Dogness Reports Financial Results for Fiscal Year Ended June 30, 2024
Rhea-AI Summary
Dogness (NASDAQ: DOGZ) reported financial results for the fiscal year ended June 30, 2024, showing a 15.6% revenue decline to $14.8 million. The company faced challenges due to intense competition and the ongoing China-US trade dispute. Gross profit decreased by 14.7% to $3.1 million, primarily due to lower sales volumes in intelligent pet products. However, the gross profit margin improved slightly to 21.0% from 20.8% in fiscal 2023. Dogness effectively reduced selling expenses by $1.3 million and general and administrative expenses by $2.0 million. The net loss improved by 18.8%, decreasing from $7.5 million in fiscal 2023 to $6.1 million in fiscal 2024. The company is focusing on leveraging strengths in traditional pet products, exploring new product lines, and committing to sustainability in its R&D efforts.
Positive
- Gross profit margin improved slightly to 21.0% from 20.8% in fiscal 2023
- Selling expenses reduced by $1.3 million
- General and administrative expenses reduced by $2.0 million
- Net loss improved by 18.8%, decreasing from $7.5 million to $6.1 million
- Traditional pet products revenue increased by 8.7% to $9.0 million
Negative
- Overall revenue declined by 15.6% to $14.8 million
- Gross profit decreased by 14.7% to $3.1 million
- Intelligent pet products revenue fell by 40.8% to $4.4 million
- Climbing hooks and other products revenue decreased by 25.0% to $1.4 million
- Domestic sales decreased by 24.4% to $4.8 million
News Market Reaction
On the day this news was published, DOGZ declined 8.16%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Silong Chen, Chief Executive Officer of Dogness, commented: "We continue to face challenges due to intense competition in the domestic market and the ongoing trade dispute between
"Looking ahead, we are committed to leveraging our strengths in traditional pet products to capture additional market share, particularly in international markets where we see significant growth potential. We are also exploring new product lines and enhancements to our intelligent pet products, aiming to align them with consumer trends and preferences. Our commitment to sustainability will drive our research and development efforts, focusing on eco-friendly materials and advanced technologies that resonate with our customer base."
"Thanks to these strategic initiatives, our net loss improved by approximately
Financial Results for The Fiscal Year Ended June 30, 2024
Revenues
Revenues decreased by approximately
The breakdown of our revenue by products and services categories is as follows:
2024
| 2023
| Changes
| ||||||||
Products and services | Amount (USD Million) | Amount (USD Million) | % | |||||||
Products | ||||||||||
Traditional pet products | $ | 9.0 | $ | 8.3 | 8.7 | % | ||||
Intelligent pet products | 4.4 | 7.4 | (40.8) | % | ||||||
Climbing hooks and others | 1.4 | 1.8 | (25.0) | % | ||||||
Total revenue from products | 14.8 | 17.5 | (15.7) | % | ||||||
Services | ||||||||||
Dyeing services | 0.09 | - | - | % | ||||||
Other services | - | 0.07 | (100.0) | % | ||||||
Total revenue from services | 0.09 | 0.07 | 22.5 | % | ||||||
Total | $ | 14.8 | $ | 17.6 | (15.6) | % | ||||
Traditional Pet Products
Revenue from traditional pet products rose by approximately
Intelligent Pet Products
Revenue from intelligent pet products fell by approximately
Climbing Hooks and Others
Revenue from climbing hooks and other products decreased by approximately
Dyeing Services
The Company provides dyeing solutions using our manufacturing capabilities, applying dyes to textiles for desired quality and color. Revenue from dyeing services was
Sales to Related Parties
During fiscal 2024, Dogness Network Technology Co., Ltd. ("Dogness Network") and Dogness Technology Co., Ltd ("Dogness Technology") were related parties of the Company. Dogness Technology ceased being a related party after December 31, 2023. Sales to Dogness Network and Dogness Technology Co., Ltd totaled
