ITASCA, Ill., Nov. 16, 2024 /PRNewswire/ -- Lakeside Holding Limited ("Lakeside" or the "Company") (Nasdaq: LSH), a U.S.-based integrated cross-border supply chain solution provider with a strategic focus on the Asian market operating under the brand American Bear Logistics ("ABL"), today announced financial results for the first quarter of fiscal 2025, ended September 30, 2024.
Q1 2025 Financial Results:
- Total revenues decreased by $66,922, or 1.6%, from $4,148,476 for the three months ended September 30, 2023, to $4,081,554 for the three months ended September 30, 2024. The decrease was primarily driven by a decrease in revenues from our cross-border airfreight solutions, partially offset by an increase in revenues from our cross-border ocean freight solutions.
- Revenue from our cross-border airfreight solutions segment decreased by $0.2 million or 8.2%, from $2.4 million in the three months ended September 30, 2023, to $2.2 million in the three months ended September 30, 2024. The decrease was primarily due to a decrease in the volume of cross-border air freight processed, from approximately 7,816 tons for the three months ended September 30, 2023, to approximately 7,273 tons for the three months ended September 30, 2024.
- Revenue from our cross-border ocean freight solutions segment increased by $0.1 million, or 7.8%, from $1.7 million in the three months ended September 30, 2023, to $1.8 million in the three months ended September 30, 2024. This growth was primarily due to an increase in the volume of cross-border ocean freights processed and forwarded, rising from 1,290 TEU in the three months ended September 30, 2023, to 1,430 TEU in the three months ended September 30, 2024.
Revenues by Customer Geographic
For the three months ended September 30, | ||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
Revenues | Amount | % of | Amount | % of | Amount | Percentage | ||||||||||||||||||||
Asia-based | $ | 2,809,636 | 68.8 | % | $ | 1,694,223 | 40.8 | % | $ | 1,115,413 | 65.8 | % | ||||||||||||||
U.S.- | 1,271,918 | 31.2 | % | 2,454,253 | 59.2 | % | (1,182,335) | (48.2) | % | |||||||||||||||||
Total revenues | $ | 4,081,554 | 100.0 | % | $ | 4,148,476 | 100.0 | % | $ | (66,922) | (1.6) | % | ||||||||||||||
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- Revenues from Asia-based customers increased by $1.1 million, or 65.8%, from $1.7 million in the three months ended September 30, 2023, to $2.8 million in the three months ended September 30, 2024. The increase in revenues from Asia-based customers was driven by a surge in volume from these customers, particularly those serving large e-commerce platforms. This growth reflects the rising demand for our services, a direct result of the overall expansion of the U.S. e-commerce market.
- Revenues from U.S.-based customers decreased by $1.2 million, or 48.2%, from $2.5 million in the three months ended September 30, 2023, to $1.3 million in the same period in 2024.
- Cost of revenues increased by $0.1 million, or 1.7%, from $3.5 million in the three months ended September 30, 2023, to $3.6 million in the three months ended September 30, 2024.
- Gross profit decreased by $0.1 million, or 19.3%, from $0.6 million in the three months ended September 30, 2023, to $0.5 million in the three months ended September 30, 2024. Our gross margin was 12.8% for the three months ended September 30, 2024, compared to 15.6% for the three months ended September 30, 2023. The decline in gross margin was primarily attributable to reduced revenue from the airfreight solutions segment and 2) an increase in our cost of revenue in warehouse services, customs declaration, and terminal charges.
- General and administrative expenses increased by $1.0 million, or 114.7%, from $0.9 million in the three months ended September 30, 2023, to $1.8 million in the three months ended September 30, 2024. These expenses represented 45.0% and 20.6% of our total revenues for the three months ended September 30, 2024 and 2023, respectively. The increase was primarily attributed to higher salary and employee benefit expenses, professional fees, office and travel expenses, insurance, and entertainment expenses. The increase was primarily attributed to the following:
- Salaries and employee benefits expenses increased by $0.3 million, or 116.9%, from $0.5 million in the three months ended September 30, 2023, to $0.8 million in the three months ended September 30, 2024. Our salaries and employee benefits expenses represented 50.3% and 66.8% of our total general and administrative expenses for the three months ended September 30, 2024, and 2023, respectively. The increase was mainly due to recruiting additional sales, customer services, and back-office support personnel to support our business growth.
