Planet Green Holdings Corp.

What they do

Planet Green is a holding company headquartered in Flushing, NY, with operations in China and Canada. Its primary businesses include manufacturing and distributing black and green tea products and providing online advertising services. The company also has chemical products operations, but recent acquisitions and dispositions in 2025 and 2026 have narrowed its focus.

Revenue drivers

• Tea products — Manufactured and distributed by Xianning Bozhuang and Hubei Shengsili, with enterprise sales distribution channel and sales agents incurring significant promotion costs.
• Online advertising services — Provided via Fast Approach Inc. and Shanghai Shuning, contributing to revenue growth in 2026.
• Chemical products — Historically a business segment, but recent dispositions may have reduced its contribution.

Recent performance

For the three months ended June 30, 2026, net revenues were $790,203, up from $3,130 in the prior year, driven by online advertising and tea sales. However, gross margin was negative 89.0% due to $760,064 in promotion costs for tea products, leading to a net loss of $1,149,151 versus a net loss of $773,581 in 2025. For the six months ended June 30, 2026, net revenues were $7,091,000, with gross profit of $827,000. Annual revenue has declined sharply from $44.8M in 2022 to $3.0M in 2025, and net losses have persisted.

Strategy

Management is focused on expanding tea product sales through sales agents and an enterprise distribution channel, emphasizing small profits but quick turnover. The company is also growing its online advertising business. Recent acquisitions and dispositions in 2025 and 2026 have reshaped the business portfolio, with new subsidiaries incurring salary and rental expenses. Management intends to retain earnings to finance subsidiary operations and expansion, and does not expect to pay cash dividends in the foreseeable future.

Risks

• China regulatory and FX risk — PRC laws and regulations may restrict the transfer of cash or assets from subsidiaries, limiting the company's ability to fund operations or pay dividends.
• Negative gross margin and promotion costs — High promotion costs for tea products resulted in a negative gross margin of 89.0% in the June 2026 quarter, indicating weak profitability.
• Dependence on PRC subsidiaries for cash — The company relies on dividends from PRC subsidiaries to service debt and pay expenses; no dividends have ever been paid to Planet Green.
• Delisting risk — A delisting notice or listing-rule failure was disclosed in February 2026, which could lead to the loss of exchange listing.

Outlook

Management expects continued growth in online advertising and tea sales, but the tea segment requires significant promotion spend to achieve turnover. The company is facing ongoing net losses and negative shareholder equity of $-2.7 million as of June 30, 2026. The ability to reverse losses and generate positive cash flow remains uncertain, and cash reserves are limited at $333,799.