Dogness Reports Financial Results for the Six Months Ended December 31, 2024
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DONGGUAN, China and PLANO, Texas, March 31, 2025 /PRNewswire/ -- Dogness (International) Corporation ("Dogness" or the "Company") (NASDAQ: DOGZ), a developer and manufacturer of a comprehensive line of Dogness-branded, OEM and private label pet products, today announced its financial results for the six months ended December 31, 2024.
Mr. Silong Chen, the CEO of the Company, commented: "We delivered robust financial results for the half year ended December 2024, marked by strong revenue growth, increased operational efficiency, and progress toward profitability. Our revenue reached $12.1 million for the six months ended December 2024, an 81.1% increase from the same period in 2023, driven by high demand across all product categories and regions. Meanwhile, our ongoing efforts on cost management and economies of scale have significantly improved operating results.
"Looking ahead, Dogness aims to accelerate product innovation, expand its global market presence and drive cost efficiencies. The Company plans to acquire smaller pet product manufacturers in China to strengthen supply chain control and operational efficiencies, thereby increasing market share. With a focus on developing sustainable, high-tech pet products and leveraging strategic partnerships, we anticipate further revenue growth, improved profitability and increased shareholder value."
Financial Results for the Half Year Ended December 31, 2024
Revenues increased by approximately $5.4 million, or 81.1%, from about $6.7 million for the year ended December 31, 2023 to approximately $12.1 million for the six months ended December 31, 2024. The increase in revenue was primarily attributable to the strong sales performance in both China's domestic market and international markets, driven by higher demand from existing customers and new customer.
The following table breaks down Dogness' revenue by product and service type for the six months ended December 31, 2024 and 2023:
For the six months ended December 31, | ||||||||
2024 | 2023 | |||||||
Products and services | Revenue | Revenue | Variance % | |||||
Products | ||||||||
Traditional pet products | $ |
4,660,824 | $ |
3,601,676 |
29.4 | % | ||
Intelligent pet | 4,546,642 | 2,234,220 | 103.5 | % | ||||
Climbing hooks and |
2,878,245 |
761,742 |
277.9 | % | ||||
Total revenue from |
12,085,711 |
6,597,638 |
83.2 | % | ||||
Services | ||||||||
Dyeing services | - | 77,049 | (100.0) | % | ||||
Total revenue from | - |
77,049 | (100.0) | % | ||||
Total | $ | 12,085,711 | $ | 6,674,687 | 81.1 | % |
─ Traditional pet products
Revenue from traditional pet products increased by approximately $1.1 million, or 29.4%, from approximately $3.6 million for the six months ended December 31, 2023 to approximately $4.7 million for the six months ended December 31, 2024. This growth was driven both higher sales volume and increased average selling prices. Of the revenue growth, $1.0 million came from international sales and $0.1 million from the domestic Chinese market, primarily due to expanded order volumes from customers.
─ Intelligent pet products
Revenue from intelligent pet products grew by approximately $2.3 million, or 103.5%, from around $2.2 million for the six months ended December 31, 2023, to roughly $4.5 million for the same period in 2024, mainly due to increased sales volume. The revenue increase included $1.2 million from international customers and $1.1 million from domestic Chinese customers, primarily from new and existing orders.
─ Climbing hooks and others
Revenue from climbing hooks and other products increased by about $2.1 million, or 277.9%, from roughly $0.8 million for the six months ended December 31, 2023, to about $2.9 million for the same period in 2024. This increase was influenced by higher sales volume and prices. International sales contributed $1.3 million to the revenue increase, while domestic sales accounted for $0.8 million, driven by higher orders.
─ Dyeing service
For the six months ended December 31, 2024 and 2023, the Company earned approximately $Nil and $0.1 million, respectively, for dyeing services.
─ International vs. Domestic sales
Total international sales rose by about $3.4 million, or 75.9%, from approximately $4.5 million for the six months ended December 31, 2023, to about $8.0 million during the same period in 2024, driven by increased orders across all product types.
Domestic sales also saw a significant increase of about $2.0 million, or 92.0%, from around $2.1 million in 2023 to approximately $4.1 million in 2024. In the domestic market, sales of traditional pet products, intelligent pet products, and climbing hooks increased by 16.2%, 109.2%, and 198.5%, respectively, compared to the previous year.
