TDH Holdings, Inc. (PETZ): Business Model Canvas [Dec-2025 Updated]

You're digging into TDH Holdings, Inc.'s current strategy, and honestly, you need to forget the old pet food story; this is now about commercial property leasing in the PRC. As a seasoned analyst, I see a lean operation-just 17 employees managing high-touch tenant relationships and a property portfolio that generated $0.59 million in leasing revenue for the first half of 2025, all while sitting on $16.07 million in cash as of June 30, 2025. This Business Model Canvas breaks down exactly how they plan to turn those assets into a sustainable, albeit small, real estate play, so let's look at the nine blocks defining this pivot.

TDH Holdings, Inc. (PETZ) - Canvas Business Model: Key Partnerships

You're looking at the structure that supports TDH Holdings, Inc.'s pivot to commercial real estate management in the PRC. The partnerships here are critical, especially given the $0.59 million in revenues from continuing operations for the first half of 2025 (H1 2025).

• Real estate brokerage firms for tenant acquisition and leasing
• Local property management and maintenance service providers
• Financial institutions for cash management and investment income
• Independent registered public accounting firm (YCM CPA Inc.) for 2025 audit

The company's reliance on its balance sheet to cover operating shortfalls means its relationship with financial institutions is key. As of June 30, 2025, TDH Holdings, Inc. held $16.07 million in cash and cash equivalents, alongside $15.45 million in short-term investments, which are highly liquid assets supporting operations.

The audit function is formally established. Shareholders ratified YCM CPA Inc. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, during the October 29, 2025, shareholder meeting.

The leasing success, which saw revenue increase by 466.38% year-over-year for H1 2025, directly implies active partnerships with brokerage firms to attract tenants. The cost of revenues, which includes agency service costs, was $0.43 million for the first half of 2025, reflecting the scale of services managed through these external relationships.

• Auditor Ratification Date: October 29, 2025
• Fiscal Year Under Audit: Ending December 31, 2025
• Cash & Equivalents (June 30, 2025): $16.07 million
• Short-Term Investments (June 30, 2025): $15.45 million

Finance: draft 13-week cash view by Friday.

TDH Holdings, Inc. (PETZ) - Canvas Business Model: Key Activities

You're looking at the core engine driving TDH Holdings, Inc. as of late 2025, which is firmly rooted in commercial real estate management following its strategic pivot away from restaurants. The key activities are all about maximizing the return from that property base while keeping the overhead lean.

Commercial real estate property leasing and management

This is the primary revenue driver now. The market demand for commercial real estate has picked up, and TDH Holdings, Inc. is capitalizing on that. For the first half of 2025 (H1 2025), Revenues from continuing operations hit $0.59 million, which is a massive 466.38% increase over the $0.10 million seen in H1 2024.

Providing personalized leasing solutions to attract tenants

The strategy here is customization. The company explicitly notes that providing tailored service meets diverse customer needs, which improves tenant satisfaction and loyalty. This activity directly supports the revenue growth seen in the leasing segment. The cost associated with this is reflected in the Cost of Revenues, which rose to $0.43 million in H1 2025, an increase of 541.07% year-over-year.

Strategic management of investments to generate other income

Honestly, this activity is what keeps the bottom line looking healthy, even when the core operations show an operating loss. While the operating loss for H1 2025 was $0.57 million, the Net Income attributable to common stockholders was $1.38 million. This difference is largely due to investment activities; for the trailing twelve months ending June 30, 2025, Interest & Investment Income was reported at $3.94 million, while the Operating Income was -$1.36 million.

Controlling operating costs to improve operational loss

Reducing the operating loss is a clear goal. The operating loss narrowed significantly to $0.57 million in H1 2025 from $1.08 million in H1 2024. This improvement is directly credited to both increased revenue and the control of operating costs. Furthermore, the company shifted from using net cash in operating activities of $2.34 million in H1 2024 to providing net cash from operating activities of $0.29 million in H1 2025.

Here's a quick look at how the key financial metrics tied to these activities stacked up for the first half of 2025 compared to the prior year:

The operational efficiency is also visible when you look at the cost structure and cash flow:

• Cost of Revenues for H1 2025 was $0.43 million.
• Total Operating Expenses for the trailing twelve months ending around late 2025 was reported at $2.402 million.
• Net cash provided by operating activities for H1 2025 was $0.29 million.
• Net cash provided by investing activities for H1 2025 was $0.07 million.

If onboarding takes 14+ days for a new lease, churn risk rises, so speed in closing those personalized deals matters.

Finance: draft 13-week cash view by Friday.

