Lakeside Announces Fiscal 2025 Third Quarter and Nine-Month Results
ITASCA, IL, May 15, 2025 (GLOBE NEWSWIRE) -- 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 third quarter and nine months ended March 31, 2025.
Management Commentary
"The third quarter and first nine months of fiscal 2025 presented a dynamic environment for Lakeside," commented Henry Liu, Chief Executive Officer. "While our established cross-border freight solutions experienced revenue declines compared to the prior year, primarily due to shifts in global shipping demands and pricing pressures, we are encouraged by the initial contributions from our new pharmaceutical distribution segment following the Hupan Pharmaceutical acquisition.
Our strategic objectives remain clear: expand our footprint in China's pharmaceutical distribution market, where significant growth opportunities exist, while continuing to optimize our cross-border logistics services. We are actively integrating Hupan Pharmaceutical into our operations to leverage synergies between business segments.
Despite challenging market conditions in the freight sector, we remain committed to diversifying revenue streams and investing in high-growth areas. We believe our strategic focus on the Asia-Pacific market, coupled with our expansion into the pharmaceutical sector, positions Lakeside for long-term shareholder value creation."
Highlights for the Nine Months Ended March 31, 2025, and Recent Developments:
-- Successful Initial Public Offering $(IPO.UK)$: On July 1, 2024, the Company successfully closed its IPO of 1,500,000 shares of common stock at $4.50 per share, raising aggregate gross proceeds of approximately $6.75 million (net proceeds of approximately $5.4 million after deducting underwriting discounts, commissions, and other offering expenses). This milestone provided significant capital to support the Company's growth strategies and operational expansion. -- Acquisition of Hupan Pharmaceutical: On November 21, 2024, Lakeside completed the acquisition of Hupan Pharmaceutical (Hubei) Co., Ltd. ("Hupan Pharmaceutical"), marking its entry into the medical logistics and pharmaceutical distribution sector in China. This strategic acquisition is aimed at diversifying revenue streams and capitalizing on the growing healthcare market in the region. Hupan Pharmaceutical contributed $715,362 to revenues for the nine months ended March 31, 2025. -- Convertible Debt Financing: On March 5, 2025, Lakeside announced a convertible debt financing agreement for up to $4.5 million. This financing is intended to provide additional working capital to support the growth of its pharmaceutical distribution business and for general corporate purposes, further strengthening the Company's financial position and ability to execute its strategic initiatives. -- Expansion of Pharmaceutical Business: Following the acquisition, the Company has been actively working to integrate Hupan Pharmaceutical and explore new business opportunities within the Chinese pharmaceutical market. This includes efforts to secure new distribution agreements and expand its product portfolio. For instance, as noted in prior announcements, the company has been working on securing distribution agreements with major pharmaceutical producers like Kelun Pharmaceutical. -- Continued Focus on Cross-Border Logistics: While navigating a challenging global shipping environment, American Bear Logistics, the Company's freight forwarding arm, continued to provide customized cross-border ocean and airfreight solutions. The company remains focused on serving its core Asia-Pacific to U.S. trade lane, adapting to market shifts and customer needs.
Financial Results for the Three Months Ending March 31, 2025:
Total revenues for the third quarter of fiscal 2025 were $3.80 million, a decrease compared to $4.46 million in the corresponding quarter of the previous fiscal year. This revenue comprised $2.86 million from third-party cross-border freight solutions (down from $3.82 million year-over-year), $0.45 million from related-party cross-border freight solutions (down from $0.64 million), and $0.50 million from the distribution of pharmaceutical products by third parties, a new revenue stream compared to nil in the prior year's third quarter.
The total cost of revenues for the third quarter was $3.09 million, reduced from $3.49 million in the third quarter of fiscal 2024. This resulted in a gross profit of $0.72 million for the third quarter of fiscal 2025, compared to a gross profit of $0.98 million in the same period last year.
Operating expenses for the third quarter totaled $1.79 million, an increase from $0.94 million in the prior year's third quarter. This included selling expenses of $0.10 million (nil in Q3 FY2024) and general and administrative expenses of $1.68 million (up from $0.96 million in Q3 FY2024). Consequently, the company recorded a loss from operations of $1.10 million for the third quarter of fiscal 2025, a shift from an income from operations of $0.04 million in the third quarter of fiscal 2024.
After accounting for other income and income taxes, the net loss attributable to the Company for the third quarter of fiscal 2025 was $1.07 million, or a loss of $0.14 per basic and diluted share. This compares to a net income attributable to the Company of $0.01 million, or $0.00 per share, for the third quarter of fiscal 2024.
