Lakeside Holding Reports Impressive 42% Revenue Growth for Fiscal Year 2024

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Lakeside Holding Limited

Oct 01, 2024, 08:50 ET

Cross-Border Airfreight Solutions Surge by 117%, Driving Exceptional Financial Performance

ITASCA, Ill., Oct. 1, 2024 /PRNewswire/ -- Lakeside Holding Limited ("Lakeside" or the "Company") (Nasdaq: LSH), a U.S.-based integrated cross-border supply chain solution provider with a strategic focus on the Asian market operating under the brand American Bear Logistics ("ABL"), today reported financial results for the fiscal year ended June 30, 2024.

Fiscal Year 2024 Highlights:

  • Total revenues increased by 42.3% to $18.3 million, driven by a 117.6% rise in airfreight revenues to $10.4 million, partially offset by a 2.5% decrease in ocean freight revenues to $7.9 million.
  • Cost of revenues increased by 41.6% to $14.6 million, primarily due to higher transportation costs, up 27.6% to $7.5 million; warehouse service charges, up 107.5% to $2.9 million; and custom declaration fees, up 50.2% to $2.4 million, as well as overhead costs also rose by 29.6%.
  • Gross profit increased by 44.9% to $3.7 million, with the profit margin rising slightly from 19.9% to 20.3%. This was driven by higher sales and offering a wider range of services, such as warehousing, distribution, and customs clearance, with higher mark-ups.
  • General and administrative expenses rose by 77.5% to $4.1 million, driven by increased staffing costs and higher professional fees for audit and legal services.
  • Net loss for the year ended June 30, 2024 was $0.2 million, compared with a net income of $1.0 million for the year ended June 30, 2023.

Operational Achievements:

  • In July, the Company successfully closed an upsized IPO, raising $6.75 million in gross proceeds, underscoring strong investor confidence in its growth potential.
  • The Company entered into a one-year renewable agreement in July with a leading Asia-based e-commerce platform to provide advanced cross-border fulfillment services, enhancing supply chain visibility for sellers through API integration.
  • In August, a strategic partnership was announced with a major social media and e-commerce platform to enhance customs brokerage services, offering real-time logistics data and streamlining customs clearance processes.
  • In September, a Pick & Pack Fulfillment service was launched for a major Chinese logistics company, optimizing inventory management and order processing across U.S. hubs to enhance fulfillment efficiency.
  • The Company expanded its Dallas-Fort Worth operations in September, more than doubling facility space to 46,657 sq. ft. and increasing staffing to support growing demand, while incorporating advanced logistics technology.

Management Commentary

Henry Liu, Chairman and Chief Executive Officer of Lakeside, commented, "We are pleased to report strong financial performance for fiscal year 2024, highlighted by a 42.3% increase in revenue to $18.3 million. This growth was driven primarily by the 117.6% surge in our cross-border airfreight solutions, as we capitalized on rising demand from the e-commerce sector. Expanding this segment has proven to be a key strategic move, with the volume of air freight processed doubling to over 26,000 tons this year, compared to fiscal year 2023."

"We remain committed to providing flexible and competitive services that address the evolving needs of our customers. Our continued investment in workforce expansion and service capacity has allowed us to manage growing demand while maintaining exceptional service levels. With a 44.9% increase in gross profit and improvements in our gross margin, we are excited about the growth opportunities ahead. Our recent service launches, operational expansions, and partnerships with leading e-commerce platforms solidify our position as a trusted provider of seamless, technology-driven logistics solutions, setting the stage for continued success in fiscal year 2025 and beyond," concluded Mr. Liu.

Fiscal Year 2024 Conference Call Details

The Company has scheduled a conference call and live webcast to discuss its financial results at 8:00 A.M. Eastern Time (8:00 P.M. Beijing Time) on Friday, October 4, 2024. Management will deliver prepared remarks. 

The dial-in details for the conference call are as follows:

The live audio webcast of the call can also be accessed by visiting Lakeside's Investor Relations page on the Company's website at https://lakeside-holding.com. An archive of the webcast will be available on the Company's website following the live call.

