Linkage Global Inc Announces First Half 2025 Financial Results
Linkage Global Inc (LGCB) reported challenging financial results for H1 2025, with total revenues declining 27.02% to $3.50 million from $4.80 million in H1 2024. Despite revenue decline, gross profit increased significantly by 280.57% to $2.70 million, driven by the company's strategic pivot to fully managed e-commerce services.
The company's traditional cross-border sales dropped sharply by 82.35% to $0.80 million, while integrated e-commerce services surged by 930.08% to $2.70 million. Operating expenses increased 91.01% to $4.34 million, primarily due to higher administrative costs. The net loss widened by 119.62% to $3.09 million, impacted by significant interest expenses from a $10 million convertible bond issuance with a 42.52% interest rate.
Linkage Global Inc (LGCB) ha riportato risultati finanziari difficili per il primo semestre del 2025, con un calo dei ricavi totali del 27,02%, scesi a 3,50 milioni di dollari rispetto ai 4,80 milioni di dollari del primo semestre 2024. Nonostante la diminuzione dei ricavi, il profitto lordo è aumentato significativamente del 280,57%, raggiungendo 2,70 milioni di dollari, grazie alla strategica transizione dell'azienda verso servizi di e-commerce completamente gestiti.
Le vendite tradizionali transfrontaliere dell'azienda sono diminuite drasticamente dell'82,35%, attestandosi a 0,80 milioni di dollari, mentre i servizi integrati di e-commerce sono cresciuti del 930,08%, arrivando a 2,70 milioni di dollari. Le spese operative sono aumentate del 91,01%, raggiungendo 4,34 milioni di dollari, principalmente a causa di maggiori costi amministrativi. La perdita netta si è ampliata del 119,62%, arrivando a 3,09 milioni di dollari, influenzata da significative spese per interessi derivanti dall'emissione di un'obbligazione convertibile da 10 milioni di dollari con un tasso di interesse del 42,52%.
Linkage Global Inc (LGCB) reportó resultados financieros desafiantes para el primer semestre de 2025, con ingresos totales que disminuyeron un 27,02%, alcanzando 3,50 millones de dólares desde 4,80 millones en el primer semestre de 2024. A pesar de la caída en ingresos, la ganancia bruta aumentó significativamente un 280,57%, llegando a 2,70 millones de dólares, impulsada por el cambio estratégico de la compañía hacia servicios de comercio electrónico completamente gestionados.
Las ventas tradicionales transfronterizas de la empresa cayeron bruscamente un 82,35%, hasta 0,80 millones de dólares, mientras que los servicios integrados de comercio electrónico se dispararon un 930,08%, alcanzando 2,70 millones de dólares. Los gastos operativos aumentaron un 91,01%, llegando a 4,34 millones de dólares, principalmente debido a mayores costos administrativos. La pérdida neta se amplió un 119,62%, situándose en 3,09 millones de dólares, afectada por significativos gastos por intereses derivados de la emisión de un bono convertible de 10 millones de dólares con una tasa de interés del 42,52%.
Linkage Global Inc (LGCB)는 2025년 상반기 어려운 재무 실적을 보고했으며, 총 수익은 2024년 상반기 480만 달러에서 27.02% 감소한 350만 달러를 기록했습니다. 수익 감소에도 불구하고, 회사가 완전 관리형 전자상거래 서비스로 전략을 전환함에 따라 총이익은 280.57% 크게 증가하여 270만 달러에 달했습니다.
회사의 전통적인 국경 간 판매는 82.35% 급감하여 80만 달러에 그쳤으나, 통합 전자상거래 서비스는 930.08% 급증하여 270만 달러를 기록했습니다. 운영 비용은 주로 관리 비용 증가로 인해 91.01% 상승하여 434만 달러에 이르렀습니다. 순손실은 119.62% 확대되어 309만 달러에 달했으며, 42.52% 이자율의 1000만 달러 전환사채 발행으로 인한 상당한 이자 비용이 영향을 미쳤습니다.
Linkage Global Inc (LGCB) a annoncé des résultats financiers difficiles pour le premier semestre 2025, avec un chiffre d'affaires total en baisse de 27,02 % à 3,50 millions de dollars contre 4,80 millions de dollars au premier semestre 2024. Malgré la baisse du chiffre d'affaires, la marge brute a augmenté de manière significative de 280,57 %, atteignant 2,70 millions de dollars, portée par le virage stratégique de l'entreprise vers des services de commerce électronique entièrement gérés.