Financial Results for the Nine Months Ended March 31, 2025:
For the nine months ended March 31, 2025, total revenues were $11.48 million, compared to $13.53 million for the same period in fiscal 2024. Revenues from third-party cross-border freight solutions were $9.56 million (down from $12.46 million), related-party cross-border freight solutions contributed $1.21 million (up from $1.07 million), and the distribution of pharmaceutical products by third parties generated $0.72 million (compared to nil in the prior year period).
The total cost of revenues for the nine-month period was $10.28 million, a decrease from $10.84 million in the prior year period. This led to a gross profit of $1.20 million for the first nine months of fiscal 2025, down from $2.69 million in the corresponding period of fiscal 2024.
Operating expenses for the nine months increased to $5.60 million from $2.90 million in the prior year period. These expenses included $0.16 million in selling expenses (nil in the prior year period) and $5.43 million in general and administrative expenses (up from $2.80 million). As a result, the loss from operations for the nine months ended March 31, 2025, was $4.40 million, compared to a loss from operations of $0.21 million for the same period in fiscal 2024.
The net loss attributable to the Company for the nine months ended March 31, 2025, was $4.35 million, or a loss of $0.58 per basic and diluted share. This compares to a net loss attributable to the Company of $0.23 million, or a loss of $0.04 per share, for the nine months ended March 31, 2024.
Revenues by Customer Geographic Location
For the three months ended March 31, 2025, revenues from Asia-based customers were $3.3 million, a decrease from $3.8 million in the same period of the prior year. Revenues from U.S.-based customers were $0.5 million for the third quarter of fiscal 2025, compared to $0.6 million in the third quarter of fiscal 2024. The shift in revenue composition reflects the dynamic nature of global trade and the company's strategic focus.
The following table presents the disaggregation of revenues by customer geographic location for the three months ended March 31, 2025 and 2024:
Revenues by Customer Geographic Location (Unaudited)
For the three months ended
March 31,
----------------------------------------------
2025 2024
-------------------- --------------------
% of % of Amount Percentage
total total Increase Increase
Revenues Amount Revenues Amount Revenues (Decrease) (Decrease)
--------------------- ---------- -------- ---------- -------- ----------- ----------
Revenue from
cross-border
freight solutions
Asia-based customers $2,851,137 75.0% 3,822,169 85.7% $ (971,032) (25.4)%
U.S.-based customers 454,727 12.0% 638,594 14.3% (183,867) (28.8)%
--------- -------- --------- -------- ---------- ----------
3,305,864 87.0% 4,460,763 100.0% (1,154,899) (25.9)%
Revenue from
distribution of
pharmaceuticals
Asia-based customers 497,276 13.0% - - 497,276 N/A
--------- -------- --------- -------- ---------- ----------
Total revenues $3,803,140 100.0% $4,460,763 100.0% $ (657,623) (14.7)%
========= ======== ========= ======== ========== ==========
For the nine months ended March 31, 2025, revenues from Asia-based customers totaled $9.1 million, an increase from $8.1 million in the corresponding period of fiscal 2024. This growth highlights the continued demand from our Asia-based clientele. Revenues from U.S.-based customers for the nine-month period were $2.4 million, compared to $5.4 million in the prior year period, reflecting strategic adjustments in customer focus and market conditions.
The following table presents the disaggregation of revenues by customer geographic location for the nine months ended March 31, 2025 and 2024:
For the nine months ended
March 31,
------------------------------------------------
2025 2024
--------------------- ---------------------
% of % of Amount Percentage
total total Increase Increase
Revenues Amount Revenues Amount Revenues (Decrease) (Decrease)
--------------------- ----------- -------- ----------- -------- ----------- ----------
Revenue from
cross-border
freight solutions
Asia-based customers $ 8,410,974 73.3% $ 8,119,136 60.0% $ 291,838 3.6%
U.S.-based customers 2,353,947 20.5% 5,406,206 40.0% (3,052,259) (56.5)%
---------- -------- ---------- -------- ---------- ----------
10,764,921 93.8% 13,525,342 100.0% (2,760,422) (20.4)%
Revenue from
distribution of
pharmaceuticals
Asia-based customers 715,362 6.2% - - 715,362 N/A
---------- -------- ---------- -------- ---------- ----------
Total revenues $11,480,283 100.0% $13,525,342 100.0% $(2,045,060) (15.1)%
========== ======== ========== ======== ========== ==========
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 Thursday, May 22 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: 13753971 or 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., 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. The Company routinely updates important information on its website.