Cost of revenues increased by $3.3 million, or 61.6%, from approximately $5.4 million for the six months ended December 31, 2023, to approximately $8.7 million for the six months ended December 31, 2024, due to a significant increase in sales volume. As a percentage of revenues, the cost of goods sold decreased by approximately 8.7 percentage points to 71.7% for the six months ended December 31, 2024, compared to 80.4% for the six months ended December 31, 2023.
Gross profit rose by approximately $2.1 million, or 160.7%, from about $1.3 million for the six months ended December 31, 2023, to around $3.4 million for the same period in 2024. This increase resulted from higher sales volume and average selling prices. The overall gross profit margin improved to 28.3%, up 8.7 percentage points from 19.6% in the previous period.
Total operating expenses increased by approximately $0.7 million or 14.6%, to about $5.6 million for the six months ended December 31, 2024, compared to around $4.9 million for the same period in 2023.
─ Selling expenses
Selling expenses increased by about $0.1 million, or 18.0%, from approximately $0.5 million for the six months ended December 31, 2023, to approximately $0.6 million for the six months ended December 31, 2024. This rise was driven by an increase in marketing research activities. Selling expenses accounted for 5.2% of total revenues in 2024, compared to 7.9% in 2023.
─ General and Administrative Expenses
General and administrative expenses rose by approximately $0.4 million, or 11.3%, from about $3.9 million for the six months ended December 31, 2023, to roughly $4.3 million for the same period in 2024. This increase was primarily attributable to office decoration costs at our new Dongguan facility. As a percentage of sales, these expenses decreased to 35.7% in 2024 from 58.0% in 2023.
─ Research and Development Expenses
Research and development expenses increased by $0.2 million, or 37.0%, from approximately $0.5 million for the six months ended December 31, 2023, to about $0.7 million for the same period in 2024. These expenses were 5.5% of total revenues in 2024, down from 7.3% in 2023. We anticipate continued growth in research and development as we expand our efforts to use environmentally friendly materials and develop new high-tech products to meet customer demand.
Net loss decreased by approximately $1.4 million, or 43.2%, from about $3.2 million for the six months ended December 31, 2023, to approximately $1.8 million for the six months ended December 31, 2024, as a result of the foregoing.
About Dogness
Dogness (International) Corporation was founded in 2003 from the belief that dogs and cats are important, well-loved family members. Through its smart products, hygiene products, health and wellness products, and leash products, Dogness' technology simplifies pet lifestyles and enhances the relationship between pets and pet caregivers. The Company ensures industry-leading quality through its fully integrated vertical supply chain and world-class research and development capabilities, which has resulted in over 200 patents and patents pending. Dogness products reach families worldwide through global chain stores and distributors. For more information, please visit: ir.dogness.com.
Forward Looking Statements
No statement made in this press release should be interpreted as an offer to purchase or sell any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Certain statements in this press release concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the "safe harbor" under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding, our ability to raise capital on any particular terms, fulfillment of customer orders, fluctuations in earnings, fluctuations in foreign exchange rates, trade policies affecting our business including tariffs on our products, our ability to manage growth, our ability to realize revenue from expanded operation and acquired assets in China and the U.S., our ability to attract and retain highly skilled professionals, client concentration, industry segment concentration, reduced demand for technology in our key focus areas, our ability to successfully complete and integrate potential acquisitions, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings. These filings are available at www.sec.gov. Dogness may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of the date of this press release. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.
