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

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:

• Toll-free dial-in number: [phone]
• International dial-in number: + 1-201-493-6779
• Webcast and replay: https://viavid.webcasts.com/starthere.jsp?ei=1691867&tp_key=a2ac91e949

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: [phone]
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