Armlogi Holding Corp. Announces Fiscal 2025 Third Quarter and Nine-Month Results

WALNUT, Calif., May 14, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced financial results for its fiscal 2025 third quarter and nine months ended March 31, 2025. Financial Results for the Three Months Ended March 31, 2025: Total revenue increased by approximately $7.4 million, or 19.3%, to $45.8 million during the three months ended March 31, 2025, compared to $38.4 million for the same period in 2024. This growth reflects continued demand for our services. Costs of sales increased by approximately $10.5 million, or 29.8%, to $45.6 million during the three months ended March 31, 2025, compared with $35.1 million during the same period in 2024. This increase is primarily attributed to higher operational costs associated with service delivery and the expansion of our operational footprint. Our overall gross profit was $0.28 million for the three months ended March 31, 2025, a decrease from $3.32 million for the same period in 2024. Consequently, the gross profit margin was approximately 0.6% for the current quarter, compared to approximately 8.6% in the prior year’s quarter. This reduction in gross margin reflects the aforementioned increased costs of sales. General and administrative expenses were $4.47 million for the three months ended March 31, 2025, an increase from $3.27 million in the same period of 2024, reflecting investments to support our growing operations and strategic initiatives. As a result of these factors, the Company reported a loss from operations of $4.19 million for the three months ended March 31, 2025, compared to income from operations of $0.05 million for the same period in 2024. Our net loss for the three months ended March 31, 2025, was $3.76 million, or ($0.09) per basic and diluted share. This compares with net income of $0.68 million, or $0.02 per basic and diluted share, for the three months ended March 31, 2024. Financial Results for the Nine Months Ended March 31, 2025: Total revenue increased by approximately $17.8 million, or 14.6%, to $139.5 million during the nine months ended March 31, 2025, compared to $121.7 million for the same period in 2024. This growth underscores the sustained demand for our comprehensive logistics solutions. Costs of sales increased by approximately $36.85 million, or 35.0%, to $142.3 million during the nine months ended March 31, 2025, compared with $105.5 million during the same period in 2024. This increase reflects the costs associated with our expanded operational footprint, investments in service capabilities, and certain market pressures that increased costs of resources necessary for our operations. Our overall gross loss was $2.85 million for the nine months ended March 31, 2025, a shift from a gross profit of $16.23 million for the same period in 2024. This has resulted in a negative gross profit margin of approximately (2.0)% for the current nine-month period, compared to a positive margin of 13.3% in the prior year’s period. We are focused on initiatives to address these margin challenges, as well as the challenges that may be presented by the U.S.-China trade developments, anticipated cost pressures of which we are endeavoring to mitigate, should they not be favorably resolved, going forward. General and administrative expenses were $10.80 million for the nine months ended March 31, 2025, an increase from $8.10 million in the same period of 2024, reflecting ongoing investments to scale our business and support our growth trajectory. Consequently, the Company reported a loss from operations of $13.65 million for the nine months ended March 31, 2025, compared to income from operations of $8.13 million for the same period in 2024. Our net loss for the nine months ended March 31, 2025, was $10.06 million, or ($0.24) per basic and diluted share. This compares with net income of $7.18 million, or $0.18 per basic and diluted share, for the nine months ended March 31, 2024. Management Commentary Aidy Chou, Chairman and Chief Executive Officer of Armlogi, commented, “Our third quarter and nine-month results reflect continued revenue growth, which underscores the ongoing demand for our logistics solutions. At the same time, we continue to face significant operational investments and market-related cost pressures that have impacted our profitability. We are diligently working to optimize our expanded warehouse footprint and enhance operational efficiencies across all our service lines.” “We are encouraged by the recent development in U.S.