EX-99.1 2 ea024241601ex99-1_lakeside.htm PRESS RELEASE - LAKESIDE HOLDING PROVIDES THIRD QUARTER OF FISCAL YEAR 2025 RESULTS

Exhibit 99.1

 

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): 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).

 

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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         
Revenues  Amount   % of
total
Revenues		   Amount   % of
total
Revenues		   Amount
Increase
(Decrease)		   Percentage
Increase
(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)%

 

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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         
Revenues  Amount   % of
total
Revenues		   Amount   % of
total
Revenues		   Amount
Increase
(Decrease)		   Percentage
Increase
(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

 

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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)

 

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LAKESIDE HOLDING LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2025 AND JUNE 30, 2024

(UNAUDITED)

 

   As of
March 31,
2025		   As of
June 30,
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)
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 

 

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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
March 31,		   Three Months Ended
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 

 

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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)

 

 

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