STAK Inc. Announces First Half of Fiscal Year 2025 Financial Results
Rhea-AI Summary
STAK reported strong financial results for H1 FY2025, with revenues reaching $17.0 million, up 24.44% year-over-year. The company's gross profit increased 33.63% to $5.2 million, with improved margins of 30.65%. Net income grew 23.81% to $2.0 million, with EPS of $0.20.
Sales of specialized oilfield equipment surged 73.54% to $9.5 million, while oilfield vehicles sales increased 58.27% to $5.6 million. R&D expenses rose 52.71% to $1.5 million as the company focused on product innovation.
Notably, STAK completed its IPO on February 27, 2025, raising $5.64 million by offering 1,410,349 shares at $4.00 per share. The company began trading on the Nasdaq Capital Market under 'STAK' on February 26, 2025.
Positive
- Revenue growth of 24.44% YoY to $17.0 million
- Gross profit margin improved to 30.65% from 28.54%
- Net income increased 23.81% to $2.0 million
- Specialized oilfield equipment sales up 73.54% to $9.5 million
- Successful IPO raising $5.64 million
Negative
- Cash and cash equivalents decreased to $0.4M from $0.7M
- Other revenue declined 98.57% to $0.04M
- General and administrative expenses increased 91.78%
- Net cash used in operating activities of $1.0M
Insights
Strong revenue growth, margin improvement and IPO proceeds signal robust execution and strategic progress, but cash flow highlights a near-term liquidity challenge.
STAK Inc. reported a 24.44% year-over-year revenue increase to
Mr. Chuanbo Jiang, Chairman and Chief Executive Officer of STAK, commented, "Driven by rising market demand and our strategic focus on higher-margin, specialized oilfield vehicles, the first half of fiscal year 2025 recorded a solid performance for our company, reflecting both operational and strategic progress. We delivered robust financial results, with revenues reaching
In addition to our financial achievements, the completion of our Initial Public Offering was a significant milestone. On February 26, 2025, we commenced trading on the Nasdaq Capital Market under the ticker symbol 'STAK.' This achievement reflects the market's confidence in our vision and provides a strong foundation to accelerate our growth trajectory and push the boundaries for long-term value.
As we move forward, we remain confident in our market position and the opportunities emerging in the recovering oil field services industry. Innovation will remain central to our strategy as we continue to advance our product offerings to help customers reduce costs, enhance efficiency, and meet evolving operational needs. Moreover, diversifying our portfolio to support international expansion will be another key pillar for our long-term vision, positioning STAK to embrace emerging opportunities in global oilfield markets."
First Half of Fiscal Year 2025 Financial Highlights
- Revenues were
$17.0 million 24.44% from$13.6 million - Gross profit was
$5.2 million 33.63% from$3.9 million - Gross profit margin was
30.65% for the first half of fiscal year 2025, compared to28.54% for the first half of fiscal year 2024. - Research and development expenses was
$1.5 million 52.71% from$1.0 million - Net income was
$2.0 million 23.81% from$1.6 million - Basic and diluted earnings per share were
$0.20 $0.16
First Half of Fiscal Year 2025 Financial Results
Revenues
Revenues were
Sales of specialized oilfield equipment were
Sales of specialized oilfield vehicles were
Service revenue was
Other revenue was
Cost of Revenues
Cost of revenues was
Gross Profit and Gross Profit Margin
Gross profit was
Operating Expenses
Total operating expenses were
- Selling and marketing expenses have been consistently maintained at
$0.6 million - General and administrative expenses were
$0.8 million 91.78% from$0.4 million $0.4 million - Research and development expenses were
$1.5 million 52.71% from$1.0 million
Net Income
Net income was
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were
Financial Condition
As of December 31, 2024, the Company had cash and cash equivalents of
Net cash used in operating activities was
Net cash provided by investing activities was
Net cash provided by financing activities was
Recent Development
On February 27, 2025, the Company completed its initial public offering (the "Offering") of 1,250,000 ordinary shares at a price of
About STAK Inc.