-China trade talks, which has resulted in a substantial reduction in tariffs. We believe this may be a positive signal for Armlogi and the broader logistics sector. While we continue to take a cautious approach in our overall planning, prioritizing sustainable growth and improved profitability, the reduction in trade tensions may allow us to look forward with cautious optimism. Our commitment to leveraging technology and delivering comprehensive supply-chain solutions for our clients remains strong as we navigate the evolving economic environment and work to position Armlogi for potential future growth.” Conference Call & Audio Webcast Armlogi’s management team will hold an earnings conference call at 8:00 am Pacific Time (11:00 am Eastern Time) on Friday, May 16, to discuss the Company’s financial results and provide an overview of the Company’s operations. Armlogi’s management team will lead the conference call and answer investor questions. To access the call by phone, please dial 1-800-274-8461 (international callers, please dial 1-203-518-9814) approximately 10 minutes before the start of the call. Refer to conference ID: ARMLOGI. **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=1720635&tp_key=1793680a37. About Armlogi Holding Corp. Armlogi Holding Corp., based in Walnut, CA, is a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions relating to warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market. With ten warehouses covering over three and a half million square feet, the Company offers comprehensive one-stop warehousing and logistics services. The Company’s warehouses are equipped with facilities and technology for handling and storing large and bulky items. For more information, please visit www.armlogi.com. Armlogi is on X (formerly Twitter). Sign up to follow @ArmLogiUS at https://x.com/ArmLogiUS.Armlogi is on LinkedIn; follow us at https://www.linkedin.com/company/armlogi-holding-corp. Forward-Looking Statements This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “intends,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. Company Contact:info@armlogi.com Investor Relations Contact:Matthew Abenante, IRCPresidentStrategic Investor Relations, LLC Tel: 347-947-2093Email: matthew@strategic-ir.com (tables follow) ARMLOGI HOLDING CORP.CONDENSED CONSOLIDATED BALANCE SHEETSAS OF MARCH 31, 2025 AND JUNE 30, 2024(US$, except share data, or otherwise noted) March 31, 2025 June 30, 2024 US$ US$ Unaudited Assets Current assets Cash 5,631,247 7,888,711 Accounts receivable and other receivable, net 26,843,491 25,465,044 Other current assets 2,222,012 1,624,611 Prepaid expenses 1,204,992 1,129,435 Loan receivables 3,845,402 1,877,131 Total current assets 39,747,144 37,984,932 Non-current assets Restricted cash 3,779,572 2,061,673 Long-term loan receivables — 2,908,636 Property and equipment, net 11,660,557 11,010,407 Intangible assets, net 66,002 92,708 Right-of-use assets – operating leases 122,126,701 111,955,448 Right-of-use assets – finance leases 201,012 309,496 Other non-current assets 459,555 711,556 Total assets 178,040,543 167,034,856 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Current liabilities Accounts payable and accrued liabilities 6,870,867 7,502,339 Contract liabilities 468,128 276,463 Income taxes payable — 57,589 Due to related parties — 350,209 Accrued payroll liabilities 687,530 405,250 Convertible notes 6,337,398 — Operating lease liabilities – current 28,297,648 24,216,446 Finance lease liabilities – current 139,331 155,625 Total current liabilities 42,800,902 32,963,921 Non-current liabilities Operating lease liabilities – non-current 104,986,058 93,126,092 Finance lease liabilities – non-current 77,042 169,683 Deferred income tax liabilities - 1,536,455 Total liabilities 147,864,002 127,796,151 Commitments and contingencies Stockholders’ equity Common stock, US$0.00001 par value, 100,000,000 shares authorized, 42,112,026 and 41,634,000 issued and outstanding as of March 31, 2025 and June 30, 2024, respectively 421 416 Additional paid-in capital 16,468,859 15,468,864 Retained earnings 13,707,261 23,769,425 Total stockholders’ equity 30,176,541 39,238,705 Total liabilities and stockholders’ equity 178,040,543 167,034,856 ARMLOGI HOLDING CORP.CONDENSED CONSOLIDATED STATEMENTSOF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2025 AND 2024(US$, except share data, or otherwise noted) Three MonthsEndedMarch 31,2025 Three MonthsEndedMarch 31,2024 Nine MonthsEndedMarch 31,2025 Nine MonthsEndedMarch 