About Lakeside Holding Limited

Lakeside Holding Limited, based in Itasca, IL, is a U.S.-based integrated cross-border supply chain solution provider with a strategic focus on the Asian market, including China and South Korea. Operating under the brand American Bear Logistics, we primarily provide customized cross-border ocean freight solutions and airfreight solutions in the U.S. that specifically cater to our customers' requirements and needs in transporting goods into the U.S. We are an Asian American-owned business rooted in the U.S. with in-depth understanding of both the U.S. and Asian international trading and logistics service markets. Our customers are typically Asia- and U.S.-based logistics service companies serving large e-commerce platforms, social commerce platforms, and manufacturers to sell and transport consumer and industrial goods made in Asia into the U.S. 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: [email protected]

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LAKESIDE HOLDING LIMITED

CONSOLIDATED BALANCE SHEETS




As of



As of

June 30,

June 30,

2024

2023

ASSETS






CURRENT ASSETS






Cash


$

123,550



$

174,018

Accounts receivable – third parties, net



2,082,152




1,373,676

Accounts receivable – related party, net



763,285




44,627

Prepayment and other receivable



-




52,623

Contract assets



129,506




44,740

Due from related parties



441,279




746,130

Total current assets



3,539,772




2,435,814









NON-CURRENT ASSETS








Investment in other entity



15,741




—

Property and equipment at cost, net of accumulated depreciation



344,883




489,520

Right of use operating lease assets



3,471,172




2,271,070

Right of use financing lease assets



37,476




48,206

Deferred tax asset



89,581




—

Deferred offering costs



1,492,798




90,000

Prepayment, deposit and other receivable



202,336




137,336

Total non-current assets



5,653,987




3,036,132

TOTAL ASSETS


$

9,193,759



$

5,471,946









LIABILITIES AND EQUITY








CURRENT LIABILITIES








Accounts payables – third parties


$

1,161,858



$

462,214

Accounts payables – related parties



227,722




365,413

Accrued liabilities and other payables



1,335,804




325,701

Current portion of obligations under operating leases



1,186,809




769,782

Current portion of obligations under financing leases



37,619




42,889

Loans payable, current



746,962




586,688

Dividend payable



98,850




98,850

Tax payable



79,825




32,829

Due to shareholders



1,018,281




90,000

Total current liabilities



5,893,730




2,774,366









NON-CURRENT LIABILITIES








Loans payable, non-current



136,375




231,599

Deferred tax liability



-




24,752

Obligations under operating leases, non-current



2,506,402




1,564,633

Obligations under financing leases, non-current



17,460




21,836

Total non-current liabilities



2,660,237




1,842,820

TOTAL LIABILITIES


$

8,553,967



$

4,617,186

Commitments and Contingencies
















EQUITY








Common stocks, $0.0001 par value, 200,000,000 shares authorized,
6,000,000 and 6,000,000 issued and outstanding as of June 30, 2024
and 2023, respectively*



600




600

Subscription receivable



(600)




(600)

Additional paid-in capital



642,639




-

Accumulated other comprehensive income (loss)



2,972




(244)

(Deficits) Retained earnings



(5,819)




862,072

Total stockholders' equity



639,792




861,828









Non-controlling interests in subsidiary



-




(7,068)

Total equity



639,792




854,760

TOTAL LIABILITIES AND EQUITY


$

9,193,759



$

5,471,946

LAKESIDE HOLDING LIMITED

CONSOLIDATED STATEMENT OF INCOME (LOSS) AND COMPREHENSIVE
INCOME (LOSS)




For the Years Ended

June 30,



2024



2023

Revenue from third party


$

16,450,908



$

12,763,577

Revenue from related parties



1,864,247




109,314

Total revenue



18,315,155




12,872,891









Cost of revenue from third party



12,316,374




8,385,222

Cost of revenue from related parties



2,282,824




1,923,380

Total cost of revenue



14,599,198




10,308,602

Gross profit



3,715,957




2,564,289









Operating expenses:








Selling expense



2,500




79,822

General and administrative expenses



4,138,190




2,331,312

Loss from deconsolidation of a subsidiary



73,151




-

Provision (reversal) of allowance for expected credit loss



28,157




(93,742)

Total operating expenses



4,241,998




2,317,392









(Loss) Income from operations



(526,041)




246,897









Other income (expense):








Other income, net



338,435




885,501

Interest expense



(108,008)




(123,600)

Total other income, net



230,427




761,901









(Loss) Income before income taxes



(295,614)




1,008,798









Credit (Provision) for income taxes



67,337




(65,068)









Net (loss) income and comprehensive (loss) income



(228,277)




943,730

Net loss attributable to non-controlling interest



(3,025)




(39,872)

Net (loss) income attributable to common stockholders



(225,252)




983,602









Other comprehensive (loss) income








Foreign currency translation gain (loss)



3,122




(255)

Comprehensive (loss) income



(225,155)




