TDH Holdings reported first‑half 2025 results that show a dramatic 466 % jump in revenue to $0.59 million, up from $0.10 million in the same period last year. Gross profit rose 329 % to $0.16 million, but the gross‑profit margin contracted to 26.73 % from 35.26 % year‑over‑year, reflecting the cost structure of the company’s new commercial‑real‑estate leasing operations. Operating loss narrowed 47 % to $0.57 million, compared with $1.08 million in the prior year, while net income attributable to common stockholders reached $1.38 million, translating to earnings per share of $0.13—slightly higher than the $1.32 million net income and $0.13 EPS reported for the first half of 2024.
The revenue surge is largely driven by the company’s pivot from restaurant operations to commercial real‑estate leasing. Management attributes the growth to a gradual economic recovery that has increased business activity and heightened demand for commercial properties. The new leasing model has attracted a broader tenant base, and the company’s personalized leasing solutions have improved tenant satisfaction and retention, fueling the revenue climb.
Gross‑profit margin compression stems from a reclassification of agency service and maintenance costs that were previously counted as administrative expenses. Under the new leasing model, these costs are now treated as cost of revenue, lowering the margin. The shift also introduces higher operating expenses associated with property management, such as maintenance, utilities, and tenant services, which are front‑loaded in the first half of the year as leases are signed and properties are brought online.
Operating loss narrowing reflects disciplined cost management and economies of scale as the leasing portfolio expands. While the company still incurs significant operating expenses, the incremental revenue from new leases offsets a portion of those costs, reducing the loss from $1.08 million to $0.57 million. The improvement signals that the company’s operational model is becoming more efficient as it scales its real‑estate operations.
Net income turning positive, with $1.38 million and $0.13 EPS, indicates that the company’s revenue growth and cost controls are sufficient to overcome operating losses. The slight increase over the prior year’s $1.32 million net income demonstrates a steady improvement in profitability, even as the company continues to invest in its new core business.
Management emphasized that the company expects the commercial real‑estate leasing business to continue growing in the near future. “We expect the revenue of the commercial real‑estate leasing business to continue to grow in the near future,” said a company spokesperson. The statement underscores confidence in sustained demand and the company’s ability to capitalize on the economic recovery.”
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