Mr. Chuanbo Jiang, Chairman and Chief Executive Officer of STAK, commented, "The first half of fiscal year 2026 reflects continued execution of our strategy amid evolving market dynamics. Driven by increase in both order volumes and pricing of our specialized oilfield vehicles, revenues grew to
First Half of Fiscal Year 2026 Financial Summary
- Revenues were
$19 .2 million for the first half of fiscal year 2026, an increase of 13.41% from $17.0 million for the first half of fiscal year 2025. - Gross profit remained steady at
$5.2 million for the first half of fiscal year 2025 and 2026. - Gross profit margin was 27.24% for the first half of fiscal year 2026, compared to 30.65% for the first half of fiscal year 2025.
- Net income was
$1 .8 million for the first half of fiscal year 2026, compared to $2.0 million for the first half of fiscal year 2025. - Basic and diluted earnings per share were
$0 .14 for the first half of fiscal year 2026, compared to$0 .20 for the first half of fiscal year 2025.
First Half of Fiscal Year 2026 Financial Results
Revenues
Revenues were
Cost of Revenues
Cost of revenues was
Gross Profit and Gross Profit Margin
Gross profit remained steady at
Gross profit margin was 27.24% for the first half of fiscal year 2026, compared to 30.65% for the first half of fiscal year 2025. The decrease in gross profit margin was primarily driven by increase in production cost of newly developed vehicles and the Company's promotional sales policy to expand the market.
Operating Expenses
Total operating expenses were $3.1 million for the first half of fiscal year 2026, compared to $2.9 million for the first half of fiscal year 2025.
- Selling and marketing expenses were
$0.5 million for the first half of fiscal year 2026, a decrease of 13.76% from$0 .6 million for the first half of fiscal year 2025. 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 expenditure. - General and administrative expenses were
$1 .0 million for the first half of fiscal year 2026, an increase of 27.27% from$0 .8 million for the first half of fiscal year 2025. The increase was attributable to the increase in professional fees of$0.7 million and was offset by a decrease in provision for credit losses of$0.5 million . - Research and development expenses were
$1 .6 million for the first half of fiscal year 2026, an increase of 2.69% from$1 .5 million for the first half of fiscal year 2025. The increase in research and development expenses is mainly driven by the stage and scale of the Company's equipment development.
Net Income
Net income was
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were
Financial Condition
As of December 31, 2025, the Company had cash and cash equivalents of $1.9 million, compared to
Net cash provided by operating activities was
Net cash provided by investing activities was
Net cash provided by financing activities was
About
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 identify these forward-looking statements by words or phrases such as "approximates," "assesses," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or similar expressions. 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 U.S. Securities and Exchange Commission.
For more information, please contact:
Investor Relations Department
Email: ir@stakindustry.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Expressed in | ||||||||
As of | ||||||||
| ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,923,399 | $ | 1,022,625 | ||||
Accounts receivable, net | 2,980,649 | 1,988,785 | ||||||
Inventories | 18,313,220 | 17,018,217 | ||||||
Advances to suppliers | 771,306 | 562,473 | ||||||
Amounts due from a related party | - | 87,472 | ||||||
Prepayments and other current assets, net | 1,869,325 | 2,783,842 | ||||||
Total current assets | 25,857,899 | 23,463,414 | ||||||
Non-current assets: | ||||||||
Property and equipment, net | 274,938 | 293,023 | ||||||
Intangible assets, net | 2,003,067 | 2,022,918 | ||||||
Right-of-use assets, net | 47,843 | 74,562 | ||||||
Deferred tax assets | 790,723 | 785,700 | ||||||
Other assets | 369,816 | 114,888 | ||||||
Total non-current assets | 3,486,387 | 3,291,091 | ||||||
Total assets | $ | 29,344,286 | $ | 26,754,505 | ||||
Liabilities and shareholder's equity | ||||||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,465,645 | $ | 3,722,525 | ||||
Deferred revenues | 744,094 | 1,164,334 | ||||||
Amounts due to related parties | 70,695 | 30,222 | ||||||
Accrued expenses and other current liabilities | 1,140,148 | 1,116,014 | ||||||
Short-term borrowings | 7,568,889 | 5,636,831 | ||||||
Operating lease liabilities, current | - | 73,530 | ||||||
Income tax payable | 1,967,290 | 1,692,519 | ||||||
Total current liabilities | 13,956,761 | 13,435,975 | ||||||
Non-Current liabilities: | ||||||||
Long-term borrowing | 428,994 | 418,784 | ||||||