For investor and media inquiries, please contact:
Wealth Financial Services LLC
Connie Kang, Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 (CN)
DOGNESS (INTERNATIONAL) CORPORATION | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(All amounts in USD) | ||||||||
(Unaudited) | ||||||||
As of December 31, | As of | |||||||
2024 | 2024 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 6,057,762 | $ | 6,956,434 | ||||
Accounts receivable from third-party customers, net | 3,298,433 | 2,269,341 | ||||||
Accounts receivable from related party | 311,713 | 582,182 | ||||||
Inventories, net | 3,228,661 | 3,119,827 | ||||||
Due from related party | 101,491 | 97,037 | ||||||
Prepayments and other current assets | 3,374,352 | 3,328,189 | ||||||
Advances to supplier- related party | - | 50,908 | ||||||
Total current assets | 16,372,412 | 16,403,918 | ||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment, net | 60,593,968 | 61,303,327 | ||||||
Operating lease right-of-use lease assets | 15,679,000 | 16,325,988 | ||||||
Intangible assets, net | 1,744,340 | 1,780,856 | ||||||
Long-term investments in equity investees | 1,507,000 | 1,513,600 | ||||||
Deferred tax assets | 1,972,480 | 1,873,140 | ||||||
Total non-current assets | 81,496,788 | 82,796,911 | ||||||
TOTAL ASSETS | $ | 97,869,200 | $ | 99,200,829 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term bank loans | $ | 890,500 | $ | 894,400 | ||||
Current portion of long-term bank loans | 900,936 | 759,339 | ||||||
Accounts payable | 2,264,565 | 1,286,981 | ||||||
Accounts payable - related party | 12,913 | - | ||||||
Due to related parties | 71,994 | 518,003 | ||||||
Advances from customers | 224,676 | 264,832 | ||||||
Taxes payable | 1,029,282 | 1,007,482 | ||||||
Accrued expenses and other current liabilities | 1,504,502 | 1,452,225 | ||||||
Operating lease liabilities, current | 2,279,655 | 2,352,482 | ||||||
Total current liabilities | 9,179,023 | 8,535,744 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Long-term bank loans | 2,845,274 | 3,315,715 | ||||||
Operating lease liabilities, non-current | 11,150,861 | 10,938,477 | ||||||
Total non-current liabilities | 13,996,135 | 14,254,192 | ||||||
TOTAL LIABILITIES | 23,175,158 | 22,789,936 | ||||||
Commitments and Contingencies (Note 6) | ||||||||
EQUITY | ||||||||
Class A Common shares, no par value, unlimited shares | 92,403,766 | 92,004,296 | ||||||
Class B Common shares, no par value, unlimited shares | 18,138 | 18,138 | ||||||
Statutory reserve | 291,443 | 291,443 | ||||||
Accumulated deficit | (7,207,552) | (5,391,709) | ||||||
Accumulated other comprehensive loss | (10,811,795) | (10,511,317) | ||||||
Equity attributable to owners of the Company | 74,694,000 | 76,410,851 | ||||||
Non-controlling interest | 42 | 42 | ||||||
Total equity | 74,694,042 | 76,410,893 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 97,869,200 | $ | 99,200,829 |
DOGNESS (INTERNATIONAL) CORPORATION | ||||||||
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||
(All amounts in USD) | ||||||||
(Unaudited) | ||||||||
For the Six Months Ended December 31, | ||||||||
2024 | 2023 | |||||||
Revenues–third party customers | $ | 12,085,711 | $ | 6,573,379 | ||||
Revenues – related parties | - | 101,308 | ||||||
Total Revenues | 12,085,711 | 6,674,687 | ||||||
Cost of revenues – third party customers | (8,668,552) | (5,280,923) | ||||||
Cost of revenues – related parties | - | (82,835) | ||||||
Total Cost of revenues | (8,668,552) | (5,363,758) | ||||||
Gross Profit | 3,417,159 | 1,310,929 | ||||||
Operating expenses: | ||||||||
Selling expenses | 624,410 | 529,021 | ||||||
General and administrative expenses | 4,312,486 | 3,873,442 | ||||||
Research and development expenses | 665,494 | 485,849 | ||||||
Total operating expenses | 5,602,390 | 4,888,312 | ||||||
Loss from operations | (2,185,231) | (3,577,383) | ||||||
Other income (expense): | ||||||||
Interest income (expense), net | 6,884 | (113,690) | ||||||
Foreign exchange transaction gain | 114,443 | 32,469 | ||||||