International vs. Domestic sales
Total international sales dropped by approximately
Domestic sales decreased by approximately
Cost of revenues
Cost of revenues decreased by approximately
Gross profit
Gross profit decreased by approximately
The breakdown of gross profit by products and services categories is as follows:
For the Year ended June 30, | |||||||||||||||||||||
2024 | 2023 | Changes | |||||||||||||||||||
Products and services category | Amount ($Million) | Gross | Amount ($Million) | Gross | Gross profit Pct. | ||||||||||||||||
Traditional pet products | $ | 1.4 | 16.0 | % | $ | 1.2 | 14.3 | % | 1.7 | pct. | |||||||||||
Intelligent pet products | 1.2 | 28.3 | % | 1.8 | 24.4 | % | 3.9 | pct. | |||||||||||||
Climbing hooks and others | 0.5 | 34.9 | % | 0.6 | 34.2 | % | 0.7 | pct. | |||||||||||||
3.1 | 21.4 | % | 3.6 | 20.6 | % | 0.8 | pct. | ||||||||||||||
Services | |||||||||||||||||||||
Dyeing services | (0.03) | (35.8) | % | - | - | % | (35.8) | pct. | |||||||||||||
Other services | - | - | % | 0.06 | 86.5 | (86.5) | pct. | ||||||||||||||
Total | $ | 3.1 | 21.0 % | % | $ | 3.7 | 20.8 | % | 0.2 | pct. | |||||||||||
Traditional pet products
Gross profit for traditional pet products rose by approximately
Intelligent pet products
For intelligent pet products, gross profit fell by approximately
Climbing hooks and others
Gross profit for climbing hooks and others decreased by approximately
Expenses
Selling Expenses
Selling expenses decreased by approximately
General and Administrative Expenses
General and administrative expenses decreased by approximately
Research and Development Expenses
Research and development expenses decreased by approximately
Net loss
As a result of the foregoing, our net loss decreased by approximately
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, our ability to manage growth, our ability to realize revenue from expanded operation and acquired assets in
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) | ||||||||
As of June 30, | As of June 30, | |||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 6,956,434 | $ | 4,483,308 | ||||
Accounts receivable from third-party customers, net | 2,269,341 | 1,492,762 | ||||||
Accounts receivable from related parties | 582,182 | 1,272,384 | ||||||
Inventories, net | 3,119,827 | 2,679,275 | ||||||
Due from related parties | 97,037 | 87,430 | ||||||
Prepayments and other current assets | 3,328,189 | 3,748,955 | ||||||
Advances to supplier- related party | 50,908 | 239,729 | ||||||
Total current assets | 16,403,918 | 14,003,843 | ||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment, net | 61,303,327 | 61,686,849 | ||||||
Operating lease right-of-use lease assets | 16,325,988 | 17,537,096 | ||||||
Intangible assets, net | 1,780,856 | 1,845,006 | ||||||
Long-term investments in equity investees | 1,513,600 | 1,516,900 | ||||||
Deferred tax assets | 1,873,140 | 1,281,634 | ||||||
Total non-current assets | 82,796,911 | 83,867,485 | ||||||
TOTAL ASSETS | $ | 99,200,829 | $ | 97,871,328 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term bank loans | $ | 894,400 | $ | 887,000 | ||||
Current portion of long-term bank loans | 759,339 | 2,959,918 | ||||||
Accounts payable | 1,286,981 | 895,694 | ||||||
Due to related parties | 518,003 | 85,843 | ||||||
Advances from customers | 264,832 | 121,687 | ||||||
Taxes payable | 1,007,482 | 1,015,444 | ||||||
Accrued expenses and other current liabilities | 1,452,225 | 1,026,218 | ||||||
Operating lease liabilities, current | 2,352,482 | 2,326,162 | ||||||
Total current liabilities | 8,535,744 | 9,317,966 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Long-term bank loans | 3,315,715 | 1,595,549 | ||||||
Operating lease liabilities, non-current | 10,938,477 | 10,612,508 | ||||||
Total non-current liabilities | 14,254,192 | 12,208,057 | ||||||
TOTAL LIABILITIES | 22,789,936 | 21,526,023 | ||||||
Commitments and Contingencies (Note 10) | ||||||||
EQUITY | ||||||||
