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, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
(tables follow)
ARMLOGI HOLDING CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2025 AND JUNE 30, 2024
(US$, except share data, or otherwise noted)
March 31, June 30,
2025 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$0.00001 par value,
100,000,000 shares authorized,
42,112,026 and 41,634,000 issued
and outstanding as of March 31,
2025 and June 30, 2024,
respectively 421 416
Additional paid-in capital 16,468,859 15,468,864
Retained earnings 13,707,261 23,769,425
----------- -----------
Total stockholders' equity 30,176,541 39,238,705
----------- -----------
Total liabilities and stockholders'
equity 178,040,543 167,034,856
=========== ===========
ARMLOGI HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2025
AND 2024
(US$, except share data, or otherwise noted)
Three
Three Months Nine Months Nine Months
Months Ended Ended Ended
Ended March March 31, March 31, March 31,
31, 2025 2024 2025 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 FLOWS
FOR THE NINE MONTHS ENDED MARCH 31, 2025 AND 2024
(UNAUDITED)
(US$, except share data, or otherwise noted)
For The For The
Nine Months Nine Months
Ended Ended
March 31, March 31,
2025 2024
------------- ------------
US$ 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
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