STAK Inc. is a fast-growing company specializing in the research, development, manufacturing, and sale of oilfield-specific production and maintenance equipment. The Company designs and manufactures oilfield-specialized production and maintenance equipment, then collaborates with qualified specialized vehicle manufacturing companies to integrate the equipment onto vehicle chassis, producing specialized oilfield vehicles for sale. Additionally, the Company sells oilfield-specialized equipment components, related products, and provides automation solutions. Its vision is to help oilfield services companies reduce costs and increase efficiency by providing the cutting-edge integrated oilfield equipment and automation solutions service. Its mission is to become a powerful provider for the niche markets of specialized oilfield vehicles and equipment in
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "may," "will," "expect," "anticipate," "aim," "estimate," "potential," "intend," "plan," "believe," "likely to" or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
For more information, please contact:
STAK Inc.
Investor Relations Department
Email: ir@stakindustry.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
STAK INC. | ||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS | ||||||||
(Expressed in | ||||||||
As of | ||||||||
December 31, | June 30, 2024 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 360,522 | $ | 658,154 | ||||
Accounts receivable, net | 8,668,130 | 3,485,523 | ||||||
Inventories | 13,389,498 | 8,282,243 | ||||||
Advances to suppliers | 88,381 | 1,427,849 | ||||||
Amounts due from a related party | 77,700 | 133,482 | ||||||
Prepayments and other current assets, net | 447,022 | 680,496 | ||||||
Deferred offering costs | 748,757 | 627,604 | ||||||
Total current assets | 23,780,010 | 15,295,351 | ||||||
Non-current assets: | ||||||||
Property and equipment, net | 2,411,116 | 2,582,713 | ||||||
Intangible asset, net | 59,473 | 62,241 | ||||||
Right-of-use assets, net | 28,567 | 38,197 | ||||||
Deferred tax assets | 627,498 | 506,523 | ||||||
Other assets | 261,471 | 297,696 | ||||||
Total non-current assets | 3,388,125 | 3,487,370 | ||||||
Total assets | $ | 27,168,135 | $ | 18,782,721 | ||||
Liabilities and shareholder's equity | ||||||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 6,678,474 | $ | 746,134 | ||||
Amounts due to a related party | 52,697 | 42,487 | ||||||
Accrued expenses and other current liabilities | 997,367 | 1,293,243 | ||||||
Short-term borrowings | 4,986,780 | 4,334,544 | ||||||
Income tax payable | 1,956,021 | 1,668,400 | ||||||
Total current liabilities | 14,671,339 | 8,084,808 | ||||||
Non-Current liability: | ||||||||
Long-term borrowing | - | 116,964 | ||||||
Total non-current liability | - | 116,964 | ||||||
Total liabilities | $ | 14,671,339 | $ | 8,201,772 | ||||
Commitments and contingencies | ||||||||
Shareholder's equity | ||||||||
Ordinary shares (par value of | 10,000 | 10,000 | ||||||
Additional paid in capital | 4,249,517 | 4,249,517 | ||||||
Statutory reserve | 877,821 | 672,402 | ||||||
Retained earnings | 7,831,517 | 6,037,573 | ||||||
Accumulated other comprehensive loss | (472,059) | (388,543) | ||||||
Total shareholders' equity | 12,496,796 | 10,580,949 | ||||||
Total liabilities and shareholder's equity | $ | 27,168,135 | $ | 18,782,721 | ||||
* The shares and per share information are presented on a retroactive basis to reflect the reorganization and the shares surrender (Note 1).
The accompanying notes are an integral part of these unaudited consolidated financial statements.
