Singularity Future Technology Reports Significant Revenue Decline and Leadership Changes

Singularity Future Technology Ltd. reported a significant decline in financial performance for the three and six months ended December 31, 2024, compared to the same periods in 2023. The company generated net revenues of $474,624 for the three months, a decrease of approximately 50.6% from $961,240 in the prior year. For the six-month period, revenues fell by 47.4% to $976,026 from $1,857,166. The gross profit for the latest quarter was $10,524, contrasting with a gross loss of $15,636 in the previous year, while the gross margin improved to 2.2% from a negative margin of 1.6%.

The company's operating loss for the three months ended December 31, 2024, was $684,507, a notable improvement from a loss of $1,224,433 in the same quarter of 2023. The net loss attributable to shareholders was $327,797, down from $1,110,729 a year earlier. For the six months, the net loss was $1,289,586, compared to $3,400,914 in the prior year. The comprehensive loss attributable to shareholders also decreased to $229,174 from $1,257,327.

Operationally, Singularity Future Technology has undergone significant changes, including the termination of its subsidiaries, Gorgeous Trading Ltd. and Brilliant Warehouse Service Inc., as of July 31, 2024. The company has shifted its focus primarily to freight logistics services, which include shipping and warehouse services. As of December 31, 2024, the company reported total current assets of $18,888,235, an increase from $18,247,523 at the end of June 2024. However, current liabilities rose to $7,189,282 from $5,343,001, resulting in a working capital decrease of 9.3%.

The company has also seen changes in its leadership, with the resignation of CEO Ziyun Liu in November 2024, followed by the appointment of Jia Yang as the new CEO. The company continues to face challenges, including reliance on a limited number of major customers, with one customer accounting for 100% of revenues in the latest quarter. The company has acknowledged the impact of market conditions and operational decisions on its financial results, particularly in the context of its logistics services.

Looking ahead, Singularity Future Technology aims to stabilize its operations and improve financial performance. The company has expressed intentions to enhance its internal controls and governance structures to address previous weaknesses. Management believes that the current working capital is sufficient to support operations and debt obligations for the next twelve months, despite the ongoing challenges in the logistics sector and the broader economic environment.