Les ventes transfrontalières traditionnelles de l'entreprise ont chuté de 82,35 % pour s'établir à 0,80 million de dollars, tandis que les services intégrés de commerce électronique ont bondi de 930,08 % pour atteindre 2,70 millions de dollars. Les dépenses d'exploitation ont augmenté de 91,01 %, atteignant 4,34 millions de dollars, principalement en raison de coûts administratifs plus élevés. La perte nette s'est creusée de 119,62 % pour atteindre 3,09 millions de dollars, impactée par des charges d'intérêts importantes liées à l'émission d'une obligation convertible de 10 millions de dollars avec un taux d'intérêt de 42,52 %.
Linkage Global Inc (LGCB) meldete herausfordernde Finanzergebnisse für das erste Halbjahr 2025, wobei die Gesamterlöse um 27,02 % auf 3,50 Millionen US-Dollar von 4,80 Millionen US-Dollar im ersten Halbjahr 2024 zurückgingen. Trotz des Umsatzrückgangs stieg der Bruttogewinn deutlich um 280,57 % auf 2,70 Millionen US-Dollar, angetrieben durch die strategische Neuausrichtung des Unternehmens auf vollständig verwaltete E-Commerce-Dienstleistungen.
Die traditionellen grenzüberschreitenden Verkäufe des Unternehmens sanken stark um 82,35 % auf 0,80 Millionen US-Dollar, während die integrierten E-Commerce-Dienstleistungen um 930,08 % auf 2,70 Millionen US-Dollar explodierten. Die Betriebskosten stiegen um 91,01 % auf 4,34 Millionen US-Dollar, hauptsächlich aufgrund höherer Verwaltungskosten. Der Nettoverlust vergrößerte sich um 119,62 % auf 3,09 Millionen US-Dollar, beeinflusst durch erhebliche Zinsaufwendungen aus der Ausgabe einer Wandelanleihe über 10 Millionen US-Dollar mit einem Zinssatz von 42,52 %.
- None.
- Total revenue declined 27.02% to $3.50 million
- Net loss widened 119.62% to $3.09 million
- Cross-border sales dropped 82.35% to $0.80 million
- Operating expenses increased 91.01% to $4.34 million
- High interest expenses of $1.50 million from convertible bonds with 42.52% interest rate
Insights
Linkage Global's losses doubled despite gross profit gains, driven by high interest expenses and shift to higher-margin services.
Linkage Global's financial results paint a concerning picture despite some positive developments. While total revenues declined
However, this transition hasn't yet translated to bottom-line improvement. Net losses more than doubled to
The company's Japanese subsidiary EXTEND is struggling with an
The
TOKYO, July 03, 2025 (GLOBE NEWSWIRE) -- Linkage Global Inc (“Linkage Cayman”, or the “Company”), a cross-border e-commerce integrated services provider headquartered in Japan, today announced its unaudited financial results for the six months ended March 31, 2025.
First Half 2025 Selected Financial Metrics
- Total revenues decreased by approximately
$1.30 million to approximately$3.50 million for the six months ended March 31, 2025, compared to approximately$4.80 million for the same period of 2024. - Gross profit increased by approximately
$1.99 million to$2.70 million for the six months ended March 31, 2025, from approximately$0.71 million for the same period of 2024. Cross-border sales margin improved from12.70% to21.31% , while integrated e-commerce services margin rose from50.67% to93.56% during the same period. - Net loss increased from approximately
$1.41 million for the six months ended March 31, 2024 to approximately$3.09 million for the six months ended March 31, 2025.
First Half 2025 Financial Results
Revenues
Total revenues declined by approximately
Revenues from cross-border sales fell by approximately
Revenues from Integrated e-commerce services surged by
Revenues from digital marketing dropped from approximately
Cost of Revenues
Cost of revenues fell
Gross Profit
Gross profit increased by approximately
Operating Expenses
Operating expenses rose by
Selling and marketing expenses dropped
Research and development expenses declined
Other Expenses
Other expenses mainly include non-operating income and interest expenses, net. Non-operating income rose from
Income Tax (Provision)/Benefit
Income tax (provision) /benefit decreased by approximately
Net Loss
As a result, net loss increased by approximately
About Linkage Global Inc
Linkage Global Inc is a holding company incorporated in the Cayman Islands with no operations of its own. Linkage Cayman conducts its operations through its operating subsidiaries in Japan, Hong Kong, and mainland China. As a cross-border e-commerce integrated services provider headquartered in Japan, through its operating subsidiaries, the Company has developed a comprehensive service system comprised of two lines of business complementary to each other, including (i) cross-border sales and (ii) integrated e-commerce services. For more information, please visit www.linkagecc.com.
