ITASCA,Ill.,Feb. 15,2025 --Lakeside Holding Limited ("Lakeside" or the "Company") (Nasdaq: LSH),a U.S.-based cross-border supply chain solution provider with a unique focus on the Asia-Pacific market operating through two specialized subsidiaries—American Bear Logistics and Hupan Pharmaceutical (Hubei) Co.,Ltd.,today announced financial results for its fiscal 2025 second quarter and first half ended December 31,2024.
Management Commentary
Henry Liu,Chairman and Chief Executive Officer of Lakeside commented,"While we faced industry-wide headwinds in the second quarter,we've made tremendous strategic progress in positioning Lakeside for long-term growth. Our expansion into pharmaceutical logistics through Hupan Pharmaceutical,our new partnerships with major e-commerce platforms,and our significantly-expanded Dallas-Fort Worth facilities demonstrate our commitment to diversifying and strengthening our business. The strong growth in our Asia-based customer revenues,up 29.4% in the first half,validates our strategic shift toward serving the rapidly expanding cross-border e-commerce market. With these foundational pieces in place and our continued investment in operational capabilities,we're excited about the opportunities ahead as we build a more robust,diversified logistics enterprise."
Operational Highlights
E-Commerce & Cross-Border Logistics:
Entered one-year agreement with a major Asian e-commerce platform
Partnered with a leading global social media and e-commerce platform for customs brokerage services
Launched new Pick & Pack Fulfillment service for a major Chinese logistics partner
U.S. Facilities Expansion:
Expanded Dallas-Fort Worth operations:
More than doubled warehouse space from 20,000 to 46,657 square feet
Added staff to support expanded operations
Part of multi-hub strategy including ChicagoO'Hare (ORD),Dallas-Fort Worth (DFW),and Los Angeles (LAX)
Medical/Pharmaceutical Business Development:
Acquired Hupan Pharmaceutical (Hubei) Co.,Ltd:
Purchase price:RMB 4.0M ($0.6M)
Expected annual revenue contribution: $7M
Gained licenses for drug wholesale,retail,and medical device distribution
Partnerships with 15 majorWuhan hospitals
Established partnership with Sinopharm Group Hubei Co.,Ltd. for:
Essential medicine storage
Transportation services
Logistics services
Signed RMB 11.0M ($1.5M) sales agreement with Sinopharm Holding Hubei New Special Medicine Co.,Ltd:
One-year contract effective January 1,2025
Covers critical medicines including Sodium Bicarbonate,Glucose,and Glucose Sodium Chloride
Financial Results for the Three Months Ending December 31,2024:
Total revenues decreased by $1.5 million,or 31.3% to $3.4 million for the three months ended December 31,2024,compared with $4.9 million for the three months ended December 31,2023. The decrease was primarily driven by a significant decline in volume we handled from our cross-border airfreight solutions.
Revenues from our cross-border airfreight solutions decreased by $1.1 million or 35.5%,from $3.1 million in the three months ended December 31,2023,to $2.0 million in the three months ended December 31,2024. The decrease was primarily due to a decrease in the volume of cross-border air freight processed,from approximately 8,217 tons for the three months ended December 31,to approximately 4,459 tons for the three months ended December 31,2024.
Revenues from our cross-border ocean freight solutions decreased by $0.4 million,or 24.2%,from $1.8 million in the three months ended December 31,to $1.4 million in the three months ended December 31,2024. This reduction was primarily due to a decrease in the volume of cross-border ocean freights processed and forwarded,dropping from 1,330 TEU in the three months ended December 31,to 1,046 TEU in the three months ended December 31,2024.
For the three months ended December 31,our total revenue from pharmaceutical product distribution amounted to $0.2 million,compared to no revenue from this segment in the same period of the prior year. Starting from December 2024,we established a new revenue stream through the distribution of pharmaceutical products. We procured pharmaceuticals—primarily pharmaceutical solutions—directly from manufacturers and supplied them to distributors,hospitals,and clinics.