TDH Holdings, Inc. (PETZ) - Canvas Business Model: Key Resources

You're looking at the core assets TDH Holdings, Inc. (PETZ) relies on to run its commercial real estate management business in the PRC. Honestly, for a company focused on physical assets, the resource base is quite concentrated right now.

The most liquid resource, as of the mid-year mark, is the cash position. As of June 30, 2025, TDH Holdings, Inc. reported significant cash and cash equivalents of $16.07 million. This is a solid buffer, especially when you look at the balance sheet structure.

The physical assets-the commercial real estate properties in the PRC-are the foundation of the business, driving the leasing revenue. While the exact portfolio size isn't detailed here, the financial health metrics give you a sense of the asset base supporting operations.

Here's a quick look at the balance sheet health supporting these resources as of that same period:

The operational backbone is lean. You've got a small operational team of 17 employees. That headcount suggests a heavy reliance on outsourcing or technology for day-to-day management, or perhaps a very focused, high-value team managing the core properties.

The intangible assets, your intellectual capital, are crucial for market positioning and effective marketing, especially given the reported revenue growth. The company explicitly notes relying on accurate market positioning and effective marketing strategies to attract high-quality tenants. This intangible capability directly translates into financial performance, as seen in the first half of 2025 revenues reaching $0.59 million, a 466.38% increase year-over-year.

Key intangible and human resources include:

• Commercial real estate properties in the PRC.
• Intellectual capital for market positioning and effective marketing.
• Small operational team of 17 employees.
• Strong liquidity with $16.07 million in cash and cash equivalents as of June 30, 2025.

Finance: draft 13-week cash view by Friday.

TDH Holdings, Inc. (PETZ) - Canvas Business Model: Value Propositions

You're looking at the core offerings of TDH Holdings, Inc. (PETZ) as they pivot fully into commercial real estate management in the People's Republic of China (PRC). The value proposition centers on providing tailored space solutions, which is clearly reflected in their recent financial performance, even if the core operations aren't yet fully profitable on their own.

Customized leasing solutions for diverse enterprise needs

TDH Holdings, Inc. explicitly tailors its leasing arrangements. The company states it fully considers the characteristics of enterprises in different industries and of different scales when providing personalized leasing solutions. This customization is intended to meet diverse customer needs, which they claim effectively improves the satisfaction and loyalty of tenants. This strategy helped drive a massive increase in top-line revenue from continuing operations to $0.59 million for the first half of 2025 (H1 2025), a jump of 466.38% compared to H1 2024's $0.10 million.

High-quality commercial real estate properties in the PRC

The foundation of the value proposition is the portfolio itself-owning, operating, and managing commercial real estate properties in the PRC. While the search results don't detail the square footage or specific asset quality ratings, the market demand is showing a rebound. This increased demand is cited as a primary factor for the revenue surge in H1 2025. The gross profit from this leasing business reached $0.16 million in H1 2025, up from just $0.04 million the prior year, showing that the properties are generating more revenue, though the gross profit margin compressed to 26.73% from 35.26% year-over-year.

Here's a quick look at the H1 2025 performance tied to the leasing revenue:

The company maintains a strong liquidity position to support operations, holding cash and cash equivalents of $16.07 million and short-term investments of $15.45 million as of June 30, 2025.

Flexibility for enterprises of different industries and scales

TDH Holdings, Inc. focuses on providing office services specifically for small and medium-sized enterprises (SMEs). The ability to cater to this segment, which often requires more flexible terms than large corporate tenants, is a key differentiator. This flexibility is what the company claims allows them to attract many high-quality tenants amid the gradual economic recovery in the PRC. The company's ability to manage this diverse base is critical, especially since the core leasing operations still posted an operating loss of ($0.57 million) in H1 2025, though this loss was reduced by 47.21%.

Managed properties to ensure high tenant satisfaction

The management aspect of the business is positioned as a value-add that secures tenant loyalty. The stated goal is to ensure high tenant satisfaction through customized service delivery. While a direct tenant satisfaction score isn't public, the resulting net income attributable to common stockholders was $1.38 million for H1 2025, a slight increase of 4.60% over the prior year's $1.32 million. This suggests that while the core operations are still absorbing costs, the overall structure is delivering a positive bottom line, supported heavily by non-operating investment income of $1.97 million in the same period.

You'll want to watch the December 15, 2025 earnings release to see if the gross profit margin can move back above the prior year's 35.26% level. Finance: draft 13-week cash view by Friday.

TDH Holdings, Inc. (PETZ) - Canvas Business Model: Customer Relationships

You're looking at how TDH Holdings, Inc. (PETZ) manages its tenant base as it pivots fully into commercial real estate leasing. The relationship strategy is clearly tied to driving top-line results, which, for the first half of 2025, showed a massive jump.