Safe Harbor Statement
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “assesses,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s annual reports on Form 20-F and other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
Investor Relations
WFS Investor Relations Inc.
Connie Kang, Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742
| Linkage Global Inc UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2025 AND SEPTEMBER 30, 2024 (In U.S. dollars, except for share and per share data, or otherwise noted) | ||||||||
| As of March 31, 2025 | As of September 30, 2024 | |||||||
| USD | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | 328,081 | 2,000,732 | ||||||
| Accounts receivable, net | 6,405,486 | 6,302,696 | ||||||
| Inventories, net | 35,675 | 66,331 | ||||||
| Deposits paid to media platforms | — | 482,650 | ||||||
| Prepaid expenses and other current assets, net | 1,625,517 | 2,689,581 | ||||||
| Amount due from related parties | 1,243,450 | — | ||||||
| Short-term loan to third party | 8,993,306 | 410,000 | ||||||
| Interest receivable from loan to third party | 386,261 | — | ||||||
| Total current assets | 19,017,776 | 11,951,990 | ||||||
| Non-current assets | ||||||||
| Property and equipment, net | 50,594 | 85,807 | ||||||
| Right-of-use assets, net | 516,167 | 653,730 | ||||||
| Total non-current assets | 566,761 | 739,537 | ||||||
| TOTAL ASSETS | 19,584,537 | 12,691,527 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | 324,069 | 624,723 | ||||||
| Accrued expenses and other current liabilities | 303,413 | 236,813 | ||||||
| Short-term debts | — | 32,810 | ||||||
| Current portion of long-term debts | 243,557 | 428,702 | ||||||
| Contract liabilities | 208,483 | 533,625 | ||||||
| Amounts due to related parties | — | 314,544 | ||||||
| Lease liabilities - current | 203,600 | 231,978 | ||||||
| Convertible notes | 7,884,325 | 964,865 | ||||||
| Interest payable of convertible notes | 1,555,689 | — | ||||||
| Income tax payable | 850,866 | 1,017,619 | ||||||
| Total current liabilities | 11,574,002 | 4,385,679 | ||||||
| Non-current liabilities | ||||||||
| Long-term debts | 734,023 | 839,560 | ||||||
| Lease liabilities – non-current | 334,973 | 441,504 | ||||||
| Total non-current liabilities | 1,068,996 | 1,281,064 | ||||||
| Total liabilities | 12,642,998 | 5,666,743 | ||||||
| Commitments and contingencies (Note 21) | ||||||||
| Shareholders’ equity | ||||||||
| Class A ordinary shares (par value of US | 7,700 | 5,375 | ||||||
| Class B ordinary shares (par value of US | 1,750 | — | ||||||
| Additional paid in capital | 8,564,021 | 5,591,596 | ||||||
| Treasury Shares | (500 | ) | — | |||||
| Statutory reserve | 11,348 | 11,348 | ||||||
| Retained earnings | (1,474,142 | ) | 1,613,217 | |||||
| Accumulated other comprehensive loss | (168,638 | ) | (196,752 | ) | ||||
| Total shareholders’ equity | 6,941,539 | 7,024,784 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 19,584,537 | 12,691,527 | ||||||
| Linkage Global Inc UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024 (In U.S. dollars, except for share and per share data, or otherwise noted) | ||||||||
| For the six months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| USD | ||||||||
| Revenues | 3,501,947 | 4,798,363 | ||||||
| Cost of revenues | (804,142 | ) | (4,089,486 | ) | ||||
| Gross profit | 2,697,805 | 708,877 | ||||||
| Operating expenses | ||||||||
| General and administrative expenses | (3,904,027 | ) | (1,743,309 | ) | ||||
| Selling and marketing expenses | (157,637 | ) | (228,956 | ) | ||||
| Research and development expenses | (274,371 | ) | (297,811 | ) | ||||
| Total operating expenses | (4,336,035 | ) | (2,270,076 | ) | ||||
| Operating loss | (1,638,230 | ) | (1,561,199 | ) | ||||
| Other expenses | ||||||||
| Interest expenses, net | (1,496,504 | ) | (60,726 | ) | ||||
| Other non-operating income | 387,816 | 998 | ||||||
| Total other expenses | (1,108,688 | ) | (59,728 | ) | ||||
| Loss before income taxes | (2,746,918 | ) | (1,620,927 | ) | ||||
| Income tax (provision)/ benefit | (340,441 | ) | 215,161 | |||||
