EX-99.1 2 ea024227801ex99-1_armlogi.htm PRESS RELEASE DATED MAY 14, 2025

Exhibit 99.1

 

 

Armlogi Holding Corp. Announces Fiscal 2025 Third Quarter and Nine-Month Results

 

WALNUT, CA, May 14, 2025 - 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.”

 

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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)

 

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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,
2025		   June 30,
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 

 

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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 Months
Ended
March 31,
2025		   Three Months
Ended
March 31,
2024		   Nine Months
Ended
March 31,
2025		   Nine Months
Ended
March 31,
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 

 

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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
Nine Months
Ended
March 31,
2025		   For The
Nine Months
Ended
March 31,
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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