Other income, net | 41,357 | 80,891 | ||||||
Rental income from related parties, net | 107,737 | 148,406 | ||||||
Total other income, net | 270,421 | 148,076 | ||||||
Loss before income taxes | (1,914,810) | (3,429,307) | ||||||
Income taxes benefit | (98,967) | (231,756) | ||||||
Net loss | (1,815,843) | (3,197,551) | ||||||
Less: net loss attributable to non-controlling interest | - | (934) | ||||||
Net loss attributable to Dogness (International) | (1,815,843) | (3,196,617) | ||||||
Other comprehensive loss | ||||||||
Foreign currency translation adjustments | (300,478) | 1,666,560 | ||||||
Comprehensive loss | (2,116,321) | (1,530,991) | ||||||
Less: comprehensive loss attributable to non-controlling | - | (931) | ||||||
Comprehensive loss attributable to Dogness | $ | (2,116,321) | $ | (1,530,060) | ||||
Loss Per share | ||||||||
Basic | $ | (0.14) | $ | (0.30) | ||||
Diluted | $ | (0.14) | $ | (0.30) | ||||
Weighted Average Shares Outstanding | ||||||||
Basic | 12,755,658 | 10,622,663 | ||||||
Diluted | 12,755,658 | 10,622,663 |
DOGNESS (INTERNATIONAL) CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(All amounts in USD) | ||||||||
(Unaudited) | ||||||||
For the Six Months Ended December 31, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (1,815,843) | $ | (3,197,551) | ||||
Adjustments to reconcile loss income to net cash provided by | ||||||||
Depreciation and amortization | 1,395,756 | 1,414,937 | ||||||
Share-based compensation for services | 399,470 | 399,470 | ||||||
Loss (gain) from disposal of property, plant and equipment | 176,347 | (9,845) | ||||||
Change in credit losses | (232,600) | 111,105 | ||||||
Deferred tax benefit | (108,490) | (275,121) | ||||||
Amortization of right-of-use lease assets | 585,466 | 591,705 | ||||||
Warrants modification | - | 239,308 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (824,001) | (682,445) | ||||||
Accounts receivable-related party | 272,429 | 177,374 | ||||||
Inventories | (121,257) | (359,976) | ||||||
Prepayments and other current assets | (61,720) | (1,080,158) | ||||||
Advances to supplier-related party | 51,537 | 126,527 | ||||||
Accounts payables | 999,703 | 425,101 | ||||||
Accounts payables-related party | 13,130 | - | ||||||
Accrued expenses and other current liabilities | 24,691 | 16,516 | ||||||
Advance from customers | (39,639) | 104,887 | ||||||
Operating lease liabilities | 200,827 | 188,379 | ||||||
Taxes payable | 26,242 | 159,612 | ||||||
Net cash provided by (used in) operating activities | 942,048 | (1,650,175) | ||||||
Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment | (1,050,711) | (294,828) | ||||||
Proceeds from disposition of property, plant and equipment | 787 | 56,000 | ||||||
Net cash used in investing activities | (1,049,924) | (238,828) | ||||||
Cash flows from financing activities: | ||||||||
Net proceeds from exercise of warrants | - | 15,101 | ||||||
Reverse split shares | - | (810) | ||||||
Proceeds from short-term bank loans | 696,500 | 691,000 | ||||||
Repayment of short-term bank loans | (696,500) | (885,800) | ||||||
Proceeds from long-term bank loans | - | 2,625,800 | ||||||
Repayment of long-term bank loans | (316,297) | (2,793,472) | ||||||
(Repayment of) proceeds from related-party loans | (456,160) | 6,498 | ||||||
Net cash used in financing activities | (772,457) | (341,683) | ||||||
Effect of exchange rate changes on cash and restricted cash | (18,339) | 226,388 | ||||||
Net decrease in cash and cash equivalents | (898,672) | (2,004,298) | ||||||
Cash and cash equivalents, beginning of period | 6,956,434 | 4,483,308 | ||||||
Cash and cash equivalents, end of period | $ | 6,057,762 | $ | 2,479,010 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW | ||||||||
Cash paid for interest | $ | 115,430 | $ | 154,884 | ||||
Non-Cash Investing Activities | ||||||||
Liabilities incurred (settled) for purchase of property and | $ | 34,909 | $ | (40,251) | ||||
Prepaid share-based compensation for services | $ | - | $ | (223,000) |
Source: Dogness (International) Corporation Related Stocks: NASDAQ:DOGZ