Dedicated, customized service model for tenants

The focus here is on tailoring the offering, which is critical when you're dealing with commercial tenants who have specific operational needs. This approach seems to be paying off, as revenues from continuing operations for the first half of 2025 hit $0.59 million. That's a year-over-year increase of 466.38% for the same period, showing that the market is responding to this specialized service. Honestly, for a company with only 17 employees as of 2025, delivering that level of growth suggests a very focused, perhaps high-intensity, service delivery model for each client.

High-touch relationship management to improve tenant loyalty

The stated goal of these efforts is explicitly to improve tenant satisfaction and loyalty. While the search results don't give a direct tenant retention percentage for H1 2025, the financial commentary links the revenue growth directly to this customer-centric approach. High-touch management in this context means being deeply involved in the tenant's leasing lifecycle, which is a necessary step when your core business is generating revenue from property leasing.

Direct communication for personalized leasing solutions

This is where the customization becomes concrete. TDH Holdings, Inc. (PETZ) actively considers the characteristics of enterprises across different scales and industries when structuring agreements. This direct communication allows them to create personalized leasing solutions. This strategy is cited as a primary driver for the significant revenue growth seen in the first half of 2025, suggesting that flexibility in leasing terms is a key relationship tool.

Here's a quick look at the H1 2025 operational snapshot that frames these relationship efforts:

The relationship strategy is clearly designed to secure and grow the leasing revenue base, which is the engine for the continuing operations. Still, you need to keep an eye on that operating loss of $0.57 million; the high-touch service must eventually translate into profitable contracts, not just revenue growth.

TDH Holdings, Inc. (PETZ) - Canvas Business Model: Channels

You're looking at the channels TDH Holdings, Inc. uses to get its commercial real estate leased out, which is the core of its current business. The effectiveness of these channels is clearly reflected in the H1 2025 financial results, showing a massive top-line shift.

Direct sales team for commercial real estate leasing

The company relies on its internal capacity to secure tenants for its commercial real estate properties. This direct approach is supported by providing personalized leasing solutions, which the company states improves tenant satisfaction and loyalty. The success of this direct effort, combined with other marketing, is evident in the revenue performance.

Local real estate brokers and agents (implied by agency costs)

The financial reporting implies the use of external agents. Cost of revenues for the first half of 2025 included agency service costs, which increased by $0.36 million, or 541.07%, to $0.43 million, aligning with the overall revenue increase. This cost line item suggests that brokers or agents are a component of the distribution strategy, even if the exact number of agents isn't public.

Online property listing platforms and advertisements

While specific platform names aren't disclosed, the company explicitly mentions relying on effective marketing strategies to attract high-quality tenants. Given the current environment, this almost certainly involves digital platforms for property listings and targeted advertisements to reach potential commercial tenants in the PRC market.

Effective marketing strategies to attract high-quality tenants

The success of the overall channel mix is measured by the resulting revenue. The company attributes the significant revenue increase to these strategies, alongside economic recovery. The goal is to establish long-term, stable relationships with clients. Here's the quick math on the channel-driven revenue performance for the first half of 2025:

The company is focused on optimizing the leasing process and improving service quality. The channels are designed to support this by bringing in tenants who value the customized leasing solutions offered.

• Attracting high-quality tenants is a stated goal.
• Personalized leasing meets diverse customer needs.
• Focus on improving tenant satisfaction and loyalty.
• Seeking to establish long-term cooperative relationships.

Finance: Review the Q3 2025 agency service cost run-rate against the H1 2025 figure by next Tuesday.

TDH Holdings, Inc. (PETZ) - Canvas Business Model: Customer Segments

You're analyzing the customer base for TDH Holdings, Inc. (PETZ) as they operate as an owner, operator, and manager of commercial real estate properties in the PRC. The entire revenue stream from continuing operations for the first half of 2025 (H1 2025) is driven by these segments, totaling \$0.59 million.

The customer segments are defined by their need for commercial space and the tailored solutions TDH Holdings, Inc. provides:

• High-quality tenants seeking commercial real estate space: This group was explicitly cited as a factor in the significant market demand increase and revenue growth.
• Enterprises of different industries and scales in the PRC: The company focuses on providing personalized leasing solutions that consider the characteristics of these diverse enterprises.
• Small and medium-sized enterprises (SMEs) needing office services: While the outline mentions this group, the H1 2025 financial disclosures attribute the 466.38% revenue increase to attracting high-quality tenants and serving enterprises of different scales generally, without a specific financial breakdown for SMEs alone.