- Professional fees increased by $0.3 million, or 1,839.6%, from $17,535 in the three months ended September 30, 2023, to $340,114 in the three months ended September 30, 2024. Our professional fee represented 18.5% and 2.0% of our total general and administrative expenses for the three months ended September 30, 2024 and 2023, respectively. The increase was primarily due to audit fees, legal fees, consulting expenses, investor-related expenses, and financial reporting service fees for the three months ended September 30, 2024. In the three months ended September 30, 2023, most expenses directly related to the offering were not included in professional fees, as they were accounted for as deferred initial public offering assets.
- Net loss was $1.3 million and $0.3 million for the three months ended September 30, 2024 and 2023, respectively.
Management Commentary
Henry Liu, Chairman and Chief Executive Officer of Lakeside, commented, "Our first quarter results for fiscal year 2025 reflect both ongoing growth opportunities and some temporary challenges in our cross-border airfreight segment. Although total revenue declined slightly by 1.6% compared to the same quarter last year, we achieved solid gains in cross-border ocean freight, with segment revenues increasing by 7.8% due to stronger demand from Asia-based customers. This demand surge, particularly among large e-commerce clients, affirms our strategy to focus on expanding high-growth markets and highlights the success of our operational partnerships in the region."
"As we look ahead, we anticipate a rebound in revenue for the next quarter, driven by increased air freight demand for the upcoming holiday season as online purchases ramp up. We have expanded our production capacity to accommodate higher volumes and are prepared to meet rising customer demand efficiently. Additionally, the continued decrease in ocean freight charges is fueling import and export activities, while the broader shift toward e-commerce underscores the need for timely and competitively priced deliveries. We are confident in our ability to deliver on these needs, backed by our investments in advanced logistics technology and strategic facility expansions, including our new Dallas-Fort Worth site. We believe these efforts position us well for the quarters ahead as we strive to enhance value for our shareholders and customers, " said Mr. Liu.
Q1 2025 Operational Highlights
- In July, we closed our upsized initial public offering of 1,500,000 shares of common stock at a public offering price of $4.50 per share to the public for a total of $6,750,000 of gross proceeds to the Company before deducting underwriting discounts and offering expenses.
- In July, we entered into a one-year renewable agreement with a leading Asia-based e-commerce platform to provide logistics services, including freight, customs, and parcel handling. The partnership uses advanced API integration to offer real-time supply chain visibility for sellers, enhancing the customer experience.
- In August, we announced a partnership to provide customs brokerage services for a major social media and e-commerce platform, offering real-time logistics data through API integration. This deal streamlines customs clearance and enhances inventory and delivery visibility for platform sellers.
- In September, we announced the launch of a Pick & Pack Fulfillment service for a major Chinese logistics company, offering inventory management and order processing across U.S. hubs. The service improves lead times and optimizes fulfillment efficiency.
- In September, we announced the expansion of our Dallas-Fort Worth operations, more than doubling its space to 46,657 sq. ft. and increasing staff to meet growing demand. The new facility is equipped with advanced technology to improve logistics efficiency and support business growth.
About Lakeside Holding Limited
Lakeside Holding Limited, based in Itasca, IL, is a U.S.-based integrated cross-border supply chain solution provider with a strategic focus on the Asian market, including China and South Korea. Operating under the brand American Bear Logistics, we primarily provide customized cross-border ocean freight solutions and airfreight solutions in the U.S. that specifically cater to our customers' requirements and needs in transporting goods into the U.S. We are an Asian American-owned business rooted in the U.S. with in-depth understanding of both the U.S. and Asian international trading and logistics service markets. Our customers are typically Asia- and U.S.-based logistics service companies serving large e-commerce platforms, social commerce platforms, and manufacturers to sell and transport consumer and industrial goods made in Asia into the U.S. For more information, please visit https://lakeside-holding.com.
