Lakeside Announces Fiscal 2025 Second Quarter and Six-Month Results
Rhea-AI Summary
Lakeside Holding (LSH) reported financial results for Q2 FY2025. Total revenues decreased by 31.3% to $3.4M for Q2, primarily due to reduced cross-border airfreight volumes. The company reported a gross loss of $42,231 in Q2 FY2025, compared to a gross profit of $1.1M in Q2 FY2024.
Key operational highlights include expansion of Dallas-Fort Worth facilities from 20,000 to 46,657 square feet, acquisition of Hupan Pharmaceutical for RMB 4.0M ($0.6M), and new partnerships with major e-commerce platforms. Revenues from Asia-based customers grew 29.4% in H1 FY2025, while U.S.-based customer revenues declined 60.2%.
The company reported a net loss of $1.9M for Q2 FY2025, compared to net income of $0.06M in Q2 FY2024. For H1 FY2025, net loss was $3.3M versus $0.2M loss in H1 FY2024.
Positive
- Expansion of Dallas-Fort Worth warehouse space by 133% to 46,657 square feet
- 29.4% revenue growth from Asia-based customers in H1 FY2025
- New pharmaceutical division expected to contribute $7M in annual revenue
- Secured $1.5M sales agreement with Sinopharm Holding Hubei
Negative
- 31.3% decrease in Q2 total revenues to $3.4M
- Q2 gross loss of $42,231 compared to $1.1M profit last year
- Net loss widened to $1.9M in Q2 from $0.06M profit last year
- G&A expenses increased 94.1% to $1.9M in Q2
- Air freight volume declined 45.7% to 4,459 tons in Q2
News Market Reaction
On the day this news was published, LSH declined 5.67%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
ITASCA, Ill. , Feb. 14, 2025 /PRNewswire/ -- Lakeside Holding Limited ("Lakeside" or the "Company") (Nasdaq: LSH), a
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
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
- 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), andLos 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
- Purchase price: RMB 4.0M (
- Established partnership with Sinopharm Group Hubei Co., Ltd. for:
- Essential medicine storage
- Transportation services
- Logistics services
- Signed
RMB 11.0M ($1.5M - 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
- Revenues from our cross-border airfreight solutions decreased by
$1.1 million 35.5% , from$3.1 million $2.0 million - Revenues from our cross-border ocean freight solutions decreased by
$0.4 million 24.2% , from$1.8 million $1.4 million - For the three months ended December 31, 2024, our total revenue from pharmaceutical product distribution amounted to
$0.2 million
Revenues by Customer Geographic
For the three months ended December 31, | ||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||
Revenues | Amount | % of | Amount | % of | Amount | Percentage | ||||||||||||||||||
Revenue from cross-border freight solutions | ||||||||||||||||||||||||
$ | 2,750,202 | 76.5 | % | $ | 2,602,745 | 52.9 | % | $ | 147,457 | 5.7 | % | |||||||||||||
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 | ||||||||||||||||||||||||
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 5.7% , from$2.6 million $2.8 million 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 theU.S. e-commerce market. - Revenues from
U.S. -based customers decreased by$1.7 million 72.9% , from$2.3 million $0.6 million 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 towardAsia -based e-commerce customers.
Total cost of revenues decreased by
Our overall gross loss was
Our gross margin of distribution of pharmaceuticals was
General and administrative expenses increased by
Net loss was
Financial Results for the Six Months Ending December 31, 2024:
Total revenues decreased by
- Revenues from our cross-border airfreight solutions decreased by
$1.3 million 23.4% , from$5.5 million $4.2 million - Revenues from our cross-border ocean freight solutions decreased by
$0.3 million 8.7% , from$3.5 million $3.2 million
Revenues by Customer Geographic
For the six months ended December 31, | ||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||
Revenues | Amount | % of | Amount | % of | Amount | Percentage | ||||||||||||||||||
Revenue from cross-border freight solutions | ||||||||||||||||||||||||
$ | 5,559,837 | 72.4 | % | $ | 4,296,968 | 47.4 | % | $ | 1,262,869 | 29.4 | % | |||||||||||||
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 | ||||||||||||||||||||||||
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 29.4% , from$4.3 million $5.6 million 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 theU.S. e-commerce market. - Revenues from cross-border freight solutions for the
U.S. -based customers decreased by$2.9 million 60.2% , from$4.8 million $1.9 million 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 towardAsia -based e-commerce customers.
Cost of revenues decreased by
Gross profit decreased by
General and administrative expenses increased by
Net loss was
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 at
https://viavid.webcasts.com/starthere.jsp?ei=1708554&tp_key=b4f1b10725
About Lakeside Holding Limited
Lakeside Holding Limited is a
American Bear Logistics, with strategic hubs in
Lakeside recently acquired Hupan Pharmaceutical (
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, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
(tables follow)
LAKESIDE HOLDING LIMITED | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(UNAUDITED) | ||||||||
As of (unaudited) | As of (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, | 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 | Three Months Ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenue from cross-border freight | $ | 6,702,063 | $ | 8,639,983 | $ | 3,102,276 | $ | 4,585,696 | ||||||||
Revenue from cross-border freight | 756,994 | 424,596 | 275,227 | 330,407 | ||||||||||||
Revenue from distribution of pharmaceutical | 218,086 | — | 218,086 | — | ||||||||||||
Total revenue | 7,677,143 | 9,064,579 | 3,595,589 | 4,916,103 | ||||||||||||
Cost of revenue from cross-border | 6,153,994 | 6,329,650 | 3,159,709 | 3,424,053 | ||||||||||||
Cost of revenue from cross-border | 921,050 | 1,022,877 | 356,320 | 427,541 | ||||||||||||
Cost of revenue from pharmaceutical | 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 expected | 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 to | — | (3,119) | — | — | ||||||||||||
Comprehensive (loss) income attributable | $ | (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 – | 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 | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (3,282,227) | $ | (243,061) | ||||
Adjustments to reconcile net loss to net cash provided by | ||||||||
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 | — | (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 issuance | 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 FLOW | ||||||||
Cash paid for income tax | $ | — | $ | — | ||||
Cash paid for interest | $ | 45,953 | $ | 15,503 | ||||
SUPPLEMENTAL SCHEDULE OF NON-CASH IN | ||||||||
Deferred offering costs within due to shareholders | $ | — | $ | 500,826 | ||||
Deferred offering costs within accrued expense and other | $ | — | $ | 241,176 | ||||
Additions to property and equipment included in loan | $ | 102,235 | — | |||||
Additions to leasehold improvement and furniture and | $ | 42,803 | $ | — | ||||
Settlement of due to shareholder and advance to related | $ | 311,815 | — | |||||
NON-CASH ACTIVITIES | ||||||||
Right of use assets obtained in exchange for operating lease | $ | 1,445,498 | $ | — | ||||
Right of use assets obtained in exchange for finance lease | $ | 89,003 | $ | 19,982 | ||||
APPENDIX A – Net cash outflow from deconsolidation of | ||||||||
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) | ||||||
View original content:https://www.prnewswire.com/news-releases/lakeside-announces-fiscal-2025-second-quarter-and-six-month-results-302377335.html
SOURCE Lakeside Holding Limited
FAQ
What caused LSH's revenue decline in Q2 FY2025?
How much did LSH pay for Hupan Pharmaceutical acquisition?
What was LSH's net loss for Q2 FY2025?
How much did LSH expand its Dallas-Fort Worth facility?
What was LSH's revenue growth from Asia-based customers in H1 FY2025?
