Exhibit 99.1
STAK Inc. ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST HALF OF 2026
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 2026 Financial Results
Revenues
Our revenues for the six months ended December 31, 2025 and 2024 were $19.2 million and $17.0 million, respectively. The 13.41 % increase in revenues was mainly driven by the increase in order volumes and increase in sale prices of specialized oilfield vehicles. This increase was partially offset by the decrease in demand for sales of specialized oilfield equipment.
Cost of revenues
Cost of revenues consists primarily of manufacturing and purchase cost of raw materials, depreciation, maintenance, and other overhead expenses. Our cost of revenues increased by $2.2 million, or 18.99%, to $14.0 million for the six months ended December 31, 2025 from $11.8 million for the six months ended December 31, 2024. The increase in cost was mainly attributable to increase in sales volume for specialized oilfield vehicles.
Gross profit
Gross profit remained steady at $5.2 million for the six months ended December 31, 2025 and 2024. Gross profit margin decreased from 30.65% for the six months ended December 31, 2024 to 27.24% for the six months ended December 31, 2025. The decrease in gross profit margin was primarily driven by increase in production cost of newly developed vehicles and our promotional sales policy to expand the market. The gross profit remained steady mainly due to the decrease in unit profit margin was offset by an increase in sales volume.
Selling and marketing expenses
Our selling and marketing expenses consist primarily of commission.
Our selling and marketing expenses slightly decreased by $0.1 million, or 13.76% , to $0.5 million for the six months ended December 31, 2025 from $0.6 million for the six months ended December 31, 2024. The observed revenue expansion reflects our management team’s direct business development efforts rather than commission-based sales channels, thereby maintaining stable commission expenditure.
General and administrative expenses
Our general and administrative expenses consist primarily of professional fees, salaries and welfare expenses, provision for credit losses, and others, which primarily includes depreciation and amortization expenses and rental expenses.
Our general and administrative expenses increased by $0.2 million, or 27.27%, to $1.0 million for the six months ended December 31, 2025 from $0.8 million for the six months ended December 31, 2024, which attributed to the increase in professional fees of $0.7 million and was offset by an decrease of provision for credit losses $0.5 million.
Research and development expenses
Our research and development expenses consist primarily of (i) parts and materials in relation to testing materials; and (ii) design and development expenses, with new technology, materials and suppliers and other research and development related expenses for designing and testing.
Research and development expenses slightly increased by $0.1 million, or 2.69%, to $1.6 million for the six months ended December 31, 2025 from $1.5 million for the six months ended December 31, 2024. The increase in research and development expenses is mainly driven by the stage and scale of our equipment development.
Income tax expense
The People’s Republic of China enterprise income tax (the “EIT”) is calculated based on the taxable income determined under the applicable EIT Law and its implementation rules. Our income tax expense remained steady at $0.2 million for the six months ended December 31, 2025 and 2024.
Net income
As a result of the foregoing, we recorded net income of $1.8 million and $2.0 million for the six months ended December 31, 2025 and 2024, respectively.
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 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:
STAK Inc.
Investor Relations Department
Email: ir@stakindustry.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
| F-1 |
STAK INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars, except for the number of shares)
| As of | ||||||||
| December 31, 2025 | June 30, 2025 | |||||||
| 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 $0.001 per share; 75,000,000 shares authorized; 4,010,349 shares issued and outstanding as of December 31, 2025 and June 30, 2025, respectively) | 4,010 | 4,010 | ||||||
| Class B ordinary shares (par value of $0.001 per share; 25,000,000 shares authorized; 9,200,000 shares issued and outstanding as of December 31, 2025 and June 30, 2025, respectively) | 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 | ||||
| F-2 |
STAK INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Expressed in U.S. dollars, except for number of shares)
| For the Six Months Ended December 31, | ||||||||
| 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 June 13, 2025, the Company’s authorized share capital was increased (the “Increase of Authorized Share Capital”), and re-designated from US$50,000 divided into 50,000,000 ordinary shares of par value US$0.001 each to US$100,000 divided into 100,000,000 ordinary shares of per value US$0.001. All share and per share amounts presented in the accompanying consolidated financial statements have been retrospectively adjusted for all periods presented, unless otherwise indicated.
| F-3 |
STAK INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Expressed in U.S. dollars, except for number of shares)
| Ordinary shares* | Additional paid-in | Statutory | Retained | Accumulated other comprehensive | Total shareholders’ | |||||||||||||||||||||||
| Shares | Amount | capital | reserves | earnings | loss | equity | ||||||||||||||||||||||
| Balance as of July 1, 2024 | 10,000,000 | $ | 10,000 | $ | 4,249,517 | $ | 672,402 | $ | 6,037,573 | $ | (388,543 | ) | $ | 10,580,949 | ||||||||||||||
| Net income | - | - | - | - | 1,999,363 | - | 1,999,363 | |||||||||||||||||||||
| Appropriation to statutory reserve | - | - | - | 205,419 | (205,419 | ) | - | - | ||||||||||||||||||||
| Foreign currency translation adjustments | - | - | - | - | - | (83,516 | ) | (83,516 | ) | |||||||||||||||||||
| Balance as of December 31, 2024 (unaudited) | 10,000,000 | $ | 10,000 | $ | 4,249,517 | $ | 877,821 | $ | 7,831,517 | $ | (472,059 | ) | $ | 12,496,796 | ||||||||||||||
* On June 13, 2025, the Company’s authorized share capital was increased (the “Increase of Authorized Share Capital”), and re-designated from US$50,000 divided into 50,000,000 ordinary shares of par value US$0.001 each to US$100,000 divided into 100,000,000 ordinary shares of per value US$0.001. All share and per share amounts presented in the accompanying consolidated financial statements have been retrospectively adjusted for all periods presented, unless otherwise indicated.
| Class A ordinary shares | Class B ordinary shares | Additional paid-in | Statutory | Retained | Accumulated other comprehensive | Total shareholders’ | ||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | capital | reserves | earnings | loss | equity | ||||||||||||||||||||||||||||
| Balance as of July 1, 2025 | 4,010,349 | $ | 4,010 | 9,200,000 | $ | 9,200 | $ | 12,157,104 | $ | 672,402 | $ | 324,893 | $ | (267,863 | ) | $ | 12,899,746 | |||||||||||||||||||
| Net income | - | - | - | - | - | - | 1,816,911 | - | 1,816,911 | |||||||||||||||||||||||||||
| Foreign currency translation adjustments | - | - | - | - | - | - | - | 241,874 | 241,874 | |||||||||||||||||||||||||||
| Balance as of December 31, 2025 (unaudited) | 4,010,349 | $ | 4,010 | 9,200,000 | $ | 9,200 | $ | 12,157,104 | $ | 672,402 | $ | 2,141,804 | $ | (25,989 | ) | $ | 14,958,531 | |||||||||||||||||||
| F-4 |
STAK INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. dollars)
| For the Six Months Ended December 31, | ||||||||
| 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 (used in) operating activities: | ||||||||
| 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 INFORMATION: | ||||||||
| Interest paid | 106,103 | 90,523 | ||||||
| Income taxes paid | - | - | ||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||||||||
| Addition of right-of-use assets | - | 105,760 | ||||||
| Reclassification of accounts payables into supplier finance obligations | 1,544,173 | - | ||||||
| F-5 |