Lakeside Holding Limited Reports Significant Revenue Decline and Increased Net Loss for Six Months Ended December 31, 2024

Lakeside Holding Limited reported a significant decline in financial performance for the six months ended December 31, 2024, with total revenues of $7.7 million, down from $9.1 million in the same period the previous year. The company experienced a gross profit of $480,308, a sharp decrease from $1.7 million in the prior year. For the three months ended December 31, 2024, revenues were $3.6 million, compared to $4.9 million in the same quarter of 2023, resulting in a gross loss of $42,231, contrasting with a gross profit of $1.1 million in the previous year. The decline in revenue was primarily attributed to reduced volumes in cross-border airfreight solutions and a slowdown in consumer spending.

The company’s operational metrics reflected a challenging environment, with cross-border airfreight revenues decreasing by 35.5% to $2.0 million for the three months ended December 31, 2024. Additionally, cross-border ocean freight revenues fell by 24.2% to $1.4 million. The introduction of a new revenue stream from pharmaceutical product distribution generated $218,086 in revenue during the quarter, marking a strategic expansion for the company. Lakeside's customer base included over 300 clients, with a focus on both Asia-based and U.S.-based customers, although the latter saw a significant revenue drop of 72.9%.

In terms of operational changes, Lakeside completed the acquisition of Hupan Pharmaceutical, a pharmaceutical distribution company, in November 2024, which is expected to enhance its service offerings in the healthcare sector. The company also reported an increase in general and administrative expenses, which rose to $3.7 million for the six months ended December 31, 2024, compared to $1.8 million in the prior year. This increase was driven by higher salaries, professional fees, and costs associated with operating as a public company following its IPO in July 2024.

Lakeside's balance sheet showed total assets of $9.8 million as of December 31, 2024, with current liabilities of $5.4 million, resulting in a current ratio of 0.81:1. The company reported a net loss of $3.3 million for the six months ended December 31, 2024, compared to a loss of $240,036 in the same period the previous year. The increase in losses was attributed to decreased gross profit margins and rising operational costs.

Looking ahead, Lakeside anticipates continued challenges in the competitive logistics market, particularly in light of regulatory changes affecting cross-border shipments. The company plans to focus on expanding its customer base and enhancing service quality while managing costs effectively. Despite the current downturn, Lakeside remains committed to leveraging its new pharmaceutical distribution segment and exploring further growth opportunities in the Asian market.