Dogness Reports Financial Results for the Six Months Ended December 31, 2024

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Dogness Reports Financial Results for the Six Months Ended December 31, 2024

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
category


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
others



 

2,878,245



 

761,742

 

277.9

%

Total revenue from
products



 

12,085,711



 

6,597,638

 

83.2

%










Services









Dyeing services



-



77,049

(100.0)

%

Total revenue from
services



-



 

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
June 30,




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
authorized; 3,661,658 issued and outstanding as of
December 31, 2024 and June 30, 2024



92,403,766




92,004,296


Class B Common shares, no par value, unlimited shares
authorized; 9,069,000 issued and outstanding as of
December 31, 2024 and June 30, 2024



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)
Corporation



(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
interest



-




(931)


Comprehensive loss attributable to Dogness
(International) Corporation


$

(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
(used in) operating activities:









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
INFORMATION:









Cash paid for interest


$

115,430



$

154,884











Non-Cash Investing Activities









Liabilities incurred (settled) for purchase of property and
equipment


$

34,909



$

(40,251)


Prepaid share-based compensation for services


$

-



$

(223,000)


 

 

 


Source: Dogness (International) Corporation Related Stocks: NASDAQ:DOGZ

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