Revenues by Customer Geographic
For the three months ended December31,
2024
2023
Revenues
Amount
% of
total
Revenues
Amount
% of
total
Revenues
Amount
Increase
(Decrease)
Percentage
Increase
(Decrease)
Revenue from cross-border freight solutions
Asia-based customers
$
2,750,202
76.5
%
$
2,602,745
52.9
%
$
147,457
5.7
%
U.S.-basedcustomers
627,301
17.4
%
2,313,358
47.1
%
(1,686,057)
(72.9)
%
3,377,503
93.9
%
4,916,103
100.0
%
(1,538,600)
(31.3)
%
Revenue from distribution of pharmaceuticals
Asia-based customers
218,086
6.1
%
-
-
218,086
N/A
Total revenues
$
3,595,587
100.0
%
$
4,103
100.0
%
$
(1,320,514)
(26.9)
%
Revenues from Asia-based customers increased by $0.1 million,or 5.7%,from $2.6 million in the three months ended December 31,to $2.8 million in the three months ended December 31,2024. 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 $1.7 million,or 72.9%,from $2.3 million in the three months ended December 31,2023 to $0.6 million in the same period in 2024. The decrease in revenue from the U.S.-based customers in the three months ended December 31,compared to the same period in 2023,was primarily due to our strategic shift toward Asia-based e-commerce customers.
Total cost of revenues decreased by $0.2 million,or 5.6%,from $3.9 million in the three months ended December 31,to $3.6 million in the three months ended December 31,2024.
Our overall gross loss was $42,231 in the three months ended December 31,compared to gross profit of $1,064,509 in same period last year . Our gross margin was mainly impacted by higher cost of revenue,particular in fixed overhead costs,and an industry-wide decline in revenue.
Our gross margin of distribution of pharmaceuticals was 44.2% for the three months ended December 31,2024.
General and administrative expenses increased by $0.9 million,or 94.1%,from $1.0 million in the three months ended December 31,to $1.9 million in the three months ended December 31,2024. These expenses represented 53.2% and 20.0% of our total revenues for the three months ended December 31,2024 and 2023,respectively. The increase was primarily attributed to higher salary and employee benefit expenses and professional fees operating as a listed company.
Net loss was $1.9 million for the three months ended December 31,compared to a net income of $0.06 million for the three months ended December 31,2023.
Financial Results for the Six Months Ending December 31,2024:
Total revenues decreased by $1.6 million,or 17.7%,from $9.1 million for the six months ended December 31,to $7.5 million for the six months ended December 31,2024. The decrease was primarily driven by a significant decline in volume we handled from our cross-border airfreight solutions.
Revenues from our cross-border airfreight solutions decreased by $1.3 million or 23.4%,from $5.5 million in the six months ended December 31,to $4.2 million in the six months ended December 31,from approximately 16,034 tons for the six months ended December 31,to approximately 11,732 tons for the six months ended December 31,2024.
Revenues from our cross-border ocean freight solutions decreased by $0.3 million,or 8.7%,from $3.5 million in the six months ended December 31,to $3.2 million in the six months ended December 31,2024. This growth was primarily due to a decrease in the volume of cross-border ocean freights processed and forwarded,dropping from 2,620 TEU in the six months ended December 31,to 2,476 TEU in the six months ended December 31,2024.
Revenues by Customer Geographic
For the six months ended December31,
2024
2023
Revenues
Amount
% of
total
Revenues
Amount
% of
total
Revenues
Amount
Increase
(Decrease)
Percentage
Increase
(Decrease)
Revenue from cross-border freight solutions
Asia-based customers
$
5,559,837
72.4
%
$
4,296,968
47.4
%
$
1,262,869
29.4
%
U.S.-basedcustomers
1,899,220
24.7
%
4,767,611
52.6
%
(2,868,391)
(60.2)
%
7,459,057
97.2
%
9,579
100.0
%
(1,605,522)
(17.7)
%
Revenue from distribution of pharmaceuticals
Asia-based customers
218,086
2.8
%
-
-
218,086
N/A
Total revenues
$
7,677,143
100.0
%
$
9,579
100.0
%
$
(1,387,436)
(15.3)
%
Revenues from Asia-based customers increased by $1.3 million,or 29.4%,from $4.3 million in the six months ended December 31,to $5.6 million in the six months ended December 31,2024. The increase in revenues from Asia-based customers was driven by an increase in volume from these customers,a direct result of the overall expansion of the U.S. e-commerce market.