Class A Common shares, no par value, unlimited shares authorized; | 92,004,296 | 85,716,578 | ||||||
Class B Common shares, no par value, unlimited shares authorized; | 18,138 | 18,138 | ||||||
Statutory reserve | 291,443 | 291,443 | ||||||
(Accumulated deficit) retained earnings | (5,391,709) | 664,004 | ||||||
Accumulated other comprehensive loss | (10,511,317) | (10,345,832) | ||||||
Equity attributable to owners of the Company | 76,410,851 | 76,344,331 | ||||||
Non-controlling interest | 42 | 974 | ||||||
Total equity | 76,410,893 | 76,345,305 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 99,200,829 | $ | 97,871,328 | ||||
DOGNESS (INTERNATIONAL) CORPORATION | ||||||||||||
STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME | ||||||||||||
(All amounts in USD) | ||||||||||||
For the Years Ended June 30, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Revenues – third party customers | $ | 14,746,447 | $ | 15,884,281 | $ | 24,882,618 | ||||||
Revenues – related parties | 101,455 | 1,700,173 | 2,212,579 | |||||||||
Total Revenues | 14,847,902 | 17,584,454 | 27,095,197 | |||||||||
Cost of revenues – third party customers | (11,642,233) | (12,760,852) | (15,654,952) | |||||||||
Cost of revenues – related parties | (82,955) | (1,162,314) | (1,301,180) | |||||||||
Total cost of revenues | (11,725,188) | (13,923,166) | (16,956,132) | |||||||||
Gross Profit | 3,122,714 | 3,661,288 | 10,139,065 | |||||||||
Operating expenses: | ||||||||||||
Selling expenses | 1,129,671 | 2,478,163 | 2,077,174 | |||||||||
General and administrative expenses | 7,838,024 | 9,800,714 | 6,742,687 | |||||||||
Research and development expenses | 610,439 | 931,078 | 917,227 | |||||||||
Loss from disposal of property, plant and | 1,075,490 | 15,306 | 327,921 | |||||||||
Total operating expenses | 10,653,624 | 13,225,261 | 10,065,009 | |||||||||
(Loss) income from operations | (7,530,910) | (9,563,973) | 74,056 | |||||||||
Other income: | ||||||||||||
Interest expense, net | (207,410) | (330,824) | (370,108) | |||||||||
Foreign exchange transaction gain | 310,860 | 800,403 | 246,211 | |||||||||
Other income, net | 541,468 | 112,109 | 115,016 | |||||||||
Rental income from related parties, net | 337,743 | 295,362 | 173,089 | |||||||||
Total other income | 982,661 | 877,050 | 164,208 | |||||||||
(Loss) income before income taxes | (6,548,249) | (8,686,923) | 238,264 | |||||||||
Income taxes benefit | (491,600) | (1,227,449) | (2,777,868) | |||||||||
Net (loss) income | (6,056,649) | (7,459,474) | 3,016,132 | |||||||||
Less: net loss attributable to non-controlling | (936) | (259,211) | (219,427) | |||||||||
Net (loss) income attributable to Dogness | (6,055,713) | (7,200,263) | 3,235,559 | |||||||||
Other comprehensive loss: | ||||||||||||
Foreign currency translation loss | (165,481) | (6,204,254) | (3,203,448) | |||||||||
Comprehensive loss | (6,222,130) | (13,663,728) | (187,316) | |||||||||
Less: comprehensive loss attributable to non- | (932) | (270,210) | (230,583) | |||||||||
Comprehensive (loss) income attributable | $ | (6,221,198) | $ | (13,393,518) | $ | 43,267 | ||||||
(Loss) earnings per share | ||||||||||||
Basic | $ | (0.55) | $ | (0.68) | $ | 0.31 | ||||||
Diluted | $ | (0.55) | $ | (0.68) | $ | 0.31 | ||||||
Weighted Average Shares Outstanding* | ||||||||||||
Basic | 10,919,386 | 10,598,989 | 10,301,133 | |||||||||
Diluted | 10,919,386 | 10,598,989 | 10,316,232 | |||||||||
DOGNESS (INTERNATIONAL) CORPORATION | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(All amounts in USD) | ||||||||||||
For the Years Ended June 30, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net (loss) income | $ | (6,056,649) | $ | (7,459,474) | $ | 3,016,132 | ||||||
Adjustments to reconcile net (loss) income to | ||||||||||||
Amortization of operating lease right-of-use | 1,179,776 | 1,023,500 | 408,566 | |||||||||
Depreciation and amortization | 2,771,727 | 3,315,172 | 3,458,347 | |||||||||
Loss from disposition of property, plant and | 1,075,490 | 15,306 | 327,921 | |||||||||
