1. TDH Holdings (NASDAQ: PETZ) is pivoting to commercial real estate management. 2. Revenue increased by 74,665% to $0.56 million in 2024 from discontinuing pet food. 3. Operating losses decreased by 70.37%, showcasing improved cost management. 4. The shift away from pet food aims for stable revenue through rental income. 5. Cash reserves grew to $15.70 million, indicating improved liquidity.
The substantial increase in revenue and decreased losses indicate positive momentum for PETZ.
The shift in business model may attract investors due to potential revenue growth.
The shift to commercial real estate is immediate, with potential for rapid growth.
TDH Holdings, Inc. (NASDAQ: PETZ) ("TDH" or the "Company"), a PRC-based company that is an operator and manager of commercial real estate properties, announced today its financial results for the fiscal year ended December 31, 2024.
For the Twelve Months Ended December 31,
| ($ millions, except per share data) | 2024 | 2023 | % Change |
|---|---|---|---|
| Revenues from continuing operations | $0.56 | - | 74,664.72 % |
| Gross profit (loss) | $0.24 | - | (107,497.30) % |
| Gross profit (loss) margin | 42.29 % | -29.44 % | 71.73 pp* |
| Loss from operations | ($1.83) | ($6.19) | (70.37) % |
| Operating loss margin | (325.10) % | (820,361.14) % | 820,036.04 pp* |
| Net income (loss) attributable to common stockholders | $2.68 | ($23.63) | (111.36) % |
| Earnings (loss) per share - basic and diluted | $0.26 | ($2.29) | (111.36) % |
* pp: percentage points
Due to the discontinuation of our restaurant business segment in the second quarter of 2024, the Company's revenue streams are now primarily from its commercial real estate property management business. Revenues from continuing operations increased by approximately 74,665% from $0 million in fiscal year 2023 to $0.56 million in fiscal year 2024.
| 2024 | 2023 | Y/Y Change |
|---|---|---|
| Pet food domestic sales | $- | $1 (100.00 %) |
| Commercial real estate business revenue | 566 (100.36 %) |
- |
| Less: sales tax and additional surcharge | (2) (-0.36 %) |
- |
| Total | $564 (100.00 %) |
$563 (74,664.72 %) |
Our cost of revenues from our continuing operations is primarily comprised of the cost of our payroll and employee benefit costs, lease and occupancy costs, depreciation and amortization costs and agency service costs. Our cost of revenues from continuing operations increased by $0.32 million or approximately 33,230% for the year ended December 31, 2024 as compared to the fiscal year ended December 31, 2023, primarily due to our focus on the commercial real estate business beginning in the second quarter of 2024. Our cost of revenues as a percentage of revenue was 58% and 129% for the years ended December 31, 2024, and 2023, respectively.
Gross profit from continuing operations was $0.24 million for fiscal year 2024, compared to gross loss of $0 million for fiscal year 2023. Our gross margin from continuing operations was 42.29% for the year ended December 31, 2024, compared with a negative gross margin of -29.44% for the year ended December 31, 2023. The increase in gross margin in 2024 was mainly due to our focus on the commercial real estate property management service business line in the second quarter of 2024.
Operating expenses from our continuing operations were $2.07 million and $6.19 million for the years ended December 31, 2024 and 2023, respectively, a decrease of $4.11 million, or 66.52% in fiscal year 2024 as compared to fiscal year 2023. General and administrative expenses from our continuing operations were $1.75 million and $3.15 million for the years ended December 31, 2024 and 2023 respectively, representing a decrease of $1.40 million, or $44.51% in fiscal year 2024 as compared to fiscal year 2023.
As of December 31, 2024, the Company had cash and cash equivalents of $15.70 million, compared to $13.13 million as of December 31, 2023. As of December 31, 2024, we had working capital of approximately $24.60 million, as compared to working capital of $23.83 million as of December 31, 2023.
We discontinued our restaurant business segment during the second quarter of 2024. The Company now focuses on the management of commercial real estate. We believe this pivot to the commercial real estate management business is in the best interests of our shareholders due to high costs we were experiencing in the restaurant segment business line.
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.
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.
Feng Zhang, CFO
Email: [email protected]
Phone: +86 183-1102-1983