943,475

Less: comprehensive loss attributable to non-controlling interest



(3,119)




(39,883)

Comprehensive (loss) income attributable to the Company


$

(222,036)



$

983,358









(Loss) earnings per share – basic and diluted


$

(0.04)



$

0.16

Weighted average shares outstanding – basic and diluted*



6,000,000




6,000,000



























For the Years Ended

June 30,



2024



2023

Pro Forma information Statement for Income Tax Provision as a






C Corporation upon Reorganization






(Loss) Income before income taxes


$

(295,614)



$

1,008,798

Credit (Provision) for income taxes



239,466




(307,683)









Net (loss) income and comprehensive (loss) income


$

(56,148)



$

701,115

Net loss attributable to non-controlling interests



(3,025)




(39,872)

Net (loss) income attributable to common stockholders



(53,123)




740,987









Other Comprehensive income (loss)








Foreign currency translation (loss) gain



3,122




(255)

Comprehensive (loss) income



(53,026)




700,860

Less: net loss attributable to non-controlling interest



(3,119)




(39,883)

Comprehensive (loss) income attributable to the Company


$

(49,907)



$

740,743

(Loss) Earnings per share – Basic and diluted*


$

(0.01)



$

0.12

Weighted Average Shares Outstanding – Basic and diluted*



6,000,000




6,000,000

LAKESIDE HOLDING LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS




For the Years Ended

June 30,



2024



2023

(Revised)

Cash flows from operating activities:






Net (loss) income


$

(228,277)



$

943,730

Adjustments to reconcile net (loss) income to net cash provided by
operating activities:








Depreciation – G&A



71,980




130,755

Depreciation – overhead cost



72,657




-

Non-cash operating lease expense



1,005,686




826,284

Depreciation of right-of-use finance assets



30,712




31,780

Provision (Reversal) of allowance for expected credit loss



28,157




(93,742)

Deferred tax (benefit) expense



(114,333)




32,239

Loss from derecognition of shares in subsidiary



73,151




—

Changes in operating assets and liabilities:








Accounts receivable – third parties



(722,522)




(506,152)

Accounts receivable – related parties



(732,769)




(28,887)

Contract assets



(84,766)




54,441

Due from related party



328,820




(579,496)

Prepayment, other deposit



(12,377)




18,672

Accounts payables – third parties



699,644




54,410

Accounts payables – related parties



(137,691)




(101,896)

Accrued expense and other payables



468,284




57,701

Tax payable



46,996




32,829

Lease liabilities – Operating lease



(846,992)




(833,365)

Net cash (used in) provided by operating activities



(53,640)




39,303









Cash flows from investing activities:








Payment made for investment in other entity



(29,906)




—

Net cash outflow from deconsolidation of a subsidiary
 (Appendix A)



(48,893)




—

Acquisition of property and equipment



—




(18,288)

Net cash used in investing activities



(78,799)




(18,288)









Cash flows from financing activities:








Proceeds from loans



400,000




—

Repayment of loans



(214,986)




(100,864)

Repayment of equipment and vehicle loans



(119,964)




(104,598)

Principal payment of finance lease liabilities



(29,628)




(20,640)

Payment for deferred offering cost



(170,000)




(90,000)

Advance to related parties



(23,969)




—

Proceeds from shareholders



237,302




110,550

Repayment to shareholders



—




(47,536)

Net cash provided by (used in) financing activities



78,755




(253,088)









Effect of exchange rate changes on cash and cash equivalents



3,216




32,560

Net decrease in cash



(50,468)




(199,513)

Cash, beginning of the year



174,018




373,531

Cash, end of the year


$

123,550



$

174,018









SUPPLEMENTAL DISCLOSURES OF CASH FLOW
 INFORMATION:








Cash paid for income tax


$

—



$

—

Cash paid for interest


$

31,161



$

26,474









SUPPLEMENTAL SCHEDULE OF NON-CASH IN
FINANCING ACTIVITIES








Deferred offering costs within due to shareholders


$

860,979



$

90,000

Deferred offering costs within accrued expense and other
payables


$

541,819



$

—









NON-CASH ACTIVITIES








Dividends declared


$

—



$

200,000

Dividends declared and offset against due from shareholders


$

—



$

101,150

Property and equipment additions included in loan payable


$

—



$

98,245

Right of use assets obtained in exchange for operating lease
obligations


$

2,094,498



$

124,600

Right of use assets obtained in exchange for finance lease
obligation


$

19,982



$

32,107









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)



$

—

SOURCE Lakeside Holding Limited