31,2024 US$ US$ US$ US$ Unaudited Unaudited Unaudited Unaudited Revenue 45,844,322 38,439,935 139,469,900 121,689,863 Costs of sales 45,566,202 35,115,736 142,315,578 105,461,383 Gross profit (loss) 278,120 3,324,199 (2,845,678) 16,228,480 Operating costs and expenses: General and administrative 4,472,813 3,269,493 10,800,794 8,097,196 Total operating costs and expenses 4,472,813 3,269,493 10,800,794 8,097,196 Income (loss) from operations (4,194,693) 54,706 (13,646,472) 8,131,284 Other (income) expenses: Other income, net (718,025) (914,419) (2,488,346) (1,902,813)Loss on disposal of assets — — 43,625 — Finance costs 278,385 11,041 367,382 37,779 Total other (income) expenses (439,640) (903,378) (2,077,339) (1,865,034) Income (loss) before provision for income taxes (3,755,053) 958,084 (11,569,133) 9,996,318 Current income tax expense — 200,612 — 2,079,038 Deferred income tax (recovery) expense — 75,252 (1,506,969) 735,459 Total income tax (recovery) expenses — 275,864 (1,506,969) 2,814,497 Net income (loss) (3,755,053) 682,220 (10,062,164) 7,181,821 Total comprehensive income (loss) (3,755,053) 682,220 (10,062,164) 7,181,821 Basic & diluted net (loss) earnings per share (0.09) 0.02 (0.24) 0.18 Weighted average number of shares of common stock-basic and diluted 41,714,608 40,000,000 41,651,007 40,000,000 ARMLOGI HOLDING CORP.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE NINE MONTHS ENDED MARCH 31, 2025 AND 2024 (UNAUDITED)(US$, except share data, or otherwise noted) For The Nine Months EndedMarch 31, 2025 For The Nine MonthsEnded March 31, 2024 US$ US$ Unaudited Unaudited Cash Flows from Operating Activities: Net (loss) income (10,062,164) 7,181,821 Net loss from disposal of fixed assets 43,625 6,895 Depreciation of property and equipment and right-of-use financial assets 1,983,166 1,444,441 Amortization 26,706 26,488 Non-cash operating leases expense 5,833,789 3,450,304 Gain from settlement of commitment payable (100,000) — Accretion of convertible note 344,925 — Current estimated credit loss 228,363 (22,827)Deferred income taxes (1,536,455) 735,459 Interest income (96,340) (87,923)Changes in working capital: Accounts receivable and other receivables (1,606,810) (7,685,423)Other current assets (597,401) (376,820)Other non-current assets 252,001 — Prepaid expenses (75,557) (425,146)Accounts payable & accrued liabilities (631,472) (2,212,137)Contract liabilities 191,665 (187,925)Income tax payable (57,589) 1,907,403 Accrued payroll liabilities 282,280 199,806 Net changes in derecognized ROU and operating lease liabilities (63,874) — Net cash (used in) provided from operating activities (5,641,142) 3,954,416 Cash Flows from Investing Activities: Purchase of property and equipment (2,593,457) (3,080,643)Loan disbursement (1,000,000) (1,600,000)Proceeds from repayment of loan receivables 2,036,705 — Proceeds from sale of property and equipment 25,000 — Net cash used in investing activities (1,531,752) (4,680,643) Cash Flows from Financing Activities: Proceeds received from related parties — 1,000 Deferred issuance costs for initial public offering — (638,231)Repayment to related parties (350,209) 511,353 Net proceeds from SEPA 8,092,473 — Repayment of commitment payable (150,000) — Repayment of finance lease liabilities (108,935) (125,474)Repayment of SEPA (850,000) — Capital contributions from stockholders — 466,156 Net cash provided by financing activities 6,633,329 214,804 Net decrease in cash and restricted cash (539,565) (511,423)Cash and restricted cash, beginning of year 9,950,384 6,558,099 Cash and restricted cash, end of nine months periods 9,410,819 6,046,676 The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that equal the totals of the same amounts shown in the Consolidated Statements of Cash Flows: Cash 5,631,247 3,985,003 Restricted cash – non-current 3,779,572 2,061,673 Total cash and restricted cash shown in the Consolidated Balance Sheet 9,410,819 6,046,676 Supplemental Disclosure of Cash Flows Information: Cash paid for income tax (87,074) (171,635)Cash paid for interest 22,457 — Non-cash Transactions: Right-of-use assets acquired in exchange for operating lease liabilities 28,685,914 81,927,507 Decrease in right-of-use assets due to remeasurement of lease terms 884,394 — Shares issued to settle commitment fee 250,000 — IPO expenses paid by stockholders — 300,000 Shares issued pursuant to SEPA 750,000 —

Armlogi Holding Corp. Announces Fiscal 2025 Third Quarter and Nine-Month Results

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