Revenues from cross-border freight solutions for the U.S.-based customers decreased by $2.9 million,or 60.2%,from $4.8 million in the six months ended December 31,2023 to $1.9 million in the same period in 2024. The decrease in revenue from the U.S.-based customers in the three months ended December 31,was primarily due to our strategic shift toward Asia-based e-commerce customers.
Cost of revenues decreased by $0.2 million,or 2.1%,from $7.4 million in the six months ended December 31,to $7.2 million in the six months ended December 31,2024.
Gross profit decreased by $1.2 million,or 71.9%,from $1.7 million in the six months ended December 31,to $0.5 million in the six months ended December 31,2024. Our gross margin of cross-border freight solution was 5.1% for the six months ended December 31,compared to 18.9% for the six months ended December 31,2023. The decline in gross margin was primarily attributable to reduced revenue from cross-border airfreight solutions and an increase in our cost of revenue in warehouse services,custom declaration and terminal charges,freights arranged charges and overhead costs allocated.
General and administrative expenses increased by $1.9 million,or 103.7%,from $1.8 million in the six months ended December 31,to $3.7 million in the six months ended December 31,2024. These expenses represented 48.8% and 20.3% of our total revenues for the six months ended December 31,respectively. The increase was primarily attributed to higher salary and employee benefit expenses,professional fees,office expenses and traveling,insurance expenses and entertainment expenses,operating as a listed company.
Net loss was $3.3 million for the six months ended December 31,compared to a net loss of $0.2 million for the six months ended December 31,2023.
Conference Call & Audio Webcast
Lakeside's management team will hold an earnings conference call at 4:30 PM Eastern Time (3:30 PM Central Time) on Tuesday,February 17 to discuss the Company's financial results and provide an overview of the Company's operations. Management will lead the conference call and be available to answer questions.
To access the call by phone,please dial 1- 877-407-9716 (international callers,please dial 1- 201-493-6779) approximately 10 minutes before the start of the call. Refer to conference ID: LAKESIDE. **NOTE: THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY
A live audio conference call webcast will be available online at
https://viavid.webcasts.com/starthere.jsp?ei=1708554&tp_key=b4f1b10725
About Lakeside Holding Limited
Lakeside Holding Limited is a U.S.-based cross-border supply chain solution provider with a unique focus on the Asia-Pacific market. Through two specialized subsidiaries—American Bear Logistics and Hupan Pharmaceutical (Hubei) Co.,Ltd.—Lakeside delivers tailored logistics solutions spanning general and specialized sectors.
American Bear Logistics,with strategic hubs in Chicago,Dallas,Los Angeles,and New York,offers customized cross-border ocean and airfreight solutions,connecting Asia-based logistics service companies and e-commerce platforms with the U.S. market.
Lakeside recently acquired Hupan Pharmaceutical (Hubei) Co.,expanding its service scope and enhancing its pharmaceutical logistics and distribution capabilities within China. This strategic move underscores Lakeside's commitment to advancing integrated cross-border logistics solutions.