Total non-current liabilities | 428,994 | 418,784 | ||||||
Total liabilities | $ | 14,385,755 | $ | 13,854,759 | ||||
Commitments and contingencies | ||||||||
Shareholder's equity | ||||||||
Class A ordinary shares (par value of | 4,010 | 4,010 | ||||||
Class B ordinary shares (par value of | 9,200 | 9,200 | ||||||
Additional paid in capital | 12,157,104 | 12,157,104 | ||||||
Statutory reserve | 672,402 | 672,402 | ||||||
Retained earnings | 2,141,804 | 324,893 | ||||||
Accumulated other comprehensive loss | (25,989) | (267,863) | ||||||
Total shareholders' equity | 14,958,531 | 12,899,746 | ||||||
Total liabilities and shareholder's equity | $ | 29,344,286 | $ | 26,754,505 | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND (Expressed in | ||||||||
For the Six Months Ended December | ||||||||
2025 | 2024 | |||||||
Revenues | $ | 19,230,376 | $ | 16,955,913 | ||||
Cost of revenues | (13,992,367) | (11,759,741) | ||||||
Gross profit | 5,238,009 | 5,196,172 | ||||||
Operating expenses: | ||||||||
Selling and marketing expenses | (516,973) | (599,471) | ||||||
General and administrative expenses | (1,026,832) | (806,833) | ||||||
Research and development expenses | (1,584,450) | (1,542,926) | ||||||
Total operating expenses | (3,128,255) | (2,949,230) | ||||||
Operating income | 2,109,754 | 2,246,942 | ||||||
Other (expense) income: | ||||||||
Interest expense, net | (105,896) | (89,907) | ||||||
Other income, net | 56,034 | - | ||||||
Government subsidies | - | 17,006 | ||||||
Total other expense, net | (49,862) | (72,901) | ||||||
Income before income tax expense | 2,059,892 | 2,174,041 | ||||||
Income tax expense | (242,981) | (174,678) | ||||||
Net income | 1,816,911 | 1,999,363 | ||||||
Net income per ordinary share: | ||||||||
Earnings per share, basic and diluted | $ | 0.14 | $ | 0.20 | ||||
Weighted average number of shares outstanding, basic and diluted* | 13,210,349 | 10,000,000 | ||||||
Net income | $ | 1,816,911 | $ | 1,999,363 | ||||
Foreign currency translation adjustments | 241,874 | (83,516) | ||||||
Total comprehensive income | $ | 2,058,785 | $ | 1,915,847 | ||||
* On |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in | ||||||||
For the Six Months Ended December | ||||||||
2025 | 2024 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 1,816,911 | $ | 1,999,363 | ||||
Adjustments to reconcile net income to net cash provided by | ||||||||
Provision for credit losses | 23,608 | 524,509 | ||||||
Depreciation of property and equipment | 24,765 | 166,058 | ||||||
Amortization of intangible assets | 67,900 | 2,538 | ||||||
Amortization of operating lease right-of-use asset | 28,012 | 9,624 | ||||||
Deferred income tax | 13,785 | (125,305) | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (976,367) | (5,791,039) | ||||||
Advance to suppliers | (192,276) | 1,355,963 | ||||||
Inventories | (863,885) | (5,231,547) | ||||||
Amounts due from/due to related parties | 130,432 | 66,712 | ||||||
Prepaid expenses and other current assets | 936,875 | 73,201 | ||||||
Other assets | (253,510) | 35,512 | ||||||
Accounts payable | 221,333 | 6,037,020 | ||||||
Deferred revenues | (440,372) | - | ||||||
Income tax payable | 229,196 | 299,996 | ||||||
Accrued expenses and other current liabilities | (25,152) | (421,174) | ||||||
Operating lease liabilities | (73,936) | - | ||||||
Net cash provided by (used in) operating activities | $ | 667,319 | $ | (998,569) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | - | (3,082) | ||||||
Proceeds received from disposal of property and equipment | 506,471 | - | ||||||
Loans to third parties | (640,072) | (209,010) | ||||||
Collection of loans to third parties | 167,036 | 350,022 | ||||||
Net cash provided by investing activities | $ | 33,435 | $ | 137,930 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from short-term bank loans | 2,196,738 | 2,424,513 | ||||||
Repayments of short-term bank loans | (1,979,310) | (1,741,748) | ||||||
Repayments of long-term bank loans | - | (118,439) | ||||||
Net cash provided by financing activities | $ | 217,428 | $ | 564,326 | ||||
Effect of exchange rate changes on cash and cash equivalents | (17,408) | (1,319) | ||||||
Net increase (decrease) in cash and cash equivalents | 900,774 | (297,632) | ||||||
Cash and cash equivalents, at beginning of the period | 1,022,625 | 658,154 | ||||||
Cash and cash equivalents, at the end of the period | $ | 1,923,399 | $ | 360,522 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW | ||||||||
Interest paid | 106,103 | 90,523 | ||||||
Income taxes paid | - | - | ||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH | ||||||||
Addition of right-of-use assets | - | 105,760 | ||||||
Reclassification of accounts payables into supplier finance | 1,544,173 | - | ||||||
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