Lakeside Holding Limited Reports 15.1% Revenue Decline and Increased Net Loss for Nine Months Ending March 31, 2025

Lakeside Holding Limited reported a significant decline in financial performance for the nine months ending March 31, 2025, with total revenues of $11.5 million, down 15.1% from $13.5 million in the same period the previous year. The company experienced a net loss of $4.4 million, compared to a loss of $0.2 million in the prior year. For the third quarter alone, revenues fell to $3.8 million from $4.5 million, while the net loss deepened to $1.1 million from a profit of $12,768 in the same quarter of 2024. The decrease in revenue was primarily attributed to reduced volumes in cross-border freight solutions, particularly in airfreight, amid a challenging economic environment and increased competition.

In terms of operational metrics, Lakeside's gross profit for the nine-month period was $1.2 million, a sharp decline from $2.7 million the previous year, reflecting a gross margin of 10.4% compared to 19.9%. The company’s cost of revenue also decreased to $10.3 million from $10.8 million, driven by lower transportation and delivery costs, as well as reduced warehouse service charges. However, overhead costs increased significantly, impacting overall profitability. The company has also expanded its service offerings, generating $0.7 million in revenue from pharmaceutical product distribution, a new segment initiated in December 2024.

Strategically, Lakeside has made notable changes, including the acquisition of Hupan Pharmaceutical, which was completed in November 2024 for approximately $552,730. This acquisition is expected to enhance Lakeside's capabilities in the pharmaceutical distribution sector. The company has also expanded its workforce to support this new business line, contributing to a rise in general and administrative expenses, which increased by 93.7% to $5.4 million for the nine months ended March 31, 2025.

As of March 31, 2025, Lakeside reported total assets of $9.9 million, up from $9.2 million at the end of the previous fiscal year, with current liabilities also increasing to $6.8 million from $5.9 million. The company’s cash position improved significantly, ending the period with $1.5 million compared to $0.1 million at the end of June 2024. However, the company continues to face challenges, including a working capital deficit of approximately $1.7 million and an accumulated deficit of $4.4 million.

Looking ahead, Lakeside Holding Limited anticipates continued revenue challenges due to ongoing economic uncertainties and regulatory changes affecting cross-border trade. The company plans to focus on expanding its customer base and enhancing service quality while managing costs effectively. The management remains optimistic about leveraging its new pharmaceutical distribution segment to drive future growth, despite the current headwinds in the logistics and freight forwarding industry.