For more information,please visithttps://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 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: [email protected]
(tables follow)
LAKESIDE HOLDING LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
As of
December 31,
2024
(unaudited)
As of
June30,
2024
(audited)
ASSETS
CURRENT ASSETS
Cash
$
1,123,414
$
123,550
Accounts receivable–third parties,net
1,645,774
2,082,152
Accounts receivable–related party,net
207,293
763,285
Prepayment and other receivable
49,476
—
Contract assets
31,388
129,506
Inventory,net
10,328
—
Due from related parties
682,980
441,279
Loan to a third party
686,697
—
Total current assets
4,437,350
3,539,772
NON-CURRENT ASSETS
Investment in other entity
15,741
15,741
Property and equipment at cost,net of accumulated depreciation
514,073
344,883
Intangible asset,net
418,867
—
Right of use operating lease assets
4,074,617
3,471,172
Right of use financing lease assets
110,998
37,476
Deferred tax asset
—
89,581
Deferred offering costs
—
1,492,798
Deposit and prepayment
265,480
202,336
Total non-current assets
5,399,776
5,653,987
TOTAL ASSETS
$
9,837,126
$
9,193,759
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payables–third parties
$
1,233,142
$
1,161,858
Accounts payables–related parties
71,557
227,722
Accrued liabilities and other payables
1,244,501
1,335,804
Current portion of obligations under operating leases
2,203,766
1,186,809
Current portion of obligations under financing leases
48,865
37,619
Loans payable,current
609,935
746,962
Dividend payable
—
98,850
Tax payable
79,825
79,825
Due to shareholders
—
1,018,281
Total current liabilities
5,491,591
5,893,730
NON-CURRENT LIABILITIES
Loans payable,non-current
174,846
136,375
Deferred tax liabilities
104,717
—
Obligations under operating leases,non-current
2,339,439
2,506,402
Obligations under financing leases,non-current
80,252
17,460
Total non-current liabilities
2,699,254
2,660,237
TOTAL LIABILITIES
$
8,190,845
$
8,553,967
Commitments and Contingencies
EQUITY
Common stocks,$0.0001 par value,200,000,000 shares authorized,
7,500,000 and 6,000 issued and outstanding as of December 31,
2024 and June 30,respectively
750
600
Subscription receivable
—
(600)
Additional paid-in capital
4,942,791
642,639
Accumulated other comprehensive income
(9,214)
2,972
Deficits
(3,288,046)
(5,819)
Total equity
1,646,281
639,792
TOTAL LIABILITIES AND EQUITY
$
9,759
LAKESIDE HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
Six Months Ended
December 31,
Three Months Ended
December 31,
2024
2023
2024
2023
Revenue from cross-border freight
solutions – third party
$
6,702,063
$
8,639,983
$
3,102,276
$
4,585,696
Revenue from cross-border freight
solutions – related parties
756,994
424,596
275,227
330,407
Revenue from distribution of pharmaceutical
products – third parties
218,086
—
218,086
—
Total revenue
7,143
9,579
3,589
4,103
Cost of revenue from cross-border
freight solutions – third party
6,153,994
6,329,650
3,159,709
3,424,053
Cost of revenue from cross-border
freight solutions – related party
921,050
1,022,877
356,320
427,541
Cost of revenue from pharmaceutical
products – related parties
121,791
—
121,791
—
Total cost of revenue
7,196,835
7,352,527
3,637,820
3,851,594
Gross profit (loss)
480,308
1,712,052
(42,231)
1,509
Operating expenses:
Selling expenses
54,488
—
54,488
—
General and administrative expenses
3,749,059
1,840,831
1,911,853
985,053
Loss from deconsolidation of a subsidiary
—
73,151
—
—
Provision (reversal) of allowance for expected
creditloss
1,956
49,591
(10,881)
(2,531)
Total operating expenses
3,805,503
1,963,573
1,955,460
982,522
Income (loss) from operations
(3,325,195)
(251,521)
(1,997,691)
81,987
Other income
Other income,net
201,541
88,449
91,753
41,500
Interest expense
(68,992)
(53,864)
(40,882)
(31,079)
Total other income
132,549
34,585
50,871
10,421
(Loss) income before income taxes
(3,192,646)
(216,936)
(1,946,820)
92,408
Income tax expense (credit)
89,581
26,125
—
28,184
