TDH Holdings, Inc. Reports First Half 2024 Financial Results

Core Viewpoint - TDH Holdings, Inc. has shifted its focus from the restaurant business to commercial real estate, resulting in significant changes in its financial performance for the first half of 2024, including a notable increase in revenues and net income despite ongoing operational losses [1][6][14]. Financial Performance - Revenues from continuing operations increased by 13,399.98% to $0.10 million for the first half of 2024, compared to no revenues in the same period of 2023 [2][6]. - Gross profit was $0.04 million for the first half of 2024, a significant improvement from a gross loss of $226 in the same period of the prior year [3][8]. - The gross profit margin improved to 35.26% for the first half of 2024, compared to a gross loss margin of -29.50% for the same period in 2023, reflecting better performance in the commercial real estate sector [2][8]. - Net income attributable to common stockholders was $1.32 million, or earnings per share of $0.13, compared to $0.06 million, or $0.01 per share, for the same period of the prior year [5][15]. Operational Changes - The company discontinued its restaurant business in June 2024 due to recurring losses, allowing it to concentrate resources on its commercial real estate operations [1][4]. - Operating loss was $1.08 million for the first half of 2024, an increase from a loss of $0.66 million in the same period of the prior year, primarily due to the transition and associated costs [4][12]. - Total operating expenses increased by 68.95% to $1.12 million for the first half of 2024, driven by higher general and administrative expenses and impairment losses on goodwill [11][12]. Investment and Cash Flow - Total net other income increased by approximately 205.88% to $2.74 million, primarily due to increased investment income from equity securities [13]. - Net cash used in operating activities was $2.34 million for the first half of 2024, slightly lower than $2.35 million for the same period in 2023 [17]. - Cash and cash equivalents as of June 30, 2024, were $12.91 million, compared to $13.13 million at the end of 2023, indicating stable liquidity [16].