Safe Harbor Statement
This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under "Risk Factors," may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
*** tables follow ***
LAKESIDE HOLDING LIMITED | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(UNAUDITED) | |||||||
As of | As of | ||||||
September 30, | June 30, | ||||||
2024 | 2024 | ||||||
(unaudited) | (audited) | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalent | $ | 2,739,275 | $ | 123,550 | |||
Accounts receivable – third parties, net | 1,786,451 | 2,082,152 | |||||
Accounts receivable – related party, net | 505,361 | 763,285 | |||||
Prepayment and other receivable | 113,198 | - | |||||
Contract assets | 41,301 | 129,506 | |||||
Due from related parties | 645,318 | 441,279 | |||||
Total current assets | 5,830,904 | 3,539,772 | |||||
NON-CURRENT ASSETS | |||||||
Investment in other entity | 15,741 | 15,741 | |||||
Property and equipment at cost, net of accumulated depreciation | 314,496 | 344,883 | |||||
Right of use operating lease assets | 4,320,579 | 3,471,172 | |||||
Right of use financing lease assets | 29,881 | 37,476 | |||||
Deferred tax asset | - | 89,581 | |||||
Deferred offering costs | - | 1,492,798 | |||||
Deposit and repayment | 298,217 | 202,336 | |||||
Total non-current assets | 4,978,914 | 5,653,987 | |||||
TOTAL ASSETS | $ | 10,809,818 | $ | 9,193,759 | |||
LIABILITIES AND EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payables – third parties | $ | 758,963 | $ | 1,161,858 | |||
Accounts payables – related parties | 70,872 | 227,722 | |||||
Accrued liabilities and other payables | 869,109 | 1,335,804 | |||||
Current portion of obligations under operating leases | 1,891,877 | 1,186,809 | |||||
Current portion of obligations under financing leases | 34,214 | 37,619 | |||||
Loans payable, current | 484,725 | 746,962 | |||||
Dividend payable | 98,850 | 98,850 | |||||
Tax payable | 79,825 | 79,825 | |||||
Due to shareholders | 138,107 | 1,018,281 | |||||
Total current liabilities | 4,426,542 | 5,893,730 | |||||
NON-CURRENT LIABILITIES | |||||||
Loans payable, non-current | 105,166 | 136,375 | |||||
Obligations under operating leases, non-current | 2,646,597 | 2,506,402 | |||||
Obligations under financing leases, non-current | 13,233 | 17,460 | |||||
Total non-current liabilities | 2,764,996 | 2,660,237 | |||||
TOTAL LIABILITIES | $ | 7,191,538 | $ | 8,553,967 | |||
Commitments and Contingencies | |||||||
EQUITY | |||||||
Common stocks, $0.0001 par value, 200,000,000 shares authorized, | 750 | 600 | |||||
Subscription receivable | - | (600) | |||||
Additional paid-in capital | 4,942,791 | 642,639 | |||||
Accumulated other comprehensive income | 15,965 | 2,972 | |||||
Deficits | (1,341,226) | (5,819) | |||||
Total equity | 3,618,280 | 639,792 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 10,809,818 | $ | 9,193,759 | |||
LAKESIDE HOLDING LIMITED | ||||||||
CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS) AND | ||||||||
(UNAUDITED) | ||||||||
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenue from third party | $ | 3,599,787 | $ | 4,054,287 | ||||
Revenue from related parties | 481,767 | 94,189 | ||||||
Total revenue | 4,081,554 | 4,148,476 | ||||||
Cost of revenue from third party | 2,994,285 | 2,905,597 | ||||||
Cost of revenue from related parties | 564,730 | 595,336 | ||||||
Total cost of revenue | 3,559,015 | 3,500,933 | ||||||
Gross profit | 522,539 | 647,543 | ||||||
Operating expenses: | ||||||||
General and administrative expenses | 1,837,206 | 855,778 | ||||||
Loss from deconsolidation of a subsidiary | - | 73,151 | ||||||
Provision of allowance for expected credit loss | 12,837 | 52,122 | ||||||
Total operating expenses | 1,850,043 | 981,051 | ||||||
Loss from operations | (1,327,504) | (333,508) | ||||||
Other income (expense): | ||||||||
Other income, net | 109,788 | 46,949 | ||||||
Interest expense | (28,110) | (22,785) | ||||||
Total other income, net | 81,678 | 24,164 | ||||||
Loss before income taxes | (1,245,826) | (309,344) | ||||||
Income taxes expense (recovery) | 89,581 | (2,059) | ||||||
Net loss and comprehensive loss | (1,335,407) | (307,285) | ||||||
