Lakeside Announces Fiscal 2025 Second Quarter and Six-Month Results

, /PRNewswire/ -- 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 Chicago O'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 major Wuhan 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, 2023, 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, 2023, 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, 2023, to 1,046 TEU in the three months ended December 31, 2024. For the three months ended December 31, 2024, 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 December 31, 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.-based customers 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 % $ 4,916,103 100.0 % $ (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, 2023, 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, 2024, 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, 2023, 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, 2024, 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, 2023, 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, 2024, 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, 2023, 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, 2023, to $4.2 million in the six months ended December 31, 2024. The decrease was primarily due to a decrease in the volume of cross-border air freight processed, from approximately 16,034 tons for the six months ended December 31, 2023, 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, 2023, 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, 2023, to 2,476 TEU in the six months ended December 31, 2024. Revenues by Customer Geographic For the six months ended December 31, 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.-based customers 1,899,220 24.7 % 4,767,611 52.6 % (2,868,391) (60.2) % 7,459,057 97.2 % 9,064,579 100.0 % (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 % $ 9,064,579 100.0 % $ (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, 2023, 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, 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 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, 2024, compared to the same period in 2023, 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, 2023, 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, 2023, 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, 2024, 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, 2023, 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, 2024 and 2023, 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, 2024, 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 athttps://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., Ltd., 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 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 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, IRCPresidentStrategic Investor Relations, LLCTel: 347-947-2093Email: [email protected] (tables follow) LAKESIDE HOLDING LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) As ofDecember 31,2024 (unaudited) As ofJune 30,2024 (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 6,000,000 issued and outstanding as of December 31, 2024 and June 30, 2024, 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 $ 9,837,126 $ 9,193,759 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 7,677,143 9,064,579 3,595,589 4,916,103 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 pharmaceuticalproducts – 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) 1,064,509 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 expectedcredit loss 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) (1,946,820) 64,224 Less: net loss attributable to non-controlling interest — (3,025) — — Net (loss) income attributable to the Company (3,282,227) (240,036) (1,946,820) 64,224 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 tonon-controlling interest — (3,119) — — Comprehensive (loss) income attributableto the Company $ (3,294,413) $ (236,820) $ (1,971,999) $ 64,224 (Loss) earnings per share – basic and diluted $ (0.44) $ (0.04) $ (0.26) $ 0.01 Weighted Average Shares Outstanding – basic and diluted 7,500,000 6,000,000 7,500,000 6,000,000 LAKESIDE HOLDING LIMITED CONDENSSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Six Months Ended December 31, 2024 2023 Cash flows from operating activities: Net loss $ (3,282,227) $ (243,061) Adjustments to reconcile net loss to net cash provided byoperating 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 1,956 49,591 Deferred tax expense 89,581 26,125 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 issuancecosts 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 $ 1,123,414 $ 340,733 SUPPLEMENTAL DISCLOSURES OF CASH FLOWINFORMATION: Cash paid for income tax $ — $ — Cash paid for interest $ 45,953 $ 15,503 SUPPLEMENTAL SCHEDULE OF NON-CASH ININVESTING AND FINANCING ACTIVITIES Deferred offering costs within due to shareholders $ — $ 500,826 Deferred offering costs within accrued expense and otherpayables $ — $ 241,176 Additions to property and equipment included in loanpayable $ 102,235 — Additions to leasehold improvement and furniture andfixture through account payable $ 42,803 $ — Settlement of due to shareholder and advance to relatedparty $ 311,815 — NON-CASH ACTIVITIES Right of use assets obtained in exchange for operating leaseobligations $ 1,445,498 $ — Right of use assets obtained in exchange for finance leaseobligation $ 89,003 $ 19,982 APPENDIX A – Net cash outflow from deconsolidation ofa 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) SOURCE Lakeside Holding Limited WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Lakeside Announces Fiscal 2025 Second Quarter and Six-Month Results

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