| Net loss | (3,087,359 | ) | (1,405,766 | ) | ||||
| Net loss attributable to the Company’s ordinary shareholders | (3,087,359 | ) | — | |||||
| Other comprehensive income/(loss) | ||||||||
| Foreign currency translation adjustment | 28,114 | (10,107 | ) | |||||
| Total comprehensive loss attributable to the Company’s ordinary shareholders | (3,059,245 | ) | (1,415,873 | ) | ||||
| Loss per ordinary share attributable to ordinary shareholders | ||||||||
| Basic and Diluted* | (0.90 | ) | (0.67 | ) | ||||
| Weighted average number of ordinary shares outstanding | ||||||||
| Basic and Diluted* | 3,415,533 | 2,084,890 | ||||||
| Linkage Global Inc UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024 (In U.S. dollars, except for share and per share data, or otherwise noted) | ||||||||
| For the six months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| USD | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | (3,087,359 | ) | (1,405,766 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Effect of exchange rate changes | 202,551 | 1,184 | ||||||
| Allowance for credit loss | 1,344,218 | 568,229 | ||||||
| Interest payable of convertible notes | 1,555,689 | — | ||||||
| Interest receivable from loan to third party | (386,261 | ) | — | |||||
| Stock-Based Compensation | 1,209,000 | — | ||||||
| Depreciation | 22,205 | 40,959 | ||||||
| Amortization of lease right-of-use assets | 114,791 | 110,229 | ||||||
| Inventory provision | 4,328 | 2,203 | ||||||
| Deferred tax benefits | — | (216,713 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (1,649,559 | ) | (725,166 | ) | ||||
| Prepaid expenses and other current assets, net | (261,232 | ) | (3,233,957 | ) | ||||
| Inventories, net | 26,328 | 539,517 | ||||||
| Accounts payable | (300,654 | ) | (320,628 | ) | ||||
| Contract liabilities | (325,142 | ) | 25,350 | |||||
| Accrued expenses and other current liabilities | 66,600 | (5,188 | ) | |||||
| Amounts due from related parties | 341,426 | — | ||||||
| Amounts due to related parties | (314,238 | ) | (16,189 | ) | ||||
| Tax payable | (166,753 | ) | 928,135 | |||||
| Operating lease liabilities | (134,909 | ) | (103,326 | ) | ||||
| Net cash used in operating activities | (1,738,971 | ) | (3,811,127 | ) | ||||
| Cash flow from investing activities | ||||||||
| Repayments of loan to a related party | (99,876 | ) | — | |||||
| Loan to third party | (8,640,000 | ) | — | |||||
| Net cash used in investing activities | (8,739,876 | ) | — | |||||
| Cash flow from financing activities | ||||||||
| Proceeds from issuance of Class A ordinary shares upon the completion of IPO | — | 5,356,792 | ||||||
| Proceeds from Issuance of convertible notes | 9,002,368 | — | ||||||
| Proceeds from short-term debts | — | 132,258 | ||||||
| Repayments of short-term debts | (32,810 | ) | (33,726 | ) | ||||
| Repayments of long-term debts | (124,959 | ) | (179,420 | ) | ||||
| Repayments of other long-term debts | (108,037 | ) | (878,962 | ) | ||||
| Payments of listing expenses | — | (150,606 | ) | |||||
| Net cash provided by financing activities | 8,736,562 | 4,246,336 | ||||||
| Effect of exchange rate changes | 69,634 | (58,969 | ) | |||||
| Net change in cash and cash equivalents | (1,672,651 | ) | 376,240 | |||||
| Cash and cash equivalents, beginning of the period | 2,000,732 | 1,107,480 | ||||||
| Cash and cash equivalents, end of the period | 328,081 | 1,483,720 | ||||||
| Supplemental disclosures of cash flow information: | ||||||||
| Income tax paid | — | 150,124 | ||||||
| Interest expense paid | 33,056 | 65,901 | ||||||
| Supplemental disclosures of non-cash activities: | ||||||||
| Obtaining right-of-use assets in exchange for operating lease liabilities | 155,160 | 147,083 | ||||||
FAQ
What were Linkage Global's (LGCB) key financial results for H1 2025?
How did Linkage Global's business segments perform in H1 2025?
What caused the increase in Linkage Global's net loss for H1 2025?
How has Linkage Global's business strategy changed in 2025?
What were the main factors affecting LGCB's operating expenses in H1 2025?