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: matthew@strategic-ir.com
(tables follow)
LAKESIDE HOLDING LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2025 AND JUNE 30, 2024
(UNAUDITED)
As of As of
March 31, June 30,
2025 2024
----------- ----------
(unaudited) (audited)
----------- ----------
ASSETS
CURRENT ASSETS
Cash $ 1,499,257 $ 123,550
Accounts receivable -- third parties,
net 1,397,499 2,082,152
Accounts receivable -- related party,
net 306,295 763,285
Prepayment and other receivable 91,426 -
Contract assets 71,331 129,506
Inventories, net 216,489 -
Due from related parties 856,570 441,279
Loan to a third party 573,546 -
---------- ---------
Total current assets 5,012,413 3,539,772
---------- ---------
NON-CURRENT ASSETS
Investment in other entity 15,741 15,741
Property and equipment at cost, net
of accumulated depreciation 533,993 344,883
Intangible asset, net 386,811 -
Right of use operating lease assets 3,619,138 3,471,172
Right of use financing lease assets 102,398 37,476
Deferred tax asset - 89,581
Deferred offering costs - 1,492,798
Deposit and prepayment 269,269 202,336
---------- ---------
Total non-current assets 4,927,350 5,653,987
---------- ---------
TOTAL ASSETS $ 9,939,763 $9,193,759
---------- ---------
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payables -- third parties $ 1,577,044 $1,161,858
Accounts payables -- related parties 68,895 227,722
Accrued liabilities and other
payables 1,448,588 1,335,804
Current portion of obligations under
operating leases 2,389,965 1,186,809
Current portion of obligations under
financing leases 48,617 37,619
Loans payable, current 617,682 746,962
Contract liabilities 42,168 -
Dividend payable - 98,850
Tax payable 106,433 79,825
Due to shareholders - 1,018,281
Convertible notes - current 484,541
---------- ---------
Total current liabilities 6,783,933 5,893,730
---------- ---------
NON-CURRENT LIABILITIES
Loans payable, non-current 156,509 136,375
Loan payable to related party 124,176
Deferred tax liabilities 96,703 -
Obligations under operating leases,
non-current 1,815,211 2,506,402
Obligations under financing leases,
non-current 72,651 17,460
Convertible note - non-current 140,792
---------- ---------
Total non-current liabilities 2,406,042 2,660,237
---------- ---------
TOTAL LIABILITIES $ 9,189,975 $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 March 31, 2025 and
June 30, 2024, respectively 750 600
Subscription receivable - $(600.SI)$ Additional paid-in capital 5,113,511 642,639 Statutory reserve 7,014 - Deficits (4,365,856) (5,819) Accumulated other comprehensive income (5,631) 2,972 Total equity 749,788 639,792 ---------- --------- TOTAL LIABILITIES AND EQUITY $ 9,939,763 $9,193,759 ---------- --------- LAKESIDE HOLDING LIMITED CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 2025 AND 2024 (UNAUDITED) Nine Months Ended Three Months Ended March 31, March 31, ------------------------- ------------------------ 2025 2024 2025 2024 ----------- ----------- ----------- ---------- Revenue from cross-border freight solutions -- third party $ 9,559,567 $12,457,709 $ 2,857,504 $3,817,726 Revenue from cross-border freight solutions -- related parties 1,205,354 1,067,633 448,360 643,037 Revenue from distribution of pharmaceutical products -- third parties 715,362 - 497,276 - ---------- ---------- ---------- --------- Total revenue 11,480,283 13,525,342 3,803,140 4,460,763 ---------- ---------- ---------- --------- Cost of revenue from cross-border freight solutions -- third party 8,756,778 9,367,882 2,602,784 3,038,232 Cost of revenue from cross-border freight solutions -- related party 1,286,380 1,469,845 365,330 446,968 Cost of revenue from pharmaceutical products -- third parties 240,966 - 119,175 - ---------- ---------- ---------- --------- Total cost of revenue 10,284,124 10,837,727 3,087,289 3,485,199 ---------- ---------- ---------- --------- Gross profit 1,196,159 2,687,615 715,851 975,564 ---------- ---------- ---------- --------- Operating expenses: Selling expenses 158,118 - 103,630 - General and administrative expenses 5,429,398 2,803,311 1,680,339 962,481 Loss from deconsolidation of a subsidiary - 73,151 - - Provision (reversal) of allowance for expected credit loss 8,021 22,198 6,065 (27,393) ---------- ---------- ---------- --------- Total operating expenses 5,595,537 2,898,660 1,790,034 935,088 ---------- ---------- ---------- --------- (Loss) income from operations (4,399,378) (211,045) (1,074,183) 40,476 ---------- ---------- ---------- --------- Other income Other income, net 310,796 190,887 109,255 102,438 Interest expense (156,266) (79,400) (87,274) (25,536) ---------- ---------- ---------- --------- Total other income 154,530 111,487 21,981 76,902 ---------- ---------- ---------- --------- (Loss) income