Net loss attributable to non-controlling interest | - | (3,025) | ||||||
Net loss attributable to common stockholders | (1,335,407) | (304,260) | ||||||
Other comprehensive loss | ||||||||
Foreign currency translation gain | 12,993 | 3,122 | ||||||
Comprehensive loss | (1,322,414) | (304,163) | ||||||
Less: comprehensive loss attributable to non-controlling interest | - | (3,119) | ||||||
Comprehensive loss attributable to the common shareholders | $ | (1,322,414) | $ | (301,044) | ||||
Loss per share – basic and diluted | $ | (0.18) | $ | (0.05) | ||||
Weighted average shares outstanding – basic and diluted* | 7,500,000 | 6,000,000 | ||||||
LAKESIDE HOLDING LIMITED | ||||||||
CONDENSSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(UNAUDITED) | ||||||||
For the Three Months Ended | ||||||||
September 30, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (1,335,407) | $ | (307,285) | ||||
Adjustments to reconcile net loss to net cash provided by operating | ||||||||
Depreciation – G&A | 17,995 | 17,995 | ||||||
Depreciation – cost of revenue | 18,164 | 18,165 | ||||||
Amortization of operating lease assets | 466,723 | 219,571 | ||||||
Depreciation of right-of-use finance assets | 7,595 | 7,332 | ||||||
Provision of allowance for expected credit loss | 12,837 | 52,122 | ||||||
Deferred tax expense (benefit) | 89,581 | (2,059) | ||||||
Loss from derecognition of shares in subsidiary | - | 73,151 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable – third parties | 282,864 | (138,491) | ||||||
Accounts receivable – related parties | 257,924 | (65,995) | ||||||
Contract assets | 88,205 | 26,213 | ||||||
Due from related parties | (77,812) | 49,182 | ||||||
Prepayment, other deposit | (176,572) | 2,623 | ||||||
Accounts payables – third parties | (402,895) | 133,904 | ||||||
Accounts payables – related parties | (156,850) | 141,213 | ||||||
Accrued expense and other payables | (24,876) | 37,739 | ||||||
Operating lease liabilities | (470,260) | (225,023) | ||||||
Net cash (used in) provided by operating activities | (1,402,784) | 40,357 | ||||||
Cash flows from investing activities: | ||||||||
Payment made for investment in other entity | - | (29,906) | ||||||
Net cash outflow from deconsolidation of a subsidiary (Appendix A) | - | (48,893) | ||||||
Prepayment for system installation | (32,507) | - | ||||||
Acquisition of property and equipment | (5,772) | - | ||||||
Net cash used in investing activities | (38,279) | (78,799) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from loans | - | 225,000 | ||||||
Repayment of loans | (265,456) | (122,137) | ||||||
Repayment of equipment and vehicle loans | (27,990) | (29,678) | ||||||
Principal payment of finance lease liabilities | (7,632) | (6,425) | ||||||
Proceeds from initial public offering, net of share issuance costs | 5,351,281 | - | ||||||
Advanced to related parties | (126,227) | - | ||||||
Repayment to shareholders | (879,574) | - | ||||||
Net cash provided by financing activities | 4,044,402 | 66,760 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 12,386 | 3,216 | ||||||
Net decrease in cash and cash equivalent | 2,615,725 | 31,534 | ||||||
Cash and cash equivalent, beginning of the period | 123,550 | 174,018 | ||||||
Cash and cash equivalent, end of the period | $ | 2,739,275 | $ | 205,552 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW | ||||||||
Cash paid for income tax | $ | — | $ | — | ||||
Cash paid for interest | $ | 6,274 | $ | 6,462 | ||||
SUPPLEMENTAL SCHEDULE OF NON-CASH IN FINANCING | ||||||||
Deferred offering costs within due to shareholders | $ | — | $ | 230,000 | ||||
NON-CASH ACTIVITIES | ||||||||
Right of use assets obtained in exchange for operating lease | $ | 1,244,140 | $ | — | ||||
Right of use assets obtained in exchange for finance lease obligation | $ | — | $ | — | ||||
APPENDIX A – Net cash outflow from deconsolidation of a | ||||||||
Working capital, net | $ | 29,812 | ||||||
Investment in other entity recognized | (15,741) | |||||||
Elimination of NCl at deconsolidation of a subsidiary | 10,187 | |||||||
Loss from deconsolidation of a subsidiary | (73,151) | |||||||
Cash | $ | (48,893) | ||||||