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

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    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: matthew@strategic-ir.com

    *** tables follow ***

    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)

    $

    —

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