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STAK Inc. Announces First Half of Fiscal Year 2025 Financial Results
CHANGZHOU, China, April 23, 2025 /PRNewswire/ -- STAK Inc. (the "Company" or "STAK")(Nasdaq: STAK), a fast-growing company specializing in the research, development, manufacturing, and sale of oilfield-specialized production and maintenance equipment, today announced its unaudited financial results for the first half of fiscal year 2025 ended December 31, 2024.
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 $17.0 million, representing a 24.44% increase year over year. Our gross profit margin also improved to 30.65%, up from 28.54% in same period of the prior year, underscoring the success of our product strategy transformation. Net income rose to $2.0 million, representing a 23.81% year-over-year increase, highlighting the effectiveness of our strategic initiatives, as well as our commitment to sustainable, profitable growth. We also maintained a solid pace of investment in research and development, aiming to enhance our existing product portfolio and enter new markets through technical innovation and distinctive designs.
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 offeringsto help customers reduce costs, enhance efficiency, and meet evolving operational needs. Moreover, diversifying our portfolio to support international expansion will be another key pillarfor our long-term vision, positioning STAK to embrace emerging opportunities in global oilfield markets."
First Halfof Fiscal Year 2025 Financial Highlights
- Revenues were $17.0 million for the first half of fiscal year 2025, an increase of 24.44% from $13.6 million for the first half of fiscal year 2024.
- Gross profit was $5.2 million for the first half of fiscal year 2025, an increase of 33.63% from $3.9 million for the first half of fiscal year 2024.
- Gross profit margin was 30.65% for the first half of fiscal year 2025, compared to 28.54% for the first half of fiscal year 2024.
- Research and development expenses was $1.5 million for the first half of fiscal year 2025, an increase of 52.71% from $1.0 million for the first half of fiscal year 2024.
- Net income was $2.0 million for the first half of fiscal year 2025, an increase of 23.81% from $1.6 million for the first half of fiscal year 2024.
- Basic and diluted earnings per share were $0.20 for the first half of fiscal year 2025, compared to $0.16 for the first half of fiscal year 2024.
First Halfof Fiscal Year 2025 Financial Results
Revenues
Revenueswere $17.0 million for the first half of fiscal year 2025,an increase of 24.44%from $13.6 million for the first half of fiscal year 2024.The increase in revenues was mainly driven by the increase in demand for specialized oilfield equipment and increase in average sales price for specialized oilfield vehicles and partially offset by the decrease in demand for sales of raw materials and parts.
Sales of specialized oilfield equipment were $9.5 million for the first half of fiscal year 2025,an increase of 73.54%from $5.5 million for the first half of fiscal year 2024.The increase was mainly due to the Company's decision to expand production capacity of higher-pricing specialized oilfield equipment in order to allocate more resources towards research and development for the Company's new specialized oilfield equipment products with higher profit margins, given that all specialized oilfield equipment shares the same production facilities.
Sales of specialized oilfield vehicles were $5.6 million for the first half of fiscal year 2025, an increase of 58.27% from $3.6 million for the first half of fiscal year 2024. The increase was mainly due to the Company's decision to optimize its product portfolio.
Service revenue was $1.8 million for the first half of fiscal year 2025, an increase of 1.51% from $1.7 million for the first half of fiscal year 2024. The increase was because the Company earned cultivate positive word-of-mouth recommendations within the oilfield industry and a good reputation in the market.
Other revenue was $0.04 million for the first half of fiscal year 2025, a decrease of 98.57% from $2.8 million for the first half of fiscal year 2024. The Company sold chassis parts of $2.8 million for the first half of fiscal year 2024.
Cost of Revenues
Cost of revenues was $11.8 million for the first half of fiscal year 2025, an increase of 20.77% from $9.7 million for the first half of fiscal year 2024. The increase in cost was mainly due to the increase in revenues of 24.44%.
Gross Profit and Gross Profit Margin
Gross profit was $5.2 million for the first half of fiscal year 2025, an increase of 33.63% from $3.9 million for the first half of fiscal year 2024. Gross profit margin was 30.65% for the first half of fiscal year 2025, increased from 28.54% for the first half of fiscal year 2024. The increase in both gross profit and gross profit margin was mainly driven by higher margin achieved in sales of specialized oilfield vehicles, which was partially offset by the decreasing unsustainable sales of the Company's parts and materials.
Operating Expenses
Total operating expenses were $2.9 million for the first half of fiscal year 2025, compared to $2.0 million for the first half of fiscal year 2024.
- Selling and marketing expenses have been consistently maintained at $0.6 million for the first half of fiscal year 2025 and 2024. The observed revenue expansion reflects the Company's management team's direct business development efforts rather than commission-based sales channels, thereby maintaining stable commission expenditures.
- General and administrative expenses were $0.8 million for the first half of fiscal year 2025, an increase of 91.78% from $0.4 million for the first half of fiscal year 2024. The increase was attributed to the increase in provision for credit losses of $0.4 million on accounts receivables.
- Research and development expenses were $1.5 million for the first half of fiscal year 2025, an increase of 52.71% from $1.0 million for the first half of fiscal year 2024. The increase was attributed to the increase of design and development expenses to develop new products and refine existing products. The research and development expenses are mainly driven by the stage and scale of the Company's equipment development.
Net Income
Net income was $2.0 million for the first half of fiscal year 2025, an increase of 23.81% from $1.6 million for the first half of fiscal year 2024.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were $0.20 for the first half of fiscal year 2025, compared to $0.16 for the first half of fiscal year 2024.
Financial Condition
As of December 31, 2024, the Company had cash and cash equivalents of $0.4 million, compared to $0.7 million as of June 30, 2024.
Net cash used in operating activities was $1.0 million for the first half of fiscal year 2025, compared to $1.4 million for the first half of fiscal year 2024.
Net cash provided by investing activities was $0.1 million for the first half of fiscal year 2025, compared to $0.3 million for the first half of fiscal year 2024.
Net cash provided by financing activities was $0.6 million for the first half of fiscal year 2025, compared to $1.1 million for the first half of fiscal year 2024.
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 $4.00 per share. On March 4, 2025, the underwriters of the Offering partially exercised their over-allotment option to purchase an additional 160,349ordinary shares at the public offering price of $4.00 per share. The gross proceeds were $5.64 million, before deducting underwriting discounts and other related expenses. The Company's ordinary shares began trading on the Nasdaq Capital Market on February 26, 2025, under the ticker symbol "STAK."
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 China. For more information, please visit the company's website at https://www.stakindustry.com/ir/.
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: [emailprotected]
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: [emailprotected]
STAKINC. | ||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS | ||||||||
(Expressed in U.S. dollars, except for the number of shares) | ||||||||
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 $0.001 per share; 50,000,000 shares | 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.
STAKINC. | ||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Expressed in U.S. dollars, except for number of shares) | ||||||||
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.
STAKINC. | ||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Expressed in U.S. dollars) | ||||||||
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.
SOURCE STAK Inc.
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