The company achieved a 16.37% revenue growth rate, though this is offset by a -0.36% operating margin that highlights a lack of operational leverage.
| Metric | Jun'24 | Jun'23 | Jun'22 |
|---|
| Sales/Revenue | 7.32M | 6.29M | 1.94M |
| Revenue Growth % | 16.37% | 224.34% | - |
| Cost of Goods Sold | 2.42M | 2.66M | 846.25K |
| COGS % of Revenue | 33.08% | 42.33% | 43.61% |
| Gross Profit | 4.9M | 3.63M | 1.09M |
| Gross Margin % | 66.92% | 57.67% | 56.39% |
| Gross Profit Growth % | 35.04% | 231.72% | - |
| Operating Expenses | 4.93M | 2.96M | 3.03M |
| OpEx % of Revenue | 67.28% | 47.01% | 156.27% |
| Selling, General & Admin | 4.84M | 2.96M | 3.03M |
| SG&A % of Revenue | 66.06% | 47.01% | 156.27% |
| Research & Development | 89.97K | 0 | 0 |
| R&D % of Revenue | 1.23% | - | - |
| Other Operating Expenses | 0 | 0 | 0 |
| Operating Income | -26.33K | 670.84K | -1.94M |
| Operating Margin % | -0.36% | 10.66% | -99.88% |
| Operating Income Growth % | -103.93% | 134.61% | - |
| EBITDA | 1.11M | 1.47M | -1.88M |
| EBITDA Margin % | 15.11% | 23.35% | -96.95% |
| EBITDA Growth % | -24.73% | 178.12% | - |
| D&A (Non-Cash Add-back) | 1.13M | 798.86K | 56.81K |
| EBIT | 664.41K | 318.95K | -2.02M |
| 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 | -362.5K | -84.75K |
| Pretax Income | 589.02K | 308.33K | -2.02M |
| Pretax Margin % | 8.04% | 4.9% | -104.25% |
| Income Tax | -51.47K | 28.77K | -130.25K |
| Effective Tax Rate % | -8.74% | 9.33% | 6.44% |
| Net Income | 640.49K | 279.56K | -1.89M |
| Net Margin % | 8.75% | 4.44% | -97.54% |
| Net Income Growth % | 129.1% | 114.77% | - |
| Net Income (Continuing) | 640.49K | 279.56K | -1.89M |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | 0.00 | 0.00 | 0.00 |
| EPS Growth % | - | - | - |
| EPS (Basic) | 0.00 | 0.00 | 0.00 |
| Diluted Shares Outstanding | 0 | 0 | 0 |
| Basic Shares Outstanding | 0 | 0 | 0 |
| Dividend Payout Ratio | - | - | - |
Liquidity and operational insolvency
According to reported financial figures, Big Tree Cloud has achieved a 16.37% revenue growth rate, suggesting that the company is successfully scaling its dual-track model of branded personal care products and OEM manufacturing services within a competitive, high-frequency consumer goods market environment.
The 16.37% growth trajectory appears to be driven by the company's ability to leverage its Shenzhen-based manufacturing infrastructure to capture both branded and third-party volume. However, investors should monitor whether this expansion is sustainable or if it relies heavily on low-margin OEM contracts that may not provide long-term brand equity.
As indicated by the company's financial disclosures, Big Tree Cloud maintains a robust 66.92% gross margin, which suggests significant pricing power or manufacturing efficiency, yet this figure stands in stark contrast to the underlying operating losses currently burdening the firm's income statement.
The high gross margin implies that the company's product mix is skewed toward premium-tier offerings, which is a positive indicator for brand positioning. Nevertheless, the inability to translate these gross gains into operating profit suggests that the cost of customer acquisition or corporate overhead is currently misaligned with the company's revenue scale.
Based on an analysis of the income statement, the company reports an 8.75% net margin despite a -0.36% operating margin, which indicates that the bottom line is being artificially supported by non-operating income, such as government subsidies or one-time gains from the SPAC merger.
This discrepancy between operating and net margins warrants significant caution, as it suggests the core business is not yet self-sustaining. Investors should adjust for these non-recurring items to determine the true earning power of the company, as the current net profit figure may provide a misleading view of operational health.
Financial data reveals that Big Tree Cloud's operating expenses currently consume the entirety of its gross profit, resulting in a -0.36% operating margin that highlights a lack of operational leverage and a high sensitivity to fluctuations in marketing and administrative spending.
The company appears to be in a 'growth at any cost' phase where incremental revenue is not yet dropping to the bottom line. This structure suggests that management must rationalize its SG&A expenses or achieve significant economies of scale to transition from an operating loss to a sustainable profit profile.
With a cash position of only $748,099 against $7.3 million in TTM revenue, the company's financial statements suggest a precarious liquidity profile that may necessitate near-term dilution or external financing to maintain its current growth trajectory and cover ongoing operating expenses.
The combination of a thin cash buffer and negative operating margins creates a high-risk environment for shareholders. If the company fails to secure additional capital or improve its cash conversion cycle, the current growth strategy may be forced to decelerate, potentially impacting the company's market valuation.
Quick answers to the most common questions about buying DSYWW stock.
For fiscal year 2024, Big Tree Cloud Holdings Limited Warrants (DSYWW) reported total revenue of $7.3M. This represents a 277.4% increase compared to $1.9M in 2022.
Big Tree Cloud Holdings Limited Warrants (DSYWW) 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 Warrants (DSYWW) 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 Warrants (DSYWW) 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.