Share-based compensation for services | 1,114,857 | 1,243,385 | 11,831 | |||||||||
Change in inventory reserve | - | 246,281 | - | |||||||||
Change in credit losses | 275,923 | 160,254 | (16,776) | |||||||||
Deferred tax benefit | (597,241) | (658,595) | (118,424) | |||||||||
Warrants modification | 239,308 | - | - | |||||||||
Accrued interest income | - | - | (1,320) | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivables | (1,060,171) | (109,090) | 683,119 | |||||||||
Accounts receivables-related parties | 691,431 | (272,301) | (620,728) | |||||||||
Inventories | (447,631) | 268,593 | 740,265 | |||||||||
Prepayments and other current assets | 97,647 | (3,113,841) | 1,173,662 | |||||||||
Advances to supplier- related party | 189,395 | (249,986) | - | |||||||||
Accounts payables | 395,559 | (62,237) | 224,676 | |||||||||
Accounts payables-related parties | - | (379,124) | 58,190 | |||||||||
Advance from customers | 144,236 | (18,989) | (52,365) | |||||||||
Taxes payable | (5,936) | (441,390) | (2,827,106) | |||||||||
Accrued expenses and other liabilities | 423,456 | 34,381 | (137,457) | |||||||||
Operating lease liabilities | 382,649 | (2,444,110) | (168,075) | |||||||||
Net cash provided by (used in) operating | 813,826 | (8,902,265) | 6,160,458 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of property, plant and equipment | (3,524,713) | (1,520,556) | (15,259,272) | |||||||||
Proceeds from disposition of property, plant | 79,850 | 14,872 | 22,213 | |||||||||
Proceeds upon maturity of short-term | - | 50,330 | 495,680 | |||||||||
Net cash used in investing activities | (3,444,863) | (1,455,354) | (14,741,379) | |||||||||
Cash flows from financing activities: | ||||||||||||
Net proceeds from private placement | 4,920,800 | - | 19,124,920 | |||||||||
Adjustment relating to non-controlling | - | (26,245) | - | |||||||||
Net proceeds from exercise of warrants | 329,480 | - | 4,444,136 | |||||||||
Reverse split shares | (810) | - | - | |||||||||
Net proceeds from exercise of options | - | - | 180,000 | |||||||||
Proceeds from short-term bank loans | 899,600 | 483,000 | 804,000 | |||||||||
Repayment of short-term bank loans | (887,000) | (160,000) | (944,446) | |||||||||
Proceeds from long-term bank loan | 2,629,600 | - | - | |||||||||
Repayment of long-term bank loans | (3,102,838) | (1,337,323) | (796,416) | |||||||||
Proceeds from (repayment of) related party | 425,007 | (25,796) | (1,943,408) | |||||||||
Net cash provided by (used in) financing | 5,213,839 | (1,066,364) | 20,868,786 | |||||||||
Effect of exchange rate changes on cash and | (109,676) | (698,581) | (617,747) | |||||||||
Net increase (decrease) in cash and cash | 2,473,126 | (12,122,564) | 11,670,118 | |||||||||
Cash and cash equivalents, beginning of year | 4,483,308 | 16,605,872 | 4,935,754 | |||||||||
Cash and cash equivalents, end of year | $ | 6,956,434 | $ | 4,483,308 | $ | 16,605,872 | ||||||
SUPPLEMENTAL DISCLOSURES OF | ||||||||||||
Cash (refunded) paid for income tax | $ | - | $ | (2,593) | $ | 3,195 | ||||||
Cash paid for interest | $ | 294,628 | $ | 396,517 | $ | 471,443 | ||||||
Non-Cash Investing Activities | ||||||||||||
Transfer from construction-in-progress to | $ | - | $ | - | $ | 597,594 | ||||||
Additions (reductions) to property, plant and | $ | 7,301 | $ | (8,167) | $ | - | ||||||
Prepaid share-based compensation for | $ | - | $ | 315,917 | $ | - | ||||||
View original content to download multimedia:https://www.prnewswire.com/news-releases/dogness-reports-financial-results-for-fiscal-year-ended-june-30-2024-302278629.html
SOURCE Dogness (International) Corporation
FAQ
What was Dogness (DOGZ) revenue for fiscal year 2024?
How did Dogness (DOGZ) perform in terms of net loss for fiscal year 2024?
What was the gross profit margin for Dogness (DOGZ) in fiscal year 2024?
How did Dogness (DOGZ) intelligent pet products sales perform in fiscal year 2024?
What were the main challenges faced by Dogness (DOGZ) in fiscal year 2024?