The scale of the business serving these segments, as reflected in the H1 2025 financials, shows the current operational base:

The company is actively trying to solidify these relationships, aiming for long-term and stable cooperative arrangements with its clients. The growth in revenue by 466.38% year-over-year to \$0.59 million in H1 2025 clearly indicates that the market demand from these customer segments is driving the current financial performance. Still, you need to watch the gross profit margin, which was 26.73% in H1 2025, down from 35.26% in H1 2024, suggesting changes in how costs are allocated relative to the revenue from these tenants.

Finance: draft 13-week cash view by Friday.

TDH Holdings, Inc. (PETZ) - Canvas Business Model: Cost Structure

You're analyzing the cost base for TDH Holdings, Inc. (PETZ) as they focus almost entirely on commercial real estate leasing and management following their strategic pivot. The cost structure is now heavily weighted toward the direct costs of maintaining those properties, which is reflected in the Cost of Revenues.

The primary cost drivers for TDH Holdings, Inc. are tied directly to the properties they lease and manage. Cost of revenues, which includes lease and occupancy costs for commercial properties, depreciation and amortization costs on real estate assets, and agency service costs related to the leasing business, saw a massive increase for the first half of 2025 (H1 2025). Specifically, Cost of revenues increased by $0.36 million, representing a year-over-year jump of 541.07%, reaching a total of $0.43 million for H1 2025, up from $0.07 million in the prior year period. This reclassification of agency service and maintenance costs into cost of revenues is what drove the gross profit margin down to 26.73% in H1 2025 from 35.26% in H1 2024.

For general and administrative expenses, including employee costs, TDH Holdings, Inc. showed some cost control in the first half of 2025. The General and administrative expense decreased by $0.03 million, or 4.39%, coming in at $0.73 million for H1 2025, compared to $0.76 million for the same period in 2024. However, looking at the Trailing Twelve Months (TTM) ending June 30, 2025, the Selling, General & Admin expense was reported at $1.71 million.

Here's a breakdown of the key cost components based on the latest available figures for the first half of 2025 (H1 2025) and TTM data:

The structure shows that the costs directly associated with revenue generation (Cost of Revenues) are growing much faster than the overhead (G&A), which is typical when scaling a leasing operation, though the high growth rate warrants monitoring. You'll want to see the full-year report around December 15, 2025, for the complete picture.

The components making up the Cost of Revenues are:

• Lease and occupancy costs for commercial properties
• Depreciation and amortization costs on real estate assets
• Agency service costs related to the leasing business

The General and administrative expenses for H1 2025 included:

• $0.73 million in General and administrative expense
• A decrease of $0.03 million year-over-year

Finance: draft 13-week cash view by Friday.

TDH Holdings, Inc. (PETZ) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for TDH Holdings, Inc. (PETZ) as of late 2025, and honestly, the story is one of a dramatic pivot. The company is now firmly rooted in the commercial real estate management business in the PRC, and the numbers from the first half of 2025 reflect that shift. The core revenue generator is now property leasing, which is showing massive year-over-year growth, but you'll see that profitability is still being supplemented by non-operating sources.

The primary, recurring revenue stream is:

• Revenue from commercial real estate property leasing: $0.59 million (H1 2025). This represents a significant 466.38% increase compared to the $0.10 million generated in the first half of 2024. This growth is attributed to economic recovery and personalized leasing solutions.

To give you a clearer picture of the operational performance supporting these revenues, here are the key figures from the H1 2025 unaudited financial highlights:

The second key component of the revenue picture is non-operating income. This is critical because, as you can see from the table, TDH Holdings, Inc. posted an operating loss of $0.57 million for H1 2025. So, where did the net income come from? It was propped up by significant non-operating gains.

Non-operating income, primarily from investment gains, is the crucial buffer. For the six months ended June 30, 2025, the company reported $1.97 million in 'Other Income,' which is where the investment income resides. This non-operating income is what allowed the company to report a net income attributable to common stockholders of $1.38 million, even while the core business operations were losing money.

The gross profit from continuing operations was $0.16 million for H1 2025, up from $0.04 million in the prior year period. However, the gross profit margin actually compressed, moving from 35.26% in H1 2024 to 26.73% in H1 2025. This margin compression, coupled with the operating loss, really underscores the reliance on those investment gains to show a positive bottom line. It's living off its balance sheet, not its income statement, which is a major risk factor you need to track.

To summarize the sources of income that hit the bottom line:

• Commercial Real Estate Leasing Revenue: $0.59 million (H1 2025).
• Investment Gains / Other Income: $1.97 million (H1 2025).

Finance: review the cash conversion cycle impact from the $1.97 million investment income by next Tuesday.