Net (loss) income
(3,282,227)
(243,061)
(1,820)
64,224
Less: net loss attributable to non-controlling interest
—
(3,025)
—
—
Net (loss) income attributable to the Company
(3,227)
(240,036)
(1,224
Other comprehensive (loss) income:
Foreign currency translation income
(12,186)
3,122
(25,179)
—
Comprehensive (loss) income
(3,294,413)
(239,939)
(1,971,999)
64,224
Less: comprehensive loss attributable to
non-controlling interest
—
(3,119)
—
—
Comprehensive (loss) income attributable
to the Company
$
(3,413)
$
(236,820)
$
(1,999)
$
64,224
(Loss) earnings per share – basic and diluted
$
(0.44)
$
(0.04)
$
(0.26)
$
0.01
Weighted Average Shares Outstanding –
basic and diluted
7,000
6,000
7,000
LAKESIDE HOLDING LIMITED
CONDENSSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For theSix Months Ended
December 31,
2024
2023
Cash flows from operating activities:
Net loss
$
(3,227)
$
(243,061)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation – G&A
50,804
35,991
Depreciation – cost of revenue
36,328
36,328
Amortization and interest expense of operating lease assets
989,003
439,142
Depreciation of right-of-use finance assets
15,480
14,385
Provision of allowance for expected credit loss
1,591
Deferred tax expense
89,125
Loss from derecognition of shares in subsidiary
—
73,151
Changes in operating assets and liabilities:
Accounts receivable – third parties
424,648
(479,056)
Accounts receivable – related parties
565,766
(192,609)
Contract assets
98,118
(27,169)
Inventories,net
(10,328)
—
Due from related parties
(241,702)
40,740
Prepayment,other deposit
(112,620)
(23,269)
Accounts payables – third parties
28,285
539,542
Accounts payables – related parties
(156,165)
241,721
Accrued expense and other payables
312,722
122,547
Operating lease liabilities
(742,649)
(396,263)
Net cash (used in) provided by operating activities
(1,933,000)
257,836
Cash flows from investing activities:
Purchase of furniture and equipment
(36,072)
—
Payment for leasehold improvement
(75,008)
—
Net cash payment for asset acquisition
(552,721)
—
Loan to a third party
(686,697)
—
Payment made for investment in other entity
—
(29,906)
Net cash outflow from deconsolidation of a subsidiary
(Appendix A)
—
(48,893)
Net cash used in investing activities
(1,350,498)
(78,799)
Cash flows from financing activities:
Proceeds from loans
195,000
225,000
Repayment of loans
(339,914)
(185,856)
Repayment of equipment and vehicle loans
(55,877)
(59,708)
Principal payment of finance lease liabilities
(14,964)
(13,429)
Payment for deferring offering cost
—
(140,000)
Advances from Hupan Pharmaceutical prior to acquisition
276,365
—
Proceeds from initial public offering,net of share issuance
costs
5,351,281
—
Advanced to related parties
(311,185)
—
Proceeds from shareholders
—
158,455
Repayment to shareholders
(805,345)
—
Net cash provided by (used in) financing activities
4,295,361
(15,538)
Effect of exchange rate changes on cash
(11,999)
3,216
Net increase in cash
999,864
166,715
Cash,beginning of the period
123,550
174,018
Cash,end of the period
$
1,414
$
340,733
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid for income tax
$
—
$
—
Cash paid for interest
$
45,953
$
15,503
SUPPLEMENTAL SCHEDULE OF NON-CASH IN
INVESTING AND FINANCING ACTIVITIES
Deferred offering costs within due to shareholders
$
—
$
500,826
Deferred offering costs within accrued expense and other
payables
$
—
$
241,176
Additions to property and equipment included in loan
payable
$
102,235
—
Additions to leasehold improvement and furniture and
fixture through account payable
$
42,803
$
—
Settlement of due to shareholder and advance to related
party
$
311,815
—
NON-CASH ACTIVITIES
Right of use assets obtained in exchange for operating lease
obligations
$
1,445,498
$
—
Right of use assets obtained in exchange for finance lease
obligation
$
89,003
$
19,982
APPENDIX A – Net cash outflow from deconsolidation of
a subsidiary
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)
© OfficialAffairs
