restricted cash of continued operations at the end of the period 16,072,613 12,909,065 Supplemental cash flow information Interest paid $ - $ - Non-cash investing and financing activities Right of use assets obtained in exchange for operating lease obligations $ 1,691,292 $ - Supplemental non-cash investing and financing activities       Cashless exercise of warrants - - Reconciliation of cash, cash equivalents, and restricted cash to the consolidated     balance sheets Cash and cash equivalents $ 16,072,613 $ 12,909,065 Restricted cash $ - $ - Total cash, cash equivalents, and restricted cash $ 16,072,613 $ 12,909,065 SOURCE TDH Holdings, Inc.

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