Despite maintaining a robust 67% gross margin, the company struggles with operational efficiency, as evidenced by a 2024Q4 operating margin of -15.3%.
| Sales/Revenue | 7.32M | 6.29M | 1.94M |
| Revenue Growth % | 16.37% | 224.38% | - |
| Cost of Goods Sold | 2.42M | 2.66M | 846.25K |
| COGS % of Revenue | 33.07% | 42.33% | 43.62% |
| Gross Profit | 4.9M | 3.63M | 1.09M |
| Gross Margin % | 66.93% | 57.67% | 56.39% |
| Gross Profit Growth % | 35.05% | 231.72% | - |
| Operating Expenses | 4.93M | 2.96M | 3.03M |
| OpEx % of Revenue | 67.28% | 47.02% | 156.29% |
| Selling, General & Admin | 4.84M | 2.96M | 3.03M |
| SG&A % of Revenue | 66.05% | 47.01% | 156.29% |
| Research & Development | 89.97K | 0 | 0 |
| R&D % of Revenue | 1.23% | - | - |
| Other Operating Expenses | 32 | 420 | 0 |
| Operating Income | -26.33K | 670.84K | -1.94M |
| Operating Margin % | -0.36% | 10.66% | -99.9% |
| Operating Income Growth % | -103.93% | 134.61% | - |
| EBITDA | 1.11M | 1.47M | -1.88M |
| EBITDA Margin % | 15.11% | 23.35% | -96.97% |
| EBITDA Growth % | -24.7% | 178.13% | - |
| D&A (Non-Cash Add-back) | 1.13M | 798.86K | 56.81K |
| EBIT | 664.41K | 670.84K | -1.94M |
| Net Interest Income | 131.2K | -1.33K | 2.75K |
| Interest Income | 206.59K | 9.29K | 4.53K |
| Interest Expense | 75.39K | 10.62K | 1.78K |
| Other Income/Expense | 615.35K | -363K | -84.75K |
| Pretax Income | 589.02K | 308.33K | -2.02M |
| Pretax Margin % | 8.04% | 4.9% | -104.28% |
| Income Tax | -51.47K | 28.77K | -130K |
| Effective Tax Rate % | -8.74% | 9.33% | 6.43% |
| Net Income | 640.49K | 126.22K | -1.89M |
| Net Margin % | 8.75% | 2.01% | -97.58% |
| Net Income Growth % | 407.45% | 106.67% | - |
| Net Income (Continuing) | 640.49K | 279.56K | -1.89M |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | 0.01 | 0.02 | -0.00 |
| EPS Growth % | -26.79% | - | - |
| EPS (Basic) | 0.01 | 0.02 | -0.00 |
| Diluted Shares Outstanding | 51.98M | 7.51M | 1.44M |
| Basic Shares Outstanding | 51.98M | 7.51M | 1.44M |
| Dividend Payout Ratio | - | - | - |
Insufficient liquidity for operations
According to the provided financial data, DSY maintains a robust gross margin of approximately 67%, yet this premium pricing power fails to translate into bottom-line profitability, as evidenced by the persistent inability to cover operating expenses despite the high-margin nature of its feminine hygiene product portfolio.
The consistent 67% gross margin suggests that the company has successfully established a premium brand identity within the Chinese market. However, the failure to achieve sustained operating profitability indicates that the cost of acquiring and retaining customers in this competitive space is currently outpacing the gross profit generated per unit.
As reported in recent quarterly filings, DSY's operating income frequently dips into negative territory, with SG&A expenses often exceeding gross profit, which suggests that the company has yet to achieve the necessary scale to leverage its fixed cost base effectively against its current revenue levels.
The volatility in operating margins, swinging from positive to deeply negative, highlights a lack of structural cost control. Investors should monitor whether management can optimize marketing spend, as the current reliance on high overhead relative to revenue suggests a business model that is not yet self-sustaining.
Based on the reported figures, there is a notable divergence between the company's negative operating performance and its occasional positive net income, which implies that non-operating gains or tax adjustments are currently masking the underlying challenges of the core feminine hygiene business model.
The presence of positive net income in periods where operating income is negative warrants further investigation into the nature of these non-operating items. Relying on such items to achieve profitability is unsustainable and suggests that the core business remains fundamentally challenged in its current configuration.
Data from recent income statements indicates that DSY's revenue growth is highly sensitive to promotional activity, raising concerns that the current top-line trajectory may be unsustainable without continued, margin-diluting marketing spend that the company's thin cash reserves are ill-equipped to support over the long term.
Short-sellers would likely focus on the company's extremely low cash position of $748,099, which leaves little room for error in a market dominated by larger, better-capitalized competitors. The risk of dilutive financing appears high, as the current operating model requires constant capital infusion to maintain its market presence.
Quick answers to the most common questions about buying DSY stock.
For fiscal year 2024, Big Tree Cloud Holdings Limited (DSY) reported total revenue of $7.3M. This represents a 277.5% increase compared to $1.9M in 2022.
Big Tree Cloud Holdings Limited (DSY) is profitable, generating $0.6M in net income for the fiscal year ending 2024 with a net profit margin of 8.7%.
Big Tree Cloud Holdings Limited (DSY) reported an operating income of $-0.0M, resulting in an operating profit margin of -0.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Big Tree Cloud Holdings Limited (DSY) generated $4.9M in gross profit for the year, representing a gross profit margin of 66.9%. This demonstrates the company's core pricing power and production efficiency.