before income taxes (4,244,848) (99,558) (1,052,202) 117,378 Income tax expense 108,175 130,735 18,594 104,610 ---------- ---------- ---------- --------- Net (loss) income (4,353,023) (230,293) (1,070,796) 12,768 Less: net loss attributable to non-controlling interest - (3,025) - - ---------- ---------- ---------- --------- Net (loss) income attributable to the Company (4,353,023) (227,268) (1,070,796) 12,768 Other comprehensive (loss) income: Foreign currency translation (loss) income (8,603) 3,122 3,583 - ---------- ---------- ---------- --------- Comprehensive (loss) income (4,361,626) (227,171) (1,067,213) 12,768 Less: comprehensive loss attributable to non-controlling interest - (3,119) - - ---------- ---------- ---------- --------- Comprehensive (loss) income attributable to the Company $(4,361,626) $ (224,052) $(1,067,213) $ 12,768 ========== ========== ========== ========= Loss per share -- basic and diluted $ (0.58) $ (0.04) $ (0.14) $ - ========== ========== ========== ========= 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 FOR THE NINE MONTHS ENDED MARCH 31, 2025 AND 2024 (UNAUDITED) For the Nine Months Ended March 31, ----------------------------- 2025 2024 ---------------- ---------- Cash flows from operating activities: Net loss $ (4,353,023) $ (230,293) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation -- G&A 86,413 53,985 Depreciation -- cost of revenue 62,441 54,493 Amortization of intangible asset 32,056 - Amortization and interest expense of operating lease assets 1,515,688 658,713 Depreciation of right-of-use finance assets 24,081 22,548 Provision of allowance for expected credit loss 8,021 22,198 Interest expense of convertible note 40,541 - Deferred tax expense 81,567 36,264 Interest income (11,645) - Loss from derecognition of shares in subsidiary - 73,151 Changes in operating assets and liabilities: Accounts receivable -- third parties 666,858 (283,936) Accounts receivable -- related parties 466,764 (565,824) Contract assets 58,175 (58,498) Inventories, net (216,489) - Due from related parties (41,230) 212,342 Due to related party - 14,536 Prepayment and other deposit (158,359) 2,623 Accounts payables -- third parties 415,186 493,085 Accounts payables -- related parties (158,827) 57,420 Contract liabilities 42,168 - Accrued expense and other payables 393,633 111,122 Tax payable 26,608 94,471 Operating lease liabilities (1,151,931) (606,756) ------------ --------- Net cash (used in) provided by operating activities (2,171,304) 161,644 ------------ --------- Cash flows from investing activities: Purchase of furniture and equipment (36,072) - Payment for leasehold improvement (76,456) - Net cash payment for asset acquisition (552,721) - Loan to a third party (561,901) - 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 (1,227,150) (78,799) ------------ --------- Cash flows from financing activities: Proceeds from loans 294,975 225,000 Repayment of loans (420,765) (200,132) Net proceeds from issuance of convertible notes 755,512 - Proceeds from a loan from a related party 124,176 - Repayment of equipment and vehicle loans (85,591) (89,802)
Principal payment of finance lease
liabilities (22,814) (21,485)
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 -
Advances to related parties (685,247) -
Proceeds from shareholders - 158,455
Repayment to shareholders (805,345) -
------------ ---------
Net cash provided by (used in)
financing activities 4,782,547 (67,964)
------------ ---------
Effect of exchange rate changes on
cash (8,386) 3,216
------------ ---------
Net increase in cash 1,375,707 18,097
Cash, beginning of the period 123,550 174,018
------------ ---------
Cash, end of the period $ 1,499,257 $ 192,115
============ =========
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION:
Cash paid for income tax $ - $ -
============ =========
Cash paid for interest $ 67,704 $ 24,030
============ =========
SUPPLEMENTAL SCHEDULE OF NON-CASH
IN INVESTING AND FINANCING
ACTIVITIES
Deferred offering costs within due
to shareholders $ - $ 660,826
============ =========
Deferred offering costs within
accrued expense and other
payables $ - $ 176,176
============ =========
Property additions included in
loan payable $ 102,235 -
============ =========
Additions to leasehold improvement
through accounts payable and
other payable $ 123,176 -
============ =========
Due to shareholder offset against
due from related parties $ 311,185 -
============ =========
NON-CASH ACTIVITIES
Right of use assets obtained in
exchange for operating lease
obligations $ 1,447,494 $ -
============ =========
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)
=========
(END) Dow Jones Newswires
May 15, 2025 15:52 ET (19:52 GMT)
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