TDH Holdings, Inc. Achieves Significant Financial Turnaround in 2024 Audited Results

TDH Holdings, Inc. Reports Impressive Full Year 2024 Financial Results

April 28, 2025—TDH Holdings, Inc. (NASDAQ: PETZ), a prominent operator and manager in the commercial real estate sector based in China, has announced its financial outcomes for the fiscal year ending December 31, 2024. This marks a significant milestone as the company transitioned away from its previous restaurant operations to focus on commercial real estate management.

Financial Highlights

For the fiscal year 2024, TDH experienced phenomenal growth in its revenue streams, with revenues from continuing operations reaching approximately $0.56 million, a staggering increase of around 74,665% compared to 2023. This upturn stems from the company's commitment to focusing entirely on managing commercial properties after discontinuing its restaurant segment earlier in the year.

The gross profit from continuing operations reached $0.24 million, a substantial positive shift from the previous year's figures, which reflected a gross loss. This remarkable turnaround is attributed to the newly focused business model and successful implementation of commercial real estate management services starting in the second quarter of 2024.

In terms of operational performance, the operating loss also decreased significantly from $6.19 million in 2023 to $1.83 million in 2024, demonstrating the company’s rigorous effort in cost control and restructuring allowing for a more sustainable operating margin.

Transition to Commercial Real Estate Management

The strategic pivot to commercial real estate management was deemed crucial for TDH’s long-term sustainability and profitability. Following the shutdown of the restaurant business, which proved to be operationally costly, the management believes the transition will yield stable rental income and benefit from property appreciation due to ongoing demand in the commercial real estate market.

Despite the remarkable percentage growth in revenue, the actual revenue generated in dollar terms remains modest due to the nascent operations in commercial property management. This focus is anticipated to grow as the company solidifies its presence in the real estate market.

Cash Flow Dynamics

TDH Holdings reported cash and cash equivalents totaling $15.70 million as of December 31, 2024, up from $13.13 million the previous year. This improvement indicates a positive liquidity position for the company, alongside working capital increasing to approximately $24.60 million. These figures suggest that the company is better equipped to fund its operations and pursue new business opportunities in the competitive real estate market.

The company's net income attributable to common shareholders hit $2.68 million for the 2024 fiscal year, translating to earnings of $0.26 per share, contrasting with a loss of $23.63 million per share in 2023. This swing to profitability showcases the impact of the strategic changes and improved operational efficiencies implemented over the year.

Implications for the Future

The future of TDH Holdings appears promising as they navigate their new business model. With a clear focus on commercial real estate, management is optimistic about revenue growth driven by economic recovery and increasing property demand in China’s real estate markets. However, the company remains vigilant regarding its challenges, particularly in effectively managing new properties and securing quality leases.

As TDH continues to adapt and innovate within the real estate framework, it anticipates strengthening its financial position over the coming years, leading to enhanced shareholder value.

Investors and stakeholders will be closely watching as TDH Holdings advances its commercial real estate ambitions, poised for potential growth and expansion in the sector. The ability to generate sustained revenue and navigate the competitive landscape is critical for realizing these aspirations.