STAK INC. | ||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Expressed in | ||||||||
For the Six Months Ended | ||||||||
2024 | 2023 | |||||||
Revenues | $ | 16,955,913 | $ | 13,626,151 | ||||
Cost of revenues | (11,759,741) | (9,737,606) | ||||||
Gross profit | 5,196,172 | 3,888,545 | ||||||
Operating expenses: | ||||||||
Selling and marketing expenses | (599,471) | (608,507) | ||||||
General and administrative expenses | (806,833) | (420,700) | ||||||
Research and development expenses | (1,542,926) | (1,010,394) | ||||||
Total operating expenses | (2,949,230) | (2,039,601) | ||||||
Operating income | 2,246,942 | 1,848,944 | ||||||
Other (expense) income: | ||||||||
Interest expense, net | (89,907) | (45,082) | ||||||
Government subsidies | 17,006 | 28,015 | ||||||
Total other expense, net | (72,901) | (17,067) | ||||||
Income before income tax expense | 2,174,041 | 1,831,877 | ||||||
Income tax expense | (174,678) | (216,960) | ||||||
Net income | 1,999,363 | 1,614,917 | ||||||
Net income per ordinary share: | ||||||||
Earnings per share, basic and diluted * | $ | 0.20 | $ | 0.16 | ||||
Weighted average number of shares outstanding, basic and diluted * | 10,000,000 | 10,000,000 | ||||||
Net income | $ | 1,999,363 | $ | 1,614,917 | ||||
Foreign currency translation adjustments | (83,516) | 204,744 | ||||||
Total comprehensive income | $ | 1,915,847 | $ | 1,819,661 | ||||
* The shares and per share information are presented on a retroactive basis to reflect the reorganization and the share surrender (Note 1).
The accompanying notes are an integral part of these unaudited consolidated financial statements.
STAK INC. | ||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Expressed in | ||||||||
For the Six Months Ended December 31, | ||||||||
2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | 1,999,363 | 1,614,917 | ||||||
Adjustments to reconcile net income to net cash used in operating | ||||||||
Provision for credit losses | 524,509 | 97,944 | ||||||
Depreciation of property and equipment | 166,058 | 163,622 | ||||||
Amortization of intangible asset | 2,538 | 2,518 | ||||||
Amortization of operating lease right-of-use asset | 9,624 | 30,157 | ||||||
Deferred income tax | (125,305) | (208,562) | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (5,791,039) | (7,863,471) | ||||||
Advance to suppliers | 1,355,963 | 184,254 | ||||||
Inventories | (5,231,547) | (1,844,324) | ||||||
Amounts due from/due to related parties | 66,712 | 946,203 | ||||||
Prepaid expenses and other current asset | 73,201 | (94,121) | ||||||
Other assets | 35,512 | (377,901) | ||||||
Accounts payable | 6,037,020 | 5,611,525 | ||||||
Deferred revenue | - | (385,413) | ||||||
Income tax payable | 299,996 | 425,522 | ||||||
Accrued expenses and other current liabilities | (421,174) | 309,778 | ||||||
Operating lease liabilities | - | (22,628) | ||||||
Net cash used in operating activities | (998,569) | (1,409,980) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (3,082) | (17,403) | ||||||
Loans to third parties | (209,010) | |||||||
Collection of loans to third parties | 350,022 | 297,455 | ||||||
Net cash provided by investing activities | 137,930 | 280,052 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from short-term bank loans | 2,424,513 | 2,294,497 | ||||||
Repayments of short-term bank loans | (1,741,748) | (1,188,715) | ||||||
Repayments of long-term bank loans | (118,439) | - | ||||||
Net cash provided by financing activities | 564,326 | 1,105,782 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,319) | 12,840 | ||||||
Net decrease in cash and cash equivalents | (297,632) | (11,306) | ||||||
Cash and cash equivalents, at beginning of the period | 658,154 | 593,199 | ||||||
Cash and cash equivalents, at end of the period | $ | 360,522 | $ | 581,893 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW | ||||||||
Interest paid | $ | 90,523 | $ | - | ||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||||||||
Addition of right-of-use assets | $ | - | $ | 105,760 | ||||
The accompanying notes are an integral part of these unaudited consolidated financial statements.
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SOURCE STAK Inc.
FAQ
What were STAK's revenue and profit margins in H1 FY2025?
How much did STAK raise in its IPO and when did it list?
What was STAK's performance in specialized oilfield equipment sales?
How much did STAK invest in R&D during H1 FY2025?
What was STAK's earnings